PHANTOM GDP

All eyes were on the U.S. , while the U.S. House, Senate and President Obama
jockeyed for position on raising the U.S. Debt Ceiling. The Dollars position, as the principal world trading currency, was at stake while those in Washington [D.C.], and in academic circles, squabbled over they way, means and impact of raising he debt ceiling. Drama aside, it was a forgone conclusion that a "deal" would be done and the
debt ceiling would be increased to accommodate U.S. deficit spending.

The side-bar to Washington's theatrics, economic growth [ measured in GDP ], was hinted at in the House passed [H.B. #2560] Cut, Cap and Balance bill, but never brought to the floor by Senator Harry Reid, for Senate vote. Gross Domestic Product, GDP,is the benchmark measure used internationally to snapshot a nations economic growth. The U.S. snapshots GDP on a quarterly, basis; and, during the quarter, when the debt ceiling drama was playing in Washington, the U.S. GDP had stalled at around 1%. Without growth, government revenue, remains stagnant, absent an increase in taxes, often masked as fees, to offset government spending.

The way GDP has traditionally been calculated [ all goods and services ] essentially is a miss-measure that overstates real economic growth by a factor equal to the amount of government costs and services included in the GDP computation. Since the miss-measure GDP computation has universal appeal, true economic growth remains phantom to the delight of Wall Street, London and world financial markets. The GDP miss-measure is a harbinger for future financial melt-downs.

Among the minority of others, China, appears recognize the GDP anomaly, by its recent downgrade of U.S. debt obligations. Others will likely realize the U.S. has been and will continue, for the foreseeable future, to experience negative GDP. This has ominous consequences for todays inter-connected world, and is one factor in the flight to gold and other precious metals. Absent an accurate measure of a nations economic growth, and a stable benchmark currency, the surplus capital necessary for economic growth, will be locked in gold and precious metals, and world economies will unravel.

This U.S. and U.S. dollar, can no longer serve as a benchmark currency. The failure of the U.S. to balance its budget, per the U.S. Balanced Budget Act of 1985, yes 1985, was the first signal to the world that new measures and new benchmarks would be necessary if sustainable, shared, economic growth were to be achieved on a world basis. The latest U.S. budget antics [yr. 2011, 26 years later ] are a signal that the U.S. is in a downward economic spiral and can no longer be viewed as a stabilizing force, and the U.S. dollar, a reliable currency.

The U.S., as a system of governance, has displayed it's inherent flaws; arrogance, fashion, feelings, and ego, trump reason. New measures and a new type of benchmark currency will be needed before financial stability can be achieved on a world basis; otherwise,one country will fail, followed by the next, and by the next; signs of which are appearing in Europe and with the Euro.

THE IRONY OF THE U.S. SPENDING BILLIONS FOR DEMOCRACY IN LIBYA

The U.S., is currently engaged in two wars of remarkable similarity. One in Washington, D.C., Senate Democrats vs. House Republicans over the debt limit, and one in Libya, under the guise of NATO.

The civil war in Libya is more traditional: guns, bombing, thousands of civilian casualties, costing U.S. Taxpayers Billions of dollars. The war in Washington is the "civilized" version of a civil war fought with rhetoric and falsifications. In Libya and in Washington, "high ground" is sought by each side. The irony is, the U.S./NATO war in Libya is ostensibly being fought so that the Libyan people will have a direct say in government, a true democracy. The war Washington is being fought absent any direct say from U.S. citizens. The U.S. is spending BILLIONS of U.S. Taxpayer dollars in hopes of establishing a true democracy in Libya, a democracy that does not exist in the U.S..

WHAT THE NEW U.S. HEALTH CARE LAW SAYS & MEANS

Regardless of the political rhetoric an hype, the middle-class [ those with annual earnings between $35,000. and $88,000. ] as always, will shoulder the burden and pay the price for Health Care reform. The HC Bill does not prevent Health insurers from increasing premiums related to rising health and prescription drug costs, and mandates substantial new risks that insurers will translate into significant premium increases. Let's face reality, something Congress fails to do when passing legislation. The new law mandates that folks cannot be excluded because of preexisting conditions AND eliminates caps on payouts for care. Sounds great, but the reality is that Health Insurers are in business, a business for PROFIT, even through technically incorporated as a non-profit. The bottom line: premiums are going to SKYROCKET !!!

Congress says “...don't worry middle class and poor...” we have you covered; we will subsidize your health care premium costs, on a sliding scale, of course; less for the family making $88,000 annually, more for the family making $30,000 or less annually, by taxing the rich, defined as those making more then $200,000.00 annually. Sounds great, but Congress and most U.S. High School graduates are not good at math. Using government figures this translates into around 900,000 high earners who will be subject to a 3.8% tax generating at best $ 3 billion to 3.5 billion in added revenue. This new tax will be a drop in the bucket when the costs of adding 31 million now uninsured, plus an additional 12 million who will become uninsured ( as a result of the recession and unemployment ); 41 million NEW insureds. In the next two years ( 2012) there is a probability of immigration reform, that will add an additional 20 million to the subsidy roll. The realistic number of persons entitled to a government health subsidy( your taxpayer dollars ) by 2014, jumps to 63 million.

Under the new law, the average family of four ( 4 ) minimum monthly health insurance premium will be in the $1000.00 range; $12,000. 00 a year plus co-pays. 75% of the new 63 million enrollees' will be subsidized; 47million 250thousand ( 47, 250,000 ) x ( times ) a 50% subsidy means the government (you the taxpayer via Congress) will have to come up with a minimum of $2 trillion 835 billion dollars by 2014 to fund the program, and this does NOT INCLUDE the costs of medicare.

