US National Debt Removal Proposal
(c) 2004 S. Enterprize Co.
ALL RIGHTS RESERVED
by Jim Smith ( Chemical Engineer BS)
Terms of Use of This Proposal ( The fine print )
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If this proposal is used and is approved and if it does work and if it does remove the current United States National Debt as of years 2004 to 2005, which is approximately $7 trillion dollars, the United States will agree to grant me, Jim Smith, $1 billion dollars for my services and help in this proposal. And I, Jim Smith am not liable by law or punishment, for any statement made here within this proposal in regard to giving economic advice. I am only stating my opinion as a voter with his own personal views of the economy and the national debt as a US citizen.
If this isn't in agreement with you, the appropropriate United States authorities in this matter, please stop reading from this point on. Thank you.
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Let's first observe the United States current National Debt and deficit problem. See LINK below:
The National Debt History
It appears that the Democrats have a history of bring the national debt down and the republicans bring the nation debt up as one can observe from the graph. But let's not be too concerned about this and play politics. The purpose of this proposal is to remove the total national debt within years 2004 to 2005.
( National Debt with adjustment GDP graph)
The National Debt Clock
As one reads this proposal one can see we are running out of time and we need to do something about this national debt as soon as possible.
Inflation Increasing
As one can observe the costs of housing is increasing making it less affordable to the public. The consumer price index vs. rent of primary residence shows inflation is increasing.
Missing or Lost Jobs
The predictions made or assumed did not occur as one can see from the graph.
The Gross Domestic Product ( GDP) can be greatly effected if there is a job decrease or business decrease. Many business are closing down because they can't afford to operate so they go bankrupt. And if there is a business decrease there is a job decrease. The monopoly with large businesses can cause smaller competitive business to decrease which also cause costs to increase. If people can't pay there bills or afford to buy anything they could also loose their jobs. So it is important to not only help the big business companies but also the small businesses. A competitive market is good which keeps prices affordable to the public. Another problem that could cause the GDP to decrease is over paid "middlemen" or big medical business companies. Like for example the medical supply stores and prescription drug companies appear to be over charging people on Medicaid. The sick and disabled people aren't the problem, it's the big businesses overcharging the government through medicaid. In fact, there are cases shown where medicaid is being overcharged in the millions of dollars. This needs to be investigated because this is also contributing to the national debt.
First observe the real pie chart of human resource spendings. Then observe the one we are lead to believe is occuring. I would predict that a large area of this pie chart in the area of medicare or medicaid is caused by medical company over charges.
http://www.warresisters.org/piechart.htm
Costs of Invading Iraq
$26 billion
(paid by FY2003 supplemental funding [below])
Department of Defense Comptroller Dov Zakheim, April 16, 2003
Ongoing Military Operations in Iraq
$3.9 billion/month
Secretary of Defense Donald H. Rumsfeld, July 9, 2003
Ongoing Military Operations in Afghanistan
$1 billion/month
USA Today, September 8, 2003
Supplemental Funding for FY 2003
$62.4 billion
Congress approved April 2003 (10/02-9/03)
Supplemental Funding for FY 2004
$65.8 billion
Congress approved November 2003 (10/03-9/04)
Supplemental Funding for FY 2005
$50 billion
(Fall 2004, according to the Bush Administration)
This is also adding to the national debt. What started the Iraq War? The United Nations didn't finish their vote as to whether or not Iraq removed all weapons of mass destruction. Suddam Hussein showed on TV that he did remove the mass destructive chemicals publically as was shown on TV. But the current presidential administration decided to go to war with Iraq bypassing the United Nations approval. It is my opinion that we should remove United States military from Iraq and let the UN peace keepers handle it from here in Iraq. This would reduce defense spendings and decrease the national debt. The United States can defend it's borders here. We don't have to be in Iraq to do that.
GDP estimations for various countries
If the GDP declines, the National Debt also declines. So if the jobs continue to decrease it is more than likely that the GDP will decrease. It is important to increase jobs here in the United States instead of abroad in foreign countries, or the GDP might decrease in the United States, which can cause the National debt to increase. Even if the United States were to reduce military ( or defense ) spendings there could still be an increase in national debt . We can have a strong independent nation free from terrorists ( and wars) with an slight increase in defense spending, but if the GDP drops it appears that it wouldn't matter if one decreases or increases defense spending, the national debt would still increase.
http://www.cia.gov/cia/publications/factbook/rankorder/2001rank.html
One may ask, how much is the US dollar worth today with respect to the current National Debt?
