True News: The Insanity of 'Budget Cutting'


Uploaded by stefbot on 14.04.2011

Transcript:
Hi everybody it's Stefan Molyneux from Freedomain Radio I hope you doing very well - this is a very
brief overview of the recent budget-cutting
that has been going on
in the US in March and April of 2011
shrinking from
very little to almost nothing at all.
Let's look at the facts.
so let's imagine that you're in debt $140,000; you owe somebody $140,000
and you're adding to this debt at $16,000 per year.
So you call up the bank - let's say that you owe a bank - and you say "I've got it, I'm gonna reduce my spending by
$1,000
per year - in other words I'm going to be adding to the $140k at only $15k per year.
Would the bank be satisfied? Well...
you've got to call them back and say, "Oh man, I'm so sorry,
...it's not $1,000 - I can maybe cut spending by $380...
...per year."
And then you have to call them back...
"Oh, you know what, I think I can do $140 a year, cut my spending..."
And then you call them back and say "Well, you know what, I'm half way through
the year, so I could actually only cut my spending by three dollars
and fifty two cents."
And then you got to call them back and say: "Oh man you know, I forgot, I owe another...
...$33 for some war so not so much with the cutting..."
And let's say the bank also mentions that you have unfunded future liabilities
of over $1.4 million! $1.4 million, but you can cut spending
by $3.52 this year. How do you think that's going to work out?
But this is the reality, these are the numbers, adjusted to something relatively sane.
So let's have a look at this
graphically.
So this is just against the deficit - what are these proposed cuts?
The deficit is floating around $1.6 trillion
and so the first cut was offered at $100 billion
second cut $38 billion
finally got
around $14 billion, and the real cut was $352 million or so - you
can even see it because it's so small. So that's just the view of the proposed cuts against just
the deficit! Let's have a look at it against the debt itself.
Debt itself...
and this is the current deficit
this was the first cut of proposed
spending; the second one you can barely see; the third cut you can't really see
it all - a little bit, squint - and the real cut is completely invisible.
So that's just against the debt.
How about against the unfunded liabilities? Here are the cuts against the unfunded liabilities
estimated at a little over $140 trillion
in the US.
So here's our unfunded liabilities; here is the existing debt...
Here's the annual deficit...
And that was the first cut
That was the second cut
That was the third cut - and, well, you can't see anything about the 'real' cut.
So I just sort of wanted to put it in perspective; I hope that you're not being distracted
by this shell game, by these smoke and mirrors, it's all complete nonsense,
and i hope that this gives you some clarity about it.
Because the last thing of course is that when you phone the bank up and say maybe I can
cut by a couple of bucks this year
and for everything I owe, you'll have to take payment
in Monopoly money that I'm printing in my basement...
And that's the reality
of most of the West and particularly the US - so I hope this clarifies some things - please drop by
www.freedomainradio.com for free books and podcasts; I hope you doing very well.