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.
Monday, February 9, 2009
Wednesday, February 4, 2009
TO THE POINT 6 page STIMULUS - 650+ page HR #1 is GARBAGE
SHORT TITLE - [ DRAFT ] RECOVERY & MODERNIZATION ACT
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.
2.0- PURPOSE - Emergency: Congress and the citizenry of the United States have been confronted with an unprecedented financial crisis, affecting the value of the dollar, the stability of domestic and world markets, and adversely impacting the public, health, safety and welfare of the United States and its citizenry. These circumstances are declared an Emergency requiring Congress to immediately act to protect and preserve the health, safety and welfare of the citizens of the United States; and to so do, requires the re-structure Federal agencies and the regulation of banks, financial and credit institutions, and related markets; accordingly, any and all laws that are inconsistent with the purpose and/or provisions of the Act, including but not limited to Public Law 110-343 and P.L. 106-554 are, by this declaration, hereby expressly revoked, terminated, amended and/or modified, as may be required, so as not to be contrary to and/or inconsistent herewith.
2.1 - EFFECTIVE DATE: This Act shall be and immediately become law, in effect, on the day and date of the signature of the President, or any veto over- ride by Congress.
2.1. 01 -Expenditure Pre-Approval Required : The payment, expenditure and
/or disbursement of any funds, credits, monies, sums and/or amounts by the Secretary of the Treasury as authorized by Public Law 110-343 are hereby expressly terminated, and any further or future payments, expenditures and/or disbursements of U.S. Treasury funds, credits, monies, sums or amounts per Public Law 110-343 shall, on a case by case draw basis, require the prior written approval of any expenditure in excess of twenty-five million dollars, from a Special Joint Senate-House sub-committee composed of four (4) members ( 2 Democrats/2 Republicans). The Secretary of Treasury shall, on a case by case specific dollar amount request basis , present to said Special Joint Senate-House sub- committee details, terms and conditions, specific uses and purposes for the loan of Treasury funds to specific identified corporations and/or entities, together with a GAO assessment as to likely hood of repayment by the debtor entity or entities.
FURTHER, no draw against Treasury /Taxpayer funds duly appropriated by Congress, shall be authorized without the case-by-case pre-approval by said Special Joint Senate-House sub-committee as provided herein. This pre- approval provision shall not apply to States and/or public entitles with regard to appropriations for Public infrastructure projects.
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3.1 - Existing APR and Sub-Prime Mortgages: It shall be unlawful for any bank, company, entity or person, for a period of 3 years from the date of this Act, to charge or collect any interest on such indebtedness that exceeds the original rate charged to the U.S. citizen home borrower; further, after three years, the maximum adjusted interest that may be lawfully charged on such home, provided the original U.S. citizen 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 and only residence of the original U.S. citizen debtor.
3.1.01 - Freddie Mac and Fannie Mae: Mortgages, Deeds of Trust or other security instruments held by, or for the benefit of Freddie Mac and Fannie May, on individual homes used and occupied as the sole and only residence of U.S. citizens within the United States, when in default, but before foreclosure, abandonment or surrender by the citizen debtor occupant, shall be entitled to consideration for enrollment in a "Rent to Own" re-negotiation of the original debt incurred for the purchase of said Home.
(a) - Basic Structure of Rent to Own: Rent to Own is an option for qualified
U.S. citizens who are in default and faced with foreclosure ( requiring them and family to move out of their only home and residence) of properties in which Freddie Mac and/or Fannie Mae have an interest. Prior to foreclosure
Freddie Mac and/or Fannie Mae shall review the financial positions of U.S. citizen debtors in default to determine a realistic monthly payment, to be denominated "rent", considering the current market rate for comparable
rental properties and the citizen debtors ability to pay; in the event appropriate terms that will allow the citizen debtor and family to remain in the subject home ( which shall be occupied as the citizens debtors only residence ) can be achieved, then the subject citizen debtor shall execute a Warranty, Grant Deed other Deed fully re-conveying title to the home residence to Freddie Mac and/or Fannie Mae, and Freddie or Fannie then shall extend to the citizen a three (3) year Rental Agreement with option to re-purchase said home, at a price equal to the outstanding balance of the original loan on said residence.
3.2 - 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 consumer loan or extension of consumer credit to any person in the U.S., and/or to impose fees that exceed the 12% limitation. and any amounts that exceed such limitation shall be void. Violations of this sub-section are defined as "racketeering" subjecting any violator to the penalties and provisions set-forth in 18 U.S.C. & Pub.Lw.98-473, together with any civil penalties and/or causes of action that may be applicable under the state laws where the debtor resides.
3.3 - 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 contracts.
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3.3.1- Violations: The RICO ACT, 18 U.S.C. #1951-1968 is amended to include Section 3.1, 3.2, & 3.3 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 3.1, 3.2 AND 3.3 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.
4.0 - EXTENSION OF MONEY AND/OR CREDIT OF THE UNITED STATES OR U.S. TREASURY: NO MONEY,CREDIT OR GUARANTEE OF THE UNITED STATES OR U.S. TREASURY SHALL BE EXTENDED TO ANY PRIVATE BANK, FINANCIAL INSTITUTION, COMPANY, ENTITY OR PERSON EXCEPT AS FOLLOWS:
4.1- Security Required: No loan, extension of credit, or guarantee 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, credit or guarantee extended by the U.S. Treasury. The cost of any such loan, credit or guarantee of the United States, shall include the full costs of administration of any such loan, credit extension or guarantee.
