The Newberry Doctrine
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Hi Toolbox Fans,
Here are my thoughts on how to solve the economic crisis and make a huge leap to solving the energy crisis too.
Let’s look at the economy as a horse drawn carriage. The Horse is “Wall Street” and the banking system, and the cart is the consumers, the workers and taxpayers.
The horse has been ill for quite some time. He has a bad case of credit default swaps on top of being afflicted with a batch of CDO’s, SIV’s, and other toxic burdens.
The carriage has two broken wheels.
The first wheel is broken because the consumers are tapped out. The second wheel is broken because consumers cannot keep up with the debt payments they already have.
As you might imagine it is quite difficult for a sick horse to pull this broken cart.
Washington and Wall Street seem to think that the solution lies in “liquidity injections” to the horse..and whipping it harder while they all yell “Go!”.
The very simple and easy to implement solutions are to put the wheels back on the cart!
Here are five easy steps to American Prosperity!
1) Since the nationalization of Fannie and Freddie we are now in the mortgage business, like it or not.
Since we are in… I say we refinance every owner occupied home in America that wants it at 2.5% for 30 years.
I would let every bank in America write the loans and get a $1,500.00 fee, then straight to the holders, Fannie and Freddie. No more middle men.
New home purchases would also qualify if they are going to be owner occupied.
2) I would repeal all income taxes on people making less than 250k per year and make that retroactive back to January 2008 and refund all taxes collected since that point.
3) All Credit Card Debt will be capped at the Fed Funds Rate +8% and the minimum payment requirement will be doubled.
4) 0% interest loans for infrastructure project to include…
- Alternative Energy Production
- A High Speed Rail System from and to Major Airports across America.
- Bridge, Dam and Highway repair projects. Not new construction.
- Disaster Relief and Rebuilding.
5) I would give the big automakers 50 Billion in guaranteed loans providing that all new cars from 2010 and on run on compressed natural gas.
The net effect of my strategies will be felt throughout the economy on every level.
Lower house payments… This will lower the home payment for most people by roughly 30% and provide a nice return for the Gov’t over the term of the loans. The available home inventory would be gone in just a few months and builders could start building again.
Repealing the income tax… On the larger picture, people under 250k per year really are not paying much of the taxes anyway, but allowing people to keep and spend and save and invest that money will be a huge economic force going forward, for generations.
Now that the people can afford their homes, and they can afford their lifestyles, we need to make sure they can pay down their debts. Capping consumer interest at the fed funds rate +8% will allow people to actually pay down their debts. By doubling the minimum payment requirement we can make sure they get that chance.
Now that people have and can spend their money without being ripped off by bankers, we can make sure they have good, high paying American jobs, that cannot be outsourced by making 0% interest loans to companies that want to build the infrastructure projects, here in America.
To ensure a strong economy for the future we need an infrastructure that can run on renewable energy. Bullet trains will run on nuclear power… but a plane will not.
Finally, I would be in favor of guaranteed loans to the automakers if they convert all production models to compressed natural gas. This is a clean, abundant and American fuel source that we actually have the technology to use NOW.
I predict that the first political campaign to adopt these simple policies would be swept into office in a landslide victory.
The retailers would be hiring like mad to keep up with the customers. Business on every level would be booming and soon enough the bankers on Wall Street would “work out their own problems”.. most likely with a lot less leverage.
If we put the wheels back on the cart, even a sick horse could pull it!
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Please copy and forward this idea to everyone you can.
Senators, Congressmen, Political Parties The Media… EVERYONE!
We need to make the Government work for the PEOPLE for a change and this solution will change everything… overnight!
Please post your comments below…
Sincerely,
Doug Newberry
Media inquiries welcome.
8 Responses to “The Newberry Doctrine”
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That makes too much sense. You better be prepared to be marginalized like Ron Paul.
This is truly pathetic. We are currently in the bursting of the vast bubble created by several factors, I suggest: easy, easier money for years, fostered by the clever Alan Greenspan who, despite his years, got out just in time and was nimble enough to secure about $8-9 million advance on his mediocre book; then we had the over-leveraging of their capital by legions of bankers, investment houses, hedge funds, etc. etc. who were \\" levered \\\’ ( a neologism I did not invent ) by 30- 40% or more on their capital and, finally, the total lack of enforecement of any meaningful accounting standards. How can accounting firms allow their clients to have \\" OFF-THE BOOKS \\" LIABILITIES in sivs. cdos, etc. etc. to the extent of billions of dollars – so that looking at the books of the great Citigroup, Merrill Lynch, et al. was useless – because the extent of their unknown liabilities and value-less assets was unknown and unknowable. What ever became of FASB or, for that matter, the SEC????
That sounds like a great plan. Such a perfect way to discourage greed on the corporate side and encourage responsibility on the consumer side.
Wanting consumers to constantly be mired in debt so that they can forever owe these people was the spark and with their successful lobbying, deregulation was the TNT. Now look at the mess they created. Funny how these so-called “great” companies are now welfare recipients.
Dear Doug, I couldn’t agree with you more with all points except one very large one! First of all, I want you to know that I am a huge fan of a man by the name of Peter Schiff, have you heard of him? That being said, are you aware of his view on interest rates ( and credit)? I happen to agree with him 100%. After listening to your view and many others since the mid 1970′s and determining that those views have not helped me personally one iota. As a matter of fact all of you people have been enjoying low interest rates on the backs of people like me who have had to suffer by not getting s#*@ for over 35years on my savings. So, in fact, it is only through my suffering that people who refuse to live within their means get rewarded. And to top it off, they still can’t pay and they drag others down with them. The solution is very easy, just have a meeting with Bernankie and company to “fix” the economy then do the exact opposite and give them all their last government sponsored pay checks and tell them all that their “services” will no longer be needed.
BIGGER FISH TO FRY: If China and other countries adopt the gold standard which they are talking about doing they will beat us to the punch and things will get much worse for this country.
To sum up the solution, “we need to put the money back in the hands of the masses”. This plan recapitalizes the consumer and lays the foundation for business growth, which in turn will generate tax revenue. Call it “trickle-up” economics.
Sounds great to me. There should be a reasonable limit to interest rates on credit cards. How would you keep inflation in check? It sounds like it would create such a massive economic train that consumers would drive prices through the roof until we ended back in the same boat. I don’t mind paying enough tax to maintain a strong military defense also.
#6 Make the FICA tax 15.3%(7.65% from employee, 7.65% from employer) apply to all income instead of capping it at the first $102,000. After the first $102,000 the employee could pick up the employer portion and pay the full 15.3%.(like a tip) I think our seniors deserve our help.
Doug: your plan is ‘way too easy’.
The Tax Lawyers and lobbyists will never go for it.
WHEN do we get started ? I’m in.
call me, we’ll do lunch.
Doug,I’m a fan of yours already since your first live interview show the other night. You have a very good perspective on alot of things.This doctrine thing of yours is really a great way to stop alot of things that have gone wrong in our country and if it were acted upon it would bring prosperity back to the country.
NOW,if we could only clean our politicians up,and get back to government of the people by the people and for the people in a constitutional republic as we were founded to be. thanks friend, Charlie from central N.Y.