Most websites that discuss politics and economics will concentrate on explaining all that is wrong with politics, the society and the economy.
My websites are concentrating on finding ways in which the economy can ridd itself of the leaches that are sucking the life blood out of it. The simplest way is to deprive the leaches from the opportunities to attach themselves to the body of the economy so that they cannot suck its life blood out of it. Eliminate the IRS and the Federal Reserve as two major steps in removing many of the leeches.
This website is describing the method that will end the current recession in record time.
A law proposal for a law that will end the recession in less than 6 months. It takes an emergency Act from Congress and the President's signature.
with the REBOOST Act, Rapid Economy Boost Act of 2011
Republicans (Bush) and Democrats (Obama) are equally incompetent in dealing with recessions or building prosperous economies. Fact is that even with the current economic infrastructure severely damaged by allowing the recession that started late 2006 to keep destroying economic infrastructure for 5 years running, we can stop the recession in 6 months and build a "miracle" economy in an additional 12 months. The economy must be run like we would run a well-managed business guided by Contrarian Economics principles. Contrarian Economics are largely in total disagreement with Conventional Economics that have created such very mediocre and failing economies around the Globe.
We cannot afford incompetent government
Mr. Obama promised CHANGE. We all assumed that he meant change for the better and we voted him into office in hopes that he would swiftly end the recession that had started in late 2006. Mr. Bush made some feeble attempts to end the recession but failed miserably because, not surprisingly, he did not get the proper advice from the team of "experts" from the Federal Reserve and the Banking cabal that he had surrounded himself with.
The business model of Bankers is to bleed the economy (all the people in the Country) with as much interests payments as they can. The National Debt and Local Government Debt are the greatest producers of interest for the Banking cabal. A bad economy creates the need for more government debt and a proseperous economy is counterproductive for bankers because governments would not need to increase their debt and horrors of horrors, they might even want to decrease their debt or totally pay it off. The yearly interst payments that governments pay (that all of us pay) each year to bankers runs into the TRILLIONS.
We cannot expect Mr.Obama to do any better
President Obama cannot be blamed for his failure to end the resession because he has surrounded himself with the same Federal Reserve and Banking Cabal advisers that Bush did. It cannot be expected that he will get any better advice (or marching orders) from the Fed and the Banking cabal than Bush got. Bankers would do better with the recession continnuing for another 4 or 5 years, on the other hand they would like to keep Obama in the White House because he follows all their bad "advice" (read "orders") very well.
The precise instructions for ending the recession in record time
Following are the very precise instructions for ending the recession within 6 months or less with the new ideas and logical reasoning that comprise Contrarian Economics. These are not wishy-washy vague suggestions that can be interpreted in different ways. They are the very accurate step-by-step instructions with why-and-how explanations.
Educating the public and the media is a first step
Educating the general public, the media and the politicians on Contrarian Economics is essential so that these contrarian ideas and instructions that will end the recession in record time will be understood and not be immediately belittled and destroyed by economists and the members of the media that are owned by or are employed by the Federal Reserve and Banking interests.
Contrarian Economics insights and instructions to end the recession in record time:
1. All recessions start with a sudden and substantial drop in consumer spending:
A large drop in consumer spending starts a spiraling down chainreaction of an economy in decline. A drop in consumer spending decreases sales and gross income for sellers and producers of goods and services. A large percentage drop in sales means an even larger percentage drop in net income and for some businesses it means a net operating loss so that they have to downsize and reduce the number of their employees and some of them are forced to go out of business alltogether. A large decrease in sales of products means a large decrease for manufacturers that make the products and a decrease in the distribution chain of products such as trucking and distribution services. The resulting increase in unemployment starts a chain reaction of a spiraling down economy of successive rounds of decreases in consumer spending and decreases in employment and ever more businesses and manufacturers closing their doors with the economy spiraling ever more down into deeper recession.
2. What will end recessions?
The quickest way to end recessions is to artificially create the exact opposite spiraling up economy with a massive and sudden government induced substantial increase in consumer spending and at the same time creating an instant large increase in government employment which will create wages for these extra government employees which in turn will increase consumer spending. The government induced increase in consumer spending and the increase in government employment will start a chain reaction of a spiraling up economy of successive rounds of increases in consumer spending and increases in employment in the private sector economy of retail sales, manufacturing and distribution businesses and increases in consumer services such as restaurants, leisure, entertainment etc.
