Where has all the money gone?

WHERE  HAS  ALL  THE  MONEY  GONE?

 

 

 

 

We constantly see reports of budget deficits, unfunded pensions, crumbling infrastructure, and weak economic growth. This has been an ongoing and escalating problem for over 40 years. Some of this has been masked by increasing debt by individuals and most local, state and federal governments. The country as a whole will have to address these problems in a serious way, either in a rational long range strategy, or with a haphazard attempt to deal with effects rather than solutions.

It is generally acknowledged that wealth is created by the combination of raw materials and labor  to create a  tangible product of greater value.

I remember reading in the early 1970,s the book, "The Post Industrial Society ". There was some debate about whether this was a viable idea. I also remember the economic debate in the late 1960's about the economic benefits of deficit spending by the Federal Government.  The supporters speculated that this would be a continuous stimulation of the economy, The detractors believed that the government needed to keep a sound money policy. I was a young person at the time but was always a believer that one of the most important duties of government is good stable money. I was not sure about a Post Industrial Economy, but had my doubts.

These ideas were pushed by many at the time and coupled with new social programs of the late 1960's and a avalanche of regulation of industry in 1970's we have now become largely a post industrial society. We have not had a balanced budget since 1969, except 4 years from 1998 to 2001, and those budget surplus's  did not take into account unfunded liabilities that are not included in the budget.  We have not had a trade surplus since 1971, except for a small surplus in 1973.                   

 

