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- Morris Kent Thompson for President
An American
Gearing up for 2012
Press Release: December 1, 2008
BAILOUTS are Voodoo Economics.
All economic theories and calculations are based upon basic assumptions about supply, demand, growth, and risk. For example, in my travels about the State looking for land sites to build apartments I found most cities have a population from all socioeconomic strata. The market studies supported the demand, the land sites were at price points and site conditions that were desirable. However, the one factor that kept coming back was the inability of potential renters to pay the rents that the model and our banks demanded. Hint, the wage base has been intentionally depressed.
Add to that the continual drain of high wage base manufacturing jobs due to outsourcing, the collapse of our two major manufacturing industries, construction and automobiles, and we have a profound lack of demand that has shut down the demand in all other areas and triggered significant unemployment.
So very simply, we have a liquidity crisis due to significant unemployment brought on by the marketeers shifting their investments to real estate when the bubble burst in the stock market. Of course, playing their same games in Real Estate that fostered very creative appraisals and financing to accommodate this irrational exuberance.
For example, I watched an ocean front site bought for $1 Million, and the next day put back on the market for $5 Million. The same scenario played out with condominiums, single family, and commercial properties.
Moreover, these commercial properties were refinanced with 5, 7, and 10-year balloons’ and are due for refinance, with a blood bath expected, as vacancy rates are escalating and valuations are significantly down. This will trigger additional foreclosures and bankruptcies.
I stopped into three businesses, only to find two of the three were cutting back days of operation, not hours, and are contemplating closing up shop, as they cannot pay the rent.
The credit crisis will work itself out with time as Adam Smiths invisible hand, greed, takes hold if we can foster significant gains in employment, with real wage growth.
Stop gap measures such as earned income credits for small business tied to payroll, prudent short term loans to business and industry who have a viable plan to not only retain profitability, but more importantly market share, extending unemployment benefits, and infrastructure capital improvements while suffice. These strategies will not put the national treasury at risk. Particularly, at a time when the models do not work and no one knows if any BAILOUT will work, which smacks of irrational exuberance.
My program will create the demand for manufacturing and nationwide employment in the private sector and pays for itself. The quid pro quo for the banks is the short term federally insured construction/permanent financing loans to convert to a decentralized solar power grid. The novelty to this approach is that the customer uses their average existing electric bill to pay for this, which does not require federal funds, I repeat, does not require federal funds.
We can have our automobile manufacturing plants running at 100% capacity by mandating conversion to battery-powered cars, with a buy back retrofit program to ensure all used cars are converted over a five-year period.
We can have our economy zooming, with secure jobs for our workers and at the same time attack global warming, by sending the dinosaur back to extinction from whence it came. A program I will institute, and will be paid for by shifting the over $1 trillion dollars being spent on upgrading an outdated 1800’s technology power grid and recycling the steel, aluminum, and copper hanging from telephone poles as part of the program I will institute to transition our energy to solar power for all residential and business needs.
Remember, solar and battery power is GREEN, it’s CLEAN, and it’s FREE!
Put me on the ballot in all 50 states, and together, we will straighten this mess out, and Strike the Colors on Global Warming.
My name is Morris Kent Thompson and I approve this message.
- What excites you about this campaign?
- While my approach differs, I am excited about the program, particularly, since the man puts his money where his mouth is.
- What do you want to do to help?
- Under my plan the $1 Trillion being spent on updating an outdated power grid could be diverted to this. The government instead of investing in infastructure in Iraq could justify investing in this endeavor as an equity player.
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Have you the numbers and dollar costs for a 10 day battery backup system for your entire grid? Does America even have enough Dilithium Crystals to power the system ?
You will also need to produce more than the average consumption during the sunny days to charge the batteries ? Building extra capacity and reserve is more expensive than the existing grid which is already in place. Batteries only last so long then they have to be replaced.
A PV system produces the same amount of energy over its thirty year life expectancy as it takes to produce the PVs. A solar/thermal system costs less to set up, produces more power, lasts longer and does not need batteries because it can store energy as heat for when the sun doesn't shine.
As home owners reduce their demand for energy the costs of idle capacity will increase the costs of electricity for the customers who are unable to switch to alternate energy.
