I have been promoting to everyone to take a moment and read about "The Prosperity Mandate", click here. I ask that if you agree with the ideas presented here that you pass it on to your Representative or Senator, or Treasury Secretary. Better yet, take a moment to visit The White House website and leave a message for President Obama. Ask them to read the proposal because it is a very simple way of creating a sustainable economic recovery.
Follow me below the fold and I will share a message regarding how simple this could be completed.
My friend Neal send me this message so I could share it with you, hence the title of the diary.
Good Advice From Willie Sutton - Tap Into Where The Money Is!
Does it seem odd that as a nation, we need to turn to a notorious bank robber (or at least the quote attributed to him) to find the answer and key to a sustainable economic recovery?
When asked why he robs banks, Willie Sutton, famed bank robber, replied, "Well, that is where the money is!" This quote has become a shorthand reference applied from engineering to business models. The message is to first look for the OBVIOUS solution, and worry about more complex ones later.
Where is the money? In the United States there is currently (approximately) $4 Trillion sitting in Money Market Funds and another $65+ Trillion in diverse forms of Net Worth. Perhaps it is time for the Obama Administration to take advice from Willie Sutton - Tap into where the money is!
Since direct theft, while common of late, is still not legal, the challenge is for the government to provide adequate incentives to cause a percentage of the net worth to become invested into the Agendas so clearly defined and advocated by President Obama. The following is a Monetary Policy to create a $1 Trillion "FundAmerica" SuperFund to finance a full and sustainable economic recovery creating 5 million new jobs in 24 months.
Budget Neutral - a.k.a. Negative Reinforcement: Terminate the tax discounts that do not directly fund job creation and investment in America. Limit Capital Gains on existing stocks to $25,000 per year (keep full Capital Gains for purchase of Initial Public Offering shares). Terminate Oil Depletion Allowances. Terminate Farm Subsidies. Terminate accelerated depreciation - except for Capital Equipment. Terminate Capital Gains on Real Estate after the first $500,000 of gain. Terminate 1031 Exchange avoidance of even paying Capital Gain tax. This creates a BIG STICK to force people into the Positive Reinforcement and only remaining tax discount vehicle.
FundAmerica - a.k.a. Positive Reinforcement. Create a 10% Tax Credit to anyone who invests in a FundAmerica Program and the interest earned on the investment is tax free. Investment takes the form or either directly buying a CD ($100,000 or more) at a major bank or investing in a Master Limited Partnership ($100 or more) that does the same thing. CD principal is guaranteed against bank failure by the US Government. The CD has to be pledged as collateral for a Fund America PayBack Scenario Loan that funds economic recovery programs that are pre-qualified for two primary requirements - 1) the program has to result in a payback of the loan; and 2) the activity has to qualify for and purchase a completion or assurance type guarantee.
The easiest example of this would be a construction project that purchases a completion bond on the construction and has permanent or take out financing in place in the form of either traditional long term financing or sale of a future revenue stream to a fixed income investor (from usage fees such as leases on real estate, tolls on a road, power from a utility, or tickets on a public transportation system). The long term financing pays back the construction loan and releases the CD collateral pledge - hopefully, to be renewed and used again - in the aggregate for another new $1 Trillion, becoming renewable and sustainable.
* $1+ Trillion FundAmerica Superfund;
* Not $1 of direct government funding;
* 5+ million new jobs in 24 months;
* Renewable and Sustainable Economic Recovery Plan.
This works and YOU need to take action. Tell your President, your Senator, and your Representative to look at the detailed explanation and proposal on this website: http://theprosperitymandate.org
I imagine that you can't even believe what you are reading. However, after it sinks in, you realize that this could work and could take a life of its own if done correctly. The economy would be saved and we could move ahead with other very important issues that face us today.
Thank you for taking a moment to inform yourself and I look forward to the next time I share a diary with you all.