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THIS IS OUR SILVER BULLET PLAN for using the natural wealth of our nation wisely to solve our current money problems. This is the culmination and summary of our plans A through D.
The natural wealth of this country is embodied in (A) our land, (B) our knowledge and (C) the various skills of our people. With proper management, we can produce whatever food and material goods we need many times over. We suggest it is wise for our country to have complete confidence in (A), (B) and (C) and follow the plan below.
THE ECONOMIC PLAN HAS 10 ITEMS (the previous 14-points were combined into 10)
Home Mortgages
(1)
Pass laws that will prohibit mortgage-issuing banks from selling off
the loans they provide for mortgages. That will insure that the lenders
want the loans to succeed and be paid off. It will make sure that the
lenders are prudent. That should stabilize the future housing markets
by removing the temptation to "bundle" mortgages into strange financial
instruments. The lenders will have to learn to live on the interest
from their loans. That should not be difficult -- it was always the way
things were done in the past. Had that been a law 10 years ago -- our
banking and money collapse would probably never have happened -- the
old-fashioned system of house mortgages would have essentially
guaranteed good loans by a vigilant local-bank system of lenders.
Lending banks must have some skin in the game -- that will tend to keep
them prudent and honest. The formation of Freddie Mac and Fannie Mae
(they were formed to buy loans from banks) was, in our opinion,
probably the biggest domestic management blunder of the Federal
Government over the last 50 years. We believe that fact led directly to
the current (early 2009) economic meltdown.
Banking and Lending
(2)
Congress should encourage the establishment of grassroot, local banks
by common people and groups of people -- such as community
organizations, Credit Unions, homeowner associations, charities and
such. That would practically guarantee a stable, competitive banking
market. As we read the Constitution (see A & B below), it gives
that right to the people. (A) From Section 10 - Powers prohibited of
States --"No State shall ... coin Money; (or) emit Bills of Credit ...
(B) From "Amendment 10 - Powers of the States and People.
3) Change the Federal Reserve to
"manager / bankers" who will follow new Constitutionally-oriented rules
which will be set down by Congress. Take away their money creating
powers which were "farmed out" to the FED in 1913.
(4)
Follow the Constitution and return the MONEY CREATING power to
Congress. That will mean Congress can print whatever money our country
needs for wealth producing assets.
Budgets and Spending
(5) Spend
government money in the future only on things that will create wealth
and provide a 20% annual return on the expenditure / assets. Most good
companies consider a 20% return on their investments very conservative.
There is no reason our country can't get that level of returns.
(6) Realize
that (A) good health care, (B) good education (including libraries) and
(C) adequate housing are always worthwhile wealth producers. Healthy,
educated, secure people are more efficient wealth producers. The
government should spend whatever is needed in those three areas.
(7)
The Government should never borrow money. It has the Constitutional and
Sovereign power to print whatever money it needs (as do all sovereign
nations). To borrow money is almost insane if you can create it. See
<http://www.primeronmoney.com/lincolnspolicy.html> for Abraham Lincoln's monetary policy.
(7.1) Ignore
those that will say that printing money is inflationary. That is
nonsense. If the printed money is spent on wealth-producing assets it
will be neither inflationary or deflationary. On the world money
markets our dollars should seek their natural level of value. If we are
efficient and wealthy -- our dollars will be worth much. If we are
laggards, our money will be worth little. We should not be afraid of
international wealth-producing competition. Challenge the rest of the
world to a wealth-creating competition. Pay off all debts immediately
with our newly printed money and never go into debt as a nation again.
That simple act will save us about $400 Billion dollars / year in
interest charges.
(7.2) The government should
issue bonds that can only be purchased by American citizens in order to
(a) encourage saving by the public and (b) give the public a safe place
to invest their savings. This will essentially be a subsidy to savers.
Under present rules, existing bonds can't be sold only to American
citizens -- thus the bond interest rate can't be adjusted as needed to
benefit the American economy without allowing foreign countries to take
advantage of the benefits aimed at our citizens.
8) Embark on a bold program of wealth generation by investing in basic water-oriented infrastructure
to (a) turn seawater into fresh water and (b) build a nationwide system
of pipes and pumps so we can deliver the water efficiently wherever it
is needed for irrigation, personal and industrial use. At that point,
we will probably be able to feed half the world and turn food into
various forms of wealth through trade with other countries. Water is
our most undervalued asset. Mix water with seeds dirt and you can get
(a) delicious food, (b) valuable building material, (c) versatle
material for clothing and (d) magical trees that efficiently convert
Carbon Dioxide to Oxygen, thus helping avert the threat of global
warming.
On 2/4/09, Jim Tankersley of the L.A. Times reported from
Washington -- "California's farms and vineyards could vanish by the end
of the century, and its major cities could be in jeopardy, if Americans
do not act to slow the advance of global warming. Steven Chu, U.S.
energy secretary warns, "We're looking at a scenario where there's no
more agriculture in California,' "
<< http://www.latimes.com/news/local/la-me-warming4-2009feb04,0,7454963.story >>
Education
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