The large number of remaining candidates all have something in common; they all stand out head and shoulders above the current administration. While Michelle Bachman and Rick Santorum both have excellent ideas the reality is neither is likely to go very far. Governors Perry and Huntsman both have experience and positive track records in office. The latter spoke about the need to limit Congressional terms; I agree strongly with that and he had international experience with China, a positive. Mr. Perry has done poorly in the debates yet has some good ideas including plans for energy policy and US becoming self sufficient. Mr. Romney projects as middle of the road and policies are not dramatically different than the current establishment. He talks tough toward China and the need for a strong defense; it seems doubtful he would be willing to cut the defense budget making deficit balancing precarious.
The candidates that offer the largest contrast to the status quo are Paul, Cain and Gingrich. In my view, at this point, Gingrich looks to offer the best chance for dramatic change. He appears extremely knowledgeable, had significant past Congressional experience, success and looks to have the COURAGE and WILL to take on the establishment.
Monday, November 28, 2011
Friday, November 18, 2011
Critical Actions for Economic Growth
1. Elect a new administration in 2012 hopefully by the largest landslide ever. Candidates like Gingrich or Paul with visions of dramatic change, less government and fiscal responsibility are preferred. we need a president with Courage for Change and only motive to do what is right and in the best interest of the country. Hopefully, the electorate will clean house of the members of Congress up for re-election as well.
2. Present a plan to balance the budget within 3 years. Enact a balanced budget amendment to require accountability thereafter. The plan would be to accomplish the balancing with 90% across the board spending cuts. Entitlement reforms including Social Security to be included. As people live longer a gradually increasing retirement, qualifying age makes sense and is essential. Compensation and benefits of federal government employees must be brought in line with what they are in the private sector. Defense must be a part of the cuts and with proper evaluation and scrutiny we can reduce the costs and maintain strength militarily.
3. Replace our outdated, complex tax system with a flat tax, very simple and fair. Enact a similar Corporate tax structure. Eliminate deductions and loopholes.
4. Replace Mr, Bernanke as Fed. chief. Hopefully, a candidate to focus primarily on controlling inflation and protecting the integrity of the dollar. Tighten up the current loose monetary policy.
5. Phase out Freddie and Fannie within 3 years. Get the government, now controlling 90% of the mortgages, out of the housing & financing business.
6. Freeze all government regulations. Re-evaluate new regulations enacted during the Obama administration.
7. Cancel Obamacare. Relax the territorial regulations to allow competition across the country, not just by state.
8. Impliment a plan for energy independence. Within this country we have the resources to not have to depend on other countries for the rest of this century and possibly beyond. The problem is all the regulations and laws preventing projects from moving forward for drilling oil and further developing the use of natural gas. This can occur while maintaining the integrity of our environment. Example right now, a pipeline to supply large amounts to our country is being blocked by the administration coincidentally until after 2012. Next year we are likely to see $4.50 to $5 gasoline costs, perhaps much higher in a few years unless action is taken to ENCOURAGE energy development.
9. Constitutional, legal reforms to impose term limits on elected officials, perhaps single, in some cases slightly longer terms. We don't need permanent life long politicians! The idea is they come in with no political motives; their motivation is to do the right thing in the best interest of the country with their legacy judged accordingly. Another idea that may have merit as suggested by R.Perry is part time legislators. Lets get the politics out of the decisionmaking! We also need to enforce the law as to the government passing a budget each year and have negative consequences if not. How about no more paychecks beyond a yearly deadline?
10. Sell surplus assets owned by the US government. I suspect the value of this property amounts to a trillion or more. This could be used to pay down the debt.
11. Re-establish our reputation as a world leader by getting our act together financially and encouraging greater cooperation with other countries to promote trade and work together to address world problems that the US has often had to deal with on its own in the past.
2. Present a plan to balance the budget within 3 years. Enact a balanced budget amendment to require accountability thereafter. The plan would be to accomplish the balancing with 90% across the board spending cuts. Entitlement reforms including Social Security to be included. As people live longer a gradually increasing retirement, qualifying age makes sense and is essential. Compensation and benefits of federal government employees must be brought in line with what they are in the private sector. Defense must be a part of the cuts and with proper evaluation and scrutiny we can reduce the costs and maintain strength militarily.
