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Pretend I’ve been chosen as a special select committee of one with authority to fix the financial crisis. The following is my plan to bring you the most effective U-turn possible. I’ve taken the best of the remedies as suggested in recent weeks by various experts and merged them for your information into a single, all-inclusive package. You’ll also see why these proposals help explain why so many in Congress were in a lose-lose dilemma last week per the bailout no matter which way they voted. Neither a Yes nor a No vote will be of any lasting value, with Yes being by far the worst of the two. As you read, keep in mind what the Bible says about honest money, honest markets and honest men. Also be aware that only by adopting the no-nonsense blueprint below will a lasting cure take place, outright socialism prevented, the potential for an explosion of solid, long-term growth made possible, and individual freedom made more secure.
â – No “Bailout.” With or without it, each of us will be paying a steep price for the mess we allowed Messrs Dodd, Frank, Clinton, Bush et al. to get us into and/or to intensify. But the bailout route is the worst because it means caving in to total, nationwide socialism. (Yes, somewhere Mao, Marx, Mussolini, Hitler and Stalin are smiling. Castro, too.) It’s of interest that many U.S. voters are against the bailout because they recognize the threat socialism represents. But, others who are opposed had been lured into a “Wall Street hating” quagmire of pure class envy; a disease caused by cadres of mind-controllers in Congress, the liberal media and the anti-common sense, anti-knowledge, public schools.
â – Except for the following legislative repeals I’m about to list, Congress should sit down and shut up. The market, if left alone, can correct this painful mess. Except for Ron Paul and maybe two or three others, Congress has zero grasp of economics and markets. These materialistic self-servers employ such substandard ethics that, at best, they only do harm.
â – Repeal the Community Revitalization Act of 1977. Let competitive banks and the free market decide who and where the good mortgage risks are. Repeal all legislation forcing banks to “play ball” with the vote-thirsty, power-hungry, predatory senators and representatives in Congress. No more “NINJA” (No Income, No Job, No Assets) mortgages forced upon banks (and on their cowardly boards of timid bank directors.)
â – Close Fannie Mae and Freddie Mac forever. Or, at least restructure them into smaller, private enterprises with no more subsidy access to the federal treasury.
â – Close the Department of Housing and Urban Development. It’s all about politics.
â – Totally abolish the Capital Gains Tax. This will get a real economic explosion going. Yes, removing the tax would also have the unhappy, pro-socialistic impact of upping government tax revenues (and spending) since a proven axiom is that lower tax rates lead to increased government revenues. But we can deal with that once the crisis is over.
â – Reduce the Corporate Income Tax Rate. Businesses necessarily pass their taxes on to consumers, so I’m reducing the current rate of 35% down to Ireland’s 11% (!) to encourage new job creation and investment. For years, the U.S. CIT rate has been 50% higher than the average among our counterparts in the industrialized world and nine key trading partners cut their rates in 2007. The Tax Foundation states that the CIT robs our families of nearly $370 billion per year; that is, over $3,000 per household lost via higher prices, lower wages for employees of businesses and poorer returns on investment for investors.
â – Completely abolish taxes on savings. Rewarding savings would lessen out-of-control credit card and credit-based spending. It would encourage biblical thrift principles and help reduce the “credit crunch” by lessening dependence on foreign lending.
â – End the Inheritance Tax totally. What’s more blatantly Marxist than the IT?
â – Abolish the “Mark-To-Market” accounting procedure in housing. This is huge so I’m instantly ending this outrageous MTM regulation in mortgages and MBSs. MTM requires companies to report assets at the value they might be sold at today, even minus any offers to buy today. The entirely politically motivated MTM is especially onerous in short-term panics or down markets. With MTM, financial institutions holding (artificially) deflated assets must report these (fictitious) losses against their mandated capital requirements. Such reportings only create market chaos. Repeal will help repair and spur the markets.
â – Demand the immediate resignation of Chris Dodd and Barney Frank. These people, more than any two others, symbolize how we got into this mess. After their chicanery is revealed in detail, they must resign in shame. (Paulson, too.) True, there’s lots of blame to go around, and hundreds of others from the President on down to members of Congress who helped perpetuate the problem should be chastised and made to feel embarrassed. From that point, knowledgeable voters in future elections can decide what to do.
â – FBI investigation of ACORN. Via various community pressure intimidation tactics, this corrupt, semi-terrorist organization forces banks to suspend normal credit standards.
â – End all Medicare “entitlements.” Medical IRAs instead. And no more union contracts with health benefits, a disaster killing those who don’t get them. The scheme/scam that is Medicare is pure socialism and so with much gratitude we thank our Canadian friends to the north for running the pilot laboratory project that reveals how bad “Guv-Care” truly is. Government “safety nets” breed irresponsibility, in turn creating other problems that only the “compassionate caretakers” in Congress, we’re told, are “able to solve.” Sure.
â – End, incrementally, the Social Security “entitlement.” SS is pure Marxism, destroying incentives to save, and, worse, destroying the biblical admonition of self government and personal responsibility.
â – Stop asking for investigations, audits, etc. of the Federal Reserve System. Instead, put a stake in the heart of this inflation- and corruption-instigating Godzilla and abolish it forever. Among dozens of other misdeeds, the Fed’s loose monetary policy and lowered interest rates were a huge spur to the artificial housing boom. Low interest rates influence fence-sitting buyers and encourage them to take on mortgages they otherwise wouldn’t.
â – Abolish Fractional Reserve Banking by abolishing the Fed. With private banks, rather than government in charge of money, each bank (depending on the size of their in-house assets) can choose to operate under “Full” Reserve Banking Practices, or by “Fractional” RBP, using fractional reserve rates of 10, 20…40 or 50 depending on each bank’s decision. Money is just another commodity like soap, lumber and computers. Thus, other than the coining of it, money must not be any of the government’s business.
â – De-criminalize short selling. This “alerting” mechanism supplies vital market information for investors. It was stopped for political reasons of the class-envy-driven sort.
â – No more new personal taxes. If anything; cuts. And no more deficit spending.
â – 2.5% pay cut for all government employees, active and retired. The private sector is tightening their belts, big time. Why not government workers, too? They can do it!
â – Create honest money by re-instating the gold-standard. Possibly the most important of all the decisions by my one-man committee. Among dozens of other benefits, reinstating of a biblical (Proverbs 16:11 et al.) gold/silver money base would also lead to the end of the false-faith, responsibility-destroying FDIC. We must halt all government addictions.
Of course such is the (im)moral state of Congress that my solution-basket won’t be enacted anytime soon. But with prayer and hard work it could all happen faster than expected. That’s if enough of us remove our kids from the brainwashing government schools and disciple them at home from a biblical worldview basis. By weaving a BWV in with academics and heart-to-heart daily encouragement, our kids will be inspired, as adults, to step into local, county and state leadership positions in all aspects of community life. (Not just in politics.) As they become sold out to the things of God and get a lock on this challenge, things will get better fast. However, if we (especially parents) make no effort to train up these worthy citizens, national deterioration will continue. Such failure, and slap in the face of God, would likely mark the end of the U.S. as a nation of significance. Let’s pray that things don’t “return to normal.” We need a whole new departure and now you know more about the big picture. You heard it here.