Middle Aged Crack Baby:
Imagine a person who for their entire lifetime has been given a powerful narcotic. Then imagine that drug being withheld.
You can visualize that such a person would be in painful withdrawal. And when his head is finally clear, he would realize that the real world is not at all what he had always thought it to be.
Now go to a mirror, (as I have), and take a good look at yourself, for that person really exist, that person is you, (and it's me).
The powerful narcotic that has been fed to us our entire lives is called "Deficit Spending" i.e. Government Borrowing.

Think back to the decade of the thirties, when the world was in the throes of the Great Depression. Basically there was one and only one weapon that the Government had to combat our withered economy, "Deficit Spending".
The dams built to put people to work, paid for with "Deficit Spending".
The Bridges built to put people to work, paid for with "Deficit Spending".
The Tunnels dug to put people to work, paid for with "Deficit Spending".
The Civil Conservation Corp, paid for with "Deficit Spending".
Beginning Social Security, paid for with "Deficit Spending".
World War II, big time "Deficit Spending".

Borrowing money to stimulate the economy was their only tool, their only option.
Trying to do these things just through taxation doesn't help you, because the prosperity that is doled out on one end is countered by the loss of the same prosperity on the taxpayer's end.

Ok… if Deficit Spending stimulates a broken economy, what would it do to a economy that wasn't broken? I believe it would have the exact same affect, if the economy is way down, Deficit Spending will bring it up. If the economy happens to be way up already, then it will make it go even higher. It will stimulate it to a artificially high level. That is the powerful narcotic, that's the drug. As the following data will show, we have been so stimulating the economy with Deficit Spending year after year after year.

The data is taken from: Statistical Abstract of the United States 1999," U.S. Department Of Commerce, Economics and Statistics Administration, Bureau of the Census, Section 10, page 348, table 542. And is available on the web at, http://www.census.gov/prod/www/statistical-abstract-us.html

The above chart is the debt increase one year to the next. So each column represents the amount of stimulation to the economy each year. This is how we acquired the nearly six trillion-dollar National Debt, (next chart).

THE UNSPOKEN FACTOR.
Politicians, and political pundits, plus the so-called media experts all like to give their reasons on why The economy is either good or bad. But why doesn't anybody ever mention Deficit Spending? And why was Deficit Spending such a major factor to the economy in the thirties, but is not now? I can only surmise that it goes unmentioned because it has been the norm our entire lives, unless of course, you can find a very very old economist.

My point in all this is that the prosperity under which you and I have lived our entire lives, is, simply, false,
it's a fraud,
it's fake.
And it can not be continued , It's based on ever growing debt, and sooner or later we will have to stop the debt, or the debt will stop us.

When will it happen?
I don't know. It could be 30 years from now, it could be tomorrow, there is simply no way to tell.

What will it be like?
Again there's no way to tell, but whatever it is, it will be LESS that what we have now.

This is where the "Gas Price viewpoint" comes in.

Whatever the economy is, after we stop the debt. It will not be what it is now, it will be less. And you will have to make a choice, because the Congress will move in one of two possible directions:
Either the Democrats will lead us deeper into socialism, or fascism. Since both are based on extensive government control of personal economic issues: like where you work, your profession, and how much you get paid, those who control will dictate all these to you.
To put it more poetically, they will draw us down Hayek's Road to Serfdom.

The Republicans are more likely to do something utterly unthinkable in the current mind set. For you see, there is a way to stimulate the economy without borrowing for it, they can lower taxes. Lowering taxes just a bit wont help for long. They will be required to reduce taxes time and again to maximize the no dept economy. In doing so they will slowly disassemble the bloated federal government, and the tyrannical socialist system that exist now. In other words, all this liberal crap goes away. (As I said, "The Optimistic Part").
However, you will still have to accept a lesser economy. It is best to keep this in mind.

Your choice will be to support one of these options, either full blown Socialism, or full-blown Capitalism.

Personally, I hope you accept the truth, that the Government has never been capable of controlling the economy without the drug of Deficit Spending. And if you want your freedom, you have to make your own economy, you have to make your own life. Big Brother can't make it for you.

Don't start worrying yet, for the monster lives still.

