The mass
spending and printing of money is reaching dangerously high levels. From 2000
through 2007, the money supply rose on average by $351 billion a year, with
annual growth once exceeding $400 billion. In 2008, the money supply grew
by $691 billion thanks to the last stimulus package which failed miserably.
This year growth will surpass $1 trillion.
The national
debt will soar beyond 12 trillion before year end if this spending continues. A
declining GDP makes it virtually impossible to shrink the national debt.
If this trend continues, the only way out in the coming years will be through
rampant inflation.
Government does not create jobs, capital does and we learned in the 60’s and
70’s that if you tax it all away recession is the by-product. We learned
in the 00’s if capital is not properly regulated and greed goes unchecked, wealth
evaporates. In the 10’s, if government spending is not curbed and the
Neighborhood Recovery Act is not enacted declining real estate will insure
massive debt will accumulate beyond our taxpayers ability to pay the interest
let alone the principal. The increases in the U.S. money supply are eerily
similar to the levels of Continental dollars issued by the U.S. government in
the 1770's and 80's. The later resulted in hyper-inflation of the Continental
Dollar, which was not backed by either gold or silver.
So it was in
the 18th Century, a collapse of the United States Currency and government, and
so will it be in the 21st Century if spending isn't curbed and the private
sector empowered to purchase residential real estate. If we fail, the
re-occurrence of hyper-inflation will prove to be the most devastating baby
boomer economic lesson of all.
In our
current state a world return to a
Bretton Woods system
gold/silver standard will be a near impossibility leaving very few
constitutional options to preserve the republic fiscally. Perhaps the State Legislatures will realize the ultimate constitutional power lies
within their chambers. According to the current U.S. Constitution in Article V:
"The Congress, whenever two thirds of both
Houses shall deem it necessary, shall propose Amendments to this Constitution,
or, on the Application of the Legislatures of two
thirds of the several States, shall call a Convention for proposing Amendments,
which, in either Case, shall be valid to all Intents and Purposes, as
part of this Constitution, when ratified by the Legislatures of three fourths of
the several States"
In other
words, the method prescribed
above is for a Constitutional Convention to be called by two-thirds of the
legislatures of the States, and for that body to propose one or more amendments.
These amendments, once adopted by the Convention, are then sent directly to the
states to be approved by three-fourths of the legislatures or conventions.
This path has never been taken.In such a
convention, as the founders did in 1787 under the first constitution, each State
Delegation would have only one vote. Unlike in Congressional amendments
also prescribed in Article V, small States would hold the same powers of constitutional
change as the large States. The Delegates, in reality, could re-invent
the United States for a third time forming an entirely new government that could
preserve the Perpetual Union in a radically new constitutional form.
[1]
Klos Stanley, Neighborhood Recovery Act, September 17, 2009,
www.uspresidency.com/recovery
[2]
Klos, Stanley, Uncommon Sense - An analysis of the U.S. Economy With
Solutions For the Current Recession, RE/MAX of Pennsylvania n/w,
Carnegie, PA - 1992
[5]
Blum, John Morton, "Roosevelt and Morgenthau ", Published by Houghton
Mifflin, 1970, page 256
[6]
From: 2009 NAR President Charles McMillan [mailto:NAR@newsletters.realtor.org]
Sent: Sunday, February 22, 2009 11:02 AM
To: sklos1@tampabay.rr.com
Subject: REALTORS(R) Score Big Win for Housing
Dear Fellow REALTOR®,
For nearly four months, NAR has been working to
deliver to you and to our nation a comprehensive plan to stabilize the
housing market.
This week, we saw countless hours of hard work
pay off – in a MAJOR way – when the federal government implemented NAR's
recommendations to stimulate housing with the signing of the American
Recovery and Reinvestment Act of 2009.
This bold and unprecedented move to help housing
did not happen by chance. Just a few months ago, the auto industry had
Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and
public pressure that we – the REALTORS® of America – placed on lawmakers in
Washington, D.C., housing emerged as the top priority in the new
Administration and in Congress. While some of the items in the Act are
controversial and are currently being debated, most of our top priorities
were addressed.
Thanks to all of our hard work, America’s
homebuyers and homeowners will soon have:
1. Lower interest rates for home
mortgages;
2. A greater ability to get
financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
3. A true tax credit incentive to
buy a home NOW; and
4. Foreclosure mitigation and
short-sale standards.
As a direct result of NAR's advocacy, we hope
REALTORS® will see an increase in home sales this year. NAR also continues
to make significant progress on our efforts to unclog the pipeline for
foreclosures and to address administrative problems with short sales.
Such significant movement on these critical
issues is rare. I personally thank and congratulate each and every member of
the National Association of REALTORS® for helping to make NAR's Housing
Stimulus Plan a reality. For more information and details on these new laws
and programs, visit the Unlock America's Economy Page on Realtor.org:
Make no mistake -- we're just getting started.
NAR will continue to push for other important laws and policies that can
help you in your business. From keeping banks out of real estate to
providing you with affordable health coverage, you can count on the "Voice
for Real Estate" to help you gain an advantage in every kind of market.
That's the power of NAR, and it's why I am proud
to be a member and to serve as your 2009 President.
Once again, thank you all, and keep up the great
work!
The economic recovery bill tackles mortgages,
loans and interest rates. Obama's plan, unveiled in a suburb of the
mortgage-strapped city of Phoenix, specifically targets two groups of
homeowners who have been hurt by the mortgage crisis.
First, some 4 million to 5 million families who
have seen their home values drop, but are not at risk of foreclosure, would
now be able to refinance into new mortgages.
The other group, 3 million to 4 million
homeowners with adjustable-rate mortgages, would be able to temporarily have
their loans modified to a lower interest rate -- for at least five years.
The cost was not initially clear, but just one
aspect of this plan was given a $75 billion price tag. The overall program
is likely to well exceed that.
