If It Is Broke Fix It!

Americas economy is broke and broken. Even a j.o.b., just over broke, is inadequate to prevent many Americans from being evicted from their homes and shopping from food banks and with food stamps. Conventional wisdom says the Federal government is broke and cannot really help the average American, particularly, the economically disenfranchised. But this is not the whole story. There are a vast number of unelected Federal administrators spending public funds as if it is their own private account, without any accountability and without ever being audited. They are committing fraud and deception on levels that are at times unfathomable. They are hiding the true state of Americas financial state of affairs (consult the Comprehensive Annual Financial Reports of Federal, State, Local and other Public Government Entities or go to www.cafr1.com). And it is not a doomsday scenario. They are hiding incredible sums of public funds in private accounts, in clandestine and top secret projects that are never revealed in the annual public federal budget. If the above officials and practices are not exposed soon, then the republic of America indeed will become bankrupt! However, there are other related issues contributing to Americas tenuous financial position. Americas traditional entrepreneurial spirit has been replaced by a new trend of establishing charity, donor support and not for profit businesses. Today more people are employed in these types of businesses than private for profit businesses. No nation can operate mainly as a charity outlet. Seven out of 12 American workers are employed either by a local, state or Federal government, a school system, quasi-public agencies or work for a non-profit organization. This means that more than half of the work being done in America will not produce any taxes on any profit. Many of the buildings operated by these agencies are tax-exempt again reducing tax revenue. Raising taxes on the private workforce and the businesses where they work is inequitable, unfair and not viable. The private sector is just too small and not making enough profit to turn the economy around and also pay for non profit businesses. So a quick remedy is to reduce the size of government and the not for profit sector. But this does not mean we need to increase corporate private for profit businesses. For example private banks cannot turn the economy around. They are technically broke. They have a total of $67 billion as backing for some $7 trillion in loans, less than a fraction of one percent. If just one percent of the loans defaulted the entire banking system goes under. Guess what! The historical loan default of banks annually averages much higher than one percent. Consider also that the $67 billion in reserves is also covering the risk of $7 trillion in deposits and liabilities. If depositors holding a total of one percent of the $7 trillion in deposits ask for their money right now, banks will go bankrupt. Public banks are needed. For example the only state in America enjoying a surplus and low unemployment is North Dakota. They have a public bank not tied to the Federal Reserve System. Try also an Islamic Bank. Their bankers are required to share borrowers risks, meaning that depositors are treated more like shareholders, earning a portion of bank profits. And of course they do not charge interest on their loans.

Strengthening the dollar wont work. The dollar today has only 1% of the purchasing power it had in 1933, the year the private corporation in charge of the U.S. Treasury, the Federal Reserve Bank, was established. America is experiencing deflation, inflation and stagflation simultaneously. Deflation is where banks are insolvent, (see above) and not able to provide credit, causing a decline in money supply and circulation. Also certain product prices decline. Inflation is where government provides bailouts and stimulus packages to certain industries, with their prices rising as a result. Stagflation is when both rising prices and falling productivity occur mostly because of high unemployment. It is bad enough having one but America is experiencing three economic maelstroms at the same time! Inflation is also an economic condition wherein there is relatively more money available to buy products than there are products available for sale (sellers market; e.g. the Roaring 20s). Deflation also occurs wherein there is a relative abundance of products for sale, but not enough money available with which to purchase them (buyers market; e.g. the Great Depression). Real unemployment including counting long-term discouraged job seekers and those annually coming out of prison is around 22% and not the 9.6% number the Federal government reports (www.shadowstatistics.com). Since 1980 America has experienced a net loss of 20 million jobs. One reason why the job loss situation is now becoming so prominent is because courts are not incarcerating people fast enough to get potential job seekers off the streets. The U.S national debt is a staggering $14 trillion. Divide it by all Americans including children; everyone would owe approximately, $42,000. There are some very mean people who want to see every American liable for this debt, even though the majority of it was orchestrated by either corrupt or incompetent politicians and private persons. Lets put a trillion dollars into a context we can easily grasp. It is a staggering number and when you put it in dollars it is unbelievable. If you were alive when Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now! There is much more but lets fix it. Our solution is based in part on how Ancient Egyptians governed their economies. Their governments though highly sophisticated were decentralized and small. In fact their governments were so subtle in their operations that Eurocentric historians have a very difficult time trying to categorize and catalogue the role government played in peoples lives in predynastic Egypt. In ancient Black economies corporations did not exist nor were there any for profit non flesh and blood chartered organizations. There were however many orders and guilds. In using these economies as our model and guide, governments size and involvement in peoples daily lives would be greatly reduced, and flesh and blood people would be more valued than corporations. You see ancient Black economists understood that when governments no longer represent the people,

