Treasury announces $140 billion October deficit

November 10, 2010

The Treasury Department announced today a monthly budget deficit of $140 billion for October. It was the first monthly budget deficit report for FY2011. October was the 25th straight month the U.S. has ended in the red.

This is a disappointing start to the fiscal year after FY2010 brought a $1.4 trillion deficit, the second worst since WWII. As the recent elections have exhibited, Americans are skeptical of the effectiveness of out-of-control spending touted as necessary for economic recovery and are are becoming increasingly that spending cuts represent the road to recovery.

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3 Responses to Treasury announces $140 billion October deficit

  1. Pat Fields says:

    Too few people understand what it means to use a debt-currency system. It’s structure requires constant growth of debt, or the entire scheme implodes in on itself. If people in the ‘private’ sector refuse to borrow new currency into existence, then the government must do it in their stead. Some folks explain this saying that if all debts were paid, there would be no currency. That’s an incomplete understanding that ignores the interest factor.

    Currency is lent in principal amount only. In the past, when gold and silver circulated as equal currencies, they served as a source for interest service payment. Once all the gold and silver was siphoned out of circulation, there remained no other source for interest but … further borrowing. The effect can be seen clearly by looking at exactly when the explosive growth of ‘money’ began … in the latter 1960s. This was also the advent of the phenomenon we know as the ‘bubble economy’ which in turn caused ‘derivitaves’ to become necessary.

    If you’re realizing the basic effect at work here, you see that a Maw was created in the late ’60s that can’t be stopped from infinitely growing. The more currency borrowed into existence, the more interest service is incurred … itself necessitating even more currency creation to make the interest payments! Each forces the other into creation reciprocally (made worse still by compounding of the interest, no matter how low the interest rate)!

    No escape from this quandary is possible except to re-harden currency at its residual real expression. In the case of American Banknotes, that is equivalent to a 10 gram copper piece, given that it’s depreciated 97% since its inception in 1913. Contrary to the doom-sayers, this conversion would leave all the economic super-structure unchanged. Prices, bank balances and the other outward ‘working’ expressions of the currency function would merely be restated in ‘coppers’ as opposed to ‘dollars’. In fact, money would stop depreciating and rather start to appreciate again and reward savers which would re-organize the capital base formation with which to fund new enterprise on the Discount Bill finance method; ridding ourselves of the interest service millstone, dragging most into failure.

  2. Pat Fields says:

    Too few people understand what it means to use a debt-currency system. It’s structure requires constant growth of debt, or the entire scheme implodes in on itself. If people in the ‘private’ sector refuse to borrow new currency into existence, then the government must do it in their stead. Some folks explain this saying that if all debts were paid, there would be no currency. That’s an incomplete understanding that ignores the interest factor.

    Currency is lent in principal amount only. In the past, when gold and silver circulated as equal currencies, they served as a source for interest service payment. Once all the gold and silver was siphoned out of circulation, there remained no other source for interest but … further borrowing. The effect can be seen clearly by looking at exactly when the explosive growth of ‘money’ began … in the latter 1960s. This was also the advent of the phenomenon we know as the ‘bubble economy’ which in turn caused ‘derivitaves’ to become necessary.

    If you’re realizing the basic effect at work here, you see that a Maw was created in the late ’60s that can’t be stopped from infinitely growing. The more currency borrowed into existence, the more interest service is incurred … itself necessitating even more currency creation to make the interest payments! Each forces the other into creation reciprocally (made worse still by compounding of the interest, no matter how low the interest rate)!

    No escape from this quandary is possible except to re-harden currency at its residual real expression. In the case of American Banknotes, that is equivalent to a 10 gram copper piece, given that it’s depreciated 97% since its inception in 1913. Contrary to the doom-sayers, this conversion would leave all the economic super-structure unchanged. Prices, bank balances and the other outward ‘working’ expressions of the currency function would merely be restated in ‘coppers’ as opposed to ‘dollars’. In fact, money would stop depreciating and rather start to appreciate again and reward savers which would re-organize the capital base formation with which to fund new enterprise on the Discount Bill finance method; ridding ourselves of the interest service millstone, dragging most into failure.

  3. Pat Fields says:

    Too few people understand what it means to use a debt-currency system. It’s structure requires constant growth of debt, or the entire scheme implodes in on itself. If people in the ‘private’ sector refuse to borrow new currency into existence, then the government must do it in their stead. Some folks explain this saying that if all debts were paid, there would be no currency. That’s an incomplete understanding that ignores the interest factor.

    Currency is lent in principal amount only. In the past, when gold and silver circulated as equal currencies, they served as a source for interest service payment. Once all the gold and silver was siphoned out of circulation, there remained no other source for interest but … further borrowing. The effect can be seen clearly by looking at exactly when the explosive growth of ‘money’ began … in the latter 1960s. This was also the advent of the phenomenon we know as the ‘bubble economy’ which in turn caused ‘derivitaves’ to become necessary.

    If you’re realizing the basic effect at work here, you see that a Maw was created in the late ’60s that can’t be stopped from infinitely growing. The more currency borrowed into existence, the more interest service is incurred … itself necessitating even more currency creation to make the interest payments! Each forces the other into creation reciprocally (made worse still by compounding of the interest, no matter how low the interest rate)!

    No escape from this quandary is possible except to re-harden currency at its residual real expression. In the case of American Banknotes, that is equivalent to a 10 gram copper piece, given that it’s depreciated 97% since its inception in 1913. Contrary to the doom-sayers, this conversion would leave all the economic super-structure unchanged. Prices, bank balances and the other outward ‘working’ expressions of the currency function would merely be restated in ‘coppers’ as opposed to ‘dollars’. In fact, money would stop depreciating and rather start to appreciate again and reward savers which would re-organize the capital base formation with which to fund new enterprise on the Discount Bill finance method; ridding ourselves of the interest service millstone, dragging most into failure.

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