This plan preceded our Silver Bullet plan
Each plan should be considered on its own.
A 2-page, 10-point action plan for using the natural wealth of our nation wisely to solve our current money and banking problems.
If you agree with this plan -- copy and email it to your friends.If enough people get behind this plan, we may be able to make it into a reality
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.
THIS 2-PAGE ECONOMIC PLAN HAS 10 ITEMS IN FOUR AREAS, (A TO D below)
....................................... (A) 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 essentally guaranteed good loans by a vigilant local-bank system of lenders. The current problem started when the "shadow banking and investments firms" got their hands on regular mortgages and morphed them into exotic financial instruments that nobody understood.
............................ (B) Banking and Lending
(2) Congress should encourage the establishment of 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, 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. Ratified 12/15/1791. "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved ... to the people."- Under present law, it is very easy for groups of private citizens to open banks in the United States.
(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.
............................ (C) 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, except as spelled out in (7.1) below. It has the constitutional power to print whatever money it needs (as do all sovereign nations). To borrow money is almost insane if you can create it. 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 will save $406 Billion every year in interest payments.
(7.1) The government should issue new citizen-savings 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 infrastucture 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 fertilizer and you can get (a) delicious food, (b) valuable building materials, (c) versatile 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 >>
.................................... (D) Education
(9) Start an educational program that will lead to the general public's understanding of how our money system works. A well informed public is our best insurance for a sound economic system. This program can probably best be started on the internet with a dedicated website.
(10) Keep the public informed on current and planned programs aimed at increasing the national wealth by posting such information on the internet. The information should, at a minimum, state (a) the name of each program, (b) the description of each program (c) The name of the asset(s) that will be created by each program, (d) how much money will be invested in each program, (e) the expected rate of financial return over the life of each program, (f) the depreciation schedule for the program and (g) the name of the person in charge of the program. On that website there should be (1) a way for the viewer to send immediate short comments and (2) an email address for sending long comments on each program.
Please send us comments, suggestions and criticism on the program laid out above. Remember the following words of wisdom: "Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense."- / Buddha