The other reality is that by 2012, according to U.S. Government figures, 23% of the U.S. Population ( estimated to be 350 million ) will be over 65 years of age and on medicare: 80 million 500 thousand medicare beneficiaries. Even by CUTTING MEDICARE payments to $6,000 per year per senior [ currently around $9900.00 a year per medicare senior is paid to Medicare Advantage providers ] and by REDUCING COVERAGE[to bare bones/guaranteeing early death ] the government will have to come up with an additional $ 483 billion dollars pushing the 2014 deficit to OVER $3,200,000,000,000.00 TRILLION FOR HEALTH CARE ALONE.

How about coverage: on PAPER everyone will have coverage; but try and find a M.D. who will accept the medicaid or medicare payment as total payment for his or her bill. Go on, go ask your doctor.

Crank up the presses, the dollar........ will it be worth 10 cents ? What is our banker ( China ) going to say ? Hello, … another bankrupt nation headed toward third world status.

The Future for U.S. & World Economies

Recession, depression, stagnation; labels aside, main-street U.S.A. is in and will continue to be faced with a decline in demand for goods and services the majority of citizens can no longer afford. While academics , "professional" economists, the Fed and Presidential advisers, quibble over semantics, theories and blind hopes the U.S. economy will be long, very long to to regain its status circa 2005.

Today "bail-out", "stimulus", and "negative interest" are the buzz words. The reality the majority of Americans well know, is that the jobs that they will get in the future, will not pay what the jobs they lost paid in 2005. So what does this mean for the U.S. ? What does this mean for for the rest of the world ?

The U.S. has been exporting jobs and production to foreign, off-shore, countries for over a decade. This is common knowledge; the labor differential, NAFTA and related trade agreements have hastened the process. While CEO's have pocketed tens to hundreds of millions, U.S officials and the U.S. Congress have never addressed the "end-of-the-day" scenario. 2008-9 are the "end-of-the-day"; the end of millions of U.S. jobs, jobs at pay rates, that will not return. Slight-of-hand economics and policies will no longer mask the reality that the U.S. economic engine has burned itself out.

What does it mean ? It means that the disposable income of the U.S. worker will decline over the coming years; decline as much as 33%, or more, over the next five ( 5 ) years. This decline will be aggravated by inflation: increased costs for electric, water, sewer, garbage phone and utilities, and higher local and state taxes. Accordingly, the U.S. consumer will buy 33%+ fewer goods and services. The disposable income of U.S. consumers and high U.S. consumption rates, have been the fuel for world economies. As of late, China has been the major producer of goods consumed by the U.S.; Europe and other emerging economies have benefited proportionally. The decline of average wage earned by U.S. workers will have a major impact on other economies. While academics, economists, politicians and world leaders focus on the "financial" community, liquidity and credit, the real problem is the decline in U.S. worker wages and disposable income. Few, if any, in high places understand the bottom-line which means that the future, next five plus years, spell gloom for the U.S. and the rest of the civilized world.

PERSPECTIVE IS LACKING IN THE OBAMA "STIMULUS"

President Obama does not need to tell main-street U.S.A. that the U.S. is experiencing HARD TIMES and that their immediate future is bleak. The average U.S. citizen is living the nightmare. Everyone understands that something needs to be done; accordingly, citizens look to Washington for answers. But lets look the data that President Obama is presenting: an $800 billion, now $900 billion, and, with interest carry, over $1.3 to $1.6 trillion "stimulus" on top of the $700 billion passed TARP program of 2008, added to the $126 billion 2008, AIG bail-out.

Some perspective is needed: it took George Bush 8 years to run up the U.S. National debt to $1.2 trillion dollars. President Obama has been in office for 21 days and proposes that we MORE THEN DOUBLE the national debt. So, rhetoric aside, what does this mean. It means, among other things, that the U.S. dollar, your and my savings, Social Security and other benefits have been devalued, i.e., it will take more dollars to buy the same food, fuel, medical and health services then it did in 2008.

President Obama, and Congress will not pin-point the number of private sector jobs that will actually be created by DOUBLING the national debt. Rhetoric should not be confused with actual private sector job creation. Government jobs, because they are directly taxpayer funded, actually add to the national debt, and do not contribute to the economic growth of the U.S. We are headed to 15% nationwide unemployment; Obama pontificates that the "stimulus" will create 4 million jobs. If we take a slim $800 billion as the proposed "stimulus" package base figure, and assuming that 4 million jobs will be created, that means that it will take $200,000.00 for each job created. Wouldn't be much simpler to pay each unemployed head of household $50,000.00 to pay off their debts and bills ? That would amount a treasury expenditure of a mere $ 200 billion and it actually help troubled homeowners, plus save the taxpayers over $600 billion. Another thought, would be to suspend the payment of Federal Income taxes for everyone making under $250,000.00 a year, for one (1) year, a tax holiday ? No treasury expenditure required; yet talk about "stimulus ".

We all know Washington is not composed of the best, brightest or even those with common sense. That is why the Obama/Pelosi "stimulus" consists of over 650 pages, of loop holes, so persons and business other then the average main-street U.S. citizen (we are the one's suffering) and those with political influence can get the "big" pay-off. The "stimulus" bill proposed by the Obama/Pelosi team is nothing more then a ruse, to direct taxpayer funds to privileged persons, corporations, States and Cities with the right political connections, just as the TARP bail-out of the Bush administration was designed to benefit those on Wall-Street and in the banking community who pushed the U.S. economy off-the-cliff. In short, it is Washington doing business as usual.