3. How fast can we end recessions?
Getting out this recession can be done much faster than the speed we got into this recession, but not if you leave it to Congress and the Administration because they have no understanding of economics and they are unable to take any action fast because they will waste a lot of time with endless studies, sub-committies, expert witnesses and other such excuses for not taking any action. And by the time they start to understand, they dare not take action because their handlers, the banking industry and the Federal Reserve, will not allow them to take action because a prosperous economy and Contrarian Economics are not beneficial to banks and it would take most of the power away from the Federal Reserve. In a prosperous economy governments and the private sector economy do not need any loans and, horror of horrors, they might even want to pay off some or all private and government debt. That would be a big disaster for the banking industry and it might even totally eliminate the Federal Reserve that was so carefully and secretly established in 1913 by a group of large international Bankers that today are still the shareholders of the Federal Reserve. "We The People" do not own any part of the Federal Reserve, even though most people erroneously believe that the Federal Reserve is an arm of the Government.
4. Following is how to start the large increase in consumer spending that will immediately initiate the desired upward spiraling chainreaction of successive increases in employment and increases in consumer spending that will lift the economy out of this recession.
The Federal Government must create over 300 million National Debit Cards. One card for each person legally in the United States. Each card has the same number as the Social Security Number of a valid Social Security Account. These cards are given to all Social Security Account holders regardless of age or economic status. Each card will be immediately funded by the Federal Government with $200 credit. Rich and poor people will all get the identical $200 and it will not be mandated on what the $200 shall be spent. Some people may spend it on what may be deemed by the general public to be undesirable products or services such as buying alcohol, cigarettes, sweets or even illegal drugs or the services of a lawyer or a prostitute.
For the purpose of ending the recession as quickly as possible, these National Debit Cards must be funded with $200 the first month they are in the hands of each owner of a card with a mandate that the total $200 must be spent within 30 days and whatever amount has not been spent will revert back to the Federal Treasury. That way an immediate increase of consumer spending of $60 billion will help start the upward spiral of economic activity that could help create a few million jobs.
The only mandates that come with the debit card funding is that the money will all be spent within the 30 days following the date of funding (what has not been spent within 30 days will revert back tho the Federal Treasury) and that the money may not be cashed out and saved. Of course about 20% of National Debit Card holders will cheat and not spend the extra $200 but spend $200 less of their own money and that way they will in effect get around the mandate of not cashing out the $200. There will always be 20% of the people that will not cooperate with helping the economy get out of recession in the fastest way possible. But with 20% cheaters still $48 billion will add to the desired increase of consumer purchase. Wealthier recipients of the $200 debit amounts may donate $200 to their housekeeper or gardner or spend it going out for dinner an extra time. The National Debit cards of small children and babies are given into the custody of their legal guardians and those children will get custody of their own cards at 13 or 14 years of age.
Exactly how many jobs will be created as a result of this first time $60 billion on the consumer purchase increase stimulus can be determined after the fact by monitoring the exact job creation numbers each month following. Also the percentage of inflation increase can only be measured a month after the $60 billion funding date. The amount of funding for the second month will also be determined by the percentage of inflation that was created by the first $200 funding the first month. A fairly high percentage of inflation must be expected and a pre-determined acceptable rate of inflation must be established for the purpose of calculating an appropriate second month funding to continnue at either the same rate of $200 or if the acceptable percentage of inflation is has been exceeded, the second month funding will be decreased to $150. The consumer spending of all the extra $60 billion will be spread very evenly over the total economy because 300 million people will do the spending on whatever they determin to be best for them. One person may buy clothing, electronic gadgets or a trip to a day-spa, and another may spend it on part of a vacation trip to Mexico. Yes, you are totally free to spend it any way you want, even on imported products from Chine, even though that does not do our own economy any good at all.