4.1.01 - Other Terms of Loan, Extension of Credit or Guarantee: The maximum period of any loan, credit or guarantee of the United States shall be limited to an cumulative total of no more then five (5 ) calendar years. Any and all banks, financial institutions, companies, entities or persons qualifying for and extended any loan, credit or guarantee 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. #1951-1968 & Pub.Lw. 98-473;
further, any and all loans, extensions of credit and/or guarantees of the United States extended to any qualified bank, financial institution, company, entity or person, shall bear interest at not less then 1.5% above the Federal Reserve bank rate, and such interest shall be paid to the U.S. Treasury on a monthly basis during the period of the loan, extension of credit or guarantee 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, extension of credit or guarantee.
a) Compensation Limitations: During the period of any loan, extension of credit or guarantee of the U.S., every Board of Directors member 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. #1951-1968 & P.L. 98-473.
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4.1.02 - Qualified Security: Qualified security for any loan, credit extension or guarantee 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 any Board of Directors member serving any bank, financial institution, company, entity or person seeking a loan, money, credit or guarantee from the United States, between the years 2002- 2008, has any interest in; AND/OR, the stock, warrants, options, bonds, real and personal property of said banks, financial institutions, companies, entities and/or persons. When socks and/or warrants are pledged and encumbered as a qualified security, the Treasury Department shall prepare and hold properly executed subordinated convertible debentures for controlling voting and ownership rights to and in said stock, warrants, options of such entities extended money, credit or guarantees of the United States.
5.0 - Federal Deposit Insurance Corporation [F.D.I.C. ] Coverage Increases: Existing laws, rules and/or regulations providing qualified banks and institutions with F.D.I.C. insurance coverage are hereby amended, by this reference, and coverage is increased to $250,000.00 per individual, per account, per bank or institution, and increased to $500,000.00 on retirement , IRA and/or Roth accounts.
The Secretary of Treasury and head of the F.D.I.C. are hereby directed to immediately extend coverage to all qualified institutions for individual and personal account coverage in and to the foregoing limits, and modify rules and regulations as necessary to provided for the same, and the premiums paid to the F.D.I.C. by qualified institutions for F.D.I.C. accounts shall accordingly be raised. Further, the Secretary of Treasury and the F.D.I.C. are hereby directed to modify, amend or enact such other rules and regulations as may necessary to implement account coverage increases consistent with this Act.
6.0 - Unemployment Compensation Extension - 12 months : Existing laws, rules and /or regulations providing of unemployment compensation, by this reference, are hereby modified to extend existing compensation to qualified U.S. citizens for an additional twelve ( 12 ) twelve consecutive months; and to extend equal compensation to U.S. citizens who become unemployed subsequent to the passage of this act, and who are otherwise qualified to receive unemployment compensation.
6.1 - U.S. Citizens receiving unemployment compensation shall also be eligible to receive food stamps and Medicare concurrent with their receipt of unemployment compensation
7.0 - Infrastructure Renewal & Improvement: Within 30 days after this act becomes law, States may submit specific proposals, including a list of contractors, construction
Page 4 of 6//// DRAFT/ RECOVERY & MODERNIZATION
blueprints, and costs for repairs and/or improvements to the Federal Interstate Highway system within said State. Priority shall be given to Federal Interstate Highway project within the limits of appropriations provided in this act for infrastructure renewal. All submittals under this section shall be made to the Secretary of Treasury.
7.1 - Other Public Works Projects: within 180 days after this act becomes law, and subject to the availability of unused appropriations, Cities, Towns and other public entities may submit specific proposals, including a list of contractors, construction blueprints, and costs for repairs and/or improvements to public works within said City, Town or public entity.
7.2 - Public Safety - within 30 days after this act becomes law States, Cities, Towns and other public agencies, subject to the availability of unused appropriations, may submit specific proposals including costs and numbers of police, firefighters and emergency responders that will be provided.
8.0 - Alternative Energy: It is hereby mandated that the U.S. shall become energy
independent by 2019. Energy independence means, for the purposes of this act,
that the U.S. shall import from foreign sources, no more then 15% of its energy, and/or fuels needs. In order to achieve energy independence Congress directs and authorizes
the Secretary of Treasury to receive proposals for U.S. engineered, designed and built projects, facilities and products to attain energy independence; further, the Secretary of Treasury is directed to modify and amend the Tax Code, rules and regulations
to provided for, among others that may be appropriate, to following tax credits.
8.1 - Dollar-for- Dollars federal tax credits shall be provided to each individual
and business for costs of the conversion of gasoline and diesel powered vehicles to compressed natural gas ( CNG ), hydrogen, electric power and for the instillation of machinery and equipment to provide natural gas ( CNG ), hydrogen, electric power for vehicles along the Federal Interstate Highway system, and public highways and roadways within the United States.
8.2 - Public Utilities : Regulated Public Utilities within the U.S. shall be given a 75% federal tax credit for the construction, retro-fitting, and or conversion of electric power generation facilities to solar, wind, clean coal; and the same 75% federal tax credits shall be available to any U.S. business and/or U.S. citizen that coverts to existing facilities, including but not limited to residential, farm, businesses, to use solar, wind, or alternative bio-mass fuel, for power.
