The Federal Budget Issues,

     The federal budget is a very complex subject. It’s so complex that we will in no way cover even a significant amount of the processes, problems, and other issues that go along with it. The purpose of this article is to give you a basic foundation of how the system works, how we get our money, history of the banking system, definitions to be familiar with, and some major problems with the system. A big portion of the report will deal with many of the problems that I saw doing research on the Federal Reserve and budget. This report could offend certain people that might believe everything is just great! I will try and present the information to you in the best possible light that I can. This paper should only serve as a basic starting point to begin a much broader research project in the future.

     I have wondered in recent years how the government works the budget. I watch the news and hear all these different terms and problems, and it has made me curious. A while ago I had began to do a little research on the Federal budget, the deficit, and many other issues. The things I saw prompted me to do even more research. I will have to say it is not pretty; not only is this subject very complex but it is also very alarming and scary to say the least. I chose to write this paper concerning the Federal budget issues because as the saying goes “barrels roll down hill”. I’m sure that you have heard a more descriptive term than barrels before but you know what I mean. As I began to research the state budget process I noticed myself having a lot of trouble understanding certain things. As I began to address the federal budget it became clear that the states have a lot of their problems solely because of things the federal government does. I hope that this paper will give you a basic foundation so that you can do your own research and maybe even get involved to try and fix some of these problems locally where you and I as citizens have the real power; that is where the fight is for us, its locally so don’t be calling up the White House because it might just cause you more problems than its worth.

     I think that it’s a good idea to go ahead and address some common questions about definitions before diving further into the issues. A couple of words that you will see come up in the media often are allocations and appropriations. These two words have very similar meanings. Allocation has to do with a share set aside for a specific purpose. Appropriations are the same things except it’s usually a legislative act authorizing the expenditure of public goods and services. So when you hear the term appropriations, know that some kind of legislation is involved with the money set aside. In case you are wondering what expenditure means I will tell you. Expenditures are the amounts of money spent on goods and services. There will be more definitions as we get started and I will explain what they mean later on but I want you to know what these terms are because you will hear them a lot, not necessarily from me but as you go further into your research of budgeting.

     As I stated earlier the federal budget process is very complex indeed. We know that governments exist to provide services to the people. The budget process provides a time for decisions about the services desired by the public and the options available to the government for providing these services (Mikesell, 2003). Also understand that one of the main reasons behind the budget is to prevent thievery (Mikesell, 2003). I never thought of that before. I knew there were and are still many thieves in the government but it never dawned on me that the budget is also used to prevent public officials from stealing. I guess mainly because they still steal from us. I know some of you that read this will not like that statement but its true so don’t get mad at me. The budget process allocates resources among government activities and between government and private use (Mikesell, 2003). Remember that throughout this report I will make sarcastic comments but keep in mind that the budget process is serious and it is necessary despite the many problems that have come up. As Mikesell stated, “the budget process allocates resources  among government activities”. It sounds pretty easy but it gets much more complex when you get further into it. He also outlines three stages of budget procedures. The first one is Fiscal discipline and control which is the expenditure control function in budgeting and it involves restraining expenditures to the limits of available finance, ensuring that enacted budgets are executed. The second stage is response to strategic priorities which says that the budget process should work to deliver financing to the programs and project that are of greatest current importance to the citizenry. The third stage is efficient implementation of the budget. This stage serves as a tool to increase managerial control of operating units and to improve efficiency in agency operations.

     I wish there was an easier way to explain the budget process but even the folks that work with this stuff can’t even explain it very well. It truly is like learning a new language. The last item I want to present is the budget cycle.  The four major stages of the budget cycle are the executive preparation, legislation consideration, execution, and finally audit and evaluation. The executive stage of course has many steps within its self. The executive budget is a message of policy; the financial numbers on spending, revenues, and deficits or surpluses that are driven by those policies. The legislative consideration stage is when much debating takes place. The legislation breaks the budget proposals down and splits them up among the legislators in sub committees. The consideration begins with the lower house of bicameral legislator and ends with the upper house. After both houses have approved them they go on to the chief executive and then on to become law. The execute stage is quite simple to sum up. Agencies carry out their approved budgets, appropriations are spent, and services are delivered. The last stage is audit and evaluation. This is the stage when organizations can take an internal look into their organization. There are two types of audits; internal and external. Internal audits are performed within an organization by professionals. External are the opposite the auditors are brought in from an outside agency. Audits determine compliance with appropriations and reports findings to legislator. This can be a nerve racking period.

