Clear and Present Danger
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Since May 2005, I have been attempting to inform the American People of the threat to our economy and national security. All eyes and attention is on the War in Iraq, while the critical issue of the economy and debt is ignored or given lip service. The War in Iraq is an issue but it is not the only issue. The security of the nation is threatened more by the threats to our economy than it is by the civil war in Iraq. Yesterday the U.S. Economy Risks and Strategies for 2007-2017 Policy White Paper (V1.3) March 15th, 2007 By Med Yones of the International Institute of Management (IIM) was posted on the John Edwards Web Site News.
As of 2200 hours last night, there was one comment. Individuals on both the Edwards and Democrat Web sites have stated that America does not have a debt problem. Others have stated it�s not their problem. The worst are those who are ignoring the issue all together. The present debt problem (PUBLIC AND PRIVATE) poses a clear and present danger to the security of the nation. To be sure you understand me I will say it again
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THE PRESENT DEBT PROBLEM (PUBLIC AND PRIVATE) POSES A CLEAR AND PRESENT DANGER TO THE SECURITY OF THE UNITED STATES.
***
2) Economic Confidence
� What is the U.S. economic outlook? If you compare the global economy to the stock market and the U.S. economy to a company listed on that market, then the real question is: Would you invest in a company that is losing money and increasing its debt for several years in a row? Or would you invest in one of its competitors which shows increasing market share and profit (surplus)? Granted that USA Inc. is the largest company in the global market, but the global investors put more weight on profitable growth and performance trends than the size.
The worst thing that could happen would be the loss of confidence in the U.S. economy. If the U.S. Government does not commit to reducing federal budget deficits, at some point in time foreign banks could panic and rush to dump their dollars to be the first out of a sinking currency, thus making the economic crisis far worse and recovery more difficult. China has already signaled its intention to decouple the currencies, which will lead to the loss of trillions of dollars in U.S. Treasury value. In order to minimize that loss, the Chinese will have to sell off some of their U.S. holdings. The real danger is how much and how fast China will do so. If they decide to do it quickly, they will prompt huge panic by other lending countries. Investors will have to copy China�s moves, resulting in a disaster to the dollar value, interest rate, stock market, homeowners and the U.S. economy as a whole.
3) U.S. Social Risks
� Social Security payments go in the Social Security Trust Fund. The purpose of any surplus payments to Social Security is to pay future benefits. But the U.S. Government has spent all of the money in the Social Security Fund. That's part of the national debt.
� By 2025, nearly a quarter of Americans will be over 60, a shift with huge implications for the U.S. social services budget and economy. Those baby boomers will be a major voting force and will influence Government decisions to raise taxes to support Social Security and Medicare, which will reduce individual salaries, companies' profits, investments and domestic competitiveness.
� With lower Social Security payout and higher healthcare and living costs, many seniors will have to go back to employment to support themselves, thus competing with the younger generation for the already declining number of jobs. The higher labor supply and lower demand for employees will create intense competition and increase work stress on the individual and the society. Think of the younger generations resenting the baby boomers, blaming them for a falling standard of living.
� I would not be surprised if many senior and richer U.S. citizens start emigrating to other more affordable countries, taking their savings and wealth with them so they can live there for the rest of their lives, or simply to invest in stronger economies with stronger currencies. Because of the extremely high healthcare costs, some are already traveling overseas to get treated.
� Higher cost of education will lead to less access to equal opportunities and will increase the economic gap.
� Think of the impact of thinning middle-class layer and the increase in an economic distribution gap. That can result in a major social and political crisis, further complicating recovery.