5. How to increase government employment at all levels of jurisdiction, Federal, State, County and City/Municipal:
All Governments at all levels of jurisdiction will receive weekly block-grants of large sums of money that will come with the mandate to increase their number of government employees immediately by the same total number of employees they have decreased their total number of employees by since January 2007. There will employment contracts for 2 years to instill some confidence of some degree of permanence, but this new employment will not include any of these government bankrupting retirement packges and other union instigated lunatic perks. In fact this new public servant employment will not be allowed to belong to a public employers union. "We the People" employ government employees for the purpose of doing work that is for the public good and is in the public interest. It is therefor totally absurd that government employees should be allowed to do collective bargaining against the public good and demand things that are for their private interest at the expense of the public interest. Private sector employment is totally different and union membership is not in conflict with the principle of bargaining for working conditions and wages between two private sector interests of workers and employers.
In principle I am against any increase in the size of Government and more Government employees, because many government employees are not performing on par with private sector employees and they are not under the profit motive incentives of supervisors in the private sector . In fact many government are only marginally productive and many produce absolutely nothing that "We the People" want or can appreciate. But totally non-productive, and even employment that is destructive to our economy exists in great numbers in private sector employment. Much of this totally useless and destructive employment in the private sector has been indirectly created by Government laws and regulation. In fact much crime is created by Government laws and regulation, over-legislation and over-regulation.
For the purpose of propelling the economy as quickly out of this recession as possible, I cannot see any faster way than to increase government employment by millions of jobs that will not be any more useless than the millions of totally unproductive jobs that have been created by private enterprise special interest industries that are in partnership with government that has creates laws and regulations that make it possible for these monopolies to force their unproductive and often destructive disservices on the total economy. All consumers are forced to consume this undesired slime of non-productivity and counter-productive special interest monopolies that were created and are protected by laws and regulations that these special interests have lobbied for and paid bribes to politicians for. Even though these corrupt special interests and their corrupt politicians and corrupt public servants are the biggest contributors to the underperforming of economies and contribute heavily to the collapse of economies into recession, they are not the main subject of the effort to end this recession in record time.
Even with the constant negative financial impact of the corruption and graft by the special interests and their lackey politicians and corrupt burocrats that support them, the economy can still be pulled out of this recession with relative ease. It would be nice to gradually degrease corruption as well, but the evil forces have a lot of political muscle with which to resist such cleansing efforts. So let us be practical and pick the projects that we could win with the limited support that can be expected from the generally totally apathetic public. It takes only 3.5% of the population to get involved to pull off a revolution of sorts.
6.Why should we even bother to create totally useless and unproductive government jobs?
All jobs, even the most unproductive and useless ones are a way in which to distribute money in the form of wages, and those wages are spent on consumer purchases that will contribute to the upward spiraling economy that will end this recession. Most likely the Pareto 80-20 rule applies here in that 80% of the working population in America produce less than what they consume and the remaining 20% produce far more than what they consume. I am speaking here of production of desired products and desired services such as all the products and services that consumers buy out of their free will, such as food, shelter, clothing, cars, vacations, entertainment, These are products and services that are offered at competitive prices by the private sector free enterprise producers. These are as opposed to production of products that consumers would never purchase on their own, but the government buys on behalf of all of us at multiples of cost of what it would cost without all the corruption and graft that is usually associated with anything the government touches. Such as desirable roads, bridges and other government developed desirable infrastructure that could be better and cheaper provided by private sector free enterprise such as fire and police protection.
Difficult to educate voters in economics that benefit all instead of benefitting the few.
Many voters and their Fiscal Conservative representatives in Congress and in all lower levels of government, demand that governments must be thrifty and live within their financial means and stop wasting money and they must be denied to increase their government debt. They want governments to trim their budgets as much as possible so that they will be able to meet their financial obligations and not go bankrupt. Afterall that is exactly the same as what families and businesses must do to stay solvent and not go bankrupt.
