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The Solution to the Crisis

Now that the new stimulus package has gone thru Congress, it will help the economy but will it be enough to pull us out of this downward spiral.  Doubtful!  What will stop this spiral and then expand the economy.  The answer relatively simple.  It is three to four programs.  They are:  1. reverse the collapse and revive the residential housing industry.  2. Cease the monopoly of the banks on monetary creation-financial restructure 3. Implement Obama’s Environment and Energy programs.How: 1. Provide by money creation 30 to 40 year fixed loans at 1 to 4% for all with priorities to foreclosures and first time buyers.  2. Review my monetary solution on the home page for the monetary alternatives to banks. 3. Pass legislation and fund on the fiscal side the environmental and alternate energy programs.This will do it by stimulating our most important industry and evolutionary change of our monetary system.If you want more information and discuss implementation and the pro and cons, just ask on the blog.


23 comments

  1. Old Geezer Pilot says:

    There is the matter of the so-called “Death Tax” still out there.

    There are 17 of the wealthiest families in America who will escape tax-free in 2010 when the tax disappears entirely for one year.

    They are:

    * Allyn-Soderberg Family (Welch Allyn Inc.)
    * Blethen Family (Seattle Times Co.)
    * Cox Family (Cox Enterprises, Inc.)
    * DeVos and Van Andel Families (Alticor/Amway)
    * Dorrance Family (Campbell Soup Company)
    * Gallo (E&J Gallo Winery)
    * Harbert Family
    * Johnson Family (BET, RLJ Development Co.)
    * Koch Family (Koch Industries)
    * Mars Family (Mars Inc.)
    * Mayer Family (Captiva Resources)
    * Nordstrom Family (Nordstrom Inc.)
    * Sobrato Family (Sobrato Development)
    * Stephens Family (Stephens Inc.)
    * Timken Family (The Timken Company)
    * Walton Family (Wal-Mart)
    * Wegman Family (Wegmans Food Markets, Inc.)

    Does anybody know how much money the US government stands to lose if this tax policy is not repealed?

  2. mpash says:

    It is almost guaranteed they will pass something to eliminate the 2010 estate tax elimination. Even if they don’t, there has to be a death in 2010 to implement this tax free year. In 2011, it goes back to $1 million per person. It is $3.5 million this year. Regards, Mark

  3. Old Geezer Pilot says:

    Well, if they don’t repeal the 2010 tax-free year, I would want a food tester if I were any of the above 17 families.

  4. Old Geezer Pilot says:

    Sorry to be off-topic, but, you said on a closed thread on the financial crisis, “…The cost of creating all this money to bail out any of these systems is nominal except for excess inflation…”

    Well, so far, the FED has put between 2 and 3 trillion out there, and the dollar has risen against all currencies except the yen. I believe that proves that inflation is NOT THE PROBLEM. The US Dollar, even when the world economy is in the toilet, is a safe haven. Then FED can go on printing for quite a while before inflation starts, IMHO.

  5. mpash says:

    Correct. This is why they should do it. Some say, they should not do it thru the reserve banking systems and issuing Treasury bonds thru Wall Street. Considering the failures of this sytem over the past couple of centuries, I tend to agree. I just wish the Congress would start the debate to imporve our monetary system!

  6. Old Geezer Pilot says:

    Well, the US Constitution grants the power of the printing press to the Treasury. Four Presidents have tried to take advantage of this power – all were assassinated.

    A coincidence you say?

    Perhaps.

    OTOH, if we had the Treasury printing the money, that replaces the corrupt bankers with the more corrupt politicians.

    I think we should stick with the bankers until such time as we can get publicly financed election.

  7. mpash says:

    Even if we stay with the central bankers we have to completely diversify their operations to overcome their severe flaws. It is the solution! Regards, Mark

  8. Old Geezer Pilot says:

    The elephants in the room, of course, are the credit default swaps. When Lehman went down in September, there were $42 trillion in CDSs. Today in Bloomberg, I read that there are $27 trillion.

    I think that the hedge hogs are settling these bets amongst themselves. All they need is time (which Obama is giving them). Note that we are NOT getting transparency, we are NOT getting sunshine, we are NOT getting any data. No, we are getting fancy speeches and generalities.

    But the hogs are working it out.

    Let us hope and pray.

  9. mpash says:

    I am not sure what is going on, maybe they are settling among themselves. This might not be to bad. I do know the Federal Reserve has given trillions to help save the banks and nothing to the citizens yet. Another reason to move the monetary system back to Treasury with Congressional oversight.

  10. Old Geezer Pilot says:

    Be careful what you wish for – you could get it. At least the banksters have their own self interest at heart. I cannot say the same for Congress, whose “oversight” was sure lacking for the past 28 years. Are you sure you want them running the banking system?