Solar energy is not free. With photo voltaic cells you are paying up front for the energy needed to make the cell that you will get back over the next 30 years. Most of these cells are manufactured in China. Solar/thermal provides a better energy return on energy investment.
We will still need a new electric grid but it will be local and 'smarter'.
Will your plan accommodate the fact that our baby boomers are entering retirement which will leave us with 4 old people doing nothing with one person in the work force to produce the products and pay the taxes to keep everyone else fed, and repay the National debt and carrying charges ?
Is your proposal to have the Government guarantee bank loans so that the public is liable for the loans they make to their friends and the banks keep the interest ?
Isn't that what happened with the last two bank scandals ?
Why should we believe that your economic theory is any better than Mr. Greenspons theories ?
Thomas Friedman earned a Nobel by showing that inflation was directly related to the rate at which money was introduced to the system. He was in favor of abolishing the Federal Reserve system in favor of a system that would keep the quantity of money going up at a steady rate issued directly by the Government, and cutting back on the fractional reserve banking power of the banks. At the moment, money is owned by private individuals and created by private banks who can loan the money out to individuals of their choosing for purposes they deem suitable to ensure repayment, or hoard it to make the whole economy suffer. You can not have a free market when money is treated like a commodity and all trade is controlled by the person who prints the money.
Thomas started as a 'Keynesian' economist, so he supported Government spending to overcome the recession of the 80's, but did not have a viable answer to why we had 'stagflation' where inflation (prices going up) and recession (people not having any money) occur simultaneously. He did not seem to realize that we have two money systems. When retailers extended credit to their customers they were effectively 'printing money', and the reason that all that extra money did not stimulate the economy was because it was being put into the hands of bankers who do not have to spend the stuff to survive. 'Investing' money does nothing until a product is produced, and banks do not produce anything.
He also believed in 'big market, small Government' where the Government is less than 20% of the GDP. With way more than 50% of the US citizens on the Government payroll directly or indirectly, it is not a free market economy.
Thomas Friedman's theories have not protected us from the present condition. Nothing he said even implied that the Government should borrow money from the bankers to loan it back to the banks so they can loan it to the citizens at interest while taxing the citizens to repay the loans plus interest.
When a Government guarantees a bank loan, it is because no intelligent banker would take the risk. A guaranteed loan is as good as a taxpayer liability. The US economy can not grow fast enough to allow the Government to recover (tax back) the money fast enough to pay for the future costs of running a country and pay off the $13 trillion it already owes, plus the $186 trillion unfunded public security system, while investors are still expected to purchase the $7 trillion of mutual funds held by retirement funds. There is only one taxpayer. Unless money is loaned to businesses that produce food or energy that can be sold in the present marketplace, all this extra money released through guaranteed loans will do nothing more than pay severance packages to people who are being laid off and feed a few people until we have to ask for more money.
It's private ownership of money that is the problem. The bankers have too much power, and everyone wants to be a banker. Money was just supposed to assist with the concept of trade, and interest was a necessary evil to keep hard currency in circulation. Unfortunately, banks loan out 100 and expect 110 back so we either print extra money and cause inflation or we let a lot of people go bankrupt. We either have a lot of little bankruptcies, or we save them up and have a big one - like now. However with current technology it would be possible for a central bank to loan money directly to the user interest free and all of those terrible things that you have described above would be eliminated. It also makes Government much more manageable.
Thank you for joining PP. I look forward to working with you on this historical, once in a lifetime opportunity. Will you gather supporters with petitions? We need your help.
We only have 15 days until Congress is sworn in. Time is of the essence.
Here is the petition:
http://media.pickensplan.com/downloads/PP/pollingsignupsheet.pdf
NO INFLUENCE WITHOUT NUMBERS
Please stop by and let me know how it goes. WE CAN DO THIS!
I have been able to gather hundreds with a simple sentence -
"I am collecting signatures of support for T. Boone PIckens plan to get us off of foreign oil and onto American solutions" then put the petition in front of them. EVERYONE wants to get off foreign oil, we just need to add them to our list!
Let me know if I can help in any way.
Best,
Kim
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