June 3, 2015
U.S. Trade in Goods and Services - Balance of Payments (BOP) Basis
Value in millions of dollars
1960 through 2014
Balance				Exports				Imports
Period	Total	Goods BOP	Services		Total	Goods BOP	Services		Total	Goods BOP	Services
1960	3,508	4,892	-1,384		25,940	19,650	6,290		22,432	14,758	7,674
1961	4,195	5,571	-1,376		26,403	20,108	6,295		22,208	14,537	7,671
1962	3,370	4,521	-1,151		27,722	20,781	6,941		24,352	16,260	8,092
1963	4,210	5,224	-1,014		29,620	22,272	7,348		25,410	17,048	8,362
1964	6,022	6,801	-779		33,341	25,501	7,840		27,319	18,700	8,619
1965	4,664	4,951	-287		35,285	26,461	8,824		30,621	21,510	9,111
1966	2,939	3,817	-878		38,926	29,310	9,616		35,987	25,493	10,494
1967	2,604	3,800	-1,196		41,333	30,666	10,667		38,729	26,866	11,863
1968	250	635	-385		45,543	33,626	11,917		45,293	32,991	12,302
1969	91	607	-516		49,220	36,414	12,806		49,129	35,807	13,322
1970	2,254	2,603	-349		56,640	42,469	14,171		54,386	39,866	14,520
1971	-1,302	-2,260	958		59,677	43,319	16,358		60,979	45,579	15,400
1972	-5,443	-6,416	973		67,222	49,381	17,841		72,665	55,797	16,868
1973	1,900	911	989		91,242	71,410	19,832		89,342	70,499	18,843
1974	-4,293	-5,505	1,212		120,897	98,306	22,591		125,190	103,811	21,379
1975	12,404	8,903	3,501		132,585	107,088	25,497		120,181	98,185	21,996
1976	-6,082	-9,483	3,401		142,716	114,745	27,971		148,798	124,228	24,570
1977	-27,246	-31,091	3,845		152,301	120,816	31,485		179,547	151,907	27,640
1978	-29,763	-33,927	4,164		178,428	142,075	36,353		208,191	176,002	32,189
1979	-24,565	-27,568	3,003		224,131	184,439	39,692		248,696	212,007	36,689
1980	-19,407	-25,500	6,093		271,834	224,250	47,584		291,241	249,750	41,491
1981	-16,172	-28,023	11,851		294,398	237,044	57,354		310,570	265,067	45,503
1982	-24,156	-36,485	12,329		275,236	211,157	64,079		299,391	247,642	51,749
1983	-57,767	-67,102	9,335		266,106	201,799	64,307		323,874	268,901	54,973
1984	-109,072	-112,492	3,420		291,094	219,926	71,168		400,166	332,418	67,748
1985	-121,880	-122,173	294		289,070	215,915	73,155		410,950	338,088	72,862
1986	-138,538	-145,081	6,543		310,033	223,344	86,689		448,572	368,425	80,147
1987	-151,684	-159,557	7,874		348,869	250,208	98,661		500,552	409,765	90,787
1988	-114,566	-126,959	12,393		431,149	320,230	110,919		545,715	447,189	98,526
1989	-93,141	-117,749	24,607		487,003	359,916	127,087		580,144	477,665	102,479
1990	-80,864	-111,037	30,173		535,233	387,401	147,832		616,097	498,438	117,659
1991	-31,135	-76,937	45,802		578,344	414,083	164,261		609,479	491,020	118,459
1992	-39,212	-96,897	57,685		616,882	439,631	177,251		656,094	536,528	119,566
1993	-70,311	-132,451	62,141		642,863	456,943	185,920		713,174	589,394	123,780
1994	-98,493	-165,831	67,338		703,254	502,859	200,395		801,747	668,690	133,057
1995	-96,384	-174,170	77,786		794,387	575,204	219,183		890,771	749,374	141,397
1996	-104,065	-191,000	86,935		851,602	612,113	239,489		955,667	803,113	152,554
1997	-108,273	-198,428	90,155		934,453	678,366	256,087		1,042,726	876,794	165,932
1998	-166,140	-248,221	82,081		933,174	670,416	262,758		1,099,314	918,637	180,677
1999	-258,617	-337,068	78,450		969,867	698,524	271,343		1,228,485	1,035,592	192,893
2000	-372,517	-446,783	74,266		1,075,321	784,940	290,381		1,447,837	1,231,722	216,115
2001	-361,511	-422,370	60,858		1,005,654	731,331	274,323		1,367,165	1,153,701	213,465
2002	-418,955	-475,245	56,290		978,706	698,036	280,670		1,397,660	1,173,281	224,379
2003	-493,890	-541,643	47,754		1,020,418	730,446	289,972		1,514,308	1,272,089	242,219
2004	-609,883	-664,766	54,882		1,161,549	823,584	337,966		1,771,433	1,488,349	283,083
2005	-714,245	-782,804	68,558		1,286,022	913,016	373,006		2,000,267	1,695,820	304,448
2006	-761,716	-837,289	75,573		1,457,642	1,040,905	416,738		2,219,358	1,878,194	341,165
2007	-705,375	-821,196	115,821		1,653,548	1,165,151	488,396		2,358,922	1,986,347	372,575
2008	-708,726	-832,492	123,765		1,841,612	1,308,795	532,817		2,550,339	2,141,287	409,052
2009	-383,774	-509,694	125,920		1,583,053	1,070,331	512,722		1,966,827	1,580,025	386,801
2010	-494,658	-648,678	154,020		1,853,606	1,290,273	563,333		2,348,263	1,938,950	409,313
2011	-548,625	-740,646	192,020		2,127,021	1,499,240	627,781		2,675,646	2,239,886	435,761
2012	-536,773	-741,171	204,398		2,218,989	1,562,578	656,411		2,755,762	2,303,749	452,013
2013	-478,394	-702,587	224,193		2,279,937	1,592,043	687,894		2,758,331	2,294,630	463,700
2014	-508,324	-741,462	233,138		2,343,205	1,632,639	710,565		2,851,529	2,374,101	477,428
U.S. Census Bureau, Economic Indicator Division
NOTE: (1) Data presented on a Balance of Payment (BOP) basis. Information on data sources and methodology
are available at http://www.census.gov/foreign-trade/guide/sec2.html#bop.

The accumulated trade deficits from 1971 to 2014 total, $10,096,538,000,000, over $10 Trillion .
This is over 50% of our national debt. This is  money that was not spent or invested within the country.

When the debates in the 1980's and 90's concerning NAFTA and GAAT were ongoing, I, along with many others, predicted that if American labor is to compete with third world labor on an equal basis, the standard of living of Americans must go down. This decline has been happening for many years, many have made up for this by borrowing more, home equity loans etc. Borrowing will no longer bridge the gap.

Many politicians and international corporations both Democratic and Republican preached unlimited free trade, and promised we would make up for our losses by becoming a Hi-Tech exporting country.
Look at the numbers above and you decide.

