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What should be done to fix the economy

Discussion in 'Economics and Financials' started by padre31, Mar 25, 2009.

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  1. padre31

    padre31 Premium Member Luxury Box

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    [ame="http://www.youtube.com/watch?v=3AlD6U7O1pE"]YouTube - Peter Schiff: They're Gonna Change This Into An Inflationary Depression![/ame]


    Notice how he was laughed at in 2005, 2006 and 2007, the real problem is, Americans do not want a Clinical/Scientific approach to fixing the economy.

    Far from it, a return to candyland is preferable in all times and in all seasons to a pragmatic approach.
     
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  2. anlgp

    anlgp ↑ ↑ ↓ ↓ ← → ← → B A

    "realistically we're all screwed"

    yup. sums it up nicely.
     
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  3. 2socks

    2socks Rebuilding Since 1973

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    50 cent federal gas tax to pay for toxic asset removal. Federal Cap on price of gasoline. No more will big oil control economy!!!!!!!

    Pass law to require balanced federal budget, exception being only during war time and comes with a cap.

    Pass a law barring Lobbyist's from persuading decisions of elected officials. Much like a jury........during a criminal case. Say Bye Bye lobbyists!!!!!!!

    Complete accounting of every single dollar we "buy back" from each bank and a requirement of all banks to pay back the money over 30 years. Money paid back to pay down national debt and pay back social security all IOU's.

    complete overhaul of lending practices ...self governed by banks, but over seen by feds. Feds to have ability to step in at anytime. All banks bailed out to remain private yet have to provide complete financial access to federally appointed Reformation of Banks committee.

    Complete overhaul on how property appraisals are done including federal licensing

    Freeze on forclures for a period of 3 -5 years to allow for economy to "heal itself"
     
    Last edited: Mar 28, 2009
  4. 2socks

    2socks Rebuilding Since 1973

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    I can't believe I am no getting killed on this.....come on people....challange your mind!!!!!!!!!!!!!
     
  5. padre31

    padre31 Premium Member Luxury Box

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    People prefer Candyland 2socks, keep in mind that all of this effort is to accomplish one thing:

    Entice people to take on more debt while buying more stuff.

    That's the Grand Plan's final goal...the masses purchase another Nintendo or Wii..good to know right?

    As for "pass a law requiring a balanced budget"..well that law exists, they ignore it, but keep in mind, a balanced budget is easy to accomplish, spend like mad then tax tax tax to pay for it.
     
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  6. 2socks

    2socks Rebuilding Since 1973

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    I am really disappointed with the approach of the Obama administration in particular. The lack of a plan and the rush, rush, rush of everything without making an effort to change the cause and understand the effect their actions will have. The "Transparency" that Obama stressed doesn't seem to exist.
     
  7. padre31

    padre31 Premium Member Luxury Box

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    Do keep in mind 2socks, this is a economics forum not a political one.

    That said, think about all this as taking a massive cash advance on the National Credit card, handing the money out to Banks in the hope that more people will borrow money and thusly revive the economy and stabilize the banks.

    Problem is, with unemployment running at 10% or more across America, people are not as willing to borrow money because they could be fired or laid off next week.

    That is why tax cuts work better, consumers don't have to borrow their own money..it returns to their paychecks and does not have the fear issues around spending it as there is with taking on even more debt.
     
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  8. 2socks

    2socks Rebuilding Since 1973

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    Thanks for the reminder...kind of got off there for a minute. What I should have said was I am disappointed in the approach toward the financial side of the equation. I propose the following economic changes:

    Obama got elected because he promised tax cuts. The facts are he can not possibly do even 1/4 of his proposals with out raising taxes. That is a fact!!!!! Letting the Bush tax cuts expire amounts to a white wash of the 95 % tax cut to all Americans.


    We need to freeze Foreclosures. Paid for with tarp money, investigate all of the facts of each foreclosure. W2's, current utility bills, and all expenses would be looked at and the monthly payment fixed to what the family can afford, I would make it 25% of current income. This program would be phased out after 5 years when the economy begins to rebound. Putting the toxic assets into the system slowly instead of all at once would allow the system to absorb them down the road. This is a good way to give people who got caught off guard 5 years to get their stuff together; New jobs, etc. This program would have to have a yearly review of all loan modifications. Circumstances will change as the economy improves and you don't want someone paying $1000 note on a house that should be $2500 each month, especially if they have been able to rebound financially. I would also cap interest at 1 or 2 % whichever is cheaper to pay for the program. The bank would also have to put up 50% on the dollar in Good assets to off set the program costs. That's right, THE BANK MAKES ZERO on the new program and has to help pay for the program. IMO this would do several things:

    1. improves balance sheet of bank
    2. stimulates bank to loan money by taking away current income, but leaves enough income to stay a float
    3. removes toxic assets from books making banks once again profitable
    4. slowly allows market to absorb those foreclosures that are necessary, instead of flooding the market as we are now driving down home prices

    This idea would not work unless the way property appraisals are done. Part of the huge problem is when a house is sold from foreclosure it becomes part of your appraisal should you want to sell as a comp. This is further driving down values and depressing the market because would be new home buyers can't sell what they got.
     