"According to CNN FN, as of 8/9/2004 , the price of gold is $398.60 per troy ounce.
There are 147 million troy ounces of gold in Fort Knox. (Fort Knox is the United States primary repository for its gold reserves.)
All the gold in Fort Knox is, therefore, worth $58,594,200,000 or $58.59 Billion
Bill Gates III is worth 51.39% the value of all the gold in Fort Knox. "
(reference: http://evan.quuxuum.org/bgnw.html )
If the current dollar is based on what is called a "Federal Reserve Note", relative to the value of the gold at Fort Knox which is about $59 billion dollars and the National Debt is $7 trillion dollars, how much IS the US dollar worth? Well let's see.
Predicted Worth of a dollar = $59 billion dollars / $7 trillion dollars
= .0065
[(.0065) ( $1.00 dollar)( 100 cents/ dollar) = 65 cents
( where 1 cent = 1 penny)
I have heard it said that we are running the US economy on near empty. Well, we can see why. It looks like the dollar is only worth 65 cents at present. At the current rate of increase of the national debt, the dollar may not be worth anything and that can be a serious problem to the economy.
The Balanced Budget and Emergency Deficit Control Act of 1985
On December 12, 1985, the President signed into law the Balanced Budget and Emergency Deficit Control Act of 1985, popularly known as the "Gramm-Rudman-Hollings Act". This was a good Act in my opinion because, at least the US could keep up with and show that, the deficit could be paid yearly. This would stablize the economy and keep the stock market relatively stable.
(Reference: http://www.law.umkc.edu/faculty/projects/ftrials/conlaw/bowsher.html )
Now look at this new Act.
Spending Control Act of 2004
(Reference :http://www.theorator.com/bills108/hr3973.html )
" [......] SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.
(a) DISCRETIONARY SPENDING LIMITS- (1) Section 251(c)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by inserting a dash after `2005', by redesignating the remaining portion of such paragraph as subparagraph (B) and by moving it two ems to the right, and by inserting after the dash the following new subparagraph:
`(A) for the general purpose discretionary category: $XXXX in new budget authority and $XXXX in outlays; and'. [......]"
What is $XXXX? This appears to me to be like, someone is given a blank check and is told they can spend whatever they want to just as long as pay it back with $XXXX.
Ok, so let's say I want, $XXXX to equal $3+ trillion dollars. Now then we will pay it back with $XXXX, 65 cents. Maybe I don't understand this Act. But this is what it looks like to me and the current presidential administration. What does this look like to you?
And it continues....
"SEC. 3. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.
(a) PURPOSE- Section 252(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended [.....]"
Ok, so we " PAY-AS-WE-GO" , 65 cents a year. (LOL- hahhahahahahahahha). This is very funny but sad at the same time, because this is affecting ALL Americans and we can't afford to be joking with this economy. If the US economy fails, will there even be a United States left ( a possible stock market crash), that we as Americans have fought for, for hundreds of years to keep our Constitutional freedom, independence and human rights. We need to take this national debt and deficit more seriously.
I am not here to play politics here with you. Sometimes I wonder if I am Republican or Democrat. I am not even sure. What I do hope to do is to help the United States and if at all possible, and REMOVE TOTALLY THE NATIONAL DEBT. You may say, I'm crazy. Well I do have disabilities, but that is another case. What can I ( or we) do now to help the US as an ordinary citizen or voter right now? And this is where it has lead me.
THE US National Debt Removal Proposal
Let's get straight to the point. We have oil and natural gas reserves. See LINK below which has comments made by "The Senator from Texas, Kay Hutchison".
(Reference : Senator Hutchison -- Press Releases http://hutchison.senate.gov/prl269.htm )
"The United States has proven reserves of as much as 160 billion barrels of oil, and as much as 1,700 trillion cubic feet of natural gas. This is enough to fuel the U.S. economy for 60 years without importing a single drop of foreign oil. "
Let's look at how much natural gas the US uses per year.