While the private sector has struggled to adapt, the public sector has mostly been insulated from the realities of the real economy. With strong political power it has been decades of special deals for those that benefit from connections in Government. Whether it is entrenched bureaucracies' or International corporations with political connections.  This has been all at the expense of the lower and middle class Americans.

As for the Budget Deficits. They have accumulated since 1969 to $19 Trillion .  The estimated total debt is near to $100 Trillion,  this is the money owed to unfunded mandates, Social Security money ,that was spent out of the surpluses in Social security since the 1990's. Money from other supposed safe keeping funds that has been spent, by both Democratic and Republican administrations.  Anyone with knowledge of  Economics  know there is only hyper-inflation or default on the horizon. If the Federal Government was a pension fund or a Corporation,  they would all be in jail.

While this time is probably the last hope of correcting these entrenched problems, It would need the cooperation of all the people and government, It does not look likely. We would have to change regulations and Government policies to make the USA a enticing place to do business, The kind of business that produces wealth, real tangible goods.  We have become adverse to anything  that produces dust, smoke or makes your hands dirty.  Look at the cities, like Detroit, once the  wealthiest city in America, and many others, there are no jobs of substance.

When I was a youth, I remember the textile plants from Northampton to Easton, that employed many thousands, and paid well,  as well as the Steel and foundry business's that were a large part of the Pennsylvania economy. I lived in Emmaus, and within walking distance of everyone were several foundries, Rodale mfg., Lehigh Safety shoe' EMF and others. My father worked for Western Electric for 25 years, None of those business exist today. There is too much risk and too little hope of success for manufacturing in America.

If you had a National balance sheet, with income and expenses. The income side is Manufacturing, mining, and producing machines etc. to mass produce products, Farms, Auto Co., Caterpillar, etc. The expense side is everything that is part of the Government. The Government at all levels is not a creator of wealth, a necessary expense, but an expense. Service jobs, lawyers, accountants etc. are all expense side. Government attempts to redistribute wealth, wealth being created today, and even past wealth.

We have been sold a false Philosophy,  and we all believed in it to some extent. There are powerful interests who want things to continue as they have. Who hope they will just get to  retirement before the reckoning comes.  It will be interesting to see how it all plays out.

Originally published 10/21/2015  

         
 

Federal government, purveyor of addictive dependence.

 FEDS CASH IS BAIT FOR SCHOOLS, LOCAL AND STATE GOVERNMENTS, BUSINESS AND EVEN FOREIGN NATIONS

TAXPAYERS AND BORROWED MONEY BUY VOTES AND INFLUENCE

The Federal government of the United States has developed a pattern of using money to overcome constitutional limits in its quest to increase its power. It repeatedly offers some cash incentives to schools, local governments or business subsidies to have them voluntarily accept Federal dollars and the strings that are attached.  Its the strings that increase the government's power over its constitutional limits. Once these entities are addicted to the federal money and have become dependent on it, they are reluctant to break away, even with increasingly repugnant strings. 

There is no constitutional provision for the federal government to be involved in education, yet they have been able to mandate much of what goes on even to the point of mandating cafeteria menus. 

They have no authority to mandate paid family leave. Are they going to manage and pay out this money?

We see money for child care. You can bet their will be strings on what kind of child care will qualify. It will be designed by the woke politicians in Washington. A blatant attempt to influence children at a even earlier age. 

The other part of this pattern is that they bait with an offer of money, often only for a limited time, then it becomes the responsibility of the state to fund and maintain an ever expanding program. Medicaid expansion is just such a program, after several years the funding becomes the duty of the state. These programs are all loaded with so called "Unfunded Mandates"

We see whole business's that would not survive without government subsides, much of the clean energy proposals are a perfect example. The solar companies actually advertise that a homeowner can often get it for free from government subsidies. It distorts the market and when the subsidies go away these ideas usually disappear.

While the politicians claim they are there to help, they are actually encouraging everyone to be addicted to the taxpayers and borrowed money, so that they can increase their power and threaten to withhold the money if you don't cooperate with their quest for more power.

We hear that the children of Afghanistan and Sudan will now starve if the U.S. stops the subsides. These subsides are all about control. With taxpayer and borrowed money. Biden is now on a world tour, you can bet he is handing out our money to whoever will agree to be our friend, even if it is just for the money.

