THE 10% SOLUTION
HOMELAND SECURITY, ENDING AMERICA’S DEBT CRISIS AND REVIVING ECONOMY
“$6 to 7 Trillion could be freed up in a matter of days”
Facts
9-11 ripped a Trillion dollars of value from our markets
Enemies of the US are hugely sophisticated and know this It will happen again
10 percent of every 401k, pension, and endowment used to pay off America's debts
Plans above must invest 100% of the money under management anyway – why not Own America
Deficit paid off
Currency hoarding over
World Markets and Sub Prime Debacle relief through program
The real terrorist threat to America does not come in the form of a suicide bomber or from Islamic extremists. Rather, the Achilles Heel of the United States is our economy. In the aftermath of September 11th almost a trillion dollars was wiped out of the economy, and we are still reeling as a result of it. Our economy is the real target of terrorists and this is our potential downfall.China, Russia, India, Europe and the Middle East basically own and therefore now hugely influence the United States. We play checkers while the world governments like Russia and China play chess. The solution I propose is uncomplicated and digestible. If we are to prevent another Great Depression or economic collapse the US needs to solve this fundamental economic and nation security vulnerability.
A simple law…all pension plans, endowments, 401(k)s and the like will be required to allocate 10% of their portfolios to buy back U.S. debt and currency. This would be allocated into one pool and loaned to the government with civilian oversight and only be able to buy back US debt and Currency. The plans are required to invest 100% of the money they manage on behalf of their constituents. The cash and fixed income portfolio allocations within the plans would be the target and in the best interest of the United States as well as boosting their overall portfolio value through economic impact as a result of the deficit and currency buy back program.
With appx 60 to 70 trillion dollars currently invested in these types of accounts, $6 to $7 trillion could be freed up once the allocations are adjusted to wipe out the national debt, buy back the $1.6 trillion in U.S. debt and currency currently owned by China and more. Once the deficit is paid the government would be required to invest approximately one trillion dollars of the loan into 10-year Zero Coupon Bonds with the proceeds at maturity going back to the endowments and pension plans. In other words, the Zero Coupon bond is purchased at a price of say $200. In 10 years it matures to $1000. This protects the money loaned and guarantees an automatic repayment plan while injecting $1 Trillion into the economy, more specifically the debt marketplace.
Rather than seeing this as simply giving money back to the government, it’s really a 10-year interest-free loan that has incredible benefits to everyone and the world.In my un-humble opinion this one step would immediately increase world confidence with respect to the United States, raise the value of the U.S. dollar, as well as the boost to the overall economy. This would have far reaching and dramatic impact on the financial markets and would likely increase the equities in the portfolios of the lenders (You and Me) to go up far in excess of 10%. Plus the $1 trillion in zero coupon bonds would be injected right into the debt marketplace. Hey better than Bear Stearns.
If this law was enacted there would certainly be resistance and capitalist squawking. The sheer power of using money that was made in the US and owned by US citizens to buy back our country’s financial freedom with huge economic gains for everyone should be an argument that would embarrass the nay Sayers. I am confidently predicting and openly challenging anyone to refute that there would be a massive uptick in the U.S. and world markets if the National Debt were paid off. This would be one of the county’s biggest celebrations:
Liberation Day!
The day the U.S. took back its economic leadership before it is squandered. This plan is so simple and powerful that I would be willing to debate any politician, pundit, talk show host or Presidential candidate on its validity.
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