November 16, 2008

(SOUTH CAROLINA) - Let's just call this "I told you so - Part 4." Just saying it, though, doesn't fix anything.

We have talked to the best minds in the state, come together, beat each other over the head in argumentation, and come to the following conclusion:
THE SITUATION CAN BE SOLVED.

In order to understand HOW to solve this economic mess, we have to know how we got there. Those in the know say it happened like this - the bullet points version, anyway:

• Legislation forces lenders to "Mark to the Market." Rather than allowing the real estate market to seek its own level, as crazy as it sounds, the Glass-Steagall Act (a failed 1933 act, which had been repealed, was resurrected like the Curse of the Mummy in 1999) forces banks to devalue a house's actual worth from its market price.
• The push for "economic justice," primarily by Barney Frank and Chris Dodd and a willing Henry Paulson and cohorts, forces banks to lend almost $700 billion in loans to poor people that practical people knew could NEVER be paid back.
• As the real estate speculation bubble, spurred by Glass-Steagall, begins to burst in the West, soaring Gasoline prices suck almost ALL the profit out of the rest of the American market.
• To hide the gasoline economy debacle, President George Bush puts the mentally challenged Hank Paulson - the man who helped cause the problem in his other life as an international banker - in charge of bringing the economy back - he makes sure his cronies get golden parachutes at the big banks and panics Congress into subverting the Constitution, passing the $700 Billion "stability" joke. Senators like Jim DeMint warn against it, but McCain is running for President and likes it. It passes. It doesn't work.
• As the market wakes up to the fact that Paulson can't deliver, and pushed along by a deep distrust of the incoming administration's ability to do anything about it, it begins a frightening drop - 45% so far - dragging Europe, Japan, Russia, and the Middle East with it.
• Rather than waiting and letting the gasoline prices go back down, which would have encouraged consumer buying to re-emerge, the heads of the major economic powers are invited to gather in DC to "generalize" a solution. Nothing happens.

• Progressives in Congress, needing to assure their union-slave-base in failing buggy-whip industries press for yet other bailouts in other rust-bucket industries.
• The US economy begins to resemble the Italian Facist economic system of the 1930's - big industries allowed to run wild being taxed or partially owned by government.

• End Glass-Steagall. Let market forces be market forces.
• Revoke the bailout. A great deal of the money has not been dispursed. Don't.
• Take that money and insure all deposits in regular banks. Maintain insurance for all the rotten loans we promised, as a country, we'd protect.
• Impeach and convict Barney Frank and Chris Dodd along with Henry Paulson for the high crime of conspiracy to defraud the federal government.
• Take $1 Billion and buy the patent for the ultracapacitor from Eestor in Texas, and give it, free, to any company willing to make it and sell it at a market price to any car companies who are willing to make the 90mph 230mi/charge 15 min recharge electric car.
• As the price of gasoline dissolves to $15 per barrel, as a result, replenish our oil reserves for the battle monsters that still need gasoline for our armed services.
• As car companies go into restructuring debt, unions will begin to lose their hold on business and their slaves will be freed to work for a decent, but reasonable wage.
• Resultant availability of cash will re-invigorate the market which will now be freed to succeed.
• Protection of American markets will be guaranteed by better border security and a better illegals return rate, allowing even faster government withdrawal from the entitlement market.
• Eventually stability will insure a chance to revert to specie (precious metals) unless we want to keep using our paper as an ad hoc barter system. (But we'll need a better system than banks to preserve the validity of time/work values.)

We must support people who want to solve this imposition of a crisis on our citizens, so that EVERYONE in our country can get on with the business of chasing the American dream.

- Dick Anderson