  9. gafinfan

    gafinfan gunner Club Member

    While I like your plan alot IMHO the very first thing we have to do if we are EVER get our country back is to outlaw the Fed and start making our own money. See history ie the money lenders. They've been killing off good people since Bible days also Lincoln and JFK.:up:
     
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  10. 2socks

    2socks Rebuilding Since 1973

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    You are serious about our own money???? I thought you were being sarcastic.....my bad. In away we already are. In Atlanta a rather large barter system has started and is catching on like wildfire. There are doctors, lawyers, eyeglass companies, electricians, plumbers, dry cleaners, etc. You name it and one probably exists. It works like the following...lets say I go hang a light fixture for Joe who owns a Blimpie sub restaurant. I would get paid cash for any material and the labor would be given to me in barter bucks. I could then use those barter bucks at any other participating barter company. I could use them at John's oil lube .....just like money....kind of cool
     
  11. gafinfan

    gafinfan gunner Club Member

    I was never more serious in my life, please read my reply to you in our other thread. We, at this point in time, will NEVER get out of debt because the interest is so large. All of our taxes now go to pay interest. The first 137 years we were a country we had NO CENTRAL BANK and also fought the worst most bloodiest war we have ever fought and paid for it, while from WWI until now we have just been using our Fed credit card!

    We are well on our way to becoming the newest 3rd world country on the globe!!!!
     
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  12. 2socks

    2socks Rebuilding Since 1973

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    wow ....I am shocked I had no idea you were serious. I can't say I don't have the same view as you......I am typeless.......:up:
     
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  13. 2socks

    2socks Rebuilding Since 1973

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    We need to drastically reduce our debt percentage to GDP it is getting way to high. The last reduction was during the Clinton years....although not a Clinton fan and in reality Clinton DIDNOT have budget surplus's. We were steered in the right direction...........which I do applaud:up:
     
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  14. gafinfan

    gafinfan gunner Club Member

    Please don't be taken in by the so called "budget surplus's" as they/it did nothing to pay down our true debt. I've thought for some time, say half way thru Ronnie's first term, that they all know the truth but are to afraid to or don't care to do anything about the true problem. They are to far removed from reality and most Americans don't care enought to find out the truth. it is out there and if you ask enough questions you will learn the truth. I did and I surely don't consider myself special or smarter than others. My love of history, the Constitution, and my Southern heritage has lead me down this path. Plus I love to read which IMHO really helps or did before the internet highway came along.

    One other thing I've always questioned both Lincoln and JFK's death came right after (within months) of the time that they set about to perminitly have the Government be responsible for printing its own money supply. Jack's death really hit hard (to alot of people not just me) and being a shooter, a pretty good one in my day if I say so, I have never believed that it could ever be pulled off that way and with a $36.00 rifle to boot. Now with the right tools, knowledge, time, and a whole lot of practice (you have to have that to be any good at all and it has to be continous). Oswald just doesn't fit the mold. To flacky, no patience, and no commitent through out his life. The guy was a wannabe that had no self respect or belief in himself. Him a shooter, never in a million years.

    When I was really into long range (1000 yards +) and lived in Columbus, GA I could get to the 1000 yard range on my off days and regularly shot competition after a match a few of us would practice with 1911's shooting at gal. milk containers at 300 yards. When you shoot that way for several years and pop about 100 caps at the time you can get to be ok. It helps with learning wind, range estimation, breathing, and trigger control all of which takes time, practice and patience. Anything most can do if interested and willing to put in the time and effort,so I'm not special by any means. I'm not nearly as good as some I've seen and a few that I wouldn't go against if I had a 50 cal. and they were armed with a 22 long rifle. There are some that are that good and better.:yes::up:

    Sorry I got off track but the very thought of JFK going down that way and for that reason still gets me hot.:wink2::up:
     
  15. padre31

    padre31 Premium Member Luxury Box

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    Well, the problem is, that won't work, Globalism has seen the US's productive capacity reduced to a shadow of what it once was, all reducing the debt, even consumer debt will do is crash the economy into the side of the mtn.

    70% of the US Economy is based on me, you, GA, and my dog trotting down to the local Mall and buying crap, more crap then we can afford so we go into debt to purchase our wii's and the economy hums along...

    That is until people no longer do that, and here our overlords are destroying the last vestage of sound money to keep the system moving forward never mind the cliff looming in the distance.

    The most recent proposal to convert the TARP stock warrants into shares and thusly nationalizing the banks has sent the NYSe into a tail spin, and the Asian Markets are also crashing, it is going to be brutal day on Wall Street tomorrow...but a good day for Gold.

    As GA is finding out, the FED is one of those topics that Americans really do not care about, they just want the economy "fixed", that is America today a 15 yr old throwing a temper tantrum because they haven't been given the money to buy something at the Mall...rather then creating things to sell at the Mall themselves at a profit...
     
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  16. gafinfan

    gafinfan gunner Club Member

    So true, it seems that the only thing we are now any good at producing is the printing of paper money. Damn we've gotten good at that one!:up:

    I still say that we have a way out and its right in front of us yet the Greenies won't touch it, oh well!
     

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