3. Replace our outdated, complex tax system with a flat tax, very simple and fair. Enact a similar Corporate tax structure. Eliminate deductions and loopholes.
4. Replace Mr, Bernanke as Fed. chief. Hopefully, a candidate to focus primarily on controlling inflation and protecting the integrity of the dollar. Tighten up the current loose monetary policy.
5. Phase out Freddie and Fannie within 3 years. Get the government, now controlling 90% of the mortgages, out of the housing & financing business.
6. Freeze all government regulations. Re-evaluate new regulations enacted during the Obama administration.
7. Cancel Obamacare. Relax the territorial regulations to allow competition across the country, not just by state.
8. Impliment a plan for energy independence. Within this country we have the resources to not have to depend on other countries for the rest of this century and possibly beyond. The problem is all the regulations and laws preventing projects from moving forward for drilling oil and further developing the use of natural gas. This can occur while maintaining the integrity of our environment. Example right now, a pipeline to supply large amounts to our country is being blocked by the administration coincidentally until after 2012. Next year we are likely to see $4.50 to $5 gasoline costs, perhaps much higher in a few years unless action is taken to ENCOURAGE energy development.
9. Constitutional, legal reforms to impose term limits on elected officials, perhaps single, in some cases slightly longer terms. We don't need permanent life long politicians! The idea is they come in with no political motives; their motivation is to do the right thing in the best interest of the country with their legacy judged accordingly. Another idea that may have merit as suggested by R.Perry is part time legislators. Lets get the politics out of the decisionmaking! We also need to enforce the law as to the government passing a budget each year and have negative consequences if not. How about no more paychecks beyond a yearly deadline?
10. Sell surplus assets owned by the US government. I suspect the value of this property amounts to a trillion or more. This could be used to pay down the debt.
11. Re-establish our reputation as a world leader by getting our act together financially and encouraging greater cooperation with other countries to promote trade and work together to address world problems that the US has often had to deal with on its own in the past.
Thursday, November 17, 2011
Replace Our Outdated Tax System
A topic everyone seems to agree at least in principle is our current tax system is complex and unfair. Small businessmen and investors like myself waste countless hours annually preparing their taxes and/or paying accountants to deal with the nightmare. Beyond the complexity is the fact only roughly 53% of citizens pay any income tax. While a case can be made for little or nothing to be paid by the poor, there are many, some quite wealthy, that don't pay their fair share due to many deductions, loopholes and credits.
I support a flat tax in the upper teens that would apply for earned income over a basic exemption per individual or family. Those earning less than the exemption would not owe tax. Everyone beyond the exemption would pay tax, no exceptions. A personal view to spur investment is to exempt investment income such as interest, dividends, and capital gains altogether or apply a lower rate than the tax on earned income.
The corporate tax rate also needs to be lowered to a flat rate also eliminating loophole and deductions. This will allow the US to play on a level playing field with other countries to be more competitive.
Alot of the problems we face today relate to uncertainties over future tax policy. We need a new system that is easy to understand, that encourages capitalism, ingenuity, creativity, and rewards success. the time is right to replace our complex, outdated tax system.
I support a flat tax in the upper teens that would apply for earned income over a basic exemption per individual or family. Those earning less than the exemption would not owe tax. Everyone beyond the exemption would pay tax, no exceptions. A personal view to spur investment is to exempt investment income such as interest, dividends, and capital gains altogether or apply a lower rate than the tax on earned income.
The corporate tax rate also needs to be lowered to a flat rate also eliminating loophole and deductions. This will allow the US to play on a level playing field with other countries to be more competitive.
Alot of the problems we face today relate to uncertainties over future tax policy. We need a new system that is easy to understand, that encourages capitalism, ingenuity, creativity, and rewards success. the time is right to replace our complex, outdated tax system.
