Inflation
Inflation At A Glance
I propose the Federal government:
- Dramatically cut federal spending immediately. Savings could be realized by abolishing the Departments of Education, Commerce and Agriculture and reorganizing the Department of Homeland Security. Budget savings for these changes would be approximately $300 billion.
- Abolish capital gains taxes for at least 10 years, if not permanently. This will attract the necessary offshore capital to start businesses and create productive jobs.
- Drastically cut, with an eye toward ending, the income tax. This puts real buying power back into the hands of the consumer.
- Unwind and end both wars within 6-12 months.
- Close all military bases outside the U.S. They are not constitutional and we can not afford them. An interim step would be for each of the 700+ foreign bases to justify its necessity to the defense of the country. Those that can not would be closed.
- Sell all non-vital assets, including the land, from the bases. All proceeds should be earmarked for Federal debt reduction.
- Federal budgets must have a surplus. The excess revenue will be used to pay down Federal debt. Debt repayment will free capital for use in the productive private sector, reducing interest rates and assisting growth.
In government financing, it is spending that counts. That's not to say that taxes don't matter; nothing could be farther from the truth. But spending is critical to contain because governments, especially when they control money creation as is the case in the U.S., will finance spending through borrowing or the printing press (inflation). Inflation is especially dangerous because it is a back door tax that eats away purchasing power now and for some time to come.
It is clear that the Federal government can not continue in its current financial direction. If it does, there will be a dollar crisis within the next few years. And once the dollar collapses, it cannot be reversed. Try to imagine our country, which is now heavily dependent on imports for basic necessities (e.g. oil), trying to survive the financial restructuring that goes along with a collapsed currency.
That is why we must cut government spending immediately and with conviction. To avert a crisis, we must convince foreign creditors that we are serious about getting our financial health in order.
What I propose here may seem draconian to some. But nothing less than our financial future, national sovereignty and liberty rests on resolving this crisis.
The proposals above attempt to address the threat to the dollar as well as restoring growth to our economy. Without significant growth the only option to avert crisis is a massive liquidation of debt through bankruptcy and dollar devaluation (inflation).