SOLUTIONS

How I Would Fix it:



I.  INSTANT JUMP-STARTING THE ECONOMY
(Let's Get Right to it)

Because we already have blown $1.5 Trillion on stimulus bills that have flat out failed, I shall offer these plans of my own. Had we not gone down that incredibly stupid road, I jwould have cut government spending, and let the great economy heal itself - too late, so here goes.

1. Enact a 2 year moratorium on all taxes on Retirement IRA's. for everyone who is retired. 

Retirees have hundreds of billions of dollars socked away in Individual Retirement Accounts (IRA's) that, at present, are drawing almost no interest. Most of these people will be gone  within 10 years. So why don't they take some of that money out and see the owrld, or buy a vacation home, or whatever? Because every dime they withdraw is taxed by the Federal Government. Furthermore, if they withdraw more than they make in Social Security, they also must (thanks to Bill Clinton) pay taxes on their Social Security.

So they withdraw frugally - all the more to be left for someone else to enjoy when they die. You want to jump start the economy? Waive the taxes .

2. Pass Federal Legislation that mandates that all participating banks will re-finance all existing home loans at  an  interest rate of 2%, and the Federal Government will guarantee those loans.  


A. The Federal Government has precedent as it currently guarantees all savings accounts to $250,000.


B. The federal Government already has purchased most home loans  
            through its control of Freddy Mac and Fanny Mae.


C. The bank can charge a fee- say $2,000 -for handling the transaction. 
            Most banks now make the loan then pass it off to someone else anyway.


D. The $2,000 fee would be added to the loan balance.




When the Obama Administration enacted their "mortgage relief" scheme in 2009, they were surprised when so few people took advantage of it. Why were they surprised? Because for all of the fancy Ivy League MBA's and media accolades bestowed on the likes of our financila leaders, like Tim Geithner and Ben Bernacke, these people don't know what the hell they are doing (see "colleges don't produce innovators"). They expected to refinance the term of existing loans to reduce the monthly mortgage payments.

What an ignorant idea ! !. Check out the box above. Increasing the number of years to pay off a loan not only has little effect on the monthly payment 
(A - B = $88.00), but it increases the total amount one pays over the life of the loan - almost $100,000. This is a plan?

Now compare their scheme with my proposal. (A - C = $592.00). That's a reduction in monthly payments of $592.00 ! !  45% LESS ! !

Our economy always has been driven by the Housing Market. Americans have the highest rate of home ownership on the planet; our tax structure is heavily skewed in favor of home ownership vs. renting; new home construction is the second largest employer in the country (behind retail). With the crash in home values, the whole economy has fallen apart. As people lost their jobsk, and couldn't make their monthly mortgage payments, homes went into foreclosure. The value of homes (already overpriced) plunged as more and more homes came on the market. New home sales came to a halt. 

if we enact my idea, people will be able to make their monthly payments; far fewer homes will go into foreclosure; home values will stop falling and actually start rising again (people have to live somewhere); new home construction will begin to rise again; people will be put back to work.

It's simple really - but then I've led a sheltered life. I never was burdened by such disadvantages as an Ivy League Education.


CONCLUSION

ERASE ALL OF OUR NATIONAL DEBT BY THE YEAR 4044

STOP increasing the National Debt - beginning NOW. How? By keeping spending equal to the inflation rate (You and I didn't get a huge raise - we CAN'T increase OUR spending - why should the government?) Additionally - cut out the waste (see the chart above). At a mere savings of $481,000,000 per year, we will ERASE ALL OF OUR NATIONAL DEBT BY THE YEAR 4044 ($15.48 Billion divided by $481 Billion annual waste cuts = 32 years to pay off existing debt).
THEN WHAT?

II. CUT SPENDING

A.Terminate:

1. Department of Education     (Savings $95 Billion) Before Jimmy Carter created this Department as a payoff to the Teacher's Unions that supported him, U.S. Public Education students ranked number 1 in the world. Now, they have slipped to almost dead last. 

2. Department of Energy & EPA (Savings $40 Billion) Created in 1979 by Carter (yet again) They haven' t created ANY Energy - Dump their useless asses. Return their Nuclear Regulatory responsibilities back to the Department of Defense.

3. Membership in the U.N.        (Savings  $1 Billion) With about 192 members, some 150 countries are governed by dictatorships that are counter to America's love of freedom - and who consistently vote against American interests - while Americans pay the tab.


B. Reduce by 50%:

1. Department of Agriculture     (Savings $55 Billion) In 1900 one in 3 Americans lived on a farm - today 1 in 100. Yet the Dept. has tripled in size. 2008 Budget = $90 Billion. 2011 Budget = $146 B. Why? Just go back to 2008 levels. 2010 Ag. output = $171 Bil.

2. Department of H.U.D.             (Savings $35 Billion) Eliminate HUD - the largest slumlord on the planet. Send the remaining $35 Billion to the states.

3. Department of Labor              (Savings $80 Billion) Take a tour of the Department of Labor offices in Miami - There's no one there -EVER !!   


C. Reduce:

1. Department of Defense         (Savings $80 Billion) Change the way that new systems are procured and developed (a lot more later (click here). 

2. IRS                                          (Savings $5 Billion) In the 60's the IRS was staffed very efficiently by 12,000 people. Today, the IRS is an incompetent  affirmative action program employing 120,000 people. 

3. Medicare Fraud                      (Savings $40 Billion)  $50 Billion per year is openly stolen (mostly in Florida and California). Legislate harsh mandatory prison sentence including that old bitty who doesn't "have to pay a penny out of pocket."

4. "Entitlements"                       (Savings $50 Billion)  click here  How did Social Security and Medicare go from "an investment to an entitlement? How did welfare, food stamps, become linked together as entitlements?


​5. Shoot All the Lawyers          (Priceless)


TOTAL ANNUAL SAVINGS $481,000,000,000 -  THAT'S BILLION, PEOPLE !!

February 23, 2011: Update: What is all of this "Cut" $61 Billion from the Federal Budget, B.S.? First, Republicans promised $100 Billion during the elections. Second, here are recent Federal Budgets:

2005 United States federal budget - $2.4 trillion 
2011 United States federal budget - $3.8 trillion 

Inflation for those six years totals 8%. In 2005 we had expensive gas, and two expensive wars. In 2011, we anticipate no more "stimulus program." So why the 37% increase in Federal Spending? 

And Republicans can't find any more cuts than $61 Million?

Are ALL people in Washington crazy ? ! !  - BELOW ARE THE BUDGET FIGURES (1997 - 2016)
COMPILED BY THE U.S BUREAU OF STATISTICS.

April 1, 2011 (April Fool's Day) Update !! The final number on "cuts" (rhymes with guts?) is $31 Billion. And the Department of Education Doors stay open. THIS IS LEADERSHIP. MR. BOEHNER (Rhymes with boner?).