If We The People want to effectively reverse and eliminate the cyclical crisis we are now experiencing, not only is trickle-down economics an empirically disconfirmed hypothesis that demands much-needed change, but the organized consolidation of the economy that it operates to produce and maintain demands change as well.
We see the congressional delegaton attempting to apply solutions to our economic woes that are the problem. It can hardly be characterized as "change we need."
From the price of commodities to the way public and private entities plan what we produce, the problem is organizational.
Bailing out what is "too big to fail" just perpetuates the problem--too big to fail--and effectively validates the "belief" that it is the model of efficiency when it is a hypothesis clearly disconfirmed by the evidence (massive unemployment and massive monetary support).
The massive monetary support will not reorganize the problem. It will provide a short term monetary stimulus that will forget the cause of the problem--the acquired belief that bigger is better, or most efficient.
The evidence that it is not is overwhelming!
Organizing for the consolidation of the political economy, for the consolidation of power, is the status quo ante, not change we need.
Instead of a point at which change is to naturally occur for a continuous, empirical improvement, our current crisis is being used to reinvent the problem into a confirmed consolidation of practical power that allows for elitist command and control of our political economy and for a continued false self-determination of The People.
If we do not reinvest, reorganize, consolidation of economic factors into small factors of manageable efficiencies that are quickly responsive to supply and demand costs and benefits and the tastes and preferences of the consumer (the public) with an equally quick accountability, the public is condemned to elite management of the political economy that in no way ensures a rational, objective, pragmatic decisional process that the collective will of The People is most apt to provide with a clearly verifiable legitimacy.
It is not impossible, and surely more possible and less complex than what we are doing now, to invest a small entrepreneurial economic system in which the stabilty of the system is not dependant, and therefore less apt to be corrupt, abusive and inefficient, if the failure of one industry or market entity does not condemn the entire system to short or long-term cyclical crisis.
Instead of how big you are being the measure of success, surviving the pluralism of the free marketplace is the measure of success.
Allowing for organized consolidation renders as the measure of success how corrupt and abusive a business can be and still stay in business (like securitizing--consolidating--debt obligations too big to let fail and impossible to renegotiate so that the debtor must fail and the lender must be bailed out). The abuse includes the margin of profit (inflation and unemployment to be managed politically) and a decisional process that leads to clearly verfied inefficiencies of current form that are shown to be difficult at best to reverse even with the force of public funding and authority. Reversing this measure of success is the change we need, and is entirely possible.
More than $2 trillion of monetary and fiscal stimulus (investment) is best spent to pluralize (deconsolidate) the economy, and power. The reason this alternative is ignored if not discouraged is because it will effectively cure what ails us. It will minimize the probability of crisis by not maintaining a consolidated model of power in which its huge costs are rendered a predictable, recurrent benefit of a power elite and a means to apply power rather than properly deny it.
Instead of denying access to power the inefficiencies of aspiring to be big enough to be corrupt and abusive, what access to financing provides and largely determines, the rigors of pluralism are discouraged for a systematic structure of power in which the pursuit of life, liberty and happiness is largely the discretion of a ruling class, enforced by the self-determination of the masses to be in service to it. It is antithetical to a structural model for freedom, morality, and efficiency.
Maintaining the model we have now is to commit to a proven model for encouraging inefficiency, immorality and a lack of freedom that interact to be a cause for crisis and, historically, acquiesence to an elitist model that cyclically reinforces and reinvents itself. An elitist model always deliberately discourages the natural tendency for a peaceful and prosperous pluralism. It cultivates and ensures its succession with the promise of a short-term comfort and security that assures the probability of an insecure future.
Invest pluralism of the marketplace in priority, not its continued consolidation as we are determined to do now despite the domonstrable political will for "change we need."