Wednesday, November 16, 2011
As World Leader US Must Be Financially Strong
The perception of the United States has changed for the worse in recent years. The level of respect has declined as we grapple at home with a sluggish economy, a dysfunctional government, swelling debt, and a declining dollar. We still try to be the Lone Ranger to the world. We still wrestle with two unpopular wars that contributed alot to our debt problems. Confirmed today the debt now exceeds $15 TRILLION and 16 coming soon. Our government is out of control with spending; it is like a freight train heading down Mt. Everest. We have the gall to tell the Europeans to solve their debt crisis when ours is nearly as bad!
If we want to retain our position as the leader of the world we need to get our financial house in order fast. Decisive action must be taken by the new administration to balance the budget within 3 years or less and required by amendment to keep it in balance thereafter. Yes, spending must be cut across the board including sacred cows and defense. We can retain a solid defense with less waste and command more respect as we return to a financial position of strength.
If we want to retain our position as the leader of the world we need to get our financial house in order fast. Decisive action must be taken by the new administration to balance the budget within 3 years or less and required by amendment to keep it in balance thereafter. Yes, spending must be cut across the board including sacred cows and defense. We can retain a solid defense with less waste and command more respect as we return to a financial position of strength.
Monday, November 14, 2011
Politics is the Problem
We need to re-evaluate a system that allows and promotes professional politicians that become permanent fixtures. Instead of serving the people that elected them their primary thought is do what is necessary to get elected. That is the simple explanation of the dysfunction and gridlock we have witnessed the last few months. Mr Obama and the Congress are primarilly focused on how to get re-elected in 2012. They want status quo and government to continue to grow in sharp contrast to what the people want, less government and positive change. The politicians are going to destroy this country as we run up huge debts that are unsustainable. The system should be changed to limit terms for Senators and representatives and perhaps the President should be limited to one term. This would turn these elected officials into civil servants with sole motive to carry out the will of the people.
Eliminate Fannie & Freddie
Earlier this month both Fannie and Freddie reported huge quarterly losses and asked the government for more $7.6 BILLION for the former and $6 BILLION for the latter. Taxpayer have already forked over $169 BILLION or so with no end in sight. What is really concerning is this didn't get alot of publicity and little discussion about what needs to happen. We have the government basicly controlling 90% of the mortgage market; no wonder we have a housing crisis! A plan to phase out Fannie and Freddie and turn over the mortgage market to the private sector is essential to the recovery of the housing market and to eliminating the ongoing sink holes with Freddie and Fannie. GOP candidates must embrace this plan.
Bernanke's Time Has Passed
While I supported Federal Reserve actions during the 2008-9 financial crisis, the actions ever since have been counterproductive. decisive short term actions to prevent another depression and restore confidence were necessary. As the economy recovered late 2009-10 this short term flood of cash into the system should have gradually been removed and interest rates allowed to slowly return to a more normal level. Instead the Fed has announced additional quantitative easing and is purposely keeping interest rates at artificially low levels.
Negative Implications of Loose Monetary Policy: 1. Puts pressure on the dollar leading to higher import costs on commodities such as oil. No wonder gasoline was near $4 for awhile and in 2012 likely to go alot higher. 2. Higher inflation and inflation expectations. No wonder gold has been rising. Does anybody believe government statistics on inflation? 3. Artificially low interest rates punish savers, especially the elderly reducing income. This is negatively impacting the growth of our economy. 4. There is the potential for an escalation of inflation with all the money floating around should the economy turn around. 5. The Fed's actions continue to raise uncertainty about the health of the economy and if things will ever turn around.
In this view our next president must appoint a new Fed chairman with greater emphasis on fighting inflation.
Negative Implications of Loose Monetary Policy: 1. Puts pressure on the dollar leading to higher import costs on commodities such as oil. No wonder gasoline was near $4 for awhile and in 2012 likely to go alot higher. 2. Higher inflation and inflation expectations. No wonder gold has been rising. Does anybody believe government statistics on inflation? 3. Artificially low interest rates punish savers, especially the elderly reducing income. This is negatively impacting the growth of our economy. 4. There is the potential for an escalation of inflation with all the money floating around should the economy turn around. 5. The Fed's actions continue to raise uncertainty about the health of the economy and if things will ever turn around.
In this view our next president must appoint a new Fed chairman with greater emphasis on fighting inflation.
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