Surprisingly, we will go into deeper recession
Surprisingly, recessions will become even worse when governments trim their budgets and cut their wasteful spending when they are allready in a recession. If the demands from the Fiscal Conservatives and the Tea Party people, that call for Government austerity measures, are followed, we would go quickly from a recession into a full blown DEPRESSION. We would burn even more economic infrastructure in the process and put many more people out of work and we would prolong the economic recovery period by another few years. How is that possible? It sounds so totally logical that if you are in deep financial trouble that you must cut government spending and specially spending on nonsense and wasteful government projects. Common Sense Conventional Economics would totally agree with cutting government expenses to solve the financil problems of governments in a recession.
That is where Contrarian Economics shine
Contrarian Economics teaches that when an economy slips into recession, that governments must do exactly the opposite of what Common Sense Conventional Economics are doing. The opposite of decreasing government spending is of course INCREASING government spending, even if this would require increasing government borrowing and larger government debt. That sounds crazy, but as you will read below, it is the ONLY WAY to get an economy out of recession fast. You will get out of a recession in absolute record time if the extra government spending is done correctly and aggressively enough. If you go about it timidly with a lot of gutless wavering and you delay action, you will continnue to destroy economic infrastructure and to end the recession will become exponentially more expensive the longer you wait. But read on to start understanding these seemingly insane Contrarian Economics.
We need a solid plan with exact guidelines
We cannot afford this trial and error bumbling and the very costly indecision that we have experienced from the Government the last 5 years. If this continnues any longer it will bring the USA down to a level of poverty and misery that it was in during the Great Depression of the 1930s with misery and poverty for most.
So what is the answer?
The answer to ending the current recession in record time is surprisingly simple, easy to understand and easy to implement. The problem is that politicians and the general public do not trust simplicity or outside the box thinking. They reason that, if it were so simple and easy to implement then of course it would have already been done a long time ago, right? Economic advisors to the government would surely know about it and they would have brought it to the attention of Congress and the White House.
Sorry, that would not happen, because Bankers and the Federal Reserve who control Congress and the Administration will be totally against it because they would lose their strangle hold on the Government that they so carefully have created by purchasing the votes of corrupt politicians and burocrats at all levels of government (why do you think that most elected officials are not very wealthy when they start their terms in office and are multi-millionnaires before or soon after they leave office? It is of course all the bribing money they receive from lobbyists that represent the special interests.
The bribes are in payment for favorable legislation and tax loopholes that are created for the special interest monopolies with which these special interests steal the economy blind). So do not expect fast and easy acceptance of these recession ending measures that would end the recession in 6 months or less and create a booming economy thereafter.
The special interests and the corrupt politiciand will simply not allow it and will try to keep the current recession going as long as they can. And since the majority of the taxpayers are so very much misinformed about economics, those taxpayers will make it easy for the bankers and the Federal Reserve to delay recovery for a long time to come.
In an effort to destroy any support for Contrarian Economics and the support for the recession ending REBO Act legislation, the bankers and Federal Reserve will allow the Government to make small guestures of infusion of stimulus money into the economy that will be deliberately misdirected and incorrectly applied and these fake gestures will fail completely. That way the bankers and the Federal Reserve and the Government can at least demonstrate that they are willing to follow some of the Contrarian Economics advice and by deliberately making it fail, they can say "Sorry, we tried, but it did not work".
Some more Contrarian Economics insights:
4. GDP or Gross National Product is a largely useless and even corrupt measure for evaluating how well an economy is performing and for determining the prosperity and standard of living in a country.
In most people's mind GDP is the total monetary value of all goods and services produced in a country in a year's time with minor adjustments for adding the value of exported goods and deducting the value of imported goods. The reality is that a very large portion of the "Goods and Services" turn out to be "Bads and Disservices" and the vast majority of the included "Services" are useless and nothing that anybody would be wanting to buy or spend money for.
Using this totally misleading GDP in determining the state of the economy has as result that many false and costly economic policy measures are made that are often to the advantage of corrupt special interests that have been successful in promoting the policy "mistakes". Contrarian Economics demand replacing the deliberately misleading GDP measurement with a more useful TDP, True Domestic Product measurement that gives a more accurate measure of how well an economy is doing and of the standard of living it provides. TDP is the sum total of all desired consumer products and consumer services that have been purchased. In addition Contrarian Economics calls for DDP, Destructive Domestic Product that measures all the production of useless and undesired products and services. More about those later.