WHAT IS GOOD FOR G.M. IS NOT GOOD FOR U.S.A.


It is difficult to let go of the past, but the " good old days ", as some would say, have been gone forever. G.M., Chrysler and Ford represent the past, and have gone the way of the " Wild West ". Public consensus has moved on, yet the U.S. Congress is bogged down with past memories of glory days in large part do to the lack of a term limits amendment and the promotion of members based on seniority as opposed to competence. Congress does not "get it"as best illustrated by the passage of the $700 billion Wall-Street Bail-Out opposed by main-street U.S.A. And where did the $700 billion get main-street, deeper in debt.

For the past two years, main-street has known the U.S. is in a recession, duh; but Congress and the Administration are still struggling to recover from a drug induced haze, and admit what has been common knowledge for well over a year. Now, these masters of the universe are jaw boning with the rich and now infamous CEO's of what once were the Big 3 ( G.M., Ford, Chrysler ) U.S. automakers about what can be done to insure the survival of these white elephants. Think of it this way, if the CEO's and really knew their stuff, they would not be before Congress asking for a now $34 billion, soon to be a $75 billion and who knows, maybe a $125 billion or more taxpayer life ring. It's a blind leading the blind scenario, that spells disaster for main-street and the U.S. taxpayer. You would think at least one of the congressional committee heads would query: Where are the CEO's of Toyota U.S.A. and Honda U.S.A. ? You don't see these guys seated at the table asking for a Taxpayer/Congressional Bail-Out.

Thank Congress for GATT and NAFTA, good U.S. jobs are hard to find. The masters of the universe in Washington sent good U.S. jobs offshore with typical lack of foresight and to insure the lavish lifestyles of corporate execs. Congress loves to talk about main-street, but shuns associating directly with main-street. As before, main-street does not want to bail-out the once Big 3 , now Detroit-3, and yet Congress is hell bent for leather, to keep feeding these dead horses. Feed the walking dead and they will cut lose over 100,000 rank-and-file workers; don' t feed G.M and Chrysler and you will lose over 100,000 rank-and-file workers; it's a zero sum for workers no matter what Congress does.

Congress does not have it's house in order, let alone trying to craft a plan for the survival of the terminally ill Detroit-3 automakers. The Detroit-3 proposals are 48 years to late; this is 2008-9, not 1960. In 1960, when it was apparent that foreign auto makers were making impressive inroads in U.S. markets, had the then still Big-3, joined the reality train and re-structured at that time, they would not have become the walking dead Detroit-3 of today.

Congress should let the chips fall where they may; stay out of the fray. The U.S. public. main-street U.S.A. have become accustomed to taking it in the shorts from big corporations and Congress; we will adapt and survive, no thanks to Congress.

A SINKING SHIP - SAGA OF THE U.S. ECONOMY

Main-street U.S.A. has long been aware that there were big troubles brewing in the economy. The how's and why's were not apparent, but rising prices, zero or minus wage gains and cut-backs in hours were signs main-street recognized as being "not good". Mediocrity was pervasive at the executive levels of corporate America, coupled with the mediocrity of Congress. The most prized positions in corporate America, those with title, disproportionate incomes, perks and outrageous bonuses, not for performance, but because of connections, had much to do about the collapse of the U.S. economy. Congress aided and abetted the collapse by its arcane rules promoting those with longevity to committee chairs regardless of competence in the subject area of the committee. The reluctance of Congress to pass a term limit amendment was and is the breeding ground where the brightest 10% of members are virtually drowned by the 90% who are incompetent. The same holds true for the captains of corporate America. Add to the mix a team captain who was not playing with a full deck, George Bush, and it's know wonder the true colors of those raping the system were not sooner exposed.

Adding insult to injury, main-street U.S.A. is still paying the price for this combined corporate and government incompetence. Businesses continue to close, unemployment accelerates, and all the while Treasury Secretary Paulson continues to loot the U.S. Treasury so corporate executive rapists can continue their glutinous ways. Those in the U.S. possessed with a modicum common sense have to be asking: why throw good money after bad ? why pay and essentially reward bad behavior and poor performance ?. That is what is being done by giving billions of taxpayer dollars to the corporations and executive management teams that got us in this mess in the first place.

Chapter 7, not Chapter 11, is where AIG, the financial firms, and others in the bail-out line should be. Why prolong and aggravate the pain for main-street by first looting the U.S. Taxpayer/Treasury ? A very few, very rich, are the only beneficiaries of Congresses myopia. The election of Obama was main-streets signal to Congress that the public wants a NEW GAME, not simply another quarterback. Corporate America, Wall-Street and Congress have to quit their addiction to "trickle-down Reaganomics ". Yet, there is no sign that Congress is willing to take the "throw cash" needle out of their arms and consider unique solutions to the problems they have had a heavy hand in creating, e.g., Public Law 106-554 Sec.1(a)(5), the Commodity Futures Modernization Act.

Congress can't seem to grasp a very simple concept: jobs, good jobs are the foundation of a sound economy. Who should be funded, bailed-out, at taxpayer expense; it's a no brainer - the middle-class, main-street taxpaying U.S. citizen. HOW, by extending fed rate ( the rate banks pay the Fed to borrow money ) funds to the major Unions and employee groups, like the UAW, for the purpose of purchasing the plants, equipment and other assets of bankrupt corporations, the likes of G.M., Chrysler and/or Ford. Employee owned corporations are not that novel of an idea. The loss of jobs, only temporary, and can be adequately covered by extending unemployment benefits. The U.S. taxpayer is paying, and should be getting some direct benefits. Congress, and it appears, soon to be President Obama, may be sticking their heads in the sand, by continuing to beat the existing bail-out/stimulus horse to death. Main-street deserves more from the "Master's of the Universe".