States are often warned that they will withhold federal funds if they don't go along with unconstitutional mandates.

The constitution, the law for the Federal government, is very clear what the duties are for the Federal government. It is very limited and like immigration they are failing to obey the law. They have no constitutional mandate to be involved in education, healthcare and a whole list of things they have used our money to expand their power.

It is time for people to just say no,  no to the Federal government's addictive money and control.

Politicized DOJ should stay out of local politics.

COMING TO THE RESCUE OF WOKE TEACHERS UNION 

ALL ABOUT INTIMIDATION AND SILENCING

It seems the National School Boards Association and we can also bet the National Teachers Unions cried to Daddy Biden that there is opposition to their teaching social revolution to the children of America. Parents recently became enlightened to the fact the Education system is indoctrinating their children in not only Marxist ideology, that has been prevalent in higher education for decade, but to endorsing alternative lifestyles and even gender manipulation. Much of this is contrary to the beliefs of these children's parents. The left is not satisfied to sow division in race, they now want to destroy families from within. 

This is not a condemnation of teachers, I suspect and hope most of the teachers are middle of the road everyday Americans who sincerely are concerned about the best interests of their students. They themselves have been intimidated to be politically correct and likely punished if they step out of line. 

Take one look at the websites of the National Teachers unions and you will see it is full of Critical Race Theory ideas. While they don't mention Critical Race Theory, its tenants are there. They advocate for the introduction of homesexual lifstyle in early grades and advocatee for the right of underage youth to consider changing their sex, this is not what parents have been paying for through their taxes. 

Parents DO have the right to know and approve what is being taught to their children. Most just took it for granted that schools were their allies in raising healthy well adjusted children. Most likely many are still just that, but it is obvious that there are powerful organizations pushing social revolution from kindergarten on up. some even advocate lowering the voting age to 14 so they can enlist the teachers in partisan politics. If they continue on this path they will destroy support for public schools.

Schools should concentrate on those skills that will allow their students to become self-supporting and have a useful and rewarding life. Things like Math, English, Science etc. They should also be taught the working of our government, based on the constitution and bill of rights. After all that IS the law of the land.

Local schools and any problems can very well be handled by local law enforcement and the local legal system. It is obvious that this labeling of parents concern for their children by the Federal government as domestic terrorism is just an attempt to intimidate and silent any dissent. It should be made clear by all parents to the Federal government to leave the children's best interest to them.

Biden and his administration are guilty of Treason

ALL POLICIES ARE DESIGNED TO DESTROY AMERICA

ONE PARTY TOTALITARIAN RULE IS THE ONLY OBJECTIVE

Every act coming out of this administration, one has to debate whether we can actually call this a Biden administration, or the Democrat Revolutionary Committee, is designed to weaken America, both its national security and financial security.

We see his illegal immigration policy, enticing a foreign invasion with promises of free healthcare, education and all the benefits entitled to American citizens. There is no doubt that the goal is to dilute the voting power of American citizens and create a new large dependent class who can be intimidated to vote Democrat. When states issue drivers licenses, they are making them eligible to vote. California was the proving ground for overthrowing our democratic system. They have succeeded in making California a permanent Democrat state by allowing illegal immigrants to vote, even if they are living in tents on the sidewalks of their cities. This is were mail in voting, ballot harvesting and all those undemocratic voting practices were perfected and now they are spreading these polices around the country. This is all Treason plain and simple. 

Our Senators and Representatives who are not denouncing these policies are complicit with this Treason, no matter if the are Democrat, Republican or Independent. It is their responsibility to defend the constitution and rule of law. It is their foremost responsibility, not some party lust for total power.

We now see that China is tightening the screws on the supply of strategic metals and minerals. This is the beginning of  economic war. Our national security and industrial capacity is going to be diminished by having become dependent on China for strategic metals and other components. The Biden's were instrumental in using their contacts and influence to collude with China in purchasing the sources of these minerals in Africa and in other countries. Hunter Biden was entrusted by the Chinese communist Party to act as their agent to invest $1.5 billion. More Treason. We never hear one word from this administration concerning China, we can imagine why.

