Is The Sun Setting On Our Economy? Not If We Join Together And Change Our Future!!
Go to: www.foreclosurecrisissolved.wordpress.com/ for The Middle Class‘s Rebuttal Speech To President Obama’s State Of The Union Address and The letter to The Federal Reserve, How The Fed Can Do More Harm To The Economy. The People’s Economic Recovery Plan is at www.recoverygovforthepeople.wordpress.com/ At www.economysflaw.wordpress/ you will find over 25 articles, including Zero Inflation Taxation Policy. Is President Obama Making A Mistake, The Means of Exchange, Repeating the Mistakes of The Great Depression. You will find a improved copy of the article that appeared in the Bakersfield Californian on 2-14- 2011, “Solution To Foreclosures Will Decrease Unemployment And Government Deficit” at www.foreclosuresolution.wordpress.com/
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Please get involved for your children and their posterity’s future. There is a better way to improve our economy than to put them into debt to the Federal Government, which will ruin their chance at the American Dream of a better future for their posterity’s future.
The following article appeared in the Bakersfield Californian on 2/14/2011, our newspaper for Bakersfield, California.
Solution To Foreclosures Will Decreases Unemployment And Government Deficit
My motto has always been, “Prepare for the worse, and hope for the best.” Concerning the state of our economy, I believe “hopping for the best” will not suffice. We need to take a more proactive approach.
What the Federal Government and the Federal Reserve has done in the last two and half years has had limited success. We have added trillions of dollars to our national debt and are running record deficits, yet we have not been able to lower the unemployment rate very much, or decrease the ever increasing number of foreclosures.
The Fed is falling back on its old tricks of increasing inflation psychology to increase economic activity. This inflationary policy increases poverty and government liabilities in the long run. It does not increase the real wealth of our economy which is needed to increase the standard of living for all of our citizens.
Many economist and political representatives will argue that to solve the foreclosure crisis, employment must improve. This is wrong! It is the other way around. The solution to the foreclosure crisis will decrease unemployment and lower the States’ and the Federal Government’s deficit.
Everyone will agree that businesses do not hire people until they see more people willing, and able to purchase their products, and services. Before a business owner will hire additional people, it must make financial sense. Businesses are not the welfare department. They must make a profit to stay in business.
Everyone will also agree that aggregate demand must be increased to have an economic recovery and increase employment. It is very important how we go about increasing aggregate demand.
To accomplish increases in aggregate demand, people’s disposable income, and confidence must be increased, to facilitate an sustainable economic recovery over a long period of time.
The federal government and the Federal Reserve have been trying to increase aggregate demand by increasing banks reserves, and government job creation.
Increasing banks reserves did not work to increase aggregate demand, because the money is not being lent to Main Street. It is being lent to the federal government to fund its deficit, and Wall St. which is causing the stock market to go up, and commodities to increase in price.
What needs to be done to reduce the federal deficit, reduce unemployment, solve the foreclosure, and underwater mortgage problem, is to create a mortgage with new terms that increases the middle class’s confidence and disposable income. The new terms must also be acceptable and beneficial to investors and public, and private financial institutions in our economy, so they will embrace them and offer the new mortgage terms to the public.
Space in this venue does not allow me to go into more details of the new terms of the mortgage. If you google “foreclosure crisis solved”, or my name “Leonard C. Tekaat” you will find the solution to increasing the middle class’s disposable income, and confidence without more federal government deficit spending, quote “investments” as President Obama outlined in his State of the Union Address. You will also find “The Middle Class’s Rebuttal Speech to President Obama’s State of the Union Address” and a letter I wrote to the Federal Reserve, titled “How the Fed Can Do More Harm to the Economy. My four websites are listed at the end of this letter.
What I can tell you is that the People’s Economic Recovery Plan does not require the government to purchase the bad mortgages, or do most of the mortgages need to be discounted, and sold to investors. The plan cost the taxpayers very little, and saves the government billions of dollars.
The private and public financial institutions will become stronger. Fannie and Freddie will begin to heal and will not need any more bail out funds from the government.
Sometimes people must unite, and peacefully assemble to have a loud enough voice to be heard over the roar of the special interests that has access to our political representatives.
If the middle class does not inform the financial institutions, and the government of the correct thing to do, to bring about their financial recovery, and the economy’s recovery, the government and the financial institutions will continue the demise of small businesses and the middle class.
May God bless the middle class with the new mortgage terms; God save America if they are not so blessed, and God Bless the middle class people of the United States of America with the wisdom, and strength to stand up, and make them-selves heard!
Leonard C. Tekaat is an economic analyst and economic scholar, and author. He is a former candidate for California Congress. He is Chairman of a special Committee For Economic Reform and A Better Economic Future.