9.0 - Citizen Tax Relief : U.S. citizens residing within the United States shall be immediately entitled to the following tax relief for the tax years 2008, 2009, 2010,2011, 2012:
9.1 - The Alternative Minimum Tax and rules and regulations related thereto
are hereby abolished. Further, individuals who's gross adjusted income exceeds $250,000.00 per year shall pay 20% tax on all income exceeding $250,000.00;
9.2 - Losses: Individuals and businesses commencing with tax year 2008, shall be entitled to write off up to $250,000.00 per year for losses, against income, and carry unused losses forward to tax years 2009-2012;
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9.3 - Education Tax Credits: Individual U.S. Citizens shall be entitled to take year 2008-2012 a $2000.00 per year per individual or dependent, tax credit against income for tuition paid to a U.S. accredited school, technical institution, college or university, this credit shall apply to primary, K-12, accredited schools, as well as accredited extended learning institutions.
10.0 - APPROPRIATIONS: The following appropriations of treasury funds are hereby authorized and approved to fund the provisions of this act as hereby provided.
10.1 - General Appropriation of $_____________________ as a drawing
account for the express purposes provided for in this act.
10.1.01 - Limitations:
(a) Lending to private institutions, including U.S. banks, financial services,
and corporations maximum consolidated limited to $______________;
(b) Unemployment Compensation & Medicare Coverage for unemployed
$______________;
(c) Infrastructure Renewal and Improvement................$______________;
(d) Alternative Energy ..................................................$______________;
11.0 - 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, or agency sub-contractor, to have any financial or other interest, direct or indirect, of any kind and or nature whatsoever, in any company, corporation, financial institution, or entity that is granted a loan, extension of credit or guarantee of or from the U.S. Treasury, or Government.
11.1 - Violations: Violations of this section 11.0, of this Act are defined as "racketeering" subjecting any violator to the penalties and provisions set-forth at 18 U.S.C. #1957-1969 and Pub.Lw. 98-473.
12.0 - 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. State Courts shall have no authority to review the validity of any part, provision or portion of this Act. The authority of Federal District and Appellate Courts to review the validity of this Act or any part, provision or portion 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.
13.0 - SAVINGS CLAUSE: The provisions of this Act are separate and severable; should any part or provision of this Act be adjudicated unconstitutional by the full 9 judge panel of the U.S. Supreme Court, then the rest and remainder shall remain in full force and effect.
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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.
2.0- PURPOSE - Emergency: Congress and the citizenry of the United States have been confronted with an unprecedented financial crisis, affecting the value of the dollar, the stability of domestic and world markets, and adversely impacting the public, health, safety and welfare of the United States and its citizenry. These circumstances are declared an Emergency requiring Congress to immediately act to protect and preserve the health, safety and welfare of the citizens of the United States; and to so do, requires the re-structure Federal agencies and the regulation of banks, financial and credit institutions, and related markets; accordingly, any and all laws that are inconsistent with the purpose and/or provisions of the Act, including but not limited to Public Law 110-343 and P.L. 106-554 are, by this declaration, hereby expressly revoked, terminated, amended and/or modified, as may be required, so as not to be contrary to and/or inconsistent herewith.
2.1 - EFFECTIVE DATE: This Act shall be and immediately become law, in effect, on the day and date of the signature of the President, or any veto over- ride by Congress.
2.1. 01 -Expenditure Pre-Approval Required : The payment, expenditure and
/or disbursement of any funds, credits, monies, sums and/or amounts by the Secretary of the Treasury as authorized by Public Law 110-343 are hereby expressly terminated, and any further or future payments, expenditures and/or disbursements of U.S. Treasury funds, credits, monies, sums or amounts per Public Law 110-343 shall, on a case by case draw basis, require the prior written approval of any expenditure in excess of twenty-five million dollars, from a Special Joint Senate-House sub-committee composed of four (4) members ( 2 Democrats/2 Republicans). The Secretary of Treasury shall, on a case by case specific dollar amount request basis , present to said Special Joint Senate-House sub- committee details, terms and conditions, specific uses and purposes for the loan of Treasury funds to specific identified corporations and/or entities, together with a GAO assessment as to likely hood of repayment by the debtor entity or entities.
FURTHER, no draw against Treasury /Taxpayer funds duly appropriated by Congress, shall be authorized without the case-by-case pre-approval by said Special Joint Senate-House sub-committee as provided herein. This pre- approval provision shall not apply to States and/or public entitles with regard to appropriations for Public infrastructure projects.
Page 1 of 6/ DRAFT/ RECOVERY & MODERNIZATION
3.1 - Existing APR and Sub-Prime Mortgages: It shall be unlawful for any bank, company, entity or person, for a period of 3 years from the date of this Act, to charge or collect any interest on such indebtedness that exceeds the original rate charged to the U.S. citizen home borrower; further, after three years, the maximum adjusted interest that may be lawfully charged on such home, provided the original U.S. citizen 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 and only residence of the original U.S. citizen debtor.
3.1.01 - Freddie Mac and Fannie Mae: Mortgages, Deeds of Trust or other security instruments held by, or for the benefit of Freddie Mac and Fannie May, on individual homes used and occupied as the sole and only residence of U.S. citizens within the United States, when in default, but before foreclosure, abandonment or surrender by the citizen debtor occupant, shall be entitled to consideration for enrollment in a "Rent to Own" re-negotiation of the original debt incurred for the purchase of said Home.
