The U.S. Government continues to ignore the obvious and for many, myself included, there is increased awareness as to the financial carousel of sound-bites, their obvious cross-purposes and the consequent veil that shrouds both the Symptoms & Solutions.
- One day the Markets are up and yet at the same time the Dollar Plunges on world-exchanges whilst the crusade of speculators plunder the Commodities and Futures Markets driving the economic nail of spiraling costs through the heart of the American Public’s diminished reserves. The later, by the way, facilitated by Messrs. Frank and Dodd and their still-born exercise-in-plunder, the Wall Street Reform Bill, which further expanded the terrain and openly licensed this process of predation.
- The very same day another media outlet reports the Economy show signs of a strong recovery yet strangely, Unemployment remain unchanged, personal income continues to plummet, the mountain of Real Estate Losses continues toward record-breaking heights and the Nation posts more and more Business Closures, Bankruptcies and Bank Failures.
- The following day Congress argues over petty and inconsequential Budget Cuts yet the President insists on pushing the massive entitlement of government-run Health Care and then, as if to tease further insult, he submits a Budget that is a complete breach of any recognizable domain of sanity or fiscal propriety.
- The economy continues to cavitate under the crushing weight of massive Federal and State debt-loads accumulated over decades of roulette-style Policy-To-The-Highest-Bidder governance and at the same time, blistering opposition wages war against the forces attempting to cure the systemic flaw at the heart of the problem.
- The President proclaims that we need to create jobs of the future and attempts to console the public with promises of more Czars and Study-Groups yet nowhere do we see signs of addressing the more immediate and pressing fact: The U.S. Government (and many of the 50 States) has deliberately succumbed to the prejudice of self-serving interests directly responsible for an economic collapse that was self-inflicted and ultimately avoidable. Moreover, they’ve done nothing but fan the flames of an economic fire-storm that is only just beginning to scorch this Country’s landscape.
They’ve ignored the most elementary of cures; yes, they have missed (even) the basics and as one would expect the maize would appear to be un-navigable which, to return to my opening comment, draws the curious along the road of inquiry to an increased awareness that there is something very wrong with all of this; a systemic flaw in the political firmament. I confess that I am expressing a leap in the order of the thought process however I am nearing my self-imposed word-count limit so let me cut-to-the-chase by posing the resolving point in the form of a question: Is the flaw (or, root-cause) more a function of political ineptness or is it economic ignorance? Or is it simply ineptness and ignorance that is the root-cause of the problem?
Whatever the answer, for now, let me illustrate a very simple series of solutions however it will require a brief, comparative reference: I persist in the belief that that the intended role of government was purposed toward insuring an environment exists where People are free to pursue, among others noble ambitions, economic success and if we focus on the pro-generative features of the process then not only is it perpetual it also creates individual wealth more than sufficient for a individual to fund their own health-care as well as their own retirement program.
The key component of this process is to insure that selective-bias (regardless of its origins) is not permitted to wage war on the sovereign interests of the People for whom government is charged to serve. It should be clear to most that this relationship and purpose has run-a-muck and in fact we now have an inverse-relationship which is politically, socially and financially unsustainable. The damage is done, the affects and effects are visible and so, what do you do, how do you fix what appears to be willingly unfixable? Here is a very quick series of points with associate comments which I trust you will find invigorating:
1. Prohibit speculation in commodities for any economic interest outside the industry-specific commodity.
Comment: Why should JP Morgan Chase be able to speculate in “corn”, “sugar” or “oil” for that matter if the only effect of the trading is to drive prices skyward and line their pockets at the expense of the consumer? The “global market” explanation is a bold-faced lie and wholly irrelevant to the market-function.
2. Instead of having wasted nearly $9 Trillion (and growing) in various government (including the Federal Reserve) stimulus and bailouts of GM, GE, Unions, Chrysler & so on all creating the illusion of jobs in the to be animated morrow-morrow-land, why not try this:
(a.) Place a graduated tax rate on all corporate income. The scale would be based on the percentage of domestic manufacturing/farming revenue source. For example: 100% U.S. Sourced income would have a 10% Net Income Tax rate which graduates up the scale to a 40% Tax Rate on Net Income for non-U.S. Sourced component greater than 50%.
(b.) Instead of bailing out GM, Chrysler, Unions and GE as well as their failed economic paradigms why did no one consider restructuring the paradigm? There are so many existing and emerging products and technologies created here in the U.S. being manufactured by foreign sources where the alternative should have been that these (as well as others) bailout-babies could have expanded in to other manufacturing processes and thus directly target products and their associate processes for production right here in the U.S.
Comment: If you want to see an explosive restoration in this Nation’s economic profile then consider the superbly refined effects of these two simple strategies. What company would not want to have a 10% tax rate?
I have developed dozens of these simple strategies many of which appear throughout the Blind-Vision Series and though this expose’ is not intended to suggest I posses some extreme form of arcana or specialize knowledge, certainly not! It’s just that they are so damned simple and I’m bereft of reason to understand why no one but me thought of them.
As would be the case with a photograph of an ear of corn, which I confess may stir artistic conversation however, you can never eat or trade what you don’t grow or produce regardless of the life-like appearance. Likewise in the case of two companies that provide a service photographing corn, cleaning swimming pools or designing magnificent architectural structures, if there’s no wealth being created from growing or producing products not only are you going to run out of money trading pictures of dead-presidents for services that create nothing, eventually all of the money is going to migrate to one of two industries: (1.) The banking system that loans you money for the things your dwindling reserves can no longer afford or, (2.) The industry or nation that produces the most of what is traded.
That’s just the law, I don’t make it up, it just another one of those nasty inviolable laws that evidence both the Symptoms & Solutions.
Still, in the end:
“You can’t fix a system that prefers to remain broken!”
Curtis C. Greco, Founder