If the sinking ship has any chance of being saved, it will be by taking a completely different approach: Congress promoting and funding Union and Employee owned corporations formed to purchase the assets of Chapter 7, corporations; and cutting off all bail-out funding to the likes of AIG and others lining up for Treasury Bail-Out funds. Corporations that require taxpayer bail-out funding to exist should be allowed to fail, that is why there is Chapter 7, of the U.S. Bankruptcy laws.

U.S.A. - a Ntion in Peril

The political and economic hurdles facing the U.S. are intertwined. The U.S. is a "class" society as indicated by the recent "financial" crisis created in and by the U.S. ultra rich "Wall-Street" class. The U.S. Congress passed "bail-out" legislation over the objection of the majority of main-street citizens, benefiting "Wall-Street" to the tune of over $700 billion U.S. dollars, slapping democracy in the face and merely paying lip-service to the struggling and diminishing U.S. middle-class. "Wall-Street" greed has infected world economies, resulting in a world economic crisis calculated to diminish the U.S. middle-class, and emerging middle-classes world wide .

In the U.S. the class struggle will take center stage during the upcoming U.S. Presidential election; stripped of rhetoric U.S. Republicans represent "Wall-Street" and the Democratic party represents middle-class "main-street". An anomaly in the U.S. Constitution [ adopted in 1789 ] precludes the President of the U.S. being selected by popular vote of the people. This anomaly coupled with a corrupted U.S. judicial system skews the election of the U.S. President in favor of "Wall-Street" Republicans, by eliminating over 49.9% of the popular vote and highlighting the fact that the U.S. was not created or structured as a "democracy". Regardless of who becomes the U.S. President, 2009-2012, the electoral anomaly will continue to cripple the U.S. in asserting the principles of democracy at home and abroad.

OPEN LETTER TO U.S. CONGRESS GONE INSANE

RE: Bail-Out/ Congressional Disconnect from Main-Street

Dear Senators and Congressmen:

It appears that the focus of Congressional attention has been on Wall-Street and the financial woes created by Ben Bernanke, Henry Paulson ( in his prior capacity as CEO of Goldman Sachs ) and Wall-Street associates, regarding liquidity within the financial community. Congress has disconnected from the happenings and realities of Main-Street. You are making a serious mistake delegating your Constitutional authority under Article I , Section 8, sub-sections 1-6, to the Secretary of Treasury, and marginalizing Congress in the process.

Before you jump to shore-up Wall-Street to the tune of $700billion to well over a Trillion taxpayer dollars, you might wish to take a look of what is happening on main-street. THERE IS A RUN ON THE BANKING SYSTEM HAPPENING AS I SPEAK. THIS WILL ONLY ACCELERATE WITHIN THE NEXT SIX ( 6 ) MONTHS, exceeding the capacity of the F.D.I.C. to cover insured accounts, and requiring Congress to provide additional $$$billions so that main-street, will not be left out-in-the-street, regarding their personal accounts.

In addition, there will be mounting strains on the Pension Benefit Guaranty Corporation( PBGC ) as plants shut-down, corporations file for bankruptcy and premiums paid to PBGC dry up. Although not yet a direct obligation of the U.S. Government/ Treasury, when 400,000 + ex-employees now potentially covered, are told that there are not sufficient funds available to pay the fund guaranty of $4,312.50 per month ( $51,750.00 per year ) there will be major social unrest, and Congress will need to come-up with additional $$$billions. The public will not tolerate, being left-out and left-behind when you bail-out the Wall-Street millionaires, who, the minute they get Treasury Bail-Out $$$billions, will have that money transferred off-shore in an instant. Congress needs to take a break, go back home, go out on the street and open your eyes to see what is really going on in the main-street financial world; people are lining up at banks and withdrawing their money. You underestimate the public’s understanding of the circumstance. The average citizen has lost confidence in the system, and does not trust Congress.

Bailing-Out Wall-Street will not have the affect you are predicting. When bail-out money is transferred off-shore, it will provide no liquidity to the domestic U.S. economy. If you think there is a credit crunch now, wait until you bail-out Wall-Street, you will see U.S. unemployment climb past 15% as foreign banks and investors recover their losses from U.S. Treasury Bail-Out funds, and major U.S. financial institutions and investors transfer Bail-Out funds offshore, leaving Main-Street U.S.A. out-in-the-cold.

The draft 106 page bill, is 106 pages of loopholes, so that no person can be held accountable for the greatest looting of a public treasury in world history. There is a vast difference and a distinction between Regulation and oversight; Treasury, the SEC, HUD have always had oversight/look the other way, what has been lacking is Regulation. This proposed draft is an insult to Main-Street.

Congresses haste and myopia in failing to look down the road is likely to cause the collapse of the entire system. It would be prudent for Congress to with hold-off looting the Treasury for the benefit of a few on Wall-Street, until you have a firm handle on F.D.I.C. and PBGC obligations coming within the next 6 months.

Bail-Out/ WHAT THE U.S. CONGRESS SHOUD BE CONSIDERING

SHORT TITLE - CITIZENS ECONOMIC STABILITY ACT OF 2008

1.0-PREAMBLE: The Constitution of the United State of America provides that citizens and voters of the United States shall govern and rule by an through duly elected representatives. Article I, Section 8, Subsections 1- 6, and subsection 18, vest Congress with the power and duty to control the money, credit and commerce of the United States, this power was intentionally with-held from the Executive Branch and President of the United States. The Executive Branch and President have exceed their Constitutional authority, resulting in a severe economic crisis confronting the United States with the potential of adversely affecting the citizenry of this nation; Congress therefore, is hereby reasserting it's Constitutional mandates and control over the money, credit and commerce of the United States.