� The deteriorating economic conditions can stress the social fabric of the nation. Extreme socioeconomic situations are more likely to produce racial, religious and political extremism. Blaming others is a classic response to times of hardship, especially when others practice a different religion or belong to another race or economic class. (IIM White Paper)
*
The above is taken directly for the International Institute of Management�s White paper. Just as I originally suggested that everyone review Mr. Hodges GRANDFATER REPORT, I strongly suggest you print Mr. Yones White Paper Link. I am not old enough to have lived through America�s Great Depression. I am old enough to have sat before individuals who lived during that period and took the time to teach me about it. I have seen the file footage of the period and the daily struggle to find work to pay for a day�s food. I am a manager and analyst by profession and trained to take analysis and develop contingencies. One of the rules in management is �Plan for the worst and hope for the best.� If asked what America depends on for her security I would have two answers. One, on God and Two
AMERICA�S SECURITY DEPENDS ON HER ECONOMY.
***
6) Government Policy Options & Their Price
A scientific economic fact: any economy that is built on uncontrolled debt will eventually crash. An increasing debt is a vicious cycle that can only be broken through a strategy shift and operations restructuring. In IIM's opinion, the conditions for a crash are far from being met, however, attention must be paid early to avoid coming closer to the tipping point. The more the current Administration waits to make a change, the stronger the force of inertia will be to reverse the direction and the more the socioeconomic and political pains that will result from the necessary reforms.
� So what policy options are available to the U.S. Government to help it overcome the above listed challenges? (IIM White Paper)
*
Most of the points made in this paper I identified in 2004 when doing the analysis that led to the creation of Shared Debt Relief. These are the reasons that I formed Shared Debt Relief Association. The time of denial must end. If you have developed a viable, plan to address the problem, step up and present it. If you feel that it isn�t your problem, then set back and let the rest of us work. Shared Debt Relief is a voluntary non-government program. We have designed the program to work at $24.00, $50.00 and $115.00 a month. This is put in the form of a raffle because it is the only fair means of distributing the donated funds. The Personal Debt Consolidation (PDC) Loan ($24.00) depends on 3,000 individuals per Cycle / Raffle. All of the Mortgages depend on 10,000 individuals per Cycle / Raffle. Each Mortgage Raffle provides PDC loan chances. The $175,000 Mortgage provides each participant with 175 chances to receive $1,000.00 Loan with a limitation of $12,000. The $300,000 Mortgage provides each participant with 115 chances to receive $1,000.00 Loan with a limitation of $12,000. The $600,000 Mortgage provides each participant with 285 chances to receive $1,000.00 Loan with a limitation of $12,000. The fastest growing industries in America are gambling and finance. When times get bad, folks will gamble for the chance to make things better. The Shared Debt Relief Program recognizes this and set up the program to exploit the trend. Exploit the trend not the person. Each of the recommended cycles / raffles returns a minimum of 83% of the raised funds to the participants. Again, this voluntary program is not mandated by the government, individuals participate based on their choice. The loans are issued with out judgment. We have been accused designing a system that subsidizes failure. This is not true. One of the challenges that America has in international markets is that our prices are too high. Today, they have to be high because our cost is too HIGH! Shared Debt Relief Program is designed to remove the cost of debt from the mix. This will reduce our cost of production and permit us to sell at competitive levels. Most of all it will permit us to regain an acceptable standard of living for all of our people.
*
Folks, as of the writing of this Blog, I have 13 day 19 hours left on my contract in Saudi Arabia. I will be organizing the Long Beach, Washington and Astoria, Oregon area�s when I return to the U.S. America is huge and every town and city in America needs to deal with debt. America�s Security is in each of our hands. We need individuals in every district to take the task of organizing their community. We also need folks to commit to sharing (What they can afford). Shared Debt Relief is not a magic bullet that will fix the problem over night. The SDR Cycles will be run monthly. While the programs are like a Raffle, SDR does not encourage gambling. Our utmost hope is that individual will give because they know others are in need.
The International Institute of Management has stated
***
THE CONDITIONS FOR A CRASH ARE FAR FROM BEING MET, HOWEVER, ATTENTION MUST BE PAID EARLY TO AVOID COMING CLOSER TO THE TIPPING POINT.
*
Shared Debt Relief firmly beliefs this to be true. One real danger is for the American people to become fearful and to start making decision based on fear. The administration has exploited America�s anger and Fear since 9/11, they have used our anger and fear to support their policies based on that fear. The effectiveness of this policy is clear to anyone who cares to look with open mind.
