February 28th, 2013 14:47 EST
Maintaining a Strong Dollar through Perot Type Reforms
Perot type Reforms is the way for Uncle Sam to get in shape to be able to climb out of the Fiscal-Canyon
The Essence of Reform:
In this short paper I will reflect on my run for President in 2000 as a `Reform Party Candidate` and get to the point of how my political and economic mentor Ross Perot was right and how I wish I could have carried on is legacy as a Reform Party Presidential Candidate. This short paper shows how America has rapidly declined in a number of ways that Ross Perot warned Americans about. A return to the `Reform Party Principles` that have been hijacked by special interest such as former CIA/Defense special interest that favored a return to Iraq and other squandering of Americas Common Defense funds without the use of any commonsense. Those groups now control and hold the key Reform Party meetings in New York. The Ross Perot Principles are still alive in the hearts and minds of those that recognized the value of government reform. `The Perot type Reforms` are the only way that Americas Fat and Lazy Uncle will get back in shape to be able to climb out of the `Fiscal Grand Canyon`, that was caused by years of mismanagement, which undermined Americas economic national security, and the overall health of our Uncle Sam.
In this lecture I will begin by addressing `The Myth of a Weaker Dollar` and then discuss how failing to follow the Ross Perot attempts to deal with Special Interest Lobbying Reforms, and `Trade Policy Reforms Fair Trade vs. Free Trade,` which has greatly hurt Americas economic situation. I will then add a few of my own observations with a key focus on shifting economic attention from the `National to the Local Level` to create Growth and Development via City by City Comprehensive Planning (welfare to workfare); I believe the Local Level is easier to account for spending, and much easier to get citizens oversight. Lastly I will address `Key Reforms`, and list others that need to be researched and discussed, and also dealt with to get Uncle Sam back in shape to climb out of the `Fiscal Grand Canyon`.
1) The Myth of a Weaker Dollar- The United States has provided great influence in improving Global Economies, while neglecting our own. Now both the United States and Western Europe are dealing with a very difficult economic crises and a `Currency War` to devalue its currency will only add to the problem.
a. Fair Trade-Economies of scale such as the USA and the EU must focus on `Fair Trade`, while adding Value Added Taxes (VAT`s) to imports from cheaper producers such as China in order to reduce their trade imbalances and maintain job/tax basis for a healthy GDP.
b. American can never devalue its Dollar to a dime without totally collapsing America. Therefore we must realize the currency value comparisons and what the dollar is competing against. The dollar would have to drop its value 8, 25, to 50 fold to compete with Africa and China. America`s average income is a bit over $50,000 dollars, while China, India and Africa range from only $4,000, $2,000 to $1,000 dollars. Note these are `Developing Nations` and need our strong dollar and technical influence to develop their nations infrastructure.
c. Putting former Communist Countries i.e. Putin in charge of the World Economy I don`t think s. America and the World cannot rely on failed economies of the former Soviet States that struggled for the past two decades to lead the world out of economic crises... It would be crazy to devalue the dollar and allow Russia in the economic driver`s seat. It would be like putting President Putin in the driver`s seat drunk and wearing a blindfold. Having jet-setted back and forth to the former Soviet States over the past ten years I am quite aware of how slow, inefficient and corrupt business practices are and can imagine hundreds of Bernie Madoff schemes from Russian Oligarch`s if allowed a stronger currency. The Russian Stock market does not drop by a few points it drops by huge swings. Post Georgia invasion the Russian stock market lost some 75%... Not good stewards to hold onto `International Capital Market Funds`. From my understandings the Crises was a great thing for the regional markets as it help hide vast mismanagement of capital investments that would not have ever passed an SEC filing.
2) Special Interest Lobbying Reforms-Reduce the Dominant influence of Big Government Ideology, related to Legal Bribery.
a. Americas demand a higher standard from their `Elected Representatives`. The Founding Fathers would be pissed-off to realize that the Constitution of the United States of America that they fought for and some even died for is now ran by a `Commissioned Congress`. Men like Senator Mitch McConnell that has favored policies that have undermined Americas interest, in favor of his own and foreign interest. Here is more of my opinion on him and his wife and how I think they should pack their bags and get out of American politics.
b. America has to return to `Representative Government`, which are good stewards of American Taxpayer funds. Representatives that focus on infrastructure, growth and development, not a continuation of `Commissioned Congress` favoring irresponsible Big Government, which has quadrupled the National Debt from a bit over 4 Trillion to approximately 16 Trillion since 2000. War has to be the last option for Common Defense of America not for the Common Interest of a Commissioned Congress or White House base. It still shocks me that the war was supposed to be over in 2003 in Afghanistanbut trillions later we are still there.
c. We have to get rid of those that favor Big Government that has Tripled Defense spending, tripled government dependence from 17 to over 45 million now on the welfare row`s, millions of people lost homes, cars, their investments and even families, all while irresponsible government catered to special interest corporate welfare. Here you can clearly see that government spending tripled since 2000 www.usdebtclock.org.
3) Trade Policy Reforms Fair Trade vs. Free Trade - The Citizens of the United States must come to understand that policies have vastly failed since Bush Sr. proposed NAFTA, passed by President Clinton, with a huge push from Republicans Newt Gringrich, Senator McConnell Congress.
a. Since that time Free Trade has destroyed Fair Trade. Additional Free Trade Agreements tripled Americas trade imbalance from a bit over 300 billion to nearly 1 Trillion Dollars a year from 2000; thereby, creating a vast amount of poverty. Here you can clearly see that the Trade Deficit tripled since 2000 www.usdebtclock.org.
b. Avoiding a `Trade War` is important; however, we must attack the problem of mismanagement of economic policy from the National and State Levels. We should maintain a strong Dollar, while adding VAT Taxes at import locations, as well as focusing on returning to a `Reagan Supply Side Economics`, which was undermined by the Bush Free Trade Agendas.
c. The adding of a `Virtual World Trade Center` and other focused export attention will be key. Here is a link to my concept of a `Virtual World Trade Center` and the use of INCO-Terms to assist the U.S. to becoming a Supplier of Goods and Services as opposed to a Buyer of Goods and Services.
4) City by City Comprehensive Planning (welfare to workfare)-The Citizens of the United States must come to understand that National policies have vastly failed since 2000, which has tripled welfare from 17 million to nearly 45 million (Here you can clearly see that the Trade Deficit tripled since 2000 www.usdebtclock.org); thereby, creating a vast amount of poverty.
a. The dominant position of the National Government, and State Government economic drains must shifted to the Local Levels to create growth and development via Comprehensive Planning such as my draft economic plan .
b. I do not suggest to condemning welfare, but rather condemning the problem of mismanagement of economic policy from the National that created the problem over the past decade that clearly shows the rise of poverty and welfare related to the mismanagement of government.
c. Research shows that a shift must be made to the Local Levels. Here I expand upon noted Economist Paul Krugman also advocates shifting Stimulus Spendingto the local level as a way of improving growth and development.
5) Addressing key Reforms-economic sovereignty, rapid privatization and industrial restructuring, liberalization of prices and trade policy, elimination of state subsidies to loss-making enterprises, serious reduction of credit emissions from the banking system, establishment of control over government spending, especially for burgeoning social safety net programs, and stabilizing the currency. Yet, the United States has failed to reform many of these areas, and/or to the contrary allowed special interest policy to undermine America`s economic national security... Shall we not forget that it was the United States, and Western European Capitalist that ran to the aid of the former Soviet States upon collapse? In the post Soviet Union conversion from Communism to Capitalism we encouraged a number of key economic reforms, while failing to follow our own advice; those reforms are:
a. Economic Sovereignty -The U.S.A. has reduced our economic sovereignty, via vast increases in a Commissioned Congress Lobbying that caters to Foreign Special Interest over that of the U.S. Interest; thereby, increasing foreign debt, foreign trade imbalances, and energy dependence.
b. Rapid Privatization and Industrial Restructuring- The United States has privatization; however, we have failed to recognize that Government can be a catalyst for growth and development through Comprehensive Planning Incentives that can grow our economy. One example is the encouragement of more Public-Private-Partnerships at the Local Levels via strong Comprehensive Planning and Business Tax Reform. Such incentives for industrial expansion and the establishment of a strong Virtual World Trade Center along with a renewed Reagan type Supply Side Economic approach.
c. Liberalization of Prices and Trade Policy- The United States has had a liberalization of prices and trade policy to the point of undermining Americas Economic National Security. The United States now has a near 1 Trillion a year Trade Imbalance which tripled during the George W. Bush Administration. I again call for Senator McConnell and others that favor Unfair Trade Policies that now have America at a near 1 Trillion Dollar Trade Imbalance to pack their bags and leave Washington and stop undermining America`s economic national security.
d. Elimination of State Subsidies to Loss-Making Enterprises- The United States has also vastly failed in subsidizing special interest industries that would allow for larger industries and/or better management, to convert these industries into profit making enterprises.
e. Serious Reduction of Credit Emissions from the Banking System- The United States has also lost insurmountable wealth. Losses in the Capital Markets, loses of near 42% of Americas Housing Wealth that vastly affected the Nations States Tax Basis. I was anticipating the crash long before it occurred and approximately a year and a half before I begin writing spreadsheetsto try and cousin the vast loses via Bank Bailouts that would prevent a vast Devaluation of Housing Values under the Mark to Market Rule that Congress chattered about, as opposed to being proactive and preventing such GDP losses. The Federal Bailout Situation expanded due to the vast losses of real estate values that resulted in the need for nearly 2/3rds of the American States to require a Bailout along with the American Banking System as well as many key American Industries i.e. the Auto Industry.
f. Establishment of Control over Government Spending, (especially for burgeoning social safety net programs, and stabilizing the currency)-The U.S. Government has not had any control over Big Government Spending over the past decade. This has led to a burgeoning social safety net programs, and places risk of de-stabilizing the currency i.e. the U.S. Dollar. The United States squandered trillions; thereby, quadrupling the national debt from a bit over 4 Trillion to nearly 16 Trillion as well as tripling Defense Spending/Squandering, Tripled Welfare Spending to cover the jump from 17 to 45 million Americas since 2,000, as well as catering to Free Trade special interest that has Tripled the Trade Deficit from a bit over 300 billion to nearly 1 Trillion Dollars since 2,000.
g. Additional Economic Problems and Drains that need to be expanded upon:
i. War on Drugs and the Shadow Economy ????????????????
ii. Trade Patterns unfavorable to the United States.
iii. Lagging Foreign Investment.
iv. The Problem of Capital Flight.
v. Rising Foreign Debt Levels.
vi. Employment and Wages.
vii. Fiscal and Monetary Policy Issues.
viii. Fiscal Deficits and Inflation.
ix. Lax Expenditure Control.
x. A weak Tax System due to losses of tax bases.
xi. Deficit Financing Capabilities.
xii. Privatization of Public Lands.
xiv. Enterprise Governance.
xv. Competition Policy.
xvi. General Business Climate.
Uncle Sam has gotten Fat and Lazy-(to the point that even Richard Simmons would have difficulty whipping him into shape to climb the Fiscal-Cliff face)-I am not a gloom and doom type of guy. I am a realist that looks at all sides of the issues; I then do my best to make solid recommendations for constructive change.
Sometimes only comedy can get such a point across; therefore, I offer you a Fat and Lazy Uncle Sam. I clearly see a desperate picture of a fat and lazy Uncle Sam, which has gotten too close to the edge of the Fiscal Cliff and under his weight collapsed the edge; thereby, sending him tumbling down, bouncing off the sides making numerous funny sounds as he bumps and bangs. Then he hits the Grand Canyon River with a Cannon Ball Splash that looks like a nuclear bomb has exploded shooting water into the air that dwarfs Old Faithful. Uncle Sam then floats over to the river bank and gasp for air and struggles to get his fat arse up. Once up he wrings out his shirt that is hanging half way down his belly. Then he looks up wondering how the hell he will climb his way back up the Fiscal Cliff.
He remembers how he used to sit on his front porch handing out blank checks for corporate welfare, while they kick workers to the curb, then hand them unemployment and welfare while special interest gave him pork sandwiches, cookies, cakes that put on the excessive weight.
Uncle Sam remembers the days when he was a young athlete that competed in a number of events such as the race of Capitalism. That was before, he allowed a Commission Congress to open up cheating where he had to compete with State Run Capitalism from China, which easily beat Uncle Sam in the Supply Side Economics race, which cost even more American job. This has led to major undermining of the American Economic National Security, and has collapsed the Reagan era Supply Side Economics policy. Economist would call it Output Collapse.
Then all of a sudden Uncle Sam realizes he is Fat and Lazy and he knows the only way to be able to climb back up the Fiscal Cliff is to get in shape and he makes the call.
In conclusion, I feel that the lack of economic stewardship from Americas failed economic policies have created major economic problems in nearly All Sectors of the American economy. Failed Economic Policy Making has treasonously-undermined Americas Economic National Security... The lack of Defense Industry spending oversight from a self-serving Commissioned Congress instead of a Common Defense serving Congress with foresight, and oversight. This along with the lack of Lobbying Reforms has allowed Commissioned Congress to be bought by Foreign Special Interest that has converted America into accepting a Buy Side Economics policy. Combine all the above mismanagement together and it has led to worst economic downturn since the Great Depression.
Thank you, and I hope that the United States maintains a Strong Dollar while focusing on Perot type Reforms via Lobbying Reform, City by City Comprehensive Planning, address Free Trade vs. Fair Trade and most importantly maintain a Strong Dollar while dealing with foundational economic structures (economic sovereignty, rapid privatization and industrial restructuring, liberalization of prices and trade policy, elimination of state subsidies to loss-making enterprises, serious reduction of credit emissions from the banking system, establishment of control over government spending, especially for burgeoning social safety net programs, and stabilizing the currency).
Harvey Carroll, Jr.