(a) - Basic Structure of Rent to Own: Rent to Own is an option for qualified
U.S. citizens who are in default and faced with foreclosure ( requiring them and family to move out of their only home and residence) of properties in which Freddie Mac and/or Fannie Mae have an interest. Prior to foreclosure
Freddie Mac and/or Fannie Mae shall review the financial positions of U.S. citizen debtors in default to determine a realistic monthly payment, to be denominated "rent", considering the current market rate for comparable
rental properties and the citizen debtors ability to pay; in the event appropriate terms that will allow the citizen debtor and family to remain in the subject home ( which shall be occupied as the citizens debtors only residence ) can be achieved, then the subject citizen debtor shall execute a Warranty, Grant Deed other Deed fully re-conveying title to the home residence to Freddie Mac and/or Fannie Mae, and Freddie or Fannie then shall extend to the citizen a three (3) year Rental Agreement with option to re-purchase said home, at a price equal to the outstanding balance of the original loan on said residence.
3.2 - 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 consumer loan or extension of consumer credit to any person in the U.S., and/or to impose fees that exceed the 12% limitation. and any amounts that exceed such limitation shall be void. Violations of this sub-section are defined as "racketeering" subjecting any violator to the penalties and provisions set-forth in 18 U.S.C. & Pub.Lw.98-473, together with any civil penalties and/or causes of action that may be applicable under the state laws where the debtor resides.
3.3 - 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 contracts.
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3.3.1- Violations: The RICO ACT, 18 U.S.C. #1951-1968 is amended to include Section 3.1, 3.2, & 3.3 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 3.1, 3.2 AND 3.3 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.
4.0 - EXTENSION OF MONEY AND/OR CREDIT OF THE UNITED STATES OR U.S. TREASURY: NO MONEY,CREDIT OR GUARANTEE OF THE UNITED STATES OR U.S. TREASURY SHALL BE EXTENDED TO ANY PRIVATE BANK, FINANCIAL INSTITUTION, COMPANY, ENTITY OR PERSON EXCEPT AS FOLLOWS:
4.1- Security Required: No loan, extension of credit, or guarantee 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, credit or guarantee extended by the U.S. Treasury. The cost of any such loan, credit or guarantee of the United States, shall include the full costs of administration of any such loan, credit extension or guarantee.
4.1.01 - Other Terms of Loan, Extension of Credit or Guarantee: The maximum period of any loan, credit or guarantee of the United States shall be limited to an cumulative total of no more then five (5 ) calendar years. Any and all banks, financial institutions, companies, entities or persons qualifying for and extended any loan, credit or guarantee 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. #1951-1968 & Pub.Lw. 98-473;
further, any and all loans, extensions of credit and/or guarantees of the United States extended to any qualified bank, financial institution, company, entity or person, shall bear interest at not less then 1.5% above the Federal Reserve bank rate, and such interest shall be paid to the U.S. Treasury on a monthly basis during the period of the loan, extension of credit or guarantee 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, extension of credit or guarantee.
a) Compensation Limitations: During the period of any loan, extension of credit or guarantee of the U.S., every Board of Directors member 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. #1951-1968 & P.L. 98-473.
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4.1.02 - Qualified Security: Qualified security for any loan, credit extension or guarantee 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 any Board of Directors member serving any bank, financial institution, company, entity or person seeking a loan, money, credit or guarantee from the United States, between the years 2002- 2008, has any interest in; AND/OR, the stock, warrants, options, bonds, real and personal property of said banks, financial institutions, companies, entities and/or persons. When socks and/or warrants are pledged and encumbered as a qualified security, the Treasury Department shall prepare and hold properly executed subordinated convertible debentures for controlling voting and ownership rights to and in said stock, warrants, options of such entities extended money, credit or guarantees of the United States.
5.0 - Federal Deposit Insurance Corporation [F.D.I.C. ] Coverage Increases: Existing laws, rules and/or regulations providing qualified banks and institutions with F.D.I.C. insurance coverage are hereby amended, by this reference, and coverage is increased to $250,000.00 per individual, per account, per bank or institution, and increased to $500,000.00 on retirement , IRA and/or Roth accounts.
The Secretary of Treasury and head of the F.D.I.C. are hereby directed to immediately extend coverage to all qualified institutions for individual and personal account coverage in and to the foregoing limits, and modify rules and regulations as necessary to provided for the same, and the premiums paid to the F.D.I.C. by qualified institutions for F.D.I.C. accounts shall accordingly be raised. Further, the Secretary of Treasury and the F.D.I.C. are hereby directed to modify, amend or enact such other rules and regulations as may necessary to implement account coverage increases consistent with this Act.
6.0 - Unemployment Compensation Extension - 12 months : Existing laws, rules and /or regulations providing of unemployment compensation, by this reference, are hereby modified to extend existing compensation to qualified U.S. citizens for an additional twelve ( 12 ) twelve consecutive months; and to extend equal compensation to U.S. citizens who become unemployed subsequent to the passage of this act, and who are otherwise qualified to receive unemployment compensation.
6.1 - U.S. Citizens receiving unemployment compensation shall also be eligible to receive food stamps and Medicare concurrent with their receipt of unemployment compensation
7.0 - Infrastructure Renewal & Improvement: Within 30 days after this act becomes law, States may submit specific proposals, including a list of contractors, construction
Page 4 of 6//// DRAFT/ RECOVERY & MODERNIZATION
blueprints, and costs for repairs and/or improvements to the Federal Interstate Highway system within said State. Priority shall be given to Federal Interstate Highway project within the limits of appropriations provided in this act for infrastructure renewal. All submittals under this section shall be made to the Secretary of Treasury.