As of 2200 hours last night, there was one comment. Individuals on both the Edwards and Democrat Web sites have stated that America does not have a debt problem. Others have stated it�s not their problem. The worst are those who are ignoring the issue all together. The present debt problem (PUBLIC AND PRIVATE) poses a clear and present danger to the security of the nation. To be sure you understand me I will say it again
*
THE PRESENT DEBT PROBLEM (PUBLIC AND PRIVATE) POSES A CLEAR AND PRESENT DANGER TO THE SECURITY OF THE UNITED STATES.
***
2) Economic Confidence
� What is the U.S. economic outlook? If you compare the global economy to the stock market and the U.S. economy to a company listed on that market, then the real question is: Would you invest in a company that is losing money and increasing its debt for several years in a row? Or would you invest in one of its competitors which shows increasing market share and profit (surplus)? Granted that USA Inc. is the largest company in the global market, but the global investors put more weight on profitable growth and performance trends than the size.
The worst thing that could happen would be the loss of confidence in the U.S. economy. If the U.S. Government does not commit to reducing federal budget deficits, at some point in time foreign banks could panic and rush to dump their dollars to be the first out of a sinking currency, thus making the economic crisis far worse and recovery more difficult. China has already signaled its intention to decouple the currencies, which will lead to the loss of trillions of dollars in U.S. Treasury value. In order to minimize that loss, the Chinese will have to sell off some of their U.S. holdings. The real danger is how much and how fast China will do so. If they decide to do it quickly, they will prompt huge panic by other lending countries. Investors will have to copy China�s moves, resulting in a disaster to the dollar value, interest rate, stock market, homeowners and the U.S. economy as a whole.
3) U.S. Social Risks
� Social Security payments go in the Social Security Trust Fund. The purpose of any surplus payments to Social Security is to pay future benefits. But the U.S. Government has spent all of the money in the Social Security Fund. That's part of the national debt.
� By 2025, nearly a quarter of Americans will be over 60, a shift with huge implications for the U.S. social services budget and economy. Those baby boomers will be a major voting force and will influence Government decisions to raise taxes to support Social Security and Medicare, which will reduce individual salaries, companies' profits, investments and domestic competitiveness.
� With lower Social Security payout and higher healthcare and living costs, many seniors will have to go back to employment to support themselves, thus competing with the younger generation for the already declining number of jobs. The higher labor supply and lower demand for employees will create intense competition and increase work stress on the individual and the society. Think of the younger generations resenting the baby boomers, blaming them for a falling standard of living.
� I would not be surprised if many senior and richer U.S. citizens start emigrating to other more affordable countries, taking their savings and wealth with them so they can live there for the rest of their lives, or simply to invest in stronger economies with stronger currencies. Because of the extremely high healthcare costs, some are already traveling overseas to get treated.
� Higher cost of education will lead to less access to equal opportunities and will increase the economic gap.
� Think of the impact of thinning middle-class layer and the increase in an economic distribution gap. That can result in a major social and political crisis, further complicating recovery.
� The deteriorating economic conditions can stress the social fabric of the nation. Extreme socioeconomic situations are more likely to produce racial, religious and political extremism. Blaming others is a classic response to times of hardship, especially when others practice a different religion or belong to another race or economic class. (IIM White Paper)
*
The above is taken directly for the International Institute of Management�s White paper. Just as I originally suggested that everyone review Mr. Hodges GRANDFATER REPORT, I strongly suggest you print Mr. Yones White Paper Link. I am not old enough to have lived through America�s Great Depression. I am old enough to have sat before individuals who lived during that period and took the time to teach me about it. I have seen the file footage of the period and the daily struggle to find work to pay for a day�s food. I am a manager and analyst by profession and trained to take analysis and develop contingencies. One of the rules in management is �Plan for the worst and hope for the best.� If asked what America depends on for her security I would have two answers. One, on God and Two
AMERICA�S SECURITY DEPENDS ON HER ECONOMY.