2.0-PURPOSE: Congress and the citizenry of the United States have been presented with an unprecedented financial crisis, affecting the value of the dollar, the stability of domestic and world markets, with potentially adverse impact on the public, health, safety and welfare of the United States and its citizenry. These circumstances require Congress to re-structure institutions operating within the United State and/or affecting the citizenry of the United States; accordingly, any and all laws that are inconsistent with the purpose and/or provisions of the Act, are, by this declaration, hereby expressly revoked and all appointments related to any inconsistent law are hereby terminated.

3.0-FINANCIAL RE-STRUCTURING:

3.1- Federal Reserve: the Federal Reserve Act, as codified in 12 U.S.C. ch.3, et.seq. is hereby amended, as follows: The Federal Reserve Board shall consist of 4 members, composed of the Chair and Ranking member of the Senate Banking Committee, and the Chair and Rankling member of the House Financial Services Committee. The position of Chairman of the Federal Reserve is hereby abolished. Any and all actions of the Federal Reserve shall require a vote of not less then 3 members of the Federal Reserve Board as established hereby.
3.1.1- All participating banks , financial institutions or affiliates in the Federal Reserve system shall keep and maintain 20% of all deposits, on deposit with the Federal Reserve Bank in the form of U.S. Treasury bills and/or notes;
a) No participating bank, financial institution or affiliate shall charge more the 12% simple interest for any loan, credit extension or credit swap;
b) The bank rate for participating banks, financial institutions or affiliates shall be within a range of plus or minus 0.5% of the rate charges by the European Central Bank ( ECB );
c) Companies and corporations having manufacturing facilities within the U.S. that directly employ 8,000 or more factory workers who are U.S. citizens in the U.S., including but not limited to: General Motors, Ford, Chrysler, John Deere, Caterpillar , shall be allowed to participate in the Federal Reserve, and borrow from the Federal Reserve, for U.S. domestic factory operations at the same rate, Fed. Rate, available to commercial banks.

Page 1 of 4

3.2 - Stock & Commodities Markets: It shall be unlawful to trade, barter, sell, pledge or hypothecate stock or stock certificates in or within the United States, or in any company, corporation, entity, or person doing business in or with the United States, that are held for a period of less than 13 months; FURTHER, it shall be unlawful for any company, corporation, entity, or person doing business in or with the United States that is not the end user to trade, barter, sell, assign, or pledge commodities or commodities contracts.
3.2.1- Violations: The RICO ACT, 18 U.S.C. #1951-1968 is amended to include Section 3.2 hereof as a definition of racketeering subjecting any violator, to the penalties provisions of 18 U.S.C. and/or all property and assets, obtained or suspected to be obtained by or related to any violation of section 3.2 of this act shall be fully subject to the Civil Forfeiture Provisions of the Comprehensive Crime Control Act of 1982, Pub.L. 98-473, as amended. Further, the standard of proof shall be based on the preponderance of evidence and court decisions, laws or provisions to the contrary are hereby declared null and void and of no force effect whatsoever.

3.3 - Existing APR and Sub-Prime Mortgages: It shall be unlawful for any bank, company, entity or person, for a period of 2 years from the date of this Act, to charge or collect any interest on such indebtedness that exceeds the original rate charged to the home borrower; further, the maximum interest that may be lawfully charged on such home, provided the original debtor actually uses and occupies the home as his or her sole residence, shall be limited to 6% simple interest, and the overall term of the loan shall be limited to 20 years; the full amount of which home loan shall become due and payable on the sale, transfer, rental, lease, or vacating of the home as the sole residence of the original debtor.
3.3.1 - Federal Usury : It is hereby unlawful for any institution, bank, credit card company or affiliates, person or entity to charge more then 12% simple interest for any loan or extension of credit to any person in the U.S., and/or to impose fees that exceed the 12% limitation. Violations of this sub-section are defined as "racketeering"subjecting any violator to the penalties and provisions set-forth herein at sub-section 3.2.1.

4.0 - EXTENSION OF MONEY AND/OR CREDIT OF THE UNITED STATES OR U.S. TREASURY: NO MONEY OR CREDIT OF THE UNITED STATES OR U.S. TREASURY SHALL BE EXTENDED TO ANY BANK, FINANCIAL INSTITUTION, COMPANY, ENTITY OR PERSON EXCEPT AS FOLLOWS:
4.1- Security Required: No loan, money or credit of the United States shall be extended to any bank, financial institution, company, entity or person except on the basis of a dollar-for-dollar security for the same in the form tangible personal or real property located within the United States having a real mark to market value, minus 15%, equal to the base amount of the loan, money or credits extended by the U.S. Treasury. The cost of any such loan, money or extension of credit of the United States, shall include the cost of administration of the Federal Loan Compliance Trust (FLCT), which shall herein be established as an arm of Congress for the purposes of this Act.

