Mandeville, LA – Exclusive Transcript – Just to put this in perspective, this would mean that our mighty, gargantuan federal leviathan would have to exist on a paltry $1.2 trillion. In other words, it would have to exist on the expenditures of the last year of the Reagan administration, in 1989. Chew on that for a moment. Think about that. Then come back to me and tell me exactly how, practically speaking, this can possibly financially or numerically or mathematically work itself out. Check out today’s transcript for the rest…
Begin Mike Church Show Transcript
Mike: Let’s go over to ZeroHedge.com for just a moment, the headline: “Another One Trillion Dollars ($1,000,000,000,000) In Debt.” Are you kidding me? No, I’m not.
Did you know that the U.S. national debt has increased by more than a trillion dollars in just over 12 months? On September 30th, 2012 the U.S. national debt was sitting at $16,066,241,407,385.89. Today, it is up to $17,075,590,107,963.57. These numbers come directly from official U.S. government websites and can easily be verified. For a long time the national debt was stuck at just less than 16.7 trillion dollars because of the debt ceiling fight,
Mike: See, it was elusive, and we were reading that number to you every day. In other words, we are now firmly ensconced on that train that none of us wants to be on, that is the last train to Brokesville.
Over the past five years, the U.S. government has been on the greatest debt binge in history.
Mike: I’m not laughing at the debt binge, I’m just laughing that there’s so little concern over this. I don’t even know why I read this stuff because no one cares. Here’s what we care about. AG, who’s in the World Series this year, St. Louis and Boston?
AG: Correct, and it starts tonight.
Mike: That’s what we care about is the World Series. That’s what’s important. They’re playing in Boston tonight? Isn’t it going to be cold?
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AG: Yep, first two games in Boston.
Mike: I’m looking at CNN right now, high of 47, that’s not baseball weather. What happened to global warming?
In fact, just one day after the deal in Congress was reached, the U.S. national debt [Mike: All this did was delay the debt clock, folks. The day the debt clock started cranking up, it had to go into overdrive. In other words, the government had to ramp up its spending so it could spend, in debt, $328 billion in one week. Hell, that’s not one week, that’s one day.] In the blink of an eye we shattered the 17 trillion dollar mark with no end in sight. We are stealing about $100,000,000 from our children and our grandchildren every single hour of every single day. This goes on 24 hours a day, month after month, year after year without any interruption. [Mike: Here’s what the debt numbers look like.]
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Mike: This isn’t a game. These numbers aren’t just made up. These are actual notes that have been sold to “investors” that said investor will expect to be repaid for at some point in time. How is that going to work? Let’s say you wanted to pay the company credit card off in ten years. Just in the direct debt, this does not include all the other debt, that means pensions, liability, Social Security, Medicare, Medicaid — by the bye, there is no Social Security trust fund. It is gone. It was spent many, many decades ago and is still being spent. Why do you think the president is out there jawboning on about bringing in tens of millions of new immigrants? Because he knows we need the money. We need new people here that will not qualify for Social Security benefits to take jobs and pay Social Security taxes in order to fund the Ponzi scheme, end of story. That’s what’s going on.
Trillions upon trillions upon trillions, let’s say we want to pay it off in ten years. That would mean you would pay $1.7 trillion off per year — I want to put this in perspective to you to show you why this is not going to happen, and to demonstrate why it’s not going to happen and why a new way of thinking about it must emerge. Let’s just pretend we want to pay this $17 trillion off in ten years. We’re going to be responsible stewards of our own money and of our children’s and grandchildren’s future. That would mean we would have to pay $1.7 trillion per year, plus whatever the interest rate is on that. That’s $1.7 trillion per year plus the interest rate on that. I don’t know what that number is. Let’s just stick with the principle. Current revenues are averaging about $2.8 trillion per year. That’s what we’ve had for the past four years.
If we take $2.8 trillion and subtract $1.7 trillion, that leaves us with $1.1 trillion. Last year alone, the federal government of these United States paid out $777 billion in interest payments in order to refinance the last traunch of debt that came due. I don’t have the actual figures here in front of me, but I would hazard a guess that there are similar payments that are going to become due over the course of the next ten years every year, that is until you pay it all off and then that number will get smaller. Some of these debts are 30-year, so we’re not going to be able to pay them off unless we reach out to the 30-year bond holders and say: We kind of want to pay you back early because we want to get this off the books. Do you mind?
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Just to put this in perspective, this would mean that our mighty, gargantuan federal leviathan would have to exist on a paltry $1.2 trillion. In other words, it would have to exist on the expenditures of the last year of the Reagan administration, in 1989. Chew on that for a moment. Think about that. Then come back to me and tell me exactly how, practically speaking, this can possibly financially or numerically or mathematically work itself out. I think that the proper way to look at this is to say that it cannot be worked out under current guidance.
When you hear people, politicians, say [mocking] “This debt’s unsustainable,” what does that mean? If it’s unsustainable, that implies that at some point in the near future we will reach a time when it cannot be sustained, meaning it cannot be repaid, or the service on the debt cannot be repaid because there is not sufficient revenue. If that’s the case, then why are we sitting here talking about all the glorious amounts of money we’re going to spend in the next fiscal year? Why is anyone having discussions [mocking] “What we need is a budget.” No, that’s exactly what we don’t need. What is needed is a reorganization, just like any company would have to do. You’d have to “downsize.”
All of you Office Space fans, follow me. We’ll call a couple consultants in. We’ll call them the Bobs. We’ll ask the Bobs to figure out who’s going to get laid off. [mocking] “I’m tellin’ ya, man, we’re screwed, we’re screwed! They’re bringing a consultant in!” I want every federal employee listening to this radio broadcast to run into their offices tomorrow and go: I’m telling you, we’re all screwed! They’re bringing a consultant in! I knew it! Yes, I want to consult your occupation away, because I don’t view it as an occupation to begin with. We’re going to find something really productive for you to do. Don’t worry, though, you’ll find satisfactory, and I say maybe even rewarding, employment.
Bring the Bobs in, have some consultants come in. They’ll tell us how we’re going to break up the leviathan that is the governmental version of AT&T, break it up into much smaller pieces and then, through the process of forced attrition, begin to downsize. Folks, I don’t even know why we’re having — we should be talking about whether or not we agree with the current downsizing plan and with what the Bobs have proposed. We shouldn’t be talking about this hypothetically is in it might happen. It has to happen. It must occur.
End Mike Church Show Transcript