I had a Dream

What’s more than obvious is this; when it comes to solving the financial meltdown, the inmates are running the asylum. It’s almost like high school kids are running the show and if the subject matter were not so serious it might be entertaining, to a degree. What we can ascertain is this truism; not one pencil pushing idiot in charge of this bailout has any idea what to do or when to do it. Perhaps we should have drafted doctors in this fiduciary endeavor as the first rule of medicine is, “do no harm”.

What the Federal Reserve, along with the treasury has done is to create a never ending line of corporate hobos, “tin can in hand” lined up around the block, waiting to get into the treasury soup kitchen. Though, it is fun to watch them grovel.

Look, as faithful readers you can attest to my humility and self deprecation. Can’t you? Still, having the solution to all life’s frailties and foibles, economic or otherwise, it is my moral imperative to shower knowledge upon those less synapsetic endowed.

Plus, this isn’t that hard. An economic collapse had to occur. True, the democrats shifted this bad boy into high gear with their, “oversight” of the evil twins; “Fannie and Freddie” yet, they only laid the inevitable on the American doormat. And, by the way, made millions doing it; thanks democrats. We owe you.

We’ve all heard of the rust belt, the diminishing industrial base, declining manufacturing. It’s really simple; we have driven industry out of this country. Blame the uncertain labor market, “unions”, the second highest corporate tax rates in the entire world, compliance regulations, environmental terrorists, college graduates whom aren’t smarter than a fifth grader wading into the labor pool, state tax rates, municipal tax rates, energy costs, health care costs, insurance costs, trial lawyers, OSHA, lazy employees and Miley Cirus. Gee, why wouldn’t a company want to do business here?

No, we have driven manufacturing out of this country and metamorphosed into a service economy, think dishwashers and waitresses. A full seventy percent of our GDP is based upon citizens purchasing goods and services that we don’t make here. We purchase products from India, China and Japan while borrowing the money to purchase these imports from India, China and Japan. These countries are loaning us the money to purchase their products thinking that someday we’ll be good for it. It’s the classic bend over and, “take the money” scheme.

It is untenable, unattainable, unsustainable, unprofitable and unwise. And, it can be repaired. Corporate taxes are merely a built in tax on consumerism. For the most part corporations build in that tax on their good or service, making American made products more expensive and unable to compete in the world marketplace. Combine the simple fact that we are the world’s largest consumers with the knowledge that companies want to make their products here, “shipping costs” it would seem that the square peg will fit in the round hole.

In the short term, government will have to do with less, a concept unknown to Washington proper. Were we to cut corporate taxes to, say…., zero, and cap capital gain tax at five percent, the entire industrial world would be beating down our door. Good jobs would ensue, the tax base would grow exponentially and the birds would again sing.

It is estimated that there is over $7 trillion dollars in offshore accounts waiting for opportunity. Ironically, that exact figure is what we have spent battling our economic woes. That surely worked out well; didn’t it? Still, Obama has one card; if he’ll play it.

Economist Christina Romer will be director his Council of Economic Advisors, which provides economic analysis and advice to the president. Christy is a supply sider; a brilliant economist and one tough broad. It makes me wonder how she finagled an appointment from the messiah. However, if his most merciful listens to this woman, “and ignores the advice of Larry Summers” the Conservative Springfield plan has a chance. Hey, we all know one thing; Obama knows as much about economics as Paris Hilton knows about wearing panties. He will have to rely on advisers. Frankly; I doubt Obama can do simple math.

Fair Points; Christina is also in favor of enforcing the up tick rule wherein short sellers can only dabble in markets with an upside, abolishing mark to market rules, naked shorts and whitey tighties.

So…….this could work. Provided Obama turns his back on the rabid left, slaps down the democratically controlled congress, snubs the press, ignores all but one of his economic advisers, puts Michelle back in the kitchen and gives up his political future. Also, he may have to take up smoking, again. Ah well, I guess I was dreaming.

Conservative Springfield 25 NOV 08