***
6) Government Policy Options & Their Price
A scientific economic fact: any economy that is built on uncontrolled debt will eventually crash. An increasing debt is a vicious cycle that can only be broken through a strategy shift and operations restructuring. In IIM's opinion, the conditions for a crash are far from being met, however, attention must be paid early to avoid coming closer to the tipping point. The more the current Administration waits to make a change, the stronger the force of inertia will be to reverse the direction and the more the socioeconomic and political pains that will result from the necessary reforms.
� So what policy options are available to the U.S. Government to help it overcome the above listed challenges? (IIM White Paper)
*
Most of the points made in this paper I identified in 2004 when doing the analysis that led to the creation of Shared Debt Relief. These are the reasons that I formed Shared Debt Relief Association. The time of denial must end. If you have developed a viable, plan to address the problem, step up and present it. If you feel that it isn�t your problem, then set back and let the rest of us work. Shared Debt Relief is a voluntary non-government program. We have designed the program to work at $24.00, $50.00 and $115.00 a month. This is put in the form of a raffle because it is the only fair means of distributing the donated funds. The Personal Debt Consolidation (PDC) Loan ($24.00) depends on 3,000 individuals per Cycle / Raffle. All of the Mortgages depend on 10,000 individuals per Cycle / Raffle. Each Mortgage Raffle provides PDC loan chances. The $175,000 Mortgage provides each participant with 175 chances to receive $1,000.00 Loan with a limitation of $12,000. The $300,000 Mortgage provides each participant with 115 chances to receive $1,000.00 Loan with a limitation of $12,000. The $600,000 Mortgage provides each participant with 285 chances to receive $1,000.00 Loan with a limitation of $12,000. The fastest growing industries in America are gambling and finance. When times get bad, folks will gamble for the chance to make things better. The Shared Debt Relief Program recognizes this and set up the program to exploit the trend. Exploit the trend not the person. Each of the recommended cycles / raffles returns a minimum of 83% of the raised funds to the participants. Again, this voluntary program is not mandated by the government, individuals participate based on their choice. The loans are issued with out judgment. We have been accused designing a system that subsidizes failure. This is not true. One of the challenges that America has in international markets is that our prices are too high. Today, they have to be high because our cost is too HIGH! Shared Debt Relief Program is designed to remove the cost of debt from the mix. This will reduce our cost of production and permit us to sell at competitive levels. Most of all it will permit us to regain an acceptable standard of living for all of our people.
*
Folks, as of the writing of this Blog, I have 13 day 19 hours left on my contract in Saudi Arabia. I will be organizing the Long Beach, Washington and Astoria, Oregon area�s when I return to the U.S. America is huge and every town and city in America needs to deal with debt. America�s Security is in each of our hands. We need individuals in every district to take the task of organizing their community. We also need folks to commit to sharing (What they can afford). Shared Debt Relief is not a magic bullet that will fix the problem over night. The SDR Cycles will be run monthly. While the programs are like a Raffle, SDR does not encourage gambling. Our utmost hope is that individual will give because they know others are in need.
The International Institute of Management has stated
***
THE CONDITIONS FOR A CRASH ARE FAR FROM BEING MET, HOWEVER, ATTENTION MUST BE PAID EARLY TO AVOID COMING CLOSER TO THE TIPPING POINT.
*
Shared Debt Relief firmly beliefs this to be true. One real danger is for the American people to become fearful and to start making decision based on fear. The administration has exploited America�s anger and Fear since 9/11, they have used our anger and fear to support their policies based on that fear. The effectiveness of this policy is clear to anyone who cares to look with open mind.
More important, a host of unemployed citizens face the grim problem of existence, and an equally great number toil with little return. Only a foolish optimist can deny the dark realities of the moment.
Yet our distress comes from no failure of substance. We are stricken by no plague of locusts. Compared with the perils which our forefathers conquered because they believed and were not afraid, we have still much to be thankful for. Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind’s goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men.
~FDR’s First Inaugural Address
1933