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Pink ElephantAhhh here we go again. It is that time of the year again when in certain places around the world the flowers begin to bloom, the skies become bluer and the manure begins to rain. Yes ladies and gentlemen, it is budget time! But this time in Canada.

As we have expressed many times before, governments create budgets to cheat on suckers. That would be you, if you didn't quite get the hint. Budgets are all about smoke and mirrors. This reminds us of that old joke where an accountant is being interviewed for a job and the manager asks how the accountant would calculate earnings per share. To which the accountant closes the door, draws the curtains, turns on the radio and whispers "what would you like them to be?"

This is the exact same situation. Why? Excellent question.

STANDARDS

Because federal governments are not bound by reality. Federal government accounting is fraud plain and simple. How do we know this? Because no Government (at the federal level) abides by GAAP (Generally Accepted Accounting Procedures) and now that we are being forced to use IFRS (International Financial Reporting Standards) they are "opting out" of these too (if you are interested in those issues, check Wikipedia). These are the standards that they demand from us for taxation purposes but are the same standards they refuse to follow. Why? Because if they would to follow them, these standards would show they are utterly broke, cheaters and fraudsters. If they would to follow them in accordance with current laws, they would have to prosecute themselves for fraud. But no. For some mysterious reason those rules do not apply to federal governments.

Incidentally, yes, we are aware that some local governments and some government so-called "business" do abide by GAAP and/or IFRS. That's not the point. The point is what major cheaters are doing (i.e. Federal Governments and their Central Banks). We are interested to see what are doing those at the very top of the power pyramid. Those who can create money out of thin air, sink us in debt and make slaves of use (through taxation) all at the same time.

Stay with us.

Let's just for a second turn the tables in order to understand just how ridiculous this scenario is. The most basic principle of the law is that the law is symmetric (or blind). OK. What do you think would happen if we would to pay government goods and services with coloured papers we ourselves printed? Or to borrow against our neighbour's house? Or blackmail our friends to pay for "protection" and "social services" they neither need or want? Or to account all those things as "income" and on the basis of this "income" borrow like drunken sailors? Or… Or… Or… That's right. We would be thrown in jail in no time. Yet, this is exactly how governments operate all the time with the excuse that they are "representative"? Representative of whom exactly? Most certainly not us.

INCOME SOURCES

The Canadian government has unleashed yet another so-called budget on unsuspecting Canadians. In this case the time has come for the Canadian government to demonstrate how "capable" it is. The following graph represents the origin of all moneys that government counts as their "income" (theirs???).

Government Income

The picture at the top indicates the sources of the money, broken down by tax process. As such, we see some alarming issues in there but if we reprocess this data and classify the income in either Personal and Corporate, the picture gets into focus and changes quite a bit with the new estimate. What the numbers are telling us is that people, yes, just regular people, are paying 72% of all taxes while corporations are paying only 28%. In other words, people are paying 2.5 times more taxes (i.e. 250%) than corporations. So much for a socialist Walhalla where evil, evil corporations must pay for all the government boondoggles! Humm… a case of do as we say and not as we do? It would seem so.

EXPENDITURES

In other word, waste. The following graph indicates what is the Canadian governments spending people's money on, alongside with a little data reprocessing. Let's take a look.

Government Expenditures

In the same manner as the previous graph we can see where the money is going. Right there we can also observe some very disturbing trends and in the same manner as above, we did a little bit of reprocessing in order to arrive to a sharper (estimated) views.

To begin with, we can see that all government operating expenses (federal and provincial) which are wasted from federal taxes, reach the astonishing level of 58%!! That's right, 58% of all federal taxes are wasted mostly in apparatchik salaries and maintaining apparatchik offices. WOW!!! Beyond this "expenditure" (they should be ashamed of calling it that) we see a whole 27% is used to pay for "erderly benefits". No wonder that Canada is going broke fast, considering that the baby boom generation is about to retire. And whatever is left (crumbs) is used for things that are clearly not important such as children, unemployed and paying debt.

SO FAR SO CRAPPY

What have we established so far and what has that to do with a balanced budget? Well nothing and that is precisely the point. Take a look at the following graph. This is something along the lines the current Government of Canada highlights as a triumph. The spent whatever they had to spend in 2008 to get Canada going and now they are balancing the budget. Impressive, isn't it?

Deficits and Surplus

And there you have it. A conscientious, decent, organized, systematic and good socialist government! See? They fully apply Keynesianism as it should be applied. They get into debt when times and though and they get out of debt when times are better. There you have it, Proof positive!

And this is the whole purpose of a so-called balanced budget: Misdirection.

While you are looking at the pretty bar graph that nice bureaucrat is showing you, you completely forget to turn your brain on and look the previous two graphs! And so you are dazzled by graphs that are irrelevant while distracting you from graphs that really matter.

Allow us to put it this way. Do you actually care whether the budget is balanced or not if 72% of all taxes are paid by regular people like you and us, and of all the collected taxes 58% are literally wasted in useless apparatchiks? Of course not!

Who cares about balancing the budget, just stop robbing us!!!

Note: please see the Glossary if you are unfamiliar with certain words.

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