I was talking with a co-worker this morning and mentioned many are buying groceries with their credit card. He replied he was.
If you are paying interest to survive for today, I’m saddened. Yet this is the state many find themselves in, maybe yourself.
You can blame the economy, the government, one Presidential candidate or another. You can blame the Federal Reserve system as well.
But WHO has provided answers on how to FIX such a problem? While I don’t have the muscles of Arnold or the brains of Einstein or the capital of Rupert Murdoch, I will give answers which would FIX the problem today, tomorrow and mostly forever, should my insight be utilized.
“That’s pretty ballsy,” you may say, to which I reply, “Yep. Would you like to hear my answers or be forever stuck with no to few answers?”
Let’s get started.
At the end of WW1, there was an economic downturn in the USA. After all, the United States (and the world) had been manufacturing war materiel. When the war ended, all that purchasing of things, including the logistics and maintenance needed goes away. What was Washington;s response?
Washington did not get involved in rectifying the economy. And within eighteen months, the nation was economically roaring.
Lesson One. Don’t ever ask the government to fix the economy
because
Twelve years later, the Great Depression hit. Instead of natural economic law rectifying the situation, the government (and the Fed) became the nation’s savior. For all the plans, programs, strategies and more FDR provided in an attempt to turn the economy into a robust one, only WW2 turned the American economy into a robust economy.
And today, the government is working to create WW3 to improve the economy.
Lesson Two. Government uses war and creates catastrophes to make and break economies. Always has. Always will.
Alan Greenspan once commented, “The Federal Reserve CREATED and SUSTAINED the Great Depression.”
Lesson Three. Writing IOUs for ever-increasing amounts does not make an economy. Never will. Never has. In fact, deficit spending and fractional reserves always leads to killing the nation that embraces unnatural economic law.
Instead, backing the economy with a tangible asset would hold the government to living within their means. Otherwise, it would be prudent to put those who indebted the nation via deficit spending and debasing the currency in debtor’s prison until they reimburse the people.
Back in the 1970s, there was a hard-headed woman who became the prime minister of the United Kingdom. Her name was Margaret Thatcher.
The English had realized they had embraced socialism to such a degree a person could live from the womb to the tomb without ever interacting with the private sector. This massive economic burden was killing the nation.
What do wise people do when they are paying out more than they are making. They cut expenses by selling a massive amount of their stuff, especially assets which are not generating positive cashflow. England did exactly that. They privitized most of their economy.
British Leyland disappeared. British Airways became a private company. Assets which were not performing well were revamped to make them attractive to investors. One asset which was in such poor economic condition was sold to the employees for one English pound. And the first day the employees owned the company, it was in the black.
In the USA, we have a Supreme law of the land. It is called the Constitution of the United States. Within this small document are 17 specific jobs assigned to the national government. This same document says ANY job or duty not specifically addressed within the Constitution is not the responsibility of the Federal government, but is reserved to the States and to the people.
In short, the Supreme law of the land says 80-90% of the national government is unconstitutional. So selling those entities, those ‘businesses’, and more, taking the national government out of those ‘businesses’ and putting them in their rightful position, the States or the people, would reduce Washington’s power, influence and budget by 80-90%.
The income from these sales could be applied to paying off the national debt.
Lesson Four. Privatize
That’s it.
Real money, as in a gold and silver backed currency
Downsize the national government to its Constitutional limits
Require Congress to declare war every time we undertake any type of military action – or stay out
Run the economy using sound, timeless economic principles.