Now that both Congress and the President are claiming a balance budget, can we now expect to see any indications of my conclusions being correct?

Answer: No.

The claim of balance appears to be based on the trust fund system being what they call "OFF BUDGET". It is a book keeping method designed to keep the true nature of the trust funds out of the public eye, since the trust funds can not function without debt. This means that despite the fact the federal budget is in balance, the debt, is still going up, as the next chart will demonstrate.

Source of the data for this chart is Statistical Abstract of the United States 1999, as before.
The blue columns are the deficit (-), or surplus (+) year to year. The red columns are the debt increases one year to the next. Notice please the values for 1998, and 1999. Only in Washington D.C., (a place where the word "is" has multiple meanings, a place where you can be "not alone" while being "alone"), only in such a place can you have a surplus, and still go deeper into dept at the same time.
For those of you who are monetarily challenged, increasing debt along with a surplus is a very screwy situation.
If you read my "Curse of the Rock Report" you will understand why this debt increase has to be.
It has to do with Social Security, specifically the Social Security Trust Fund.
In that report I did the best I could to express how I see the Social Security Trust Fund, (and the other trust funds). I think that view explains the above chart. And other things I have seen politicians say and do. Like a published proposal to pay down the [public held] National Debt, by the year 2013. Notice this plan ignores the debt held by the Government itself, I. e. “Trust Funds”. Currently the Government holds approximately one third of the debt , and that ratio is growing.
If you think I harp on Social Security too much, the above chart is why I am so concerned by it. The Trust Fund System is a monster that will not tolerate fiscal responsibility. It is A monster that is fully capable of destroying us.

I do not suggest that I am ungrateful for the charted surplus, kudos are owed to the Republican Congress for doing what they could. However, regardless of the surplus, the debt increase of 1998, and 1999 will continue to stimulate the economy, just as it has always done. It has also drawn us closer to the point where the weight of the debt will crush us. (What that point actually will be is anybody's guess.)

Warning:
Do not assume the following is a criticism of President Ronald Reagan, who in my opinion is the best president of our lifetime, but the truth must come out.
The trigger for the next great depression will be a 1980's style recession. Which in itself will not be all that bad. That recession was cured not by Reagan's Policies, rather by Deficit Spending, just as in the thirties.

Despite the many appropriations bills passed by Congress during any given year, the congress spends money only twice per year:
First, they pay the interest on the debt.
Second, they pay for everything else.
Whatever makes up the second doesn't matter, but the first is absolutely mandatory, the interest on the debt must be paid, the value of the Dollar demands it. It must be paid; there is no alternative.

In the 1980's recession Government revenues fell. The interest on the debt was of course paid, (in full for each year), which left less money for all the other things, and they borrowed more to pay for that. In doing so they increased the yearly interest payment on the debt.
Do you begin to see a vicious circle here? You need more money because the debt's too high, and what do you do, Borrow more, and make the debt higher.
There is a point of the debt where when a recession hits, the circle will simple collapse in on itself, at that point the recession turns into a depression. Due to the government being unable to pay either the debt interest or all the other things. Things Like welfare, the military, and social security.
i. e. GAME OVER.

Do not count on the Congress to whip out another pork project to stimulate the economy.
In The Rock Report of the Serria Madre I describe how pork with borrowing simply steals prosperity from the future. Pork without borrowing more simply steals prosperity from your neighbors. Let's say congress passes a pork bill that favors New York, it will be paid directly though income tax, so the gains made by New York will be offset by the loss of the rest of the country.
That being the case it will be almost impossible for such bills to be passed in Congress, because it harms all the other states. Do you see what I mean? Without borrowing, pork will hurt more people that it helps, and therefore will have no support in Congress. It would be like castrating the Federal Government.
(God, let it be so.)
The result would be, each state would have to take care of it's own. Taxing its own to pay for it. New York takes care of New York, California takes care Of California, and your state takes care of your state. In other words we fall back in to being a Republic, as we were meant to be.
(Show me the button that will make all this come about, then for fear of your life, do not get in my way when I reach to push it..)

