Chapter 27
Trick Balance Sheet
2FEDERAL NATIONAL DEBT CHANGE 1928--1934 was an increase of 100%= 12.3 billion dollars.
3 FEDERAL INCOME 1928--1934:
4 Taxes on corporations and the rich declined from an annual 2.3 billion to .8 billion, a decrease of 43% for a total revenue of 4--9 billion.
5 Taxes on low incomes and upon user-consumer, same period, increased from annual rate 1.5 billion dollars to 2.3 billion dollars, an increase of 53% for total of 6.2 billion dollars.
6 TOTAL REVENUE, all sources, 1928--1934:11.1 billion dollars.
7 FEDERAL DISBURSEMENTS 1928--34:
8 TO direct and indirect pulmotoring of banks, insurance companies, ‘‘morgi-moras’’ (mortgage moratoriums) of property and debt structure, rich corporations and individuals: 11.9 billion dollars, 413% annual rate increase from 1928.
9 TO public works and relief, total 2.1 billion dohars, annual rate increase 152%.
10 TO NEXT war, total 3.1 billion dollars, 82% annual rate increase from 1928.
11 TO Federal Government’s routine operation, total 3 billion dollars, annual rate decrease, 38%.
12 TO veterans, all previous wars, total 3.3 billion dollars. 27% annual rate decrease from 1928.
13 RECAPITULATION
14 Total Disbursements 23.4 Billion Dollars
15 Total Income 11.1 Billion Dollars
16 Debt Increase End of 1934 12.3 Billion Dollars
17 Note that pulmotoring and future war disbursements were responsible for 15 billion dollars, over-accounting by 3 million for federal debt increase. Otherwise all relief, public works, regular government activity and long deferred compensation adjustment of human past-war imposts were carried on at 72% of the total income, which would have otherwise decreased the national debt.
18 Wages in the crisis 1928--1932 took a worse drop than unearned property income:
19 (Billion Dollars)
20 TOTAL NATIONAL
21 BUSINESS
22 DISBURSEMENT 81 76 63 49
23 From the above it is apparent that the disabled market condition was accelerated by federal manipulation of debt shift which, by inspection, derides the unearned-incomers wails over supposed government confiscation. Remember, the golden-egg supply had ceased because of the death of the goose, i.e., the shelter industry.
24 Factually, shelter is (was and always will be) focally and volumetrically the largest industrial activity of mankind. Bogged down to its death by every financial and political exploitation possible, its super-vulnerability occasioned by tie to the land of its arterial roots, the ‘‘building business’’ death occasioned the dollar income decline, the ‘‘loss’’ accounting of which has been governmentally juggled in a maze of numerically staggering relief and recovery credit appropriations.
25 The national (or peoples) debt, according to our legally imposed accounting system doubled 1928--1935, rising from 16 to 31 billions, and not surprising per capita synchronization considering that the populace almost doubled in the 40 years preceding 1935, and that debt per capita has never kept pace with population increase, that is to say, it shows an overall curve of shrinkage indicating a trend toward vanishment despite the latest trick impositions.
26 The U. S. populations (man, woman and child) per capita debt was on March 1,1938, exactly $290. To whom, as debtors, do we owe this $290? To our financial institutions, insurance companies, trust fund and bond holders, and to institutions in general: public and private.
27 At least $65 of this per capita debt was plunked upon us as an accounting ‘‘trick’’ in the 1928--1932 governmental ‘‘life saving’’ advances to the very institutions to whom we were in debt—a neat Peter-to-Paul trick. It was accomplished by advancing funds to the depository institutions by the indirection of loans to the investment revenue sources, i.e., banking institutions, railroads and mortgagors, which the Treasury subsequently, in ponderous and legally holyish manner, borrowed from the institutions to cover the advances, thus shifting the burden to every citizen. The bankruptcy of the old system was thereby shifted from banker ‘‘outlet’’ institutions to the people.
28 Approximately $30 of our unasked-for per-each debt increase since 1928 was pinned upon us as our individual subscription to the NEXT world war to which certainly very few of us would voluntarily subscribe.
29 The government was forced to take up the slack of unemployment caused directly by the dereliction of private credit finance in subscribing to the industrialization of new inventions particularly to the industrialization of shelter which is inherently mobile, nonexploitable and certain to bring about the acknowledged bankruptcy and annihilation of debt structure built up around static and now dead, land-wedded arts and crafts tailored buildings.
30 How could such accounting manipulation have occurred?
31 Because Fincap was making his money and increasing his capital out of the handling charges incident to the turnover of debt. But it looks as though this is to be his last ‘‘cash in.’’ DEBT—DOUBT--FEAR-MONEY are necessitated by lack of credit, faith and understanding, these three being the colloidals of science and the coordination of industrial production, one for all and all for one--the inspiration of invention.
32 TRUE CREDIT and FEAR-MONEY are utterly incompatible. They were divorced by the World War, but the divorced husband’s fear-money continued to aggravate ‘‘Dame’’ Credit until his sudden death in 1932. Although still mourned by some and despite the fact that his executors are still probating his will, we are nevertheless rid of the ‘‘old boy.’’
33 Just watch the important bankruptcies and judge for yourself.