Page 2 of 4 - Citizens Economic Stability Act of 2008

The FLCT shall be chaired by the House and Senate Majority and Minority leaders ,who based on a majority vote, shall have the power and authority the hire and retain competent independent counsel to administer the FLCT, to make rules and regulations necessary to insure that the United States is fully and promptly repaid, including but not limited to the seizure of assets and security for any loan, money or credit extended, by the United States; and to prosecute violations or infractions of this Act or any terms or provisions of any loan or extension of credit hereunder.
4.1.1 - Other Terms of Loan, Money or Extension of Credit: The maximum period of any loan, money or extension of credit of the United States shall be limited to an cumulative total of no more then 5 calendar years. Any and all banks, financial institutions, companies, entities or persons qualifying for and extended any loan , money or credit of the United States, shall file tax annual tax returns and render accounting on calendar year ( January 1 to December 31 ) basis. Accrual accounting or reporting shall be unlawful and is hereby defined as " racketeering " subject to the provisions and penalties and civil forfeiture as provided by 18 U.S.C. et. seq.; Further, any and all loans, money or extension of credits of the United States extended to any qualified bank, financial institutions company, entity or person, shall bear interest at
6% per annum, and such interest shall be paid to the U.S. Treasury on a monthly basis during the period of the loan. Any default on the monthly payment of interest to the US. Treasury, or default on the repayment of the principle shall result in the automatic forfeiture, by confession of judgment, off all security for the loan or extension of credit.
a) During the period of any loan or extension of credit of the U.S., Board Members of any borrower shall serve without pay, compensation or per diem, and the highest executive salary paid shall not exceed the U.S. Government Service, GS 15 amount. Violation of this sub-section is hereby declared and defined as " racketeering " subject to the provisions and penalties and civil forfeiture as provided by 18 U.S.C. et. seq.;
4.1.2 - Qualified Security: Qualified security for any loan, money or credit of the United States extended to any bank, financial institution, company, entity or person, shall be all tangible, physical assets, personal and/or real property located or situated in the United States in which any CEO, CFO, President, Executive Vice President, and all Board of Directors members serving any bank, financial institution, company, entity or person seeking a loan, money or credit from the United States, between the years 2002-2008, has any interest in; and, the stock, warrants, options, bonds, real and personal property of said banks, financial institutions, companies, entities or persons. When socks and/or warrants are pledged and encumbered as a qualified security, the FLTC shall prepare and hold properly executed subordinated convertible debentures for voting and ownership rights to and in said stock, warrants, options or bonds.

5.0 -Secretary of Treasury - limited authority: Congress retains full authority over all matters involving loans, money, debt and/or credit of the or the extensions thereof, of the United States. The Executive Branch, President and Secretary of Treasury may facilitate in the surrender and pledge of qualified security, as provided and defined in and by this ACT; and, from time to time the Secretary of Treasury may render advice on matters related to this act and the stability of the U.S. economy, as requested by Congress and/or the FLTC.

Page 3 of 4 - Citizens Economic Stability Act of 2008

5.1 - F.D.I.C. $250,000.00 per account: Existing laws providing qualified banks and institutions with F.D.I.C. insurance coverage are hereby amended, and coverage is increased to $250,000.00 per individual, per account, per bank or institution, and increased to $500,000.00 on retirement and/or IRA accounts. The Secretary of Treasury is hereby directed to extend all funds to the F.D.I.C. that may become necessary to cover individual accounts as herein provided; and, further, the Secretary of Treasury and the F.D.I.C. are hereby directed to modify, amend or enact rules and regulations necessary to implement account coverage increases consistent with this Act.

6.0 - CONFLICTS OF INTEREST : It is hereby enacted and declared unlawful for any individual and/or person who is an official of or employed by the U.S. Government and/or any agency or sub-division thereof to have any financial or other interest, of any kind and or nature whatsoever, in any company, corporation, financial institution, or entity that is granted a loan and/or extension of credit from the U.S. Treasury.
6.1 - Violations: Violations of this section 6.0, of this Act are defined as "racketeering" subjecting any violator to the penalties and provisions set-forth herein at sub-section 3.2.1. of this Act.


7.0 - ENFORCEMENT/CONCURRENT JURISDICTION: All State Courts of General Jurisdiction as well as U.S. District Courts, shall have concurrent jurisdiction relating to the enforcement of any provision of this Act; any violation or alleged violation of this act shall be prosecuted within the United States. The authority of Federal District and Appellate Courts to review the validity of this Act, is hereby expressly revoked pursuant to the Powers of Congress, provided by Article 1, Section 8, sub-section 9, of the U.S. Constitution.

8.0 - SAVINGS CLAUSE: The provisions of this Act are separate and severable; should any part or provision of this Act be adjudicated unconstitutional by a full 9 judge panel of the U.S. Supreme Court, the rest and remainder shall remain in full force and effect.


Page 4 of 4 - Citizens Economic Stability Act of 2008 ///end

THE U.S. CONGRESS HAS VOTED ITSELF IRRELEVANT

Times were much different in 1789 when the Constitution of the United States
was ratified. A fledgling new nation born of independent thought, created a system of government relevant to that time. One where 95% of the power was held by Congress, as representative of the citizenry of the then newly created 13 States. Now 300 plus years later the wheels are falling off the 1789 Constitution, a Constitution not designed to address the issues, problems and speed of the 21st Century world.

Instead of directly addressing the need for a new Constitution crafted to reflect modernity and the governance of a nation of 50 States and over 300 million people, Congress has allowed circumstance to dictate changes in the structure of governance of the United States. The transition has been slow, subtle, unguided, and painful to the populace. The abdication of Congress began with the delegation of it's authority, and, as more and more authority was delegated to Executive agencies, Congresses relevance has accordingly depreciated.

Two threshold events within the past 8 years have signaled the death of Congress as provided in the Constitution of 1789. First was the delegation of authority to declare War ( 1789 Constitution, Article I, Sec. 7(11) ) to President Bush, based on the claim of President Bush of the existence of WMD's in Iraq, and, within the past 24 or so hours the "Grave Financial " threat and "crisis" on Wall-Street presented by the Bush Administration, and the hurry-up huddle of Congress to delegate Article I, Sec.7 (2)(5)authority to the Secretary of the Treasury. Congresses own action over time have rendered it irrelevant tot he function of the U.S. government.

