Charles Skelley: A beginning, not an end

This Presidential preference campaign has been exciting, and I want to commend editor Jim Nintzel for his efforts to help all of the Project White House candidates. I also want to thank the people of Arizona who voted for me.

My own campaign has emphasized “change for the better” and also “conservatively trying to keep the US from self-destructing”. If a society does not learn from the past — it follows that when such a society is heading downhill, there are many impulses to continue doing the things that are self-destructive.

For example, since 1971, the US Federal Government has been following president Nixon’s statement, “We are all Keynesians now.” But Keynesian economics is essentially a price-supporting tool, not a method of stimulating the productive part of a nation’s economy. Keynesian economics tends to make the long-term outlook much worse, in exchange for a very small benefit in the present time. By contrast, Adam Smith’s economics is the proper and effective method to use when trying to stimulate a nation’s economy, and Smithian economics was used successfully in the US from 1776 to 1971.

Eventually the Federal Government will either drop Keynesian economics, and switch back to Adam Smith’s economic principles — or the US will soon collapse under a mountain of debt, and a shortage of Productive activity.

My campaign has been trying to teach the general public, including the media, that the US needs to have its political candidates declare that they intend to follow Adam Smith’s economic principles. I have been showing examples of where and how Adam Smith’s principles can be applied.

It would not be proper for me to concede on these campaign principles.

On another topic, I want to draw attention to a very positive trend in Republican politics this year on the national level. A Republican candidate with a comparatively small budget, and none of the traditional Republican spin-strategists, is gathering big percentages of the Republican primary votes in several states. That candidate is Mike Huckabee, former Governor of Arkansas.

Due to the “favorite son” phenomenon of John McCain in Arizona, Huckabee did not draw a large percentage of Republican votes in Arizona. But let’s not be misled by our local Arizona situation for Huckabee (opposing a favorite son candidate). A big change appears to be taking place in Republican politics at the national level, where modest funding can produce big results. For future encores of Project White House, I feel it would be beneficial to partially imitate this year’s campaign of Mike Huckabee. By that I mean starting substantially earlier before the preference election, obtaining small amounts of public and/or private funding for Project White House from activist organizations, and making more public appearances.

This year’s campaign has been a beginning – a constructive beginning. The future can be even better.

Charles Skelley: Adam Smith’s economic principles can show how to correct the 35-year collapse of US Personal Saving

Various data inside the Grandfather Economic Report indicate that during 2006 the statistically average 2.5-person household in the US is burdened by approximately $409,000 of debt in various forms.

The average household has $123,000 for Financial sector debt (home mortgages to a government agency such as Ginnie Mae or Freddie Mac; plus debt to financing subsidiaries of manufacturers for previously purchased cars, trucks, etc.). The average household also supports another $111,000 in debt for Household Debt (home equity loans, credit cards, etc.). And it owes $15,000 to foreigners. But that amount of debt is still nowhere near enough debt to lift today’s 2.5-person household out of debt-poverty. So the family breadwinner hopes to find a desirable job where the employer helps out by borrowing $78,000 of Business Debt (i.e. corporate debt) to support “working capital” for each US household. The combined Federal, State, and Local governments are helping out by allowing that average 2.5-person household to make payments on $80,000 of Federal Government Debt plus $2,000 of State and Local government Debt. Thus during 2006, the total adds up to approximately $409K of debt being supported by this average 2.5-person household in the US.

The Federal government is doing this to its own people. Total US debt per US household is now increasing by $30K per year. The US today is at the end of a 40 year debt-expansion bubble, which is close to bursting.

Economic principles of Adam Smith are the probably the only way to get out of this debt-bubble in a pleasant way. Smithian economics says Continue reading

Charles Skelley: GAO “Wake Up” tour is in Tucson Jan 31 at 10 AM

My Presidential campaign will be attending this GAO event. And everyone who is interested in the future of the United States should also attend: Thursday Jan 31, 2008 at 10 AM

David Walker’s presentation in Tucson tomorrow Jan 31 is likely to be similar to his GAO presentation Jan 9, 2008, which is outlined on the internet as a collection of 35 images: 

Here is David Walker’s