  11. mpash says:

    Does not matter who runs a very inadequate and ancient system? The commerical banking systems needs to be substantially reduced in their ability to create money. The central banks of Europe and Japan are totally gov’t owned and controlled with the same results. The Constitution gives this power to the gov’t! Instead of licensing this power to just the banks, my solution is to license and oversee this power to many systems BOTH private and public operations. Regards, Mark

  12. Old Geezer Pilot says:

    Dennis Kucinich (as well as Ron Paul) are recommending that the Treasury nationalize the FED. Will this basically accomplish what you are suggesting?

    OGP

  13. mpash says:

    This Zarlenga’s Amercian Monetary Institute proposed bill. It is his Chapter 24 in his book. I believe it is incomplete. I am in Oregon for a few weeks. I will email my complete correction of this bill when I return. The basic problem is that it does not have enough checks and balances, does not distinguish between monetary and fiscal policy, does not have enough protection against excess or hyper inflation. It is better than our current system, but in my opinion very difficult to pass against the powerful central banks. My solution is changing what their operating not who is operating it.
    The issuing of new money needs substantial change by increasing the number of distribution channels and using equity as well as debt. See my monetary solution section on the home page.

  14. Old Geezer Pilot says:

    I have been traveling in the “old” Europe. They have health care, free college, social support systems.

    And I thought WE were the richest, most advanced country on the planet.

    NOT

  15. mpash says:

    Yes, they have some significant advances considering the millenium of massive war and destruction. We still see significant immigration from Europe and high unemployment.
    The businesses in the U.S. should be begging for universal and comprehensive health care in our country. The current health care industry is destroying the bottom lines of the other industries. We need to adopt many of their programs without eliminating the positives of ours economy.

  16. Old Geezer Pilot says:

    Agree. It is like we (Americans) are all standing in a circle. Each of us has his hand in the next person’s back pocket, clutching the wallet.

    We are, thus, paralyzed to make any progress.

    On the count of three, everybody pull their hand out and put it in their OWN pocket.

    No cheating.

    Can we do it?

  17. mpash says:

    Start backing the clean money campaign program. They have their act together. It allows both public and private funding of campaigns. Until we get an off set to the power of money, we might never get the programs that are appropriate. It is being used in several states like Arizona.

  18. […] Economics for Democrats Blog Archive The Soultion to the Crisis Posted by root 1 hour 3 minutes ago (http://economicsfordemocrats.com) Feb 7 2009 review my monetary solution on the home page for the monetary alternatives to banks 3 leave a reply you must be logged in to post a comment economics for democrats is proudly powered by wordpress rss feed Discuss  |  Bury |  News | Economics for Democrats Blog Archive The Soultion to the Crisis […]

  19. Earl Kaatz says:

    A few sentences in what I have read today are essential to overall progress.
    1. Usury interest rate laws.
    2. Universal single payer health care and retirement. These would help (not hinder) the global corporations to compete on the basis of production and not who can sweat out the lowest hourly wage worldwide, and eliminate labor unions.
    3. Prosecute the Medical, Insurance, and Pharmaceutalalalalalal cartels under the Anti-Trust laws. ( If George W. didn’t get them removed) Lacking the ability under those statutes, charge them criminally with extortion, blackmail, and grand theft of the American government and economy. The blunt statement of the insurance-medical-pharmaceutical cartel the week of July 13, 2009 stated it would destroy the healthcare system if any version of a public funded healthcare system were to be enacted. Is that any more criminal or extorniatete than OPEC?
    Is it not time to declare a national disaster emergency in healthcare and nationalize the MPI cartel and institute cost controls on them all and put them in jail if they complain. Their exorbinate charges to the general public make Madoff look like a dealer in chump change.

  20. mpash says:

    1. Correct see Principles
    2. Correct
    3. Correct but using extreme punishment language hurts our economic arguments. Doesn’t single payer solve this problem?

    Thanks for responding.

  21. Earl Kaatz says:

    You are correct that my comments regarding punishment are out of line.
    My description of the stranglehold of what I have called the health-care cartel is not an inaccurate observation.

  22. mpash says:

    The businessmen of America should have been screaming for reform as the uncontrolledd insurance premium costs in an oligopoly industry as been strangling their businesses. The U.S. Chamber finally came out for reform. My own business’s premiums were raised by over a third, this year! The problem is the laissez-faire beliefs of major corporate executives are totally wrong. It does not help us find the right government involvement. This is one of the reasons for my website.
    Thanks for your comments!!

  23. Old Geezer Pilot says:

    So why did Wall $treet trot out Harry and Louise in 1993, and why are they paying rednecks to disrupt town meetings?

    Doesn’t make any sense to me.

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