7.1 - Other Public Works Projects: within 180 days after this act becomes law, and subject to the availability of unused appropriations, Cities, Towns and other public entities may submit specific proposals, including a list of contractors, construction blueprints, and costs for repairs and/or improvements to public works within said City, Town or public entity.
7.2 - Public Safety - within 30 days after this act becomes law States, Cities, Towns and other public agencies, subject to the availability of unused appropriations, may submit specific proposals including costs and numbers of police, firefighters and emergency responders that will be provided.
8.0 - Alternative Energy: It is hereby mandated that the U.S. shall become energy
independent by 2019. Energy independence means, for the purposes of this act,
that the U.S. shall import from foreign sources, no more then 15% of its energy, and/or fuels needs. In order to achieve energy independence Congress directs and authorizes
the Secretary of Treasury to receive proposals for U.S. engineered, designed and built projects, facilities and products to attain energy independence; further, the Secretary of Treasury is directed to modify and amend the Tax Code, rules and regulations
to provided for, among others that may be appropriate, to following tax credits.
8.1 - Dollar-for- Dollars federal tax credits shall be provided to each individual
and business for costs of the conversion of gasoline and diesel powered vehicles to compressed natural gas ( CNG ), hydrogen, electric power and for the instillation of machinery and equipment to provide natural gas ( CNG ), hydrogen, electric power for vehicles along the Federal Interstate Highway system, and public highways and roadways within the United States.
8.2 - Public Utilities : Regulated Public Utilities within the U.S. shall be given a 75% federal tax credit for the construction, retro-fitting, and or conversion of electric power generation facilities to solar, wind, clean coal; and the same 75% federal tax credits shall be available to any U.S. business and/or U.S. citizen that coverts to existing facilities, including but not limited to residential, farm, businesses, to use solar, wind, or alternative bio-mass fuel, for power.
9.0 - Citizen Tax Relief : U.S. citizens residing within the United States shall be immediately entitled to the following tax relief for the tax years 2008, 2009, 2010,2011, 2012:
9.1 - The Alternative Minimum Tax and rules and regulations related thereto
are hereby abolished. Further, individuals who's gross adjusted income exceeds $250,000.00 per year shall pay 20% tax on all income exceeding $250,000.00;
9.2 - Losses: Individuals and businesses commencing with tax year 2008, shall be entitled to write off up to $250,000.00 per year for losses, against income, and carry unused losses forward to tax years 2009-2012;
Page 5 of 6///// DRAFT/ RECOVERY & MODERNIZATION
9.3 - Education Tax Credits: Individual U.S. Citizens shall be entitled to take year 2008-2012 a $2000.00 per year per individual or dependent, tax credit against income for tuition paid to a U.S. accredited school, technical institution, college or university, this credit shall apply to primary, K-12, accredited schools, as well as accredited extended learning institutions.
10.0 - APPROPRIATIONS: The following appropriations of treasury funds are hereby authorized and approved to fund the provisions of this act as hereby provided.
10.1 - General Appropriation of $_____________________ as a drawing
account for the express purposes provided for in this act.
10.1.01 - Limitations:
(a) Lending to private institutions, including U.S. banks, financial services,
and corporations maximum consolidated limited to $______________;
(b) Unemployment Compensation & Medicare Coverage for unemployed
$______________;
(c) Infrastructure Renewal and Improvement................$______________;
(d) Alternative Energy ..................................................$______________;
11.0 - 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, or agency sub-contractor, to have any financial or other interest, direct or indirect, of any kind and or nature whatsoever, in any company, corporation, financial institution, or entity that is granted a loan, extension of credit or guarantee of or from the U.S. Treasury, or Government.
11.1 - Violations: Violations of this section 11.0, of this Act are defined as "racketeering" subjecting any violator to the penalties and provisions set-forth at 18 U.S.C. #1957-1969 and Pub.Lw. 98-473.
12.0 - 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. State Courts shall have no authority to review the validity of any part, provision or portion of this Act. The authority of Federal District and Appellate Courts to review the validity of this Act or any part, provision or portion 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.
13.0 - SAVINGS CLAUSE: The provisions of this Act are separate and severable; should any part or provision of this Act be adjudicated unconstitutional by the full 9 judge panel of the U.S. Supreme Court, then the rest and remainder shall remain in full force and effect.
Page 6 of 6////// DRAFT/ RECOVERY & MODERNIZATION
Thursday, January 29, 2009
The Sad Truth About Obama's " American Recovery and Reinvestment Plan"
Many in the U.S and around the world had high hopes that there would be a turn around in the way Washington did business when the Obama administration took over on January 20, 2009.
Unfortunately, Washington machine politics has deep roots that remain and transcend the Presidency. The Obama cabinet and the Obama stimulus package, titled " American Recovery and Reinvestment Plan " are two examples of entrenched Washington politics. The 650+ page bill rammed through the U.S. House Representatives is nothing more then the consolidation of eight years of programs that went nowhere under the Bush Administration. Washington is master of resurrecting old programs, attaching flashy labels, and peddling them to the public as something they are not.
