I have two things for you here.
I like almost all of your presented ideas: FAIR TRADE not FREE (free for them not for us) TRADE.
A great example is Korea, we can only import like 5,000 cars a year to them but they can flood our market with millions of theirs. That's FREE Trade
Anyway here is the plan to "reset" the economy, the banks will have all the money they need because all Mortgages are paid in full and it is an
ongoing stimulus due to lower interest rates on citizen's existing debts.
This is the course of action we are currently taking:
Let's assume that they will do what they have said and that is "7.4 to 7.78 trillion will be printed / created for the bailout and or credit revival
and given to banks" the banks who currently refuse to loan money and extend lines of credit to business. (Links included are only for "information"
sources to support the data and numbers included in this Summary)
Nov. 24 (Bloomberg) -- The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers after guaranteeing
$306 billion of Citigroup Inc. debt yesterday. The pledges, amounting to half the value of everything produced in the nation last year, are intended
to rescue the financial system after the credit markets seized up 15 months ago
Currently our US businesses are going "out of business" or if they are big enough they go to the government for money because the banks are
terminating lines of credit and no longer loan money though they are getting trillions at 0% to 0.25% from the Fed. Point Blank, the money from the
Fed is being squandered and Banks are not even trying to use the money to stimulate the frozen credit markets.
Now we want even MORE money printed / created (estimated to be over another trillion) for a stimulus package for consumers because we need consumer
spending to revive the economy.
Addi tonally, Barack Obama reveals stimulus package that could exceed $1 trillion. Another 1 or 2 Trillion for another "stimulus" package to get
money moving in the consumer markets is taken care of in "Plan B".
So in essence, we are trying tickle down economics and it isn't working because the banks are keeping the money, investing it overseas, using it to
buy out each other and giving themselves massive bonus & payouts. Plan A is not working and we have only to wait a few more weeks or months for our
next financial crisis (credit defaults).
"Trickle Down" economics has changed over the years. Now with International business markets we have "Trickle Over" economics. Trickle over to
foreign countries and financial interests. We cannot be successful with this course of action.
We can pull ourselves out of this crisis.
Direct "Fed to Consumer Mortgage Recapitalization" or "Debt Recapitalization"
My plan is for mortgage holders / consumers to borrow mortgage money directly from the Fed directly at 0.5 %
By taking the 0.5% Mortgage "Recapitalization" from the Fed directly, we pay off our mortgages in full to the banks and the banks now have the
capital of millions of "paid in full" mortgages and cannot complain about mortgage write-offs and defaults (if you haven't looked, go to a mortgage
calculator and put in 6% or whatever your mortgage rate is... now try it with 0.5%).
At 0.5 % monthly mortgage payments are about half of what they are today. (STIMULUS PACKAGE DONE)
The banks get Mortgage pay-offs from millions of mortgages and have all the money they claim they need to alleviate their shortages and asset
troubles. (As stated later, Banks will pick-up standard mortgage lending after the "recapitalization period".)
This is not a refinance and does not require property assessments, this is strictly a "mortgage recapitalization" with a hard $300.00 "origination
fee". (This can be adjusted, below is a quick example of how this origination fee would be used to assist our troubled city & state governments, as
an added bonus it this plan solves our current monetary crisis at the Local & State levels.)
$50 is paid to a bank or finance organization who provides the paperwork & processing.
$75 is paid to your city / municipality / county (Local Government - Fire, Police, etc.)
$75 is paid to State Government.
$100 is paid to the Federal Government.
(So Plan B also assists our local / state governments that are currently experiencing large budget shortfalls)
So which plan of action is better, another 1 or 2 Trillion spent on another "temporary results" stimulus package or a "long term" stimulus each
and every month gained from the recapitalization of consumer mortgages?
Next - Legislate the REGULATION needed to prevent this from happening again and going forward, the banks can then pick up mortgage origination
Win / Win / Win ....
Review our current plans of action against this plan side by side. I believe that in the long run, that we will print less money and get the long term
stimulus needed with Plan B. It is the common sense solution of our "current" problem. I also believe that our current course of action will
continue well past $7.4 Trillion.
This will "reset" the current financial crisis. I would like to use a version of this plan for consumer debt as well... refinance all consumer debt
(EXISTING revolving credit balances, auto loans, student loans, etc) at 3% with a similar "recapitalization" loan. Of course the catch on this is
you cannot borrow additional revolving credit until your old credit balances now refinanced at 3% are paid in full.
This is a true and massive stimulus package that works for the citizens and the banks.
Secondly: Here is a plan to become 100% energy independent in 10 years... and then begin export of energy shortly there afterward.