Of course, look at this administrations energy policy, we are approaching $4. a gallon gas and that is likely only the beginning. Every act has been to diminish our energy production capacity. It is intentional, to sow chaos and weaken America's financial stability, all in a lust to increase the power of the democrat party. These policies will destroy the citizens and our companies.Treason plain and simple. 

Then there is their unconstitutional mandates, where in the constitution was the president given the power to mandate anything to the citizens and companies of America by executive order. Why did he not go to congress to pass a law for these mandates, mostly because congress does not have the power to enact such mandates either. Executive orders were instituted to bring about enforcement of existing law, not to make the president a totalitarian dictator. He should be issuing executive orders to enforce the immigration laws on the books. We do not see any polices to strengthen America, only weaken it. More Treason.

We see proposals to gain access to all citizens financial transactions without warrant for probable cause. We see they now lust after the assets of Americans saved by sacrifice and hard work. Another unconstitutional  infringement on the right to private property. They have no limits in their lust for power. Are there only 2 democrats left that believe in the constitution and the rule of law?

Then we see the social experimentation, were we see the schools subverting parents and teaching children that they should feel guilty for those less fortunate, all based on race. Then they want to teach children to question the gender they were born with at time when children experience enough confusion and insecurity in their developing years.  This is worse than Treason, it is Child abuse of the worst kind. We see Joe Biden endorsing chemical manipulation of children to change their sex, an impossibility. I suspect this is an attempt to raise more dependent voters of the future.

Americans are running out of time to save this country as a country of opportunity and freedom. We are allowing our country to be subverted from within, while they keep harping that Trump was an authoritarian bent on destroying Democracy, those crying the loudest are the real enemies of the people and the country. 

Has Manchin just put a shot across the bow of the progressive caucus?

WEST VIRGINIA SENATOR NOW MOST POWERFUL PERSON IN WASHINGTON

HE COULD WIN RE-ELECTION AS AN INDEPENDENT OR REPUBLICAN

Recent rumors have surfaced about Joe Manchin considering registering as an independent and caucusing with the Republicans. While he vehemently denies those rumors, it is likely that he used this avenue to send a strong message to his Democrat friends. While he may not be planning at this time on switching parties, the positiblity has always been there. He is very popular in West Virginia, at least for now, but if he caves to the left wing of his party he will be a whole lot less popular. If he stands up for West Virginia on energy he may be more popular. He does not have to fear a credible primary opponent from the left.

He may feel at his time he is more useful in moderating his party from going down a path of self destruction. He also may actually believe this reconciliation bill is bad for the country. Either way he has the hammer, he can make it or break it, he is the most powerful man in the senate.

He was visibly angered by Chuck Schumer's partisan attack on the Republicans concerning the debt extension. Then Bernie Sanders takes out adds in his home state attempting to pressure him into submission. Making it all the more difficult for Manchin to endorse the plan. I think you will see a real quick cooling of the rhetoric from the left, unless they are real stupid.

Manchin could win unopposed as a Republican or Independent in his state. If he would caucus with the Republicans he could demand and get any chairmanship of any committee he desires. He is the most powerful senator or maybe any politician in Washington. I am sure he knows that now. He may have other Democrat senators rooting for him, but fear voicing their support if they are in those real blue states.

The next few weeks will tell, can the progressive caucus wilt in their expectations and accept Manchin's demands or do they rebel and push him either out of the party or end up with no reconciliation bill at all.

It seems like "free college" is out, most green new deal items also dead. Maybe children tax credits in, raising taxes out, child care credits maybe in, college debt forgiveness out. Who knows, this bill has 2500 pages of left wing activist dreams, no matter how much it is trimmed, it will probably not be a positive for the country in the long run.

Will mandates be boon to red states.

 POLICE, FIREMAN, HEALTHCARE WORKERS MAY ALL BE OFFERED EMPLOYMENT IN OTHER STATES

AS LONG AS WE HAVE STATES RIGHTS WE HAVE OPTIONS

We can expect that there will be another drain of talent from northern states to the south and west. Some are now considering natural immunity from recovering from covid as equivalent to having been vaccinated. This could offer opportunities for police and healthcare workers who have routinely been abused by woke politicians in their present states.  Oh, the beauty of options in life. 

