The SILVER BULLET STIMULUS PLAN
There’s a misconception if the politicians increase taxes on the rich or give businesses and individuals finite tax breaks, the economy will recover. Not so.
The Feds have spent billions feeding the monster they created (the financial sector) and rescued with our tax dollars. What has this action done for the economy? Zip.
The Silver Bullet Stimulus Plan will not only generate a steady stream of long term money back to the street, it will redirect multiple revenue streams back to the government (read we-the-people) and rather than increase debt as opposed to tax increases and breaks, decrease federal debt.
So how do we get money back into the pockets of the consumer? And where does this money come from if not from the government?
The financial sector has siphoned off trillions of dollars from the middle-class (the street) and continues to increase the diversion of money off the street and into their coffers, daily. For the economy to recover, this has to stop.
In The Quiet Coup, Simon Johnson points out: From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent.
Mortgage lenders are refusing to lower rates “because, simply, they don’t have to. Lenders have raised their profit margins by 1.5 to 2 percentage points in the past month, according to Infroma Research Services, by offering borrowers slightly higher rates.”
These are desperate times. We need desperate measures. It will not only take a jolt to get the economy back on its feet, but continued long-term life support to keep the economy moving forward.
So what if we-the-people (the government) were to step in and make an offer to refinance ALL current primary home mortgages at 3% without any restrictive qualification other than the homeowner has been making his/her payments at a higher interest rate. What would happen?
Let’s take a look.
1) Government would redirect the revenue stream (at 3%) from the financial sector into its coffers through the foreseeable future. (Financial institutions would have the option to keep this revenue stream, but only by matching the government’s 3% offer.)
Let’s make it happen. Forward this to your representatives in Washington, to your friends, neighbors, family. Act now, before it is too late.
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Sept. 30, 2011