Consumer Free Fall: Consumption Economy Cannot Recover Without Consumer Spending
Its Monday and this time I am a Monday Morning Quarterback. 12 months and counting I have said it’s the consumer that drives our economy. My warnings have fallen on many ears but a lot of deaf ones too. I can’t believe so many eyes are closed to the fact that every single business will strongly feel the impact of the consistent decline of consumer consumption. Expect more layoffs, unemployment, under employment and hobbling and what do you get – a disaster of biblical proportion. 6 months and falling! When are we going to wake up these people in DC. Check out some NO COST solutions below. Or PLEASE download IOUSA NOT! USA owes us. Free at www.billyg.net
Solutions:
1. Change credit agency rules of reporting associated with the past year and next few years. If people have bankrupted or have many lates on their credit – this should weigh much less on their scores. WHY? Because we have to get the economy moving and these people in the near term future back into the consumption economy. They can’t for many years with bad credit.
2. Allow a onetime refinancing of all debt – rich or poor. This would help stop the toxic loan bleeding. If the government is going to own all this debt anyway – why not help reduce the burden on consumers at the same time and try to make it possible to repay their debts.
3. READ IOUSA Above – eradicate the deficit – the 10% plan I have been talking about for a year too. Require by law for the next 10 years - all institutions in America that have investments to increase their allocation to invest 10% of their portfolio in a deficit fund – used only to buy back our debt and currency. A great investment – the markets would sky rocket (“Liberation Day”). 1st year we would retire most of it.
4. Economy bonds – exchange tax revenue for bonds – govt can still use the money – consumers don’t get a paltry check – we start to shift towards being a savings nation again – CRITICAL.
5. Office of Financial Homeland Defense. We need a US CEO and Board. Imagine if we had our best financial minds overseeing this Capitalist Nation. We would reign in these politicians. I BET 100% they would never ever give up their ability to spend money – THIS IS THE ONLY POWER THEY REALLY HAVE. MAKE THEM MAKE LAWS NOT BANKRUPT US.
I can provide a lot more – Oh by the way did I say spend any money?
Here are the facts. All the bailouts the US can muster won’t help until the consumer issue is addressed in force. Worse is borrowing money and printing currency 24-7. Davos proved my long standing point that the confidence in America’s “Full Faith” to back the dollar and sell treasuries is waning. Just like the banks were “paying it forward” and confidence was lost in real estate securities that caused the collapse - the US is losing the world’s confidence - the first signs of the capitalist nation crumbling. China and Russia are sold bold these days because they know we are lying on the beach with our arms and legs blown off.
300 short years into this business model and our leaders have bankrupted out nation. Do we think that all this is going to stop the imminent catastrophe our nation is in. Do politicians even look at a 100 year plan – if they did – they would all realize that our nation just doesn’t work – not because of Freedom and Capitalism but a direct responsibility on the lawmakers. And here we stand today on the verge of the largest increase in deficit spending in history and still the only answer out of Washington is to loan and spend money and socialize many institutions.
Here is a perfect example. You are bankrupt (7 million or so) + many before. You are unemployed. You will be unemployed. You have no cash to spend and no credit. You have been late on bills and your credit limits have declined every time you pay a bill. WHO IS GOING TO BUY CARS? WHO IS GOING TO TAKE A VACATION? WHO IS GOING OUT TO EAT ALL THE TIME? WHO IS BUTTERING THE BREAD!
The consumer – you and me! Until this is fixed I swear to you our economy will be devastated more and for many years to come. Just look at all those consumers crushed by the economy. They won’t be around for 5 to 10 years. They can’t be. The struggling families won’t be. You get the point.
Its Monday and this time I am a Monday Morning Quarterback. 12 months and counting I have said it’s the consumer that drives our economy. My warnings have fallen on many ears but a lot of deaf ones too. I can’t believe so many eyes are closed to the fact that every single business will strongly feel the impact of the consistent decline of consumer consumption. Expect more layoffs, unemployment, under employment and hobbling and what do you get – a disaster of biblical proportion. 6 months and falling! When are we going to wake up these people in DC. Check out some NO COST solutions below. Or PLEASE download IOUSA NOT! USA owes us. Free at www.billyg.net
Solutions:
1. Change credit agency rules of reporting associated with the past year and next few years. If people have bankrupted or have many lates on their credit – this should weigh much less on their scores. WHY? Because we have to get the economy moving and these people in the near term future back into the consumption economy. They can’t for many years with bad credit.
2. Allow a onetime refinancing of all debt – rich or poor. This would help stop the toxic loan bleeding. If the government is going to own all this debt anyway – why not help reduce the burden on consumers at the same time and try to make it possible to repay their debts.
3. READ IOUSA Above – eradicate the deficit – the 10% plan I have been talking about for a year too. Require by law for the next 10 years - all institutions in America that have investments to increase their allocation to invest 10% of their portfolio in a deficit fund – used only to buy back our debt and currency. A great investment – the markets would sky rocket (“Liberation Day”). 1st year we would retire most of it.
4. Economy bonds – exchange tax revenue for bonds – govt can still use the money – consumers don’t get a paltry check – we start to shift towards being a savings nation again – CRITICAL.
5. Office of Financial Homeland Defense. We need a US CEO and Board. Imagine if we had our best financial minds overseeing this Capitalist Nation. We would reign in these politicians. I BET 100% they would never ever give up their ability to spend money – THIS IS THE ONLY POWER THEY REALLY HAVE. MAKE THEM MAKE LAWS NOT BANKRUPT US.
I can provide a lot more – Oh by the way did I say spend any money?
Here are the facts. All the bailouts the US can muster won’t help until the consumer issue is addressed in force. Worse is borrowing money and printing currency 24-7. Davos proved my long standing point that the confidence in America’s “Full Faith” to back the dollar and sell treasuries is waning. Just like the banks were “paying it forward” and confidence was lost in real estate securities that caused the collapse - the US is losing the world’s confidence - the first signs of the capitalist nation crumbling. China and Russia are sold bold these days because they know we are lying on the beach with our arms and legs blown off.
300 short years into this business model and our leaders have bankrupted out nation. Do we think that all this is going to stop the imminent catastrophe our nation is in. Do politicians even look at a 100 year plan – if they did – they would all realize that our nation just doesn’t work – not because of Freedom and Capitalism but a direct responsibility on the lawmakers. And here we stand today on the verge of the largest increase in deficit spending in history and still the only answer out of Washington is to loan and spend money and socialize many institutions.
Here is a perfect example. You are bankrupt (7 million or so) + many before. You are unemployed. You will be unemployed. You have no cash to spend and no credit. You have been late on bills and your credit limits have declined every time you pay a bill. WHO IS GOING TO BUY CARS? WHO IS GOING TO TAKE A VACATION? WHO IS GOING OUT TO EAT ALL THE TIME? WHO IS BUTTERING THE BREAD!
The consumer – you and me! Until this is fixed I swear to you our economy will be devastated more and for many years to come. Just look at all those consumers crushed by the economy. They won’t be around for 5 to 10 years. They can’t be. The struggling families won’t be. You get the point.
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