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
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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.
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