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The State budget in Britain for one financial year is calculated in hundreds of billions of pounds. The amount of money in circulation, however, is a lot lower than that figure. This means that the same bank-notes and coins are entering the State Treasury (in the figurative sense) many times, over and again.
For example, a person receives a thousand pounds salary for one month's work, and pays five hundred pounds on rent, council tax, rates, light and heating bills. The rest is spent on shopping and travel expenses. Of all this, a percentage goes directly to the State by way of tax, such as VAT.
The water-works, electricity company and gas supplier each pay tax on their respective profits, as do the shops and the factories who supply them, and also the transport services. Therefore, a further amount of the one thousand pounds goes indirectly to the State, in the sense that it contributes to the profits of various companies and businesses who in turn pay tax.
The State, every month, uses this tax to pay civil servants and to finance projects. And also to pay back borrowed money with the interest.
The following month the same repeats itself. The same bank-notes and coins come and go in the course of one year, passing many times into the Treasury and leaving it. The actual sum of money in circulation is a lot lower than the total annual budget. For this reason, a million pounds in cash, although worth a million pounds, accounts for a much larger figure within the national economy, because it covers a proportion of the State budget equal to a sum that goes far beyond a million pounds. It could account for five, ten or twenty million pounds in the annual budget.
The trade deficit which infests our economy may seem low in comparison to the annual budget, but in reality it accounts for a proportion of State budget DEFICIT that is many times larger than the trade deficit itself!
The enormous sums of money which foreign labour sends out of our Country to their own families may seem low in comparison to the State annual budget, but in reality they account for a proportion of State budget DEFICIT many times higher than these sums suggest.
May-be now people can start to realise why the systematic closures of our factories through the e.u. master-plan, with the subsequent import of products that our Country once produced, and the import of masses of unwanted and unwarranted foreign labour, has caused such enormous deficits in our national budget.