One doubts whether President Obama has, himself, read the 650+ bill the House passed on party lines. Congress, now controlled by Democrats, is no more capable in "getting it right" then when the Bush Administration was at the helm. Both the 110th Congress and the current 111th Congress are throwing massive amounts of borrowed dollars, and HOPING something sticks, to bring the U.S. out of the economic meltdown we all face. Congress hopes to accomplish a turn around without making any structural or systemic modifications to a financial system that has failed. Without modifying the Federal Reserve system in place since 1913; without instituting specific restrictions and regulations on banking, financial services, business consolidations and entering into international compacts with G8 nations and central banks to stabilize currency fluctuations and interest rates, the Obama plan will accomplish little, except to spur inflation and increase the cost of consumer goods and services.
The U.S. burdened by arcane procedures, entrenched ideologies, and politics, have doomed main-street USA to hard, very hard times for the next 4+ years. The Obama/Democratic Washington steam shovel has started to dig the hole much deeper by cranking up the printing presses and doubling the already mega-strophic national debt; soon the U.S. dollar will be at par with third world currencies.
Unfortunately, Washington machine politics has deep roots that remain and transcend the Presidency. The Obama cabinet and the Obama stimulus package, titled " American Recovery and Reinvestment Plan " are two examples of entrenched Washington politics. The 650+ page bill rammed through the U.S. House Representatives is nothing more then the consolidation of eight years of programs that went nowhere under the Bush Administration. Washington is master of resurrecting old programs, attaching flashy labels, and peddling them to the public as something they are not.
One doubts whether President Obama has, himself, read the 650+ bill the House passed on party lines. Congress, now controlled by Democrats, is no more capable in "getting it right" then when the Bush Administration was at the helm. Both the 110th Congress and the current 111th Congress are throwing massive amounts of borrowed dollars, and HOPING something sticks, to bring the U.S. out of the economic meltdown we all face. Congress hopes to accomplish a turn around without making any structural or systemic modifications to a financial system that has failed. Without modifying the Federal Reserve system in place since 1913; without instituting specific restrictions and regulations on banking, financial services, business consolidations and entering into international compacts with G8 nations and central banks to stabilize currency fluctuations and interest rates, the Obama plan will accomplish little, except to spur inflation and increase the cost of consumer goods and services.
The U.S. burdened by arcane procedures, entrenched ideologies, and politics, have doomed main-street USA to hard, very hard times for the next 4+ years. The Obama/Democratic Washington steam shovel has started to dig the hole much deeper by cranking up the printing presses and doubling the already mega-strophic national debt; soon the U.S. dollar will be at par with third world currencies.
Sunday, January 25, 2009
CHINA SYNDROME
Corporate greed and undue Washington influence jump started the parade, shipping U.S. jobs and technology offshore. The Nixon administration opened the doors for corporations in China; following administrations, and Congress, long noted for it's myopia, passed NAFTA and other "Free Trade " agreements emasculating U.S. manufacturing and production capabilities, and U.S. employment. Now the nascent Obama administration, through Timmy Geithner the new Secretary of Treasury, is blaming U.S. economic woes on China's failure to re-value the yuan per U.S. "demands".
China and the value of the yuan are not the problem, U.S. corporate and financial interests influence on Congress, coupled with the inherent shortsightedness of our 535 federal legislators is where the root of the financial crisis rests. The Obama stimulus plan, illustrates that the U.S. government has no real clue how to fix the cascade into depression, 15% unemployment, and the hardships U.S. main-street is facing over the next 4 + years.
There is nothing to be gained by bad mouthing China. The U.S. made China, at first reluctant, a partner in the plunder of cheap labor to fatten the gluttony and greed of U.S. corporate titans. Now China is not just a partner for the production of goods, but the banker of the U.S.. Now is not the time to get on a high-horse and criticize China. From a political and structural standpoint, China is better suited to effectively respond to "crises " then the cumbersome system the U.S. has to wade through. The U.S. is poised to float the most massive debt in the modern world. Who is going to "buy" the debt of a country that produces arms, munitions, the instruments of war, and that invades others at will; but has little else to offer ? The only hope the U.S. has is that China, and other Asian nations will continue to buy U.S. debt obligations.
It would be much wiser, to work with our partner, China, and develop practical plans that would be beneficial to both countries, and forget currency valuations. Example, assign U.S. creditor interests in G.M. and Chrysler to China - when G.M and Chrysler, or Ford, ask for more bail-out funds, refer them to China. It would be in the mutual interests of both the U.S. and China, for China to produce parts for cars assembled in the U.S. for U.S and China markets. The U.S. can't take back all the jobs that Congress has allowed to be exported, but we can work with our partners abroad, to have a two-way, as opposed to a one-way, street.
The Obama administration has had one hell of a load of crap dumped upon it. It will take more then hope and a prayer to make any headway and start to dig out from under this pile. Now is not the time to start poking at China.
China and the value of the yuan are not the problem, U.S. corporate and financial interests influence on Congress, coupled with the inherent shortsightedness of our 535 federal legislators is where the root of the financial crisis rests. The Obama stimulus plan, illustrates that the U.S. government has no real clue how to fix the cascade into depression, 15% unemployment, and the hardships U.S. main-street is facing over the next 4 + years.
There is nothing to be gained by bad mouthing China. The U.S. made China, at first reluctant, a partner in the plunder of cheap labor to fatten the gluttony and greed of U.S. corporate titans. Now China is not just a partner for the production of goods, but the banker of the U.S.. Now is not the time to get on a high-horse and criticize China. From a political and structural standpoint, China is better suited to effectively respond to "crises " then the cumbersome system the U.S. has to wade through. The U.S. is poised to float the most massive debt in the modern world. Who is going to "buy" the debt of a country that produces arms, munitions, the instruments of war, and that invades others at will; but has little else to offer ? The only hope the U.S. has is that China, and other Asian nations will continue to buy U.S. debt obligations.