In fact, when you think about it, all countries that can be described as Socialist Democracies, (England, France etc, etc) all are up to their ears in debt. Just like the socialist democracy called The United States of America. The system that Socialist Democracies operate under just will not work without constantly increasing debt. And the end result of that will be fiscal collapse. You don't have to take my word for it, just ask the Russians.

Of course, the fall of Socialism as noted will depend on what choice America makes when a debt free economy reveals itself. What I just described assumes we chose Capitalism, (and freedom) If America chooses full out Socialism, well… we've had a revolution here once before.

I am probably getting myself into trouble by predicting the future, since history tends to make fools of those who try it. However, the specter of deficit spending is out there. I am not ignoring all the other factors that affect our economy, including the Reagan tax cuts of the 1980's. It's just that In my opinion, deficit spending is the predominant factor, despite the fact that nobody ever speaks out concerning it. Yes it is a big mistake trying to predict the future… but, screw it, I'm going for it.

Review of the topics I have tried to raise here:

1. Bill Clinton is a Dweeb.
2. The benefits of our modern prosperity are due to Deficit Spending.
3. And, that prosperity can not be maintained.
4. The balanced budget claims are just A crock of…
5. The Social Security Trust Fund is a monster. (I.e. crock of…)
6. There are 27 different causes for rectal itch; (didn't I mention that earlier?)
7. Socialism and The Bill of Rights will not coexist without debt.
8. In the future you will have to make a tough decision.

Here is another passage from "The Road to Serfdom"; it may make your choice easier.
Hayek quotes some reformed communist named Max Eastman, I don't have a clue who he is/was.
"It seems obvious to me now-though I have been slow, I must say, in coming to the conclusion- that the institution of private property is one of the main things that have given man the limited amount of freedom and equal-ness that Marx hoped to render infinite by abolishing this institution. Strangely enough Marx was the first to see this. He is the one who informed us, looking backwards, that the evolution of private capitalism with its free market had been a precondition for the evolution of all our democratic freedoms. It never occurred to him, looking forward, that if this was so, these other freedoms might disappear with the abolition of the free market."
(Max Eastman in the Readers Digest, July, 1941, p. 39. Quoted by, F. A. Hayek "The Road to Serfdom" 1944, p116.)

This report goes to prove at least one thing... you just can’t have too much optimism.

Important note:
The year 1999 data in the first chart, is estimated by the Government and may be different when if firms up in the next volume.
1998 data (firm for this chart), was radically different from it’s 1998 volume estimate.

Government debt internet resources:

1. http://www.publicdebt.treas.gov/opd/opd.htm
2. Download the PDF File for section 10 of Statistical Abstract.

Who was F.A. Hayek?
Friedrich August Hayek (1899-1992)
taught at the university of London,
the University of Chicago,
and the university of Freiburg (Germany).
He was awarded the Nobel Memorial prize in Economics in 1974
and the Medal of Freedom in 1991.

Internet Resource:
http://www.independent.org/tii/content/op_ed/asimonrt.html

Picture at right:
Salam Hayek (Actress), no relation,
and she has absolutely nothing to do with economics. She just takes a better picture.

Internet Resource:
http://pages.nyu.edu/~dgw0244/dgwhayek.html

So now you have read yet another blistering report... thanks.
If you agree with it, pass it around for comment by others.
If you disagree with it, then write your own damn report and submit it for comment.

Submitted for your review by.
Mr. Eric (Rock) Andersen
A citizen 0f the USA.
Thus given the Right to have and express an opinion.
Also:
A taxpayer of the USA.
Thus given the Right to have and express an attitude.

COPY RIGHT 2000

Main

THE ROCK REPORT.

THE SON OF THE ROCK REPORT.

THE CURSE OF THE ROCK REPORT.

THE ROCK REPORT OF THE DAMNED.

THE ROCK REPORT OF THE SIERRA MADRE.

A FUNNY THING HAPPENED ON THE WAY TO THE ROCK REPORT.

THE EARTH VERSUS THE ROCK REPORT.

IT CAME FROM THE ROCK REPORT.

THE TEXAS CHAIN SAW ROCK REPORT.

THE THING FROM ANOTHER ROCK REPORT.

20,000 LEAGUES UNDER THE ROCK REPORT.