The cost of recessions and the cost to end recessions
The major cost of recessions to the economy is the destruction of productive economic infrastructure, factories and businesses closing and being dismantled and their skilled labor force being destroyed and scattered to where it is difficult and costly to later rebuild the businesses again. When restaurants have to close, their kitchen equipment is dismantled and sold at auction for 20 cents on the dollar and the same happens to factories when they close. It is very costly to rebuild the factories and businesses and rebuild a trained labor force. The longer a recession is allowed to continue the greater the destruction of the economic infrastructure. There is also a great cost of destroying lives and family economics and that cost is difficult to express in terms of money alone. A grim statistic is that Funeral homes are reporting an increase in funerals during recessions from an increase in suicides. The cost to end a recession grows exponentially with the passing of time.
The cost of ending a recession grows exponentially the longer the Government waits to take some action toward ending a recession. The current recession started in late 2006. If the Bush Administration had made an aggressive and quick effort to end the recession in the middle of 2007 the Federal Government deficit spending needed to end the recession at that time would have been only $150 billion and the destruction to the economic infrastructure would have been minimal. The destruction of personal lives and family economics would have been minimal as well.
Instead the Bush Administration did little or nothing and finally made a small effort in early 2008 with the $152 billion Economic Stimulus Act of 2008 that was wasted on very ineffective measures that only lifted consumer spending very briefly by 3.5% and the majority of the $152 billion reached the economy half a year later because burocracy was slow in mailing out the checks. The cost of ending the recession in early 2008 would have been $350 billion. So the largely misspent $152 billion reaching the economy in the middle of 2008 was "too little too late" and on top of that it was ineffectively applied. It is very important that money to end a recession is used correctly and is distributed to ALL people, rich and poor alike in exactly the same amount of money for everyone.
If you see the start of a recession as if it were a small fire that would need 350 gallons of water to douse the flames but you do nothing and you allow the fire to burn another 6 minutes (6 months in the case of this recession), then the fire will become bigger. If you then take only 152 gallons of water and throw it next to the fire instead of directly on it, you should not be surprised that the fire becomes bigger and is burning down some more of the economy and will need much more water to put it out the longer you wait. The amount of water needed will grow exponentially the longer we wait while ever more economic infrastructure is burning down while the fire spreads.
If the Obama administration would have acted decisively in early 2009, it would have cost about $700 billion to end the recession if the “water” would have been aimed directly at the fire.
So since early 2009 we have again done almost nothing except for a for a miniscule $3 billion for a stupid "Cash for clunkers" program which is like throwing 3 gallons of water at a large blaze that would require 700 gallons to put it out.
Since then we have again done nothing for another 2.5 years while the fire has spread and burned down some more economic infrastructure and ruined a few million more lives.
It will take now a lot more water to kill the much bigger fire that has been left burning for another 2.5 years. We have done nothing other than using a garden hose here and there to sprinkle water at the edges of the fire instead of using big fire hoses to decisively put out the fire as quickly as possible.
The terrible cost of doing little or nothing
It will take a lot more water to kill the fire this late in the game. The current recession can be ended in as little as 6 months but it requires massive Federal Government deficit spending of between $1.8 to $2 trillion. The general public and their Representatives in Congress do not understand the need for deficit spending to get an economy out of recession. They do not understand that it takes a great amount of water to put out a big fire quickly and that the water must be directed onto the whole fire and not just at the edges.
During the Presidencies of Hoover and FDR the concept of government deficit spending was used in an effort to try to stop and end the recession but the efforts made were "too little too late". Hoover for one did not believe that the government should lead the way to end the recession and wanted to rely on private enterprise measures to solve the problem. So the initial small fire of the initial recession was allowed to burn its way to the big blaze Great Depression it became.
It was John Maynard Keynes who advocated large amount of government deficit spending on job creation. The same Keynsian job creation measures will be very effective in ending the current recession, but the
Banking cabal and the Federal Reserve know how Keynsian economics could loosen their strangle grip on the economy and reduce their power to to steal the economy blind. Keynsian economics have made a comeback during the latter part of the 20th century but the 'Excpert" economists and the media that are in the employ of the bankers have been making efforts in the recent past to discredit Keynes and his economics again.