(Reference : http://www.eia.doe.gov/oiaf/analysispaper/henryhub/notes.html )
"4 Energy Information Administration, Natural Gas Annual 2000, DOE/EIA-0131(00) (Washington, DC, November 2001), Table 2, p. 8, web site www.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/natural_gas_annual/current/pdf/table_002.pdf. Average U.S. daily consumption calculated as 22,547 billion cubic feet per year (total U.S. consumption) minus 427 billion cubic feet per year (Alaska’s total consumption) divided by 365 days per year. "
"Table 14. Natural Gas Prices, Margins and Revenues
(2002 Dollars per Thousand Cubic Feet, Unless Otherwise Noted)"
(Reference : http://www.eia.doe.gov/oiaf/aeo/pdf/aeotab_14.pdf)
Let's just round this figure off to be about $2.00 per cubic foot of natural gas. This would be about the average cost that natural gas in the US.
According to, "The Senator from Texas, Kay Hutchison", we have about 1700 trillion cubic feet of natural gas in the US reserves. If we use let's say, 1000 trillion cubic feet of natural gas as a proposed FEDERAL RESERVE OIL & NATURAL GAS NOTE instead of a "gold backed type", Federal Reserve
Note, then we should theoretically have available toward the payment of the national debt:
$2 trillion dollars
for the use of reducing the current National Debt.
But what does this leave the American people in natural gas reserves? It leaves about 700 trillion cubic feet of natural gas available in the US reserves that can be used right now also. And how long will this last at the current rate of consumption?
At about $2.00 a cubic foot of natural gas used yearly with 700 trillion cubic feet left available with about 23 billion cubic feet of natural gas used yearly by Americans this is:
(700 trillion cubic feet) / 23 billion cubic feet per year, about =
30.5 thousand years of a cubic feet use of natural gas
available for Americans, plus or minus a few years based on population growth.
This is more than enough to supply the needs of the United States.
Now let's look at our oil reserves:
" The United States uses about 18 million barrels of crude oil daily."
(Reference : http://www.bbnc.net/servlet/content/1028.html)
This is about,
(18 million barrels of crude oil per day ) ( 365 days per year) = 6.57 billion barrels oil per year
used by Americans.
(Reference : http://www.cbc.ca/stories/2003/02/20/oilprice_030220)
"War issues aside, given recent significant increases in OPEC output and the usual sharp decline in demand during the spring, we expect oil prices to ease from their first quarter highs and to average $25.75 US per barrel in 2003, and $22.75 US per barrel in 2004," he said.
On Thursday, West Texas Intermediate oil, the U.S. benchmark, was trading at $37.18 US per barrel. "
Further quote:
"[...] and prices could spike above $50 US a barrel if there is a war against Iraq [...] "
Let's assume that oil is worth $50.00 per barrel because of the war in Iraq.
If we use 100 billion of barrels of oil to back up the national debt in the US oil reserve then:
( $ 100 billion barrels oil from reserves) ( $50.00 barrel oil) =
$5 trillion dollars
available for Americans in reserve oil.
Let's assume that only 60 billion barrels of oil is available in reserves, in case the Arabs run out of oil that supplies the United States. ( Note : The United State can still drill for more oil and find more)
($ 60 billion barrels oil from reserves left) / ( 6.57 billion barrels of oil per year ) =
9.1 years of Reserve Oil
still available for American use unless we continue to use Arab oil or discovery more oil in the United States.
There is plenty of oil in the Gulf of Mexico that hasn't been drilled for yet and sealed. This estimate is what we have available right now if we use the already drilled for oil in the Gulf of Mexico. So the estimate of only 9.1 years could be double or triple that depending on the number of oil sights already set up for use in case of emergency use.
The National Debt is about $7 trillion dollars.
$2 trillion dollars Federal Reseve Oil and Natural Gas Note
+
$5 trillion dollars Federal Reserve Oil and Natural Gas Note =
$7 trillion dollars
There should be available $7 trillion dollars right now to cancel the national debt by using a modified dollar bill, which would state, "Federal Reserve Oil and Natural Gas Note", that would back up the money value worth of the dollar, thus removing the NATIONAL DEBT. My name could be signed on the new printed money to show who saved the economy and removed the national debt. A picture of an oil rig, with oil under it could replace a picture of a person on the new printed US money.
I hope this can help the US economy and possibly remove the National Debt. Thank you for your time and consideration.
Sincerely,
Jim Smith
( Chemical Engineer BS)
Date: Aug. 10, 2004