Reading and posting news for iBC has gotten me to read a bit more than i usually would. That is a good thing and I had some ideas I wanted to share with the interwebs.
My first controversial suggestion if to flat out cut all interest on money by 50%. It has been estimated that the cost of everything we buy has about 40% of the total price in interest.
Usury is a very disgusting concept when you think about money as an instrument of trade. When you trade something for something there is no interest. It is simply an exact exchange. Money should also carry this philosophy as it is an element that we use to trade for something else.
As an example if your neighbor came for a cup of sugar; would you insist on getting a cup of sugar plus say another 1/4 cup for your neighborly generosity ? Granted sugar is not as important as money when considering a time element, but you get the point.
I do not want to kill the banks of their usury ways, but if they are going to use the tax payers money to write down toxic assets and to pay themselves bonuses while main street suffers a fucked up economy; well then they should thank us for saving their skin, not putting them in jail, and make life a bit easier for all the citizens that are essentially helping to save this economy.
This 50% cut in interest would make it easier for existing business to breathe during the economic malaise and allow for new business to start up.
If we could take 20%, half of that 40%, off the top of everything we buy..well then we would all have a bit more money to stimulate the economy. It would result in more consumption.
The second thing I want to suggest is how to fix the housing market. Prices will remain depressed until most of the foreclosure inventory is largely expelled from the market place.
There is much trouble over trying to rewrite existing mortgages that are under water. Since the banks, who have the tax payers money keeping them afloat, do not want to suffer losses on a underwater property; they should devote some of this free money they are getting to bridge the loss gap.
If the banks do not want to do this then uncle Sam should create its own bank to borrow money at 0.25% and perform their own version of QE. They would make the spread off a 30 year bond and like the banks would generate free cash flow.
This free cash flow, which is the taxpayers money to begin with, could be used to to right size all the under water properties and help to speed up the process of helping America to refinance their home. This would freeze or at least dramatically slowdown the foreclosure process and ultimately heal the housing market quicker than what is currently being projected.
The last idea I wanted to share is how to create jobs. First and foremost education is the key to this answer over the long term. Please watch the documentary Waiting for Superman on your NFLX account.
In the short term we should take some of the free cash flow and retool America. Corporations have increased the amount of jobs available, but we have not enough educated and qualified people to fill those jobs.
We have many citizens that have been out of work so long that they are no longer current and are passed over for consideration. Why not help some of these citizens develope new skills, and or provide education so they could fill those jobs going to H1 Visas.
Sure we won’t fill those jobs right away, but at least we will get more people back into society as a producing citizen. I mean seriously how many citizens can work as a janitor or pizza maker ? There are only so many survival jobs out there.
Lastly, we must find a way to improve how institutions graduate students. Without limiting choice and the freedom of choice, we need to steer students towards those degrees that will be readily used in the real world.
My only suggestion to this would be to document the hardships of many lives that could have had better results if the right education was chosen. In a similar way of sending teens to a jail to show them why they do not want to end up there; perhaps we could make students better understand the consequences of their choices.
[youtube://http://www.youtube.com/watch?v=SybgWaQy7_c 450 300] [youtube://http://www.youtube.com/watch?v=nUTXb-ga1fo 450 300] [youtube://http://www.youtube.com/watch?v=wOaXTg3nAuY&feature=related 450 300]
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