July 1st, 2010 by Dissolving Dollars

Comprehensive Annual Financial Reports: Walter Burien on The Alex Jones Show May 2010

CAFR1 Trailer – The Only Game in Town – The Way Our Government Can Be

Not only does the government collect taxes, but it also makes money by investing. That investment money is basically the government’s reserve money, like bank reserves. That reserve money exists on all levels of government and is evident in Comprehensive Annual Financial Reports. Government budgets are not based on how much money is really available. The budgets are artificially low since laws restrict using that reserve money to meet the budget. Nonetheless, that reserve money is why the government hasn’t gone totally broke and totally collapsed. The government has enormous amounts of money invested in the so-called private economy. So, it is no wonder why things like car insurance are mandatory: government can get a big piece of that action by owning stock in those companies. The profitability of government investments is dependent on the health of the economy. So, bad economies are bad for government.  But nonetheless, government has plenty of excess money sitting in investments whether they are appreciating or depreciating. What governments should do with that money is use it to create public banks, not invest in the private (corporatist) economy. With public banks, governments could create their own interest free credit for things like infrastructure construction without taxation and the burden of interest-bearing loans.