Editors note: this plan was conceived while trying to imagine the possible changes that could occur under a new administration, based on the past speeches given by Barrack Obama. For some, this may bring great joy. For others, great dread. Either way, it is time to start visualizing the kinds of change that would be possible, if not downright inevitable.
If America is truly willing to embrace change, then the following post-election bailout plan is sure to be the answer to solve many of today’s current issues. If put into effect, these new solutions will solve many of the long-standing problems we have encountered in implementing our Great Society. Below is a discussion how the plan will work.
Guided by the Social Security Administration’s mandate to provide true social security, every American will be given access to pension, health care, food, and shelter. One of the first pressing needs is to provide shelter and day-to-day credit to buy food. The first stage of the American Economic Recovery Operation does just that. Under this plan, shortly after the election, the banks will be directed to issue to every adult 100,000 Ameros, a new currency, for the limited purpose of home financing and payment of outstanding credit card interest. The Amero will be given a fixed exchange rate of one Amero to one Euro for a guaranteed period of five years.
Since the banks are now controlled by the government, implementation will be mandated and swiftly accomplished. A couple with $5000 in credit card interest debt and a $100,000 mortgage will be allowed to pay off that mortgage, the $5000 credit card interest debt and still have perhaps 95,000 Ameros to save for future home upgrades and future credit card interest payments. The banks will be required to accept Ameros in lieu of mortgage payments, mortgage payoffs, and credit card interest payments. In return, the banks can use accumulated Ameros towards their reserve calculations.
Later, the Ameros will be usable for purchase of universal health care, once a nationalized universal health care system is established. Every person under the age of 18 will be allowed to pay for healthcare using Ameros.
In this way, the Great Society dream of providing everyone with their own home, their own shelter, may finally be realized. Yes, under a new Democratic Congress and Administration, ideas such as this one are now readily plausible, if not outright practical. Perhaps more than plausible or practical, perhaps actually a part of the mandate for change.
(c) 2008 Knobloch. All rights reserved. Contact for publication permission. http://www.charlesknobloch.blogspot.com/
Friday, October 31, 2008
Friday, October 24, 2008
It's not a bailout -- it is a pullout.....or a shakedown?
The current financial “crisis” and government “bailout” is now all starting to make sense. What we are really experiencing is a scramble to pull out as much money from the federal government as possible before the election. Rather, it is really taking on the appearance of a bold-faced shakedown of our elected officials. How so? Well, it is becoming more and more clear that bad regulations are at the heart of the meltdown – the regulatory switch from mark-to-model to mark-to-market just at the point when most of the debt instruments would immediately lose all market value if switched from mark-to-model valuation.
This regulatory meddling in banking affairs forced the banks into only no-win options – forced write downs to “worthless” of otherwise valuable assets. The Republican legislators forced the first $850 Billion bailout to include the power to reverse the bad mark-to-market regulation. But, guess what? It is not being implemented. Instead, another round of shakedown of the government is in the works. Reversing the bad mark-to-market decision, now, will jeopardize the plan to extract more dollars from the government.
The actions are becoming painfully clear: whether Obama or McCain wins, our country is now on a fast-paced march towards socialism. It is Ann Rand (“Atlas Shrugged”) on a mega-scale. The financial powerhouses need to extract as much money out of our government as they can --- remove as much power as 1.5 – 2.5 trillion dollars can buy --- and as quickly before the election as possible --- before the United States finally closes the door to free enterprise.
It may not be one person doing it, or some huddle of masterminds, but it is the collective of thousands of people doing it. The financial world is not in crisis – it is actually acting intelligently. The intelligent thing to do is shake down the government for all it is worth – or as much as can be gotten, then regroup as much power as is possible later. Until the depths of socialism can be determined, this is a most intelligent strategy --- as it will be some time before anyone will be able to tell where and in what sectors, if any, there may be opportunity to use private capital. And, the entities who hold the cash will be needed to help enable the socialist agenda. So, whether the money will be used to prop up token capitalist activities in a shrunken free market, or the money used to drive new social programs, the outcome is the same --- the holder of the money will have the most say.
Since the quirky government regulations forced our bankers into this situation, what other option do they have? So, now is the time to get every penny out of the government as is possible --- even if that means panicking a collapse of the financial system in order to drive legislators & candidates into a panic.
This regulatory meddling in banking affairs forced the banks into only no-win options – forced write downs to “worthless” of otherwise valuable assets. The Republican legislators forced the first $850 Billion bailout to include the power to reverse the bad mark-to-market regulation. But, guess what? It is not being implemented. Instead, another round of shakedown of the government is in the works. Reversing the bad mark-to-market decision, now, will jeopardize the plan to extract more dollars from the government.
The actions are becoming painfully clear: whether Obama or McCain wins, our country is now on a fast-paced march towards socialism. It is Ann Rand (“Atlas Shrugged”) on a mega-scale. The financial powerhouses need to extract as much money out of our government as they can --- remove as much power as 1.5 – 2.5 trillion dollars can buy --- and as quickly before the election as possible --- before the United States finally closes the door to free enterprise.
It may not be one person doing it, or some huddle of masterminds, but it is the collective of thousands of people doing it. The financial world is not in crisis – it is actually acting intelligently. The intelligent thing to do is shake down the government for all it is worth – or as much as can be gotten, then regroup as much power as is possible later. Until the depths of socialism can be determined, this is a most intelligent strategy --- as it will be some time before anyone will be able to tell where and in what sectors, if any, there may be opportunity to use private capital. And, the entities who hold the cash will be needed to help enable the socialist agenda. So, whether the money will be used to prop up token capitalist activities in a shrunken free market, or the money used to drive new social programs, the outcome is the same --- the holder of the money will have the most say.
Since the quirky government regulations forced our bankers into this situation, what other option do they have? So, now is the time to get every penny out of the government as is possible --- even if that means panicking a collapse of the financial system in order to drive legislators & candidates into a panic.
(c) 2008 Knobloch. All rights reserved. Contact for publication permission. www.charlesknobloch.blogspot.com
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