government servants become government bureaucrats. Government bureaucrats are more concerned with their own survival than with serving the public. Inevitably they adopt the notion that the bigger government is, the higher is their survivability. All at the expense of the people who made and gave power to government. Governments are never supposed to be sovereign. Sovereignty always was reserved for and to, the people. Americas Federal government debt is not the same as the peoples debt. Much of the Federals government debt and deficit comes from Federal agencies and programs that are not validated by the U.S. Constitution thus outside of constitutionally sanctioned revenue sources. Any resolution to addressing the Federal debt and deficit must include the elimination of many Federal agencies and programs. Traditionally, people who work in government were called servant or public servants. The word for servant in the Greek language is minister. A minister is a servant. Therefore (ad)ministration is an organized government body of ministers or servants. Not our government. Today we generally call those people elected by the voting public to represent them in government as elected officials or politicians, and their government appointees as bureaucrats. In very early America public servants divested from their private businesses to receive a very modest government salary because they considered themselves and were considered as public servants. Today elected officials not only hold onto their private businesses and private wealth, but amazingly their net worth increases while toiling as public servants (elected officials)! Unofficial surveys are now circulating showing that inspite of the economic downturn, the majority of congressional representatives net worth have increased during this period. I wonder if it is the same for your local government representatives. Elected officials take an oath to the United States of America and not to these united states of America. There is a profound difference (see www.usavsus.info.) Big Government is not necessarily the culprit but a government no longer for or by the people is the problem. The Federal government today is not accountable to the people (the republic), but to a people with the greatest majority (a democracy). In a capitalistic society the greatest majority are those with the majority capital. The Federal government must be reduced to sustain the needs of a republic and not a democracy. Another tool for repairing the economy is academic. Before the beginning of the 20th century, most colleges and universities offered the study of economics within departments of moral philosophy. Thats right, economics was always taught and conducted within an ethical and moral context. In ancient times and in the very beginning of Americas origins, businesses existed more than just to make a profit. Businesses operated in accordance with the general welfare needs of the society. Today, businesses are not compelled by any moral or ethical constraints, other than what the law prohibits. Lets discuss some remedies that could make our economy efficient, effective and equitable: 1. Abolish the Federal Reserve Bank and return the power of creating and regulating money to Congress as stated in the U.S. Constitution. The Federal Reserve is a

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private corporation issuing and regulating money for the good of its shareholders and not the American public. Here lies the beginning and the end of Americas fiscal woes. Eliminate the Federal Reserve and have Congress issue $14 trillion of new money to pay back all outstanding U. S Treasury debt. This is much less than the $28 plus trillion the Federal Reserve has already paid to select banks and corporations allegedly to jumpstart the economy and to prevent a complete economic crash. Congress would then pass a law banning future indebtedness by the government. There will not be any more debt because there will not be any interest on the money that Congress would create. Abolish interest on any credit extended, except for the fees it costs to extend credit. Interest invariably creates inflation and debt. When credit is extended with interest, the principal does not cover interest payments forcing the businessperson to raise prices to cover the interest costs and forces the borrower to go into debt to pay interest costs. If Americans really subscribe to Judaic-Christian, Islamic principles then interest on credit would be illegal. Do an accounting of the gold in Fort Knox and revalue it to its true value. Also, allow citizens to exchange their fiat money for gold. Reduce the size of federal, state and local government to where they are only 10% of the economy. Right now the Federal Government is 43% of the Gross Domestic Product and growing. Governments and their agencies cannot stimulate economies, they can only regulate them and when governments become sovereign at the expense of the people they become net destroyers of private economies, because governments by nature are not private, they are public. Governments operating within a republic are compatible with private economies. Governments operating mainly within a democracy are no longer subjects to the peoples rule, but to entities with majority rule. In a capitalistic society, the majority rulers are those with the most capital. (See former nominee to lead the Federal governments Office of Civil Rights Division, Professor Lani Gueniers articles on the tyranny of democracy) Retrofit all existing houses so that they are at least gold standard certified regarding energy use and build all new houses with platinum certification. This would create a massive new industry beneficial to both producers and consumers. End all government welfare payments for the poor and government subsidies for the rich and corporations. Pay a final lump sum payment covering 90 days for all welfare recipients. Abolish Social Security and pay all recipients the amount they paid into the system plus a nominal interest rate. Social Security as well as Medicare are funded as ponzi schemes and are not self-sustaining. End all government pension funds. Participants would be repaid what they paid into it and could invest it on their own instead of allowing and forcing the government to do it. Abolish the Federal Deposit Insurance Corporation. Let banks and depositors assume their own risk and not the general public through the federal government. Banks that cannot take the risk will go out of business. Every nonresidential American citizen upon reaching the age of 18 and thereafter will receive an annual dividend or social credit of $12,000 akin to the dividends the state of Alaska pay to its residents. At the end of every seven-year and 49 year

