SUMMARY & CONCLUSIONS

If you had a malignant tumor, would you go to the hospital and ask to have one-third of the cancer removed? The gentlemen pictured here are doing precisely that.

Perhaps you would like to read the details of your government's plans to "reduce the deficit" in terms of one set of books. If so, click here .

At last, we come to the real deficits this country has been accumulating for the past ten years.

The following include "off budget" or "back door" expenses (the double bookkeeping).

Source: U.S. Treasury

1996 Deficit = $251 billion

($250,828,038,425.74)

Considerably different from the $107 billion President Clinton claims is putting us on the way to a balanced budget

Source: U.S. Treasury

The 1996 cost of carrying the debt was:

$343,955,076,695.15

(as of June 30, interest on the debt for 1997

is $378,132,034,280 and growing--$378 billion)

That's more than $1 billion per day folks.

Interest on the debt is killing us.

It's turning the federal government into an insurance company.

True balancing of the budget today would merely stop the problem.

Your government is not working on a true balance.

The national debt, and interest, will continut to grow with the "balanced budget" your government currently defines, a budget that ignores "off budget" and "back door" income/borrowing.

Sources: The chart on the left is taken from the Congressional Budget Office's August 1995 report "The Economic and Budget Outlook, An Update." The chart on the right is taken from the U.S. Treasury's "Financial Report to the Citizens, 1997."

NOTE: The term "mandatory" has recently changed to "entitlement" spending. Probably because the Republican "contract with America" is set to revise contracts with Americans.

Discretionary spending on agriculture, education, welfare, defense, health, and so forth, will continue to shrink without a plan to pay-down the national debt.

Without a plan, your federal government will continue to pass responsibility for these discretionary areas over to State government and will continue to come up with "let them eat cake" plans like volunteerism as attempts to get you to take up the slack. They will even blame you for the problem.

No one in current government seems to have the balls to attack the problem.

P.O.O.P. feels that, without a realistic plan to pay-down the national debt, three possibilities are inevitable.

THE INEVITABLE

DEFAULT: Without a plan to pay-down the national debt, any reasonable person must come to the conclusion that the only plan our elected officials have for handling the debt is default. As we've seen, they've already talked about it in the House . Do you know of any other plan???

It is POOP's belief that this will start with default on the nonmarketable bonds held by Trust Funds that make up a significant part of the national debt and total default will happen when the police build up occuring in this country has reached the point where it is capable of handling the dissidents and reaction that will surely ensue when millions of Americans lose their retirement savings.

REVOLT: The American people already have more reason to overthrow their current government than the first revolutionists had to overthrow the British. We have taxation without representation in the form of money taken out of trust funds we all pay into. We already have a legal system which favors the aristocracy and power elite. No one trusts their representatives. We've heard so many exposes and reports of mismangement, misuse of funds, and so forth, that we believe they are all, if not outright thieves, at least in it for what they can get. We work more months of the year to support the government than serfs worked for the feudal lords. And we have a democracy where the majority does not participate because of disgust and a sense of helplessness.

Is revolution inevitable or impossible? Groups hostile to the government are forming all over the place, but splinter groups do not a battering-ram make.

MORTGAGE: You can call any home mortgage bank or bean counter and find out what it would take to pay-down the national debt. They have computer programs that will figure it out for you in seconds. You may need to drop six zeros to put the numbers in their programs but you can always add them back in at the end.

At the current rate, May of 1997, a 30 year mortgage for $5.4 trillion at 5%, would require yearly payments of $347,860,000,000. Isn't that interesting. Only slightly more than the cost of the debt right now.

Of course, this is on the assumption that there would be no "borrowing" from trust funds or the Federal Reserve. In other words, we would allow Social Security, Civil Service Retirement, Medicare, and all other trusts to manage their own excess and invest elsewhere. Just think of what this would do for the stock market.

SUMMARY & CONCLUSIONS

At last, we come to the real deficits this country has been accumulating for the past ten years.

The following include "off budget" or "back door" expenses (the double bookkeeping).

Source: U.S. Treasury

1996 Deficit = $251 billion

($250,828,038,425.74)

Considerably different from the $107 billion President Clinton claims is putting us on the way to a balanced budget

Source: U.S. Treasury

The 1996 cost of carrying the debt was:

$343,955,076,695.15

That's more than $1 billion per day folks.

Sources: The chart on the left is taken from the Congressional Budget Office's August 1995 report "The Economic and Budget Outlook, An Update." The chart on the right is taken from the U.S. Treasury's "Financial Report to the Citizens, 1997."

Discretionary spending on agriculture, education, welfare, defense, health, and so forth, will continue to shrink without a plan to pay-down the national debt.

Without a plan, your federal government will continue to pass responsibility for these discretionary areas over to State government and will continue to come up with "let them eat cake" plans like volunteerism as attempts to get you to take up the slack. They will even blame you for the problem.

No one in current government seems to have the balls to attack the problem.

P.O.O.P. feels that, without a realistic plan to pay-down the national debt, three possibilities are inevitable.

THE INEVITABLE

DEFAULT: Without a plan to pay-down the national debt, any reasonable person must come to the conclusion that the only plan our elected officials have for handling the debt is default. As we've seen, they've already talked about it in the House . Do you know of any other plan???

Is revolution inevitable or impossible? Groups hostile to the government are forming all over the place, but splinter groups do not a battering-ram make.

At the current rate, May of 1997, a 30 year mortgage for $5.4 trillion at 5%, would require yearly payments of $347,860,000,000. Isn't that interesting. Only slightly more than the cost of the debt right now.

In short, it would be 97 billion more than we now pay in "reported" interest on the debt. It would not be easy.

What if we made it a 50 year mortgage? How about 60 years?

Do you hear anyone in government talking like this???