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Discussing Options
Is there an additional option that can be obtained with or without government support? If so, how do we proceed? In December 2004 I learned of the level and rate of American Debt would likely lead an extensive down turn in the American Economy. Over the following four (4) months I researched the issue and discussed the threat Debt was and continues to place on America's Economic Security. As this research continued co-workers from the Philippines asked me to speak with bankers in Manila. I spoke with representatives of the Philippine Banking Community and found that they too were concerned with the economic situation in the U.S. Friends, Co-workers and complete strangers joined with me to register Shared Debt Relief (SDR) Association in the Philippines. Our Mission was / is to raise the alarm and offer a practical fiscal and monetary solution to the Debt Problem. Since August 2005 we have done what we could to develop a discussion of our economy and its needs. As can be seen today we failed in our attempt to gain State or Federal Government support of the SDR Loan Cycle Program. There is no disagreement that America needs to address each of the tactic's presently being pursued by the Obama Transition Team / Administration. However, the Obama Transition Team seems to have delayed taking action to deal with public or private debt. The problem is that America is in urgent need to buy down our citizen's private debt and our international public debt. America has the highest level of debt worldwide, but is not alone in its impact. Millions of individuals around the world are facing a personal debt crisis. A significant cause of our present economic problem is excessive American Debt. 412 Billion USD is being paid out of our national budget to pay the interest on our 11.3 Trillion USD National Debt. Our private debt in America is 46 Trillion USD. If we did not have the Debt, the banks would not need bailed out. America's private debt is so extreme that every portion of the government understands that they cannot tax individual earning less than 200,000 USD. 95% of the American People do not have the money to pay anything else. The debt begins with the individuals but has impact throughout the entire community. You understand the Supply and Demand issue of basic Macro Economics. Where one individual's ability to buy or sell has minimal effect on a nation or world economy, Demand is critical when those numbers reach 150 Plus Million Americans. Conservative estimates place 60% of the American working population as facing a sever debt problems. The foundation of the economy is the consumer. We must provide a way to increase the spendable income of the individuals. To do this we must deal with individual debt one person at a time and we must do this with Cold, Hard Cash! The American Congress 700 Billion USD Bail-out brings no real solution to the problem in that it does not eliminate the debt. The American Bank Bail-out is a shell game and provides nothing but smoke and mirrors. The 57 Trillion Plus pound Gorilla is still in the room. All the American government has done is moved the debt from the institutions books to the government books. America still has the debt. At present all of the solutions being presented depend on Americans as individuals and all levels of government to increase their credit debt. When do we take responsibility? When do the bills get paid?
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To fix the American and International economic problem we have to pay the debt down. How? The Shared Debt Relief (SDR) Loan Cycle provides a means to raise the funds needed to pay down debt. Let me explain why SDR is needed and will work. The SDR program works one person at a time to deal with the individual's debt and at the same time raises hard earned cash to buy back individual debt. 6.7% acknowledged unemployment, those Americans who had funds have stopped spending, major manufactures reducing production with the resultant cut back in personnel with more pressure on the down turn of demand. The SDR Program does not eliminate individual responsibility for their debt. The program I am recommending is called the Basic Debt Consolidation (BDC) Loan requires 1000 individuals to donate $10.00 plus tax. The following defines how the $10.00 donation will be processed;
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$5.00 One (1) $5,000 Zero Compound interest loan. The individual who
receives the loan will have 250 monthly payments of $25.00.
$3.00 The fixed trust must be used to purchase issued international U.S.
Treasury Bills.
$2.00 Operational Expenses
$10.00
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SDR Loan Cycles uses the lottery structure to decrease the recipient's monthly payments. The program then uses the revised monthly payments to fund loans for additional participants. The effective marketing of the unsecured SDR Loan Cycle is a means to help individuals from the entire worldwide community. The use of the SDR Loan Cycles depends on creating a program that is founded on people helping each other. As the Loan Cycles pay off individual debt they provide the financial institutions with capital to reinvest. $5,000 USD in credit card debt cost $80.00 per month at a minimum. The SDR program has a monthly expense of $25.00. This equates to $55.00 remaining in the recipients’ monthly budget. Yes we are going to have to explain the need for the program. For too long American Leadership has neglected their duty to be honest with our people. For us to be a nation we must accept that we either stand together or we will fail one individual and community at a time. I am asking your help to discuss the establishment of national / international SDR Loan Cycle. Shared Debt Relief is intended to assist every western nation that depends on the free market system. The question is how do we implement the SDR program? If we do not implement the SDR Program then what solution can we do as individuals to repair 30 years of mismanagement?
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