The visible crisis effect in the UK budget deficit made me investigate the equivalent US figures.
The historic figures show how the two world wars were financed. The current budgets contain estimates until 2015. All data is downloaded from the Government’s Printing Office.
Please click on thumbnail to enlarge.
World War I in US dollars
World War II in US dollars
The budget deficit going down
The crisis jump - but later than in the UK!
I was asked for the message that these charts paint:
- the US government seems to have financed WWI and WWII
- the budget deficit has been negligeable, except for war times
- the credit crisis made the deficit jump and continue to be way above its norm.
It’s always been unpleasant to imagine the kind of scenarios that Michel Chossudovsky, Canadian professor of economics, describes in his excellent video The Global Financial Crisis.
But the statistics of the UK Budget figures over the last 10 years paint exactly that picture, if only one has eyes to see it, it seems:
- bankruptcy of the real economy
- spiralling public debt
- centralization of corporate power
- concentration of wealth
- globalization of poverty.
Historic US budgets tell another story on top of confirming the increase in indebtedness through a rising budget deficit.
Yesterday I added this year’s budget figures to the data of the past nine years.
The trend that was set in motion by the ‘crisis’ continues:
- budget deficits are higher than ever
- while expenditure grows steadily, income is curbed
- but interest payments are steady on the rise.
In other words, endebtedness of the government to investors is increasing and ongoing – at the cost of the taxpayer and, of course the value of the currency. More and more money is a ‘legally enforcable debt’ and thus a ‘tool to control’ rather than a medium of exchange for which it was invented.
The crisis has set the trend towards increased dependency on ‘credit money’ in motion, and this year’s budget continues the development, as best indicated by the deficit:
The crisis jump of the deficit
Please click on Budgets 2001 – 2010 to see more for yourself.
And click on the graphic to see it enlarged.
The numbers refer to £bn, i.e. billions of pounds.
I always refer to money as the stuff in my pocket or on my bank account. Having lived in Geneva for many years, I was, of course, used to a lot of different currencies.
But I learned about the real difference between currencies when I discovered LETS and professional barter companies with as “private” currencies vs the “national” or “public” ones we are used to.
This article goes at length into the difference between money and currency and ends by saying “central banks erode – and in some cases destroy – the value of their currencies.
To me, that is the purchasing power of a currency. The money that I save for my pension while I’m in my twenties is worth much more than what I get when I’m old enough. That is the long term effect of compounding interest on interest via National or Public Debts that must be called a “generational crime”.
This full article is only accessible to subscribers. But the beginning gives enough away to understand how the Federal Reserve and other Western central banks create smoke and mirrors with their reporting than any truth.
Anybody still believing in the ‘goodness’ of any central bank for its country or currencyzone will hopefully begin to question and find our for themselves.
The author is one of the regular contributors to GATA – The Gold Anti-Trust Action Committee – consisting of professional investors in gold.
Now it enters people’s imagination: the possibility that the New World Order aims at one world government with “emasculated” nation states.
This article on OpEdNews.com is a good sign for the fact that people don’t understand the severity and impact of national debts:
- the continuous loss of purchasing power
- the steadily increasing dependence on banks and central banks
- the growing dependence of successive governments on more and more borrowing.
This is how, gradually, the New World Order could establish itself, aiming at more and more
- concentration of power
- centralisation of control
- governance by one world currency.
Thanks to William Shepherd:
In David DeGraw’s study of the true state of the USA entitled The Economic Elite vs. The People of the United States of America, he argues that the American middle class is being eliminated by a rapacious economic elite, who make up just one percent of the population and represent nobody but themselves. The process did not begin with sub-prime mortgages and the credit crunch but has been accelerated by both…and by Obama’s coerced responses to them, which have benefited Wall Street at the expense of Main Street.
David DeGraw lays out a thoroughly researched case…including truly shocking statistics on the state of the richest nation on the planet…and suggests a way to connect the dots and explain what is going on.
An 18-page 14000 word article by David DeGraw…see attached Word version…has been posted on the cesc website at http://cesc.net/adobeweb/dispatches/economicelite.pdf. The cesc version can also be accessed via the William Shepherd bookmarks at: http://delicious.com/williamshepherd/dispatches .