Mr. Walker-
The Federal Budget Deficit: $760 billion on an accrual basis (including future payments already promised) in 2005. The accrued deficit is at an all-time high.

[ Larry: This figure doesn't include the billions "borrowed" from Social Security to pay bills. The government is still using budget deficit calculations that go back to the time when it was unthinkable to raid the Social Security trust fund (so there was no need to include it in the deficit calculations.) Note that this isn't directly part of the "future promises for Social Security" in Mr. Walker's next paragraph. ]

[ Larry: At the end of the year 2000, this was a SURPLUS of $236 billion. A few of the causes -- 1. The 2001 $1.4 trillion tax cut for the rich, $166 billion less revenue a year. 2. The percent of federal revenue coming from corporations fell to 10% in 2002 (and still going down.) 3. The sweeping corporate tax legislation of 2002 -- about 2/3 of US corporations now pay no taxes at all.]

Mr. Walker-
The federal government's long-term liabilities and unfunded commitments, which now exceed $46 trillion, up from $20 trillion just five years ago. These include future promises for Social Security and Medicare benefits, environmental cleanups and potential payouts by entities like the National Flood Insurance Program. This translates into a burden of about $375,000 for every full-time worker in this country.

[ Larry: I bet you didn't know you owed that much!]

Mr. Walker-
Last year, for the first time since 1933, our annual personal savings rate was negative. ["Savings Deficit"]

Last month, for the fourth time in five years, Congress raised the federal debt ceiling - this time to nearly $9 trillion. ["Federal Deficit"]

Foreign investors are underwriting America's spending spree: the Balance-of-Payments Deficit ["U.S. Trade Deficit"] hit a record high of $726 billion in 2005, twice what it was just four years earlier.

We are ceding control of our future to these foreign investors.

[ Larry: Not "ceding control of our future": we have already lost control of our present. Just this week China surpassed Japan as America's biggest creditor. The United States is no longer an independent country. We have to tread softly so we don't step on a foreigners toes -which isn't a bad practice anyway- or they might pull out their money and cause our economic house of cards to collapse. (The main reason they haven't done it already is they would be hurt finacially also.) China has already been threatening us about stopping trading in US Dollars. In effect, we are now being held hostage by Communist China.]

[ Larry: I'm forever an optimist -- I see hope. Our new relationship with China works both ways. The China military has told us for years that, sooner or later, they will H-bomb our cities (and they are perfectly capable of it.) But it's bad business practice to nuke your best customer. Maybe China's growing capitalism will turn them into a responsible world citizen. -- but how long can we sustain our present course? -- a bankrupt customer isn't a good customer.]

Mr. Walker-
If these foreign investors suddenly decided to buy fewer Treasury securities or started to sell off their U.S. holdings. Interest rates would rise dramatically.

[ Larry: The Treasury bonds are what show up in the deficit figures, but are only a part of the picture. These foreign countries are taking their new found dollars and are buying up America. An increasing number of American corporations are largely foreign owned. And they are in the process of moving parts of those corporations overseas. It's becoming less and less a case of "American" corporations outsourcing jobs, it's more and more a pattern of foreign-controlled corporations giving those jobs to the folks "back home" -- So that we can buy more imported goods and allow the other countries to buy more of America -- like a snowball rolling down a hill. See the stats at the end of this email.]

Mr. Walker-
At both ends of Pennsylvania Avenue and on both sides of the political aisle, there have been pitifully few calls for meaningful changes or shared sacrifice.

What we have going are the elements of a perfect storm - a potent mix of ignorance, apathy and inaction in all sectors of American society. If we continue on our present course, a fiscal crisis is not a matter of "if" but "when".

It takes millions of $ nowdays to win a seat in the Senate, a seat in the House is a little less. The sources of those millions aren't philanthropists, they expect a return on their investment.

It's time for the American People to take back Our country. To demand Real election reform and a return to some semblance of financial reality.

Aloha, Larry

US Government statistics show the following percentages of foreign ownership of American industry (2004):

• Sound recording industries - 97%
• Commodity contracts dealing and brokerage - 79%
• Motion picture and sound recording industries - 75%
• Metal ore mining - 65%
• Motion picture and video industries - 64%
• Wineries and distilleries - 64%
• Database, directory, and other publishers - 63%
• Book publishers - 63%
• Cement, concrete, lime, and gypsum product - 62%
• Engine, turbine and power transmission equipment - 57%
• Rubber product - 53%
• Nonmetallic mineral product manufacturing - 53%
• Plastics and rubber products manufacturing - 52%
• Plastics product - 51%
• Other insurance related activities - 51%
• Boiler, tank, and shipping container - 50%
• Glass and glass product - 48%
• Coal mining - 48%
• Sugar and confectionery product - 48%
• Nonmetallic mineral mining and quarrying - 47%
• Advertising and related services - 41%
• Pharmaceutical and medicine - 40%
• Clay, refractory, and other nonmetallic mineral products - 40%
• Securities brokerage - 38%
• Other general purpose machinery - 37%
• Audio and video equipment mfg and reproducing magnetic and optical media - 36%
• Support activities for mining - 36%
• Soap, cleaning compound, and toilet preparation - 32%
• Chemical manufacturing - 30%
• Industrial machinery - 30%
• Securities, commodity contracts, and other financial investments and related activities - 30%
• Other food - 29%
• Motor vehicles and parts - 29%
• Machinery manufacturing - 28%
• Other electrical equipment and component - 28%
• Securities and commodity exchanges and other financial investment activities - 27%
• Architectural, engineering, and related services - 26%
• Credit card issuing and other consumer credit - 26%
• Petroleum refineries (including integrated) - 25%
• Navigational, measuring, electromedical, and control instruments - 25%
• Petroleum and coal products manufacturing - 25%
• Transportation equipment manufacturing - 25%
• Commercial and service industry machinery - 25%
• Basic chemical - 24%
• Investment banking and securities dealing - 24%
• Semiconductor and other electronic component - 23%
• Paint, coating, and adhesive - 22%
• Printing and related support activities - 21%
• Chemical product and preparation - 20%
• Iron, steel mills, and steel products - 20%
• Agriculture, construction, and mining machinery - 20%
• Publishing industries - 20%
• Medical equipment and supplies - 20%

"He [-another George, King George III-] has combined with others to subject us to a jurisdiction foreign to our constitutions and unacknowledged by our laws, giving his assent to their acts of pretended legislation..." - Thomas Jefferson in the Declaration of Independence