It is already been reported that Indiana state police are letting Chicago policeman know that they have opportunity in Indiana, they are hiring and vaccination is not required. They also may have the added benefit of RESPECT. Not to mention, lower taxes and a much more welcoming community. It may be a no brainer for some.  While it may be hard to give up pensions and seniority, quality of life for their family and themselves will likely be much better.

This will likely be the first new option for these oppressed public servants. It will apply to Minneapolis, San Francisco, Seattle and New York and other woke cities. I would expect there will also be jobs available in Texas, who should be hiring their own border patrol. Many states are growing and they need trained and experienced healthcare, police and other personal. They also offer low taxes, respect and possibly a much better quality of life, some things cannot be counted in dollars.

It will be interesting if this becomes a new exodus of folks from blue state to red states. While relocation is always difficult, sometimes it is just such an environment that will make it all look like a no-brainer.

You can also expect that it will be difficult for these woke cities to find quality replacements, they will have to lower their standards to attract replacements.

It will also be interesting what Old Joe and his woke administration will conjure up to discourage such moves, it is not likely they will rethink their policies.

Socialism always leads to oppressive governments.

ARE MANDATES JUST THE FIRST STEP IN PURGING REACTIONARIES?

NEXT FOCUS WILL BE ECONOMIC PURGE

We now see thousands denied the ability to work and earn a living if they refuse to submit their bodies to government edicts.  While this is supposed to be in the interest in health, it is becoming more obvious that this is actually part of a bigger plan of retribution for those who do not do as they are told and also revenge on those who may have another political view.

It is interesting that the lockdowns were more damaging to small business, many large enterprises were considered essential business. Those lockdowns also included outdoor workers, many of which are small business. It is no secret that the majority of small business supported Trump in the last election. This policy of retribution was openly voiced by many socialist activists even before Biden's inauguration. 

Yesterday, Thom Hartman, a socialist activist talk show host on so called "Free speech TV", voiced his opinion that mandates are a perfect tool to purge the government, education, health care, police, firemen and the military of those who are unwilling to submit to societal edicts. He thought it was the best thing that could happen.

Socialism always leads to oppressive government action. In the Soviet Union anyone who questioned the government was labeled a reactionary and most likely ended up in a prison camp, where the majority of them died. They punished the independent farmers, the Kulacs, because they were just that, independent and replaced them with cooperative farms. Most were killed and their farms taken. Can we expect to see similar action taken when we have any sort of food disruption created by this bunch of socialist activists.

Many ask today, how did the citizens of National Socialist Germany allow the atrocities that occured in that country. In fact, they are now having trials in Germany of former employees and guards of Nazi camps. Many were teenagers who just did as they were told. They had been conditioned by society to do as they were told. Much like the conditioning going on in this country now.

Do we want the police and military purged of anyone who would question orders from the top, even abusing American citizens? It has publically been voiced by many in the Democrat party that the police and Military must be purged of any who have an opposing view of their policies. Do we want our military and police to have to a pass litmus test of socialist thought and the willingness to obey any order?

We have seen the fascist style cooperation by many big business's who crave the inside advantage of collaboration with government, even if it means censorship, discrimination by political view or whatever the ruling powers want. 

We see insurance companies are now denying coverage or raising premiums on the unvaccinated, even if they have already recovered from Covid. It is an opportunity for them and endorsed by a socialist inclined government.

We also hear of their plans to monitor the financial transaction of everyone in the country. If allowed, we can expect who will be targeted, the opposition. Just like many of political prosecutions we see happening in the federal government. This is not America, that has always allowed freedom of thought, expression, privacy of our finances, and the ability to pursue your future no matter your personal or political opinion. 

In the Soviet Union when their neighbors were taken away, they assumed they must have done something. People soon realized they needed to be careful what they said to anyone who could turn them in for reactionary thought. Is our country being conditioned today for just such a future? I watch with amazement on local social media how people are willing to label their neighbors as criminals if they are questioning edicts from the politicians. Even vehemently questioning school board policy is now labeled as domestic terrorism. 

This is always the result of socialist government, they ensnare the unsuspecting with promises of utopia, then when many question or oppose their policies they need to silence, punish and eliminate them from society in an escalating pattern of increasing oppression either by ostracizing them or other negative tactics to the point of prison camps and death. And their supporters will stand by cheering them on.

America was founded on freedom of the citizens to take many paths to success. Socialism always ends with submission or the bayonet.