In 1995 a rational approach to this transition in the structure of the U.S. government was sent to every member of the U.S. Congress as well as the then President Clinton: "New Atlantis-The Re-Engineering of America" an outline of a modern Constitution, where the Executive Branch ( President) proposed laws, subject to the modification or veto by Congress. In substance, what is happening today as Congress is contemplating and likely to sign off on the Bush Administration plan to bail-out Wall-Street, Foreign Banks and investors, at U.S. taxpayer expense. New Atlantis outlined a structured process for Congressional approval, as opposed to the free-fall and free-form rush to judgment that is currently taking place where Congress is presented with a "crisis" by the Bush Administration demanding immediate action, e.g., WMDs'/Iraq and now the financial "crisis" and bail-out mania.

CROOKS & THIEVES

Let's take a look at Republicans and the Republican Administration : lower taxes, small government, no regulation, private companies, capitalism, let market forces determine who survives.

Reality: largest expansion of Government in history - Bush created Dept. of Homeland Security, in your face, listening to your phone and e-mails, no restraints on invasion of privacy; largest debt in history - trillions of dollars; privatization of utilities = higher prices and poor service to average household; lower taxes - only if your income is based on capital gains from stock options and you make over $225,000.; capitalism, let the market determine what business survives - except in cases where billionaire Republican CEO's are concerned, then the Republicans take $85 billion of taxpayer dollars so their Republican buddy CEO's and Board members can buy 200 foot yachts and add an 8th mansion to their lists of houses. IN SHORT REPUBLICANS ARE FRAUDS, THEY HAVE DEFRAUDED THE TAXPAYERS, AND JOHN MCCAIN IS A CARD CARRYING MEMBER OF THIS CRIME SYNDICATE. McCain got a pass on the Keating Five, 1980's Savings and Loan scandal/ cost taxpayers $124billion; one of his sons was on the Board of the recently failed Silver State Bank, who knows what connections McCain and family had with another recent Arizona Bank failure - 1st National Bank of Arizona, and how about his wife's, Cindy's, business and family interests, any AIG connections ?

Every average citizen with an once of savvy should small the rats, liars and hypocrites that make up this bunch of Republican thieves. Vote for McCain and one might as will empty their pockets out so John and friends can buy new jets, mansions and yachts. Palin, as Gods representative, is along for the gravy train. Health Care for the nation - to expensive, socialism, would cost $30-40 billion; $85 billion for your billionaire buddies -capitalism's finest hour; that's the Republican way.

TURMOIL IN U.S. ECONOMY -John M. Keynes is Dead

The " perfect storm " for the U.S. has been brewing during the lacks stewardship of the Bush Administration, and administration stead fast in the belief that J.M. Keynes was alive and well; and the green light given to the U.S corporate and financial communities that anything goes. The pied piper and followers, both in the U.S. and abroad, are beginning to face reality as the house of cards created by the amalgamated U.S. government and financial community begins to unravel. No regulation, War and the largesse of the U.S. toward it's friends and allies abroad echoes the history of fallen Nation states and Empires.

In today's multi-national, cultural and economic world, the current U.S. financial crisis is the foot and not the crest of the wave of failures yet to come. Failures when pealed back, reveal the limitations of the U.S. "brand" of governance and "democracy"; governance that is bought, sold and traded on a regular basis. For the rest of the world, the U.S. distress flare, should signal that the U.S. is broken, broke and sinking.

Two officers vie to Captain the sinking ship; one born of generations past, of privilege and 100's of millions in personal backing; one cut from common cloth. Either will face obstacles not seen before: trillions in national debt, a population increasingly illiterate, lacking skills and employment. A population of entitlement; and corporate, financial and services communities steeped in greed. Yet there is no blueprint for evacuation, plenty of words, but rhetoric is no lifeboat. John Keynes is dead, but his followers are not; this, crippled by a U.S. Congress composed of some 635 individuals competing for power, means the U.S. ship, for all practical purposes, is dead in the water
.
The history of how the U.S. arrived at this threshold is important as a lesson that the form of government, provides little shield against greed and corruption; what is needed for all, is set-aside for the benefit of a few. What the U.S. needs is a new constitution, one updated to reflect the realities of the 21st century. One that contains applications as well as rights.

In the short run, with focus on the current financial meltdown, swift action and a blueprint is called for; a blueprint that, among other things, spells out:
1) That interest charged in excess of 15% should be uncollectible;
2) That banks, savings and loans, credit unions be restricted in function
to lending and that such institutions be required to keep a minimum
reserve of 20% in U.S. Government treasury securities; and that all belong to the F.D.I.C.. In addition, no bank, savings and loan, or credit union should partner, be affiliated with any entity that engages in the sale or brokerage of stock, bonds, mutual funds or other investments; FURTHER, all banks, savings and loans, credit unions and all F.D.I. C. insured institutions should hold and retain all security related to the loans granted by each institution, and the same cannot be subscribed, sold, transferred or subordinated to any other type of instrument or transaction.
3) That the export of U.S. capital be restricted to the purchase of actual goods, materials, mineral and natural resource products; arbitrage of commodities be prohibited; that the trading on stock, bonds and other instruments be regulated and restricted: all stock and bond sales should be held by the buyer of a period of not less then 13 consecutive months; 15% of the sales price of stock should be rendered to the corporation issuing the stock; Stock and bond transfer fees shall not exceed $50.00 per transaction.
4) Federal Reserve bank rate of funds shall be tied to the EU Central bank rate, and should not very more then .25% from the EU central bank rate.
5) Except for the purchase of one residence in the U.S., no citizen or individual person should be extended credit or incur debt in excess of 30% of his or her average net U.S. reported early earnings ( over 3 year period ); and no person or entity should be permitted to collect any debt or obligation that exceeds the 30% limitation.
6) Every individual person 18 years or older in the U.S. should be required to establish, in a U.S., F.D.I.C. insured bank, savings and loan, and/or credit union, a Personal Retirement Account
( PRA ) and a Personal Health Account (PHA);a minimum of 6% of all earnings should be deposited on a monthly basis in the PRA, and a minimum of 3% of all earnings should be deposited on a monthly basis in a PHA, withdrawals from such accounts should be restricted and limited; amounts and accruals on such accounts should be tax exempt.