     In a nut shell that is a glimpse of the Federal Budget process. Another question that comes to mind is how do we get our money? We know now how the federal budget process works but how do we get those dollars that we spend? The Federal Reserve Bank hires the US Treasury to print up some money. The Federal Reserve only actually pays the treasury for the cost of the printing, they do NOT pay $1 for each $1 printed. Then the Federal Reserve turns around and loans out that money (or credit line) to banks at full face value, those banks which have exhausted their deposits then loan that Federal Reserve fiat money to you, and you must repay it in the full dollar value (plus interest) in work product, even though the Federal Reserve printed that money for pennies, or created it out of thin air in a computer (Paul, 2003). In case you are wondering what fait money is here is a definition: Fiat money or fiat currency is money such as paper money, that is current or legal tender as satisfaction for money debts by government fiat, that is by artificial law (http://en.wikipedia.org/wiki/Fiat_money). It is money that is not backed by any gold or silver. For awhile in history now governments use paper notes as a convenience to the people. It would be awkward to carry all your money in gold and silver. My problem now is that when you take a deeper look into the Federal Reserve system you see that our money is not backed by anything hence the term fait money.

      Now that we understand how the dollar is passed down to us lets take a look a deeper look into the FED and its history. THE FEDERAL RESERVE BANK IS A PRIVATE COMPANY. Article 1, Section 8 of the Constitution states that Congress shall have the power to coin (create) money and regulate the value thereof. Today however, the FED, which is a privately owned company, controls and profits by printing money through the Treasury, and regulating its value (Paul, 2003).

     The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share - the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking cartel of wealth beyond comparison. The FED banking system collects billions of dollars in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayer’s interest (as already stated). Many Congressmen and Presidents say this is fraud. What a joke "oh this might be kind of fraudulent".

 Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:

1. Rothschild Bank of London
2. Warburg Bank of Hamburg
3. Rothschild Bank of Berlin
4. Lehman Brothers of New York
5. Lazard Brothers of Paris
6. Kuhn Loeb Bank of New York
7. Israel Moses Seif Banks of Italy
8. Goldman, Sachs of New York
9. Warburg Bank of Amsterdam
10. Chase Manhattan Bank of New York ----(Schauf, CPA, 1992) read the federal reserve scam for his full article

     How did all this happen? After previous attempts to push the Federal Reserve Act through Congress, a group of bankers funded and staffed Woodrow Wilson's campaign for President. He had already committed to signing this act. In 1913, a Senator, Nelson Aldrich, maternal grandfather to the Rockefellers, pushed the Federal Reserve Act through Congress just before Christmas when much of Congress was on vacation. When elected, Wilson passed the FED. Later, Wilson remorsefully replied (referring to the FED), "I have unwittingly ruined my country". Now the banks financially back sympathetic candidates. Not surprisingly, most of these candidates are elected). The bankers employ members of the Congress on weekends (nickname T&T club -out Thursday...-in Tuesday) with lucrative salaries. Additionally, the FED started buying up the media in the 1930's and now owns or significantly influences most of it (Schauf, CPA, 1992).

     This could be why you don’t hear about these problems on the nightly news. Besides we all care about American idol, celebrity justice, desperate house wives, and who’s winning the game, right! It must be, it sure doesn’t seem like a lot of folks understand this process. Did you know that the national debt is now over 7.8 trillion dollars (http://www.federalbudget.com/)!  The Federal Reserve is an oxymoron because it’s not federal and there is no reserve (check it out for your self)! Since 1933 when our nation went bankrupt, our government has to barrow all new money into existence. The federal income tax we pay is now only paying for the interest that the government owes thanks to the FED.

     Since the Federal Reserve act of 1913 it seems to me that this Nation has only dove further and further into debt every year. I will definitely keep my research up following this topic because I think it’s important.  I don’t know what to do for sure; I mean things seem good right now for most of us. But I now wonder if it’s the calming before the storm. Some one is going to have to pay this debt. Yes, I am glad that at the moment the fait (fake) money system is holding value but is it. It almost sounds like powers that be may want this nasty system to fail, so someday they can get the population behind a global currency. But that’s just my prediction. Check out this chart below.

It would be a good idea to use your constitutional right to vote accordingly from now on so we don’t have a major crisis on our hands in the future. There have been politicians that have tried to do something about this such as Kennedy. On June 4, 1964, President Kennedy issued Executive Order 11110. This Executive Order called for the issuance of new currency - the United States Note. At the time, $4,292,893 of this currency was put into circulation. This new currency was to be distributed through the U.S. Treasury and not the Federal Reserve System. But we all know this never happened because he was killed. No president has ever proposed something like this again, and even an idiot will have to admit that something is not right with that. Oh, okay, I’m sorry, they are working on another magical plan that will save us; and the national debt isn’t serious, right. Well I hope this isn’t serious and I hope you are right for all of our sakes if that's what you believe. You now have a very basic understanding of the budget process; you have also seen the deep complexity that government officials have to deal with. Now it’s up to you to check what I said and dive much deeper into this subject, before we wind up living in a government that was just as oppressive and deceitful as the one we left over two hundred years ago when we declared our independence.

 It’s been said that those that do not know history are doomed to repeat it. I would like to end with a quote from Thomas Jefferson in 1816, "If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."

Check out this information for your self and also follow the hyperlinks in the article they will take you to months of reading. Just pick something and try and go over it a little at a time.