cycle the dividends will not be distributed and will resume the year after. Nature, land, water, air and humans need periodic rest periods for regeneration. The US economy is driven by consumer demand. With 22.3% unemployment, stagnant and declining wages and salaries, and consumer debt burdens so high, consumers cannot save their income for investment and non-essential purchases. Therefore, there is no viable consumer base to reignite the economy. 10. Put a 2% tax on every derivative transaction. Total values of all derivatives are estimated at $500 trillion worldwide. These taxes alone will jumpstart the worlds economy. Within five years begin eliminating all speculative trading and security financial instruments. Gambling and betting using human labor and real assets as collateral has to stop. People could use the money they receive from the entitlement programs to pay off their debts including the $1.2 trillion in outstanding credit card debt and much of the $15 trillion mortgage debt. With the reduction in government size less taxes will be needed to run government operations. In fact eliminate all laws and government agencies that are not constitutionally base. This means goodbye to the Department of Education, Department of Energy, Department of Homeland Security, the National Security Agency, the I.R.S., and more. Since the Constitution does not support these agencies they are unconstitutional, therefore unlawful. Put in place a national sales tax lets say at 9%. So far the costs are: 1. 2. 3. 4. 5. 6. Federal debt payment: Social Security repayment: Welfare final payment: Medicare Final Payments: FDIC bailout Public Pension Bailout $14 trillion $2.6 trillion (ssa.govwebsite) $2 trillion $2 trillion $2 trillion $1 trillion

Total = $23.6 trillion This amount is about 20% less than what the suggested next bailout should be. The difference here is that the above bailout affects and benefits the majority of the American people unlike the previous bailouts. You may wonder what happens to the less fortunate. The answer is the same as always, charity. Registered charitable institutions and organizations and not the government will administer charity. Presently there is an economic and I dare say a profit incentive inherent in the current government managed charity system including incentives for people to keep receiving charity in many cases for their entire adult life. There are other major issues affecting Americas economy needing correction: a. End all wars that do not involve a direct threat to Americas security and sovereignty. This includes pulling out of Iraq and Afghanistan, closing

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at least 90% of all U.S. bases in other countries (there are over 900 bases); eliminate all standing foreign aid except to countries experiencing a catastrophic emergency. Cut the U.S. defense budget by at least 80%. The total military/security budget is in the vicinity of $1.1-$1.2 trillion, or 70% -75% of the federal budget deficit. Military security without a nations people being economically secured is a farce and ripe for draconian rule. End all domestic wars; the war on drugs, the war on poverty, etc. Eliminate all drug enforcement laws and apply an excise tax just like for alcohol and tobacco for all recreational drugs. Immediately release all prisoners convicted of drug use and sales where there was no personal injury involved. Severely fine American businesses that employ non-American citizens doing business in America. Do not allow American manufacturing businesses operating in foreign countries to sell their products in America. Have local, state and the Federal governments keep a reasonable amount of surplus food and housing stock to keep people from starving and homeless, but have these items distributed and regulated by local charities and not government agencies. Eliminate all corporations that are not partnerships or limited liability partnerships. Flesh and blood people should only be doing business and not face-less corporations that cannot bleed or feel. Eliminate all personal income and labor tax. Provide a way for the populace to tithe to their favorite charity.

When I awake in the morning I see the sun shining, I can feel the wind blowing, when I go to the river bank I see the river flowing, when I go out into my garden I see herbs, vegetables and fruits growing. Natures economy, which is the basis for mans economy, is doing well. It is booming in a quiet way. How is it that mans economy is in such disarray? Because we have separated and divorce ourselves from nature. Can we return our economy to nature? Of course we can. Will the rulers do so? No, not without experiencing some major pain. They are corrupt with power and wealth. As long as the general populace stays seduced on television and celebrity drama, these corrupt politicians will continue to be reelected and their appointees will stay in power. The future does not look bright, but do not tell that to the Sun. Nanya Nagub El a.k.a. Nathaniel James: Bracey In the Year of Our Lord 2011, the First Month