The initial restructuring of the U.S. banking and financial community as blueprinted above, will provide stability to U.S. and related financial markets, and will strengthen the U.S. dollar. In addition, it will preserve individual U.S. equities. The survival of the U.S. economy, and challenge for the next U.S. president will be to embrace and effectuate systemic changes to a system long outdated. The question is: which current candidate, John McCain or Barack Obama, is willing to step-to-the-plate and endorse a particulars specific blueprint addressing the financial meltdown the U.S. is experiencing, and plug the hole that is sinking the U.S. ship.

http://citizenswakeupcall.blogsport.com

Bail-Out of Fannie and Freddie - U.S. in World of Hurt

Another Bail-Out: Financial bail-outs go back a few years, remember the Savings & Loan crisis ?
The brains in Washington, Republican administrations in particular, and those at the Federal Reserve, once again have lead U.S. taxpayers astray and put a few more nails in the U.S. financial coffin. In short, the brains don't get it, they are poor custodians of the public trust; markets in reality are not the elixir that Adam Smith, John Keynes and followers dreamed of. Life has changed, Keynes is dead; the Fed Reserve and Washington brains have failed to understand the basic mechanisms of the modern world. It takes both capital and oil to keep modern economies humming along.

What the bail-out of Fannie & Freddie, by us U.S. taxpayers, means, is that in addition to the U.S. dependence on foreign oil, we, the U.S. have become dependent on foreign capital to keep this country afloat. One of the basic and fundamental underpinnings of an economy is SAVINGS !
Any freshman should remember this from Econ 101. So what do the brains in Washington and at the Federal Reserve do..... they promote the export of manufacturing jobs. NAFTA, GATT all the programs designed to line the pockets of the super rich 1/2 of 1% of the U.S. population with gold, have effectively killed the savings engine of the middle-class; and without domestic savings, a country, the U.S. in the instant case, is dependent on foreign capital for real growth in the economy. The Republican penchant for killing off the middle-class, and the Bush administrations folly of war, have accelerated the U.S. one-way road to dependence on foreign capital and foreign oil. Manufacturing jobs, not retail, service or government jobs, contribute real value, via personal savings, to an economy.

Washington and the Bush Administration are desperate , taxpayer bail-outs are simply additional band-aids masking a fatal wound that has been self-inflicted. The U.S. financial house is made of cards, should any of the major foreign contributors stop propping up the U.S. house of cards, by with holding capital, i.e., not buying U.S. Treasury securities, the house of cards will fall down. Thank you George Bush, your appointed designate John McCain, is poised to put the last nail in the coffin. And the 1/2 of 1% super-wealthy in the U.S. truly thank you for pulling off the greatest scam and transfer of wealth in modern history.

Mortgage Band-Aid Will Not Fix Economy

Let's face it, the U.S. economy is poised for collapse do to the ignorance of Congress, the President and his band of thieves. OK, maybe Congress, the President and followers are just naive, but the fact is that everyone with common sense knows that the mortgage bail-out band-aid is not going to fix anything and very few homeowners will benefit from this taxpayer give-away. The current crisis is nothing more then a warmed over version of the Savings & Loan mess of the 1980's. Congress passed another bail-out, nothing was fixed. De-regulation and privatization is at the bottom of the Savings & Loan crisis as well as the current sub-prime mortgage crisis. Had de-regulation and privatization not occurred, it is very probably that U.S. citizens and taxpayers would not be paying for corporate greed again.

Take a hard look.... did the de-regulation of utilities ( gas, electric, water, phone ) resulting lower prices or better service to we peons ( general public )....NO. Who benefited...company execs. Did banking de-regulation result in better service and lower costs...NO. Who benefited....
bank execs.

A little history will put things in perspective: 1930's depression..cause corporate greed;
Congress and the Roosevelt admistration enacted regulations; 1980's the Reagan administration started hipping away at regulations ( Saving & Loan crisis ) and the current George Bush
finished emasculated the remainder of government regulation...Sub-Prime Mortgage crisis.

Times have changed, ideology meets reality. It took the U.S. over 20 years to get back on it's feet after the 1930's depression. But things were different, WWII, ended the Marshall Plan provided 100's of millions to U.S. factories to produce goods to rebuild Europe, resulting in increasing wages to U.S. workers, who in turn, were able to save. Basically, little or no capital was exported from the U.S. TODAY, and over the past 8 years, the U.S. has been exporting good paying jobs, there is virtually no personal savings, inflation has a strong foothold, and the U.S. has been exporting capital and unprecedented rates; war in Iraq $13 billion a week, foreign oil..billions,the purchase of goods the U.S. no longer manufacturers ...billions. Bottom line... thanks to Congress and President Bush, the U.S. no longer has a financial foundation to re-build the economy on. The mortage bail, now law, is just another nail in the coffin.