It would be much wiser, to work with our partner, China, and develop practical plans that would be beneficial to both countries, and forget currency valuations. Example, assign U.S. creditor interests in G.M. and Chrysler to China - when G.M and Chrysler, or Ford, ask for more bail-out funds, refer them to China. It would be in the mutual interests of both the U.S. and China, for China to produce parts for cars assembled in the U.S. for U.S and China markets. The U.S. can't take back all the jobs that Congress has allowed to be exported, but we can work with our partners abroad, to have a two-way, as opposed to a one-way, street.
The Obama administration has had one hell of a load of crap dumped upon it. It will take more then hope and a prayer to make any headway and start to dig out from under this pile. Now is not the time to start poking at China.
Saturday, January 10, 2009
Timed Tax Incentives NOT stimulus NEEDED
- HASTE MAKES WASTE -
* NO TO STIMULUS/ *** YES FOR TIMED TARGET TAX INCENTIVES
Opinion by Donald D. Holmes
Let's face reality, Congress has no clue in how to get the U.S. out of the financial melt-down and mess the U.S. is faced with. All eyes are on President elect Obama, in hopes that he and his new administration have" life boats" at the ready to rescue folks as the U.S. ship continues to sink.
Stimulus is a word that inspires hope, but hope and a prayer will not signal "turn around" any more then the Bush stimulus and $700 billion bail-out of Wall-Street/ AIG/ Banks, and now GM & Chrysler, have.
First, there has to be a re-structuring of the Federal Reserve and U.S banking system. Following a re-structuring that includes the elimination of the position of Chairman, credit-card interest and fee limitations [ 13% max; 12% interest and 1% total fees/late charges etc. included ] need to be imposed nationwide.
Next, Congress needs to terminate, rescind and revoke Public Law 110-343
( $700 billion Wall-Street Bail Out ), Public Law 106-554 ( Commodities Futures Modernization Act ), and to enact legislation designed to stabilize financial markets by prohibiting the sale or transfer of securities held for less then 13 consecutive calendar months.
The Home Foreclosure Crisis, can be mitigated by adopting a mandatory “Rent to Own” program whereby non-performing ( residential homes in default ) assets can be converted to income assets, i.e., title is transferred to the bank, Fannie, Freddie, and a lease/rental with option to purchase is executed by the homeowner.
Timed Target Tax Incentives, instead of a “Stimulus”, are needed to right the U.S. ship. Neither Congress nor the incoming Obama Administration have the capacity to effectively oversee the expenditure of $800 billion dollars of taxpayer/treasury funds. Look at the $700 billion [ Pub. Law 110-343 ] bail-out boondoggle. The Government cannot spend it’s way out-of-a recession or depression. What Congress and Administration can and should do is it make
specific changes to the IRS code, limited to 3 years [ 2009, 2010, 2011 ], that would allow individuals to write off their losses, and business to write off it’s losses against income. Further, provide dollar-for-dollar tax credits to individuals and businesses that modify houses, offices, plants and equipment ( vehicles ) to use alternative fuels ( e.g., CNG, solar etc. ). Such tax incentives need to be applied across the board to individuals as well as business. There
are and have been CNG conversions for both cars and trucks on the market for
many years. With tax credit incentive, individuals and businesses could convert
existing vehicles to CNG ( clean air vehicle fuel ), and service stations and homeowners could install the necessary compressors and equipment to re-fuel the converted vehicles.
In order to fill employment gaps created by the downturn, Congress can and should extend unemployment benefits for a full 52 weeks, 1 year. Regardless of what action is taken or not taken, there will be substantial employment displacement ( unemployment ) for the next few years. Both Congress and the Obama Administration need to man-up to this reality, and act to mitigate the consequences by extending unemployment benefits.
* NO TO STIMULUS/ *** YES FOR TIMED TARGET TAX INCENTIVES
Opinion by Donald D. Holmes
Let's face reality, Congress has no clue in how to get the U.S. out of the financial melt-down and mess the U.S. is faced with. All eyes are on President elect Obama, in hopes that he and his new administration have" life boats" at the ready to rescue folks as the U.S. ship continues to sink.
Stimulus is a word that inspires hope, but hope and a prayer will not signal "turn around" any more then the Bush stimulus and $700 billion bail-out of Wall-Street/ AIG/ Banks, and now GM & Chrysler, have.
First, there has to be a re-structuring of the Federal Reserve and U.S banking system. Following a re-structuring that includes the elimination of the position of Chairman, credit-card interest and fee limitations [ 13% max; 12% interest and 1% total fees/late charges etc. included ] need to be imposed nationwide.
Next, Congress needs to terminate, rescind and revoke Public Law 110-343
( $700 billion Wall-Street Bail Out ), Public Law 106-554 ( Commodities Futures Modernization Act ), and to enact legislation designed to stabilize financial markets by prohibiting the sale or transfer of securities held for less then 13 consecutive calendar months.
The Home Foreclosure Crisis, can be mitigated by adopting a mandatory “Rent to Own” program whereby non-performing ( residential homes in default ) assets can be converted to income assets, i.e., title is transferred to the bank, Fannie, Freddie, and a lease/rental with option to purchase is executed by the homeowner.
