Tuesday, August 2, 2011

10 Proposals to Get America's Economy Back on Track

Dees Illustration
Brandon Turbeville
Activist Post

In the three years since the passage of the TARP legislation, Bank Bailouts have become a sore subject for most voters, regardless of which side of the aisle they see themselves as being on. With time proving their concerns to be legitimate, the fact is that with the exception of academics and those actually benefiting from the bailout, virtually no one supported it to begin with. Now, in 2011, even your average Republican or Democrat agrees that the bailout was at best a bad decision, albeit for different reasons.

Yet the Democrats and Republicans in Congress, regardless of their rhetoric, have shown no interest in doing anything truly meaningful about it. Indeed, there are no real solutions coming from Congress that wouldn’t make an already bad situation worse.

Three years after the bailouts, which were overseen and implemented by both Bush and Obama, the United States is in no better shape than it was in 2008. In fact, it is much worse.

The banks that received bailout money have not resumed lending, foreclosures are continuing, inflation and food prices are rising at alarming rates, and the American taxpayer is on the hook for at least trillions of dollars of toxic derivatives and bad bets manufactured by the international banking cartel.

As reported by The Daily Bail, the real unemployment rate is actually 22% (as of February 25, 2011).

Yet, the solutions to the economic depression, the housing/derivatives/speculation crisis, and the raping of the American people as a result of the banker bailout are not as complicated as one might imagine. The ability to completely reverse the situation is actually right at our fingertips whenever we choose to act.

A comprehensive program that would end the economic depression, free us from the grips of the international banking cartel, and reindustrialize our nation is not feasibly summed up in one article. For this reason, I have written a book titled Five Sense Solutions, which is intended to do just that, as well as to offer solutions to many other problems that currently face our nation. Other researchers like Dr. Webster G. Tarpley, Bill Still, and G. Edward Griffin have attempted to do the same in much of their own work as well.

Nevertheless, for the purpose of applying some level of control to the current crisis of Bailouts, Fictitious Capital, Housing, and Financial Crises, allow me to propose some very basic solutions.

1. The access to Treasury or Federal Reserve funds that are still available by virtue of the TARP legislation to various banks and financial institutions must be removed. The money being funneled to banks and financial institutions as a result of the TARP legislation has not ended and the American taxpayers are still on the hook for trillions of dollars of toxic derivatives and secret bank loans directed by the Federal Reserve itself.  The end to the free access to the US Treasury and the Federal Reserve may be achieved by an act of Congress. It may possibly be achieved by an act of the Secretary of the Treasury independently. Regardless of the mechanisms used, all current and future bailouts of banks, financial institutions, or industrial corporations etc. must be ended immediately.

2. The TARP legislation itself must be repealed by Congress.  No remnant of the authority to shift the burden of bad business decisions or financial gambles by financiers to the backs of the taxpayer should remain on the books. All backdoors to the US Treasury must be closed immediately, and they must be closed by force of law and by the repeal of the TARP.

3. We must seize failed banks and financial institutions using the mechanisms of the FDIC and other relevant regulatory agencies. These insolvent firms are zombie institutions and must be treated as such. The only reason they exist is because the American taxpayer was forced to bail them out. Their insolvency must not be allowed to bring down the US economy or destroy the pension funds of American workers. Therefore, not only must they be seized as the zombie banks and institutions that they are, their assets must be liquidated. All money loaned or granted to these institutions by the Treasury/Federal Reserve must be returned to the US Treasury.

Those individuals who have lost their pensions or investments as a result of the housing market/derivatives crisis must have their investments and pensions insured to the full extent guaranteed by the FDIC. These payments must be made directly to the investor and not to the bank so as to avoid shoring up the institution and continuing the moral hazard the FDIC has become.

Any remaining money after this process must be applied and paid out to pension funds first. If there is any residual money left over after assets have been liquidated and pension funds returned to the pensioner etc., the money must be transferred to the US Treasury.

This must be the process in the face of any further bank insolvency or shutdowns.

4. Pass a law that bans derivatives. The reasoning behind this is simple:  derivatives are not real money, nor are they real assets – they are toxic crap that must be removed from the system so they do not jeopardize the economy ever again. Derivatives were a major factor in the economic collapse and they were a trigger for the current crisis. Derivatives are inherently toxic and, because of this, they are inherently an economic risk. Therefore, in order to prevent such an event from occurring again, we must pass a law that bans derivatives.

5. Levy a 1% trading tax on financial transactions such as stocks, bonds, foreign exchanges, or commodities. This tax must not be applied to small transactions conducted between individuals and their banks (such as check cashing, deposits, or payment by check or debit card, etc.) This tax should be applied especially to program trading, high-frequency trading, and flash trading. This tax should apply to transactions made between financial and banking institutions. This move alone would generate an enormous amount of revenue for the social safety net, infrastructure programs, etc. as well as functioning as a discouragement to further financial speculation.

6. Ban credit default swaps. This will not only remove unnecessary risk from the economy, but it will remove the vast moral hazard to sabotage these financial instruments to accrue profit.

7. Reinstate a form of the Glass-Steagall Act which separates banks, brokerage firms, and insurance firms from each other. These institutions should no longer be allowed to combine and act as one entity. Reinstating these particular provisions of the Glass-Steagall Act will enact somewhat of a firewall of protection not only for the institutions themselves, but for their clients, consumers, and the economy as a whole. The removal of Glass-Steagall was part of the precipitating factors in the economic crisis. We must not allow such a crisis to happen again. For this reason, we must reinstate the relevant provisions of Glass-Steagall.

