Things coming home to Roost, or economic troubles that need a fix

by chumchingee

In Nixon’s administration, he found himself dealing with a war that destroyed our economy. It was a Democratic blunder to go to war in Vietnam. He was faced with a bankrupt economy because of it.

There was no way to win the aftermath of such a war. It bled us dry. So no matter who was in charge for the next ten years, that bankruptcy bled us. We had enormous amounts of inflation. (I feel 12% is way too high) We had Unions that offset this effect by negotiating wage increases to compensate for the changes. Naturally everyone else was able to say “me too” and that kept everyone from going broke.

Nixon took us off the gold standard that meant our money was worth $35 for an ounce of gold. It maxed out at over $600 an ounce in the free market. That means that prior to that our currency was worth 35 vs 600 on the international currency exchange. Nixon was a genius with genius level people behind him. What he did is he opened up the China market for retail goods. This put our currency back on course for producing cheap goods that average people could afford and it broke the European hold on our markets. The Chinese got something too. They could buy enough food to save their peoples from starvation. Starvation was occurring on a regular basis there. Communism meets Capitalism. It worked.

None of this was ever intended to be a permanent solution to our problems. They were fixes. In Nixon’s world, it worked. Today it doesn’t.

Nixon resigned over errors in judgment made by his people and was not able to complete what he started out to do. That was he wanted to fix America back to its pre-Vietnam War condition. I think it might have worked. No one since has had this man’s genius for fixing bad situations. No one had his imagination and drive to do so.

So now, we have a situation where the Chinese solution has become a problem. We have leaders that did not understand history. So they have repeated Vietnam in Iraq and other places. We have a currency becoming valueless because of foreign wars. We have industry gone broke because they are undersold by our foreign competition both in China, Japan, and even Mexico. A lot of this competition is unfairly subsidized by foreign governments in a commercial war our industry is ill-prepared to meet.

The result is our working people have no jobs. Those that do have jobs are looking over their shoulders with good reason, because down the road their jobs are gone also. Our Unions no longer dictate wages to our companies. Most people do not have a Union to go to bat for them anymore. But the economic inflation is still there. So the working people are eating the inflation without adequate raises to compensate. In a word, discretionary income is out the window. Survival takes priority. That is why the banks are eating mortgages all over this country. That is why the demand for real estate has gone through the basement. People do not have the wages to buy a home. They are lucky if they continue to have a job. People without employment go through the entire government safety net of unemployment benefits then on to welfare. People on welfare are not considered unemployed by our government led statistics. So they lie.

The first priority of our next government has to be a solution to the job situation. Our lovely Chinese, Indian, Mexican, and so forth, governments have subsidized the economic situation abroad to give their people competitive edges all over the world, not just here. Corporations have no loyalty to America. They go where the money flows. They go where the employment of slave labor is to their advantages. First, we have to recognize this is economic war vs violent war. Second, we have to do something about it.

I suggest the answer might be anti-trust. We have to choose new game rules. These new economic game rules have to show us an advantage. Otherwise, all that money earned by hard working Chinese laborers will be worthless. If you held confederate money at the end of the Civil War how much was it worth? Well the American Dollar is confederate money at this point. The Chinese and others have to recognize this point. If you have farmed out your marketplace, it is now bankrupt, your hard earned money is worthless. It isn’t just us that benefit. Our debts have to be payable to those we owe. That means a complete change of attitude on the part of those we owe the money too as well if they are to gain anything.

What has to happen is fairly organized exchange of trade. That means the Chinese. It means all those corporations have to have a reason to manufacture goods here instead of in slave labor countries. It means we have to cut them off at the knees if they do not cooperate with us. It might mean restrictions on trade with those countries until a fair balance is reached.

Short term we have to rebuild American Industry in such a way as we are self-supporting. No more getting our basics from people abroad. We have to rebuild and make ourselves independent of foreign trade in the short term. That means a two-tier currency. Our local currency can only be used to purchase American trade goods. That means it has to be build here. Our international currency has to be such that it balances dollar for their currency in real goods. We have to do this to get out of debt.

One of our best resources is food. We have one of the best agricultural food markets in the world. I suggest that food becomes one of our chief international resources to buy our way out of debt to people like the Chinese. I say take all the spare fields in this country and start producing food for a world market.

Energy. We have one of the best resources of Propane gas or natural gas available here. I suggest we put it to work. This will take government involvement. I suggest a complete change over from gasoline engines to propane engines. I figure existing gasoline engines can be converted to gas rather cheaply. I think our entire trucking industry needs the change over. The government is the only thing big enough to make the conversion possible.  So get us off the oil pipeline and onto the natural gas for all our transportation needs in the next two years. Impossible? maybe, maybe not.

We are in a war. It is an undeclared war. It is a war for our very survival as a nation. We have to make changes in the way we think. We have to make changes in the way we do things. The economists are wrong. They think we can spend our way out of our problems. They think wars will divert attention away from local problems. That worked once. It doesn’t work now. The war we are in is one we started in the Nixon era. It was a solution to bankruptcy then. Now it is a major cause of our problems abroad.

We are in a war of economic bankruptcy. We are not alone. Europe has the same problem. Britain has the same problem. The war is one in which we must become self-sufficient instead of depending on others to provide slaves for our luxury. Our forefathers realized a long time ago the threat of slavery abroad. They put up barriers to trade with those nations. It was both a solution and an unsolved problem. Those countries went to war with us long term because of our refusals to trade. So we took the opposite approach. That hasn’t worked either.

One solution down the road is a form of communism. This is happening more and more here. Every time our legislatures decide to make laws where need goes over earning our way that is communism. Executive order by Bush made income a deciding factor on whether you receive health benefits from the VA. That was communism. Need vs Earning. The government wants to make welfare based on you not earning money. That is communism. Anyone that has read the communism manifesto of Marx will be able to prove my point.

What we need instead is a system based on hard work. We need a system based on encouraging people to earn their way vs a system legislating need vs work . . . That is bad grammar but it gets my point across. If Miss Single Mom out there earns 22k a year she looses all her health benefits under Medicaid. The number changes. The facts do not. The message is don’t earn money. The government will provide if you do not. I suggest we need a system of universal benefits based not on income. I suggest we encourage people to work instead.

I suggest we made a big mistake when we took the benefits of being married away. I suggest that we make marriage a respectable institution with financial benefits again. Make it financially a benefit to have an honest marriage contract. Lets get rid of all the financial benefits of a man abandoning his children and woman. That is only one of many changes in the way we do things that need to be made if we are going to restore America.

I suggest financial benefits to owning a home. Real benefits in the tax code. Not stupid benefits based on parasitic needs.

Well my computer has decided this is too long winded. So I will say goodbye for now.