Timed Target Tax Incentives, instead of a “Stimulus”, are needed to right the U.S. ship. Neither Congress nor the incoming Obama Administration have the capacity to effectively oversee the expenditure of $800 billion dollars of taxpayer/treasury funds. Look at the $700 billion [ Pub. Law 110-343 ] bail-out boondoggle. The Government cannot spend it’s way out-of-a recession or depression. What Congress and Administration can and should do is it make
specific changes to the IRS code, limited to 3 years [ 2009, 2010, 2011 ], that would allow individuals to write off their losses, and business to write off it’s losses against income. Further, provide dollar-for-dollar tax credits to individuals and businesses that modify houses, offices, plants and equipment ( vehicles ) to use alternative fuels ( e.g., CNG, solar etc. ). Such tax incentives need to be applied across the board to individuals as well as business. There
are and have been CNG conversions for both cars and trucks on the market for
many years. With tax credit incentive, individuals and businesses could convert
existing vehicles to CNG ( clean air vehicle fuel ), and service stations and homeowners could install the necessary compressors and equipment to re-fuel the converted vehicles.
In order to fill employment gaps created by the downturn, Congress can and should extend unemployment benefits for a full 52 weeks, 1 year. Regardless of what action is taken or not taken, there will be substantial employment displacement ( unemployment ) for the next few years. Both Congress and the Obama Administration need to man-up to this reality, and act to mitigate the consequences by extending unemployment benefits.
Monday, January 5, 2009
WILL U.S. FALL APART IN 2010 ?
Recently the Wall Street Journal ran a piece about Russian Professor Ignor Panarin's 1998 prediction that the U.S. would virtually disintegrate in 2010. One's initial reaction is to laugh, but, on second thought, it may be informative to hypothesize a bit before dismissing Prof. Panarin's premise entirely.
There is no need to detail the fact that the U.S. is facing the most severe financial crisis in it's history; a crisis that has had a global impact and implications. So what about 2010 or 2012 ? It may well be that the U.S. Dollar, by 2010, will no longer be the world standard for finance.There has been movement to shift oil pricing from the U.S. Dollar to the Euro. Oil and Natural Gas for many years into the future will be the base resource for industrial growth and survival. Electricity production, and heat for habitation will be dependent on these two primary natural resources. Just by shifting the pricing of oil to Euros, the U.S. dollar would be devalued by
33%.
What does this mean for the U.S. lets look at some current facts, an forget about Wall-Street. Virtually every continental ( exclude Alaska and Hawaii ) State ( 48 ) in the U.S. is in the RED. The shortfall in California is estimated to be in the neighborhood of $43-45 billion. Washington has no funds to cover State deficits, so who an how are the municipal and other State bonds
( outstanding debts ) going to be paid ? So much for the borrowing capability of States. The global market of municipal, State and U.S. Federal debt just got more expensive. As an investor, how much of a change is one willing to take for a 6%, 8%, 10%, 12% possible non-return ? If the municipalities, State and Fed's can't squeeze it out of citizen taxpayers, where is the money to pay the interest on the debts going to come from ?
Compounding matters for States in particular, is the burgeoning expense of providing basic services. Citizenship is not a requirement for welfare, medical care, education etc. So as states cut other services, police, fire protection, road maintenance etc., the costs of welfare sector services will continue to rise ( as unemployment increases, the demand for welfare sector services will also increase ). In short, most local and State governments are bankrupt. Does State bankruptcy result in the break-up of the United States ? Who knows, perhaps Professor Panarin's views on the future U.S. are not so far fetched.
There is no need to detail the fact that the U.S. is facing the most severe financial crisis in it's history; a crisis that has had a global impact and implications. So what about 2010 or 2012 ? It may well be that the U.S. Dollar, by 2010, will no longer be the world standard for finance.There has been movement to shift oil pricing from the U.S. Dollar to the Euro. Oil and Natural Gas for many years into the future will be the base resource for industrial growth and survival. Electricity production, and heat for habitation will be dependent on these two primary natural resources. Just by shifting the pricing of oil to Euros, the U.S. dollar would be devalued by
33%.
What does this mean for the U.S. lets look at some current facts, an forget about Wall-Street. Virtually every continental ( exclude Alaska and Hawaii ) State ( 48 ) in the U.S. is in the RED. The shortfall in California is estimated to be in the neighborhood of $43-45 billion. Washington has no funds to cover State deficits, so who an how are the municipal and other State bonds
( outstanding debts ) going to be paid ? So much for the borrowing capability of States. The global market of municipal, State and U.S. Federal debt just got more expensive. As an investor, how much of a change is one willing to take for a 6%, 8%, 10%, 12% possible non-return ? If the municipalities, State and Fed's can't squeeze it out of citizen taxpayers, where is the money to pay the interest on the debts going to come from ?
Compounding matters for States in particular, is the burgeoning expense of providing basic services. Citizenship is not a requirement for welfare, medical care, education etc. So as states cut other services, police, fire protection, road maintenance etc., the costs of welfare sector services will continue to rise ( as unemployment increases, the demand for welfare sector services will also increase ). In short, most local and State governments are bankrupt. Does State bankruptcy result in the break-up of the United States ? Who knows, perhaps Professor Panarin's views on the future U.S. are not so far fetched.
Friday, December 5, 2008
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.
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.
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