8. We must reinstate Chapter 11 bankruptcy options for INDIVIDUALS. There are times when one’s personal finances become insolvent and, for this reason, bankruptcy options must be restored. Reinstating these provisions is only fair considering the fact that they still exist for large corporate firms.

9. Ban adjustable rate mortgages. This brand of mortgages, along with the widespread corruption of lenders, was a major factor in the housing crash. Adjustable rate mortgages serve no purpose except, at best, to provide the borrower with temporarily low rates and the guarantee of massive profits for the lender regardless of the outcome of the mortgage. They are particularly hard to regulate and almost always lead to foreclosure. Because of this, they must be banned.

10. Immediately halt ALL foreclosures on primary residences, businesses, and farms. The logic of this move is simple: We are having a problem with foreclosures. Therefore, we will STOP FORECLOSURES.

Foreclosures should be halted for at least five years, or until the end of the depression/economic crisis. This will allow Americans to stay in their homes, businesses to continue operating, and farms to continue producing food. This delay in the process of foreclosure will allow businesses and individuals to survive the crisis until they are able to resume paying their mortgages and repaying their loans.

I would love to hear your proposals for how to restore America's economic freedom and prosperity.  Please leave your comments below and share your ideas with others.

Brandon Turbeville is an author out of Mullins, South Carolina. He has a Bachelor’s Degree from Francis Marion University where he earned the Pee Dee Electric Scholar’s Award as an undergraduate. He has had numerous articles published dealing with a wide variety of subjects including health, economics, and civil liberties. He also the author of Codex Alimentarius - The End of Health Freedom, 7 Real Conspiracies and Five Sense Solutions.

This article may be re-posted in full with attribution.


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Anonymous said...

Permanently outlaw both the Republican and Democrat parties, proven criminal organizations. Prosecute the leaders and when found guilty of treason, publicly hang them.

James Winstanley said...

One more: If the politicians actually wanted to stimulate the economy, they could do it very easily: by passing legislation allowing anybody making minimum wage or less to not pay taxes. Because when they have more money, they are more likely to spend it. Unlike the rich, who hoard their money worse than Smaug.

Anonymous said...

My proposal: http://www.youtube.com/watch?v=wZ4Dyom85Bk

Cotton used half of the worlds pesticides, hemp is way better than cotton in every way, and it lasts a lifetime. Hemp ethanol and Hempcrete are not full of toxins like fuels and concrete used today. Homes built with hemp will last 1000 years not the 40 everyone is used to, constant repairs because nothing lasts. Everything your looking at can be made from hemp. Everything right now is made with toxic oil, and can be made with non-toxic hemp oil. No more greedy corporations!

The hemp strain with low THC produces FAR LESS seed than the strains with moderate levels of THC, another way the world is being SCAMMED with propaganda and fear tactics.

Hemp is at the heart of the revolution, you can change the way money works but even then we still live in a toxic world energy companies selling poison, clothes and construction is toxic and causes cancer. High THC cannabis oil cures cancer search RUN FROM THE CURE. Hemp energy does not poison the earth its biodegradable.

Henry Fords plastic car made in 1941 was made from hemp and 10 times stronger than steel! Insurance IS A SCAM there IS NO NEED for car accidents ITS ALL BY DESIGN. BY DESIGN nothing lasts and you have to keep buying the SAME product OVER AND OVER AGAIN, UNLESS marijuana/hemp were legal there would be none of this madness.


Anonymous said...

I agree with Anonymous above, that both the Democratic and Republican parties, which are wholly owned subsidiaries of corporate interests, need to be banned. A boycott would have a hope of working; we have no leverage for a ban. But a boycott is possible, considering how angry people are.

All of the suggestions in the article are excellent. We have no power to do any of them, because the legislature is controlled by the monied interests bent on destroying the rest of us.

The only way to disempower Washington, D.C., and their tribal fealty to the corporate oligarchy and monied classes, is for the United States to break up into separate states.

There is nothing in the Constitution to prevent this. In fact, forcing the South to stay in the Union was a big mistake; funding slave revolts, and freedom breaks would have served us much better, and cost much less in terms of blood, and the rift that still exists in our nation.

We need to break up into separate states. It is far more difficult for the corporations to control us separately. This is why the powers that be are always seeking more centralized power.

If we break up, we can all stop paying Federal taxes. We could pay a small proporation of Federal tax to our state government, which would then be solvent. Breaking up would de-fund the Federal government, all the Federal bureaus, including the Pentagon, Congress, and the CIA, and the 16 other intelligence agencies. It would end the wars. And each state would become a nation, and instantly have more power in the world. The people of each state would instantly be more important, as they wouldn't be buried among 300 million others.

Each state could dedicate itself to supporting the Constitution, which is what the dream of America is really about. The Constitution is being, has been, destroyed by the Federal government. By breaking up, we can adhere to what is important. In 25 years or so, we can come together again, and re-unite.

But to defeat them, now, we need to break up.

Wibblinwu said...

It's dirt dog simple. Outlaw usury, charging interest is criminal behavior.

rick kincade said...

I agree with anonymous about breaking up the country. All the eggs are in one basket. The game is different if the eggs were in 50 different baskets. States rights. Love it or leave it for another state. The federal government was never intended to have such power. Return power to the states then after time the states can decide who to associate with and whether there ever will be a need for another Federal stink hole!

Anonymous said...

have a tax revolt let the politions see how the restof us live

Anonymous said...

why was the same remedy not being talked abpout in case of european , thrid world and russian currency crisis which was created by angloamerican agents IMF and world bank and that merican bastrd larry summer who shoudleb shot to death for his crime agasint humanity/

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