The general public and their Representatives in Congress demand that Governments at all levels of jurisdiction must stop deficit spending and live within their means like all normal people have to do. That is the same as conserving water when you need to put out a big fire and they regard it a terrible waste to use any water to put out the blaze. Their solution to this recession is apparently to let the fire burn itself out over the next 4 to 5 years (and it may take longer) and burn up additional economic infrastructure and ruin the lives of millions more people, allow the United States to become the biggest beggar in the World with poverty and unhappiness for all.
With massive deficit spending of about $1.8 to $2 trillion we can end this recession in 6 months or less, as follows:
1. Instantly increasing employment in the public sector economy through Federal Government funded block grants totalling $80 billion per month for the first 6 months to all Governments at State, County, City and lower levels of Government. These block grants come with a mandate to all these Governments to immediately in the first month of the program, to hire back as many people as they have laid off between January 2007 and the present. All Governments combined have laid off millions of government employees and they will immediately hire the same number of employees back, decreasing joblessness by a few percentage points in the first month of this stimulus program, and they will be hired on a 2 year employment contract to fill jobs that preferably will create some tangible results by shifting government direct employment as much as possible from white collar desk jobs to physical jobs that create value such as filling potholes or doing infrastructure maintenance projects. All this new employment will not come with the totally outrageous pension and bonus packages of the past. All this new employment will earn wages that will be spent on consumer purchases which in turn will increase employment in the private sector economy which will again increase consumer spending and so on. This will start additional upward spiraling momentum of the economy.
2. Increasing spending on Government Funded projects at all levels of Government on infrastructure maintenance and on new infrastructure and public works projects, subsidizing and stimulating manufacturing in the area that is under the jurisdiction of each local government. Money for, basic research and other government projects that will create as many jobs as possible (I am in principle opposed to increasing the size of government and I am perfectly aware that all of this will increase the size of government. I am also aware that all government sponsored programs are rife with graft and corruption but again, it is a fast way in which to increase total employment).
3. Forcibly increasing public sector spending by creating a National Debit Card for all 300 million people that have a valid Social Security Number. That includes small children and babies where the parents or legal guardians get custody of the debit cards until the children reach age 13 or 14 at which time they get custody of their own National Debit Card. The National Debit Cards (that will have the same number as the Social Security Cards) will be funded each month by the Federal Government, starting with $200 the first month of this recession recovery program and with equal or different amounts in subsequent months.
We must stive to decrease the size of government whenever the private sector economy has absorbed enough jobs to allow the release of government workers into the jobless ranks to be available to be absorbed by the private sector economy.
It will cost $1.8 to $2 trillion if started before October 2011. For every additional 3 months delay it will cost at least $150 billion extra. Delay is very costly.
The $2 trillion question is: Where does the money come from to pay for ending this recession?
The Federal Reserve and the banker would not mind if the Federal Debt ceiling would be increased another $2 trillion and that the additional $2 trillion is borrowed from the bankers. My proposal is for the money to be simply printed (or electronically created) by the Federal Government, by "We The People". Money that we print ourselves is our money to start with, we print it, it is ours. That means that we do not borrow it from the bankers and it does not create debt and it does not have to be repaid and most importantly it does not require interest payments. Of course the Bankers have created a myth that printing money by the government itself will create hyper inflation. Almost in the same breath the Bankers say that it will be fine to borrow the money from them and they infer that the borrowed money will not create such inflation. Of course there is absolutely no different result from using printed or borrowed money to stimulate the economy. The only importntl difference is that printed money does not create debt and interest payments and does not need the raising of the National Debt ceiling. Very bad for the Bankers and deadly for the Federal Reserve that would instantly loose its falsely fabricated reason for existence. Both the Federal Reserve and the Bankers will fight this proposal with all the lies they can dream up.
Of course this sounds too good to be true to end the recession in only 6 months when most people believe that this will drag on for another 4 or 5 years while millions more lives will be ruined and another couple of trillions in economic infrastructure is destroyed.
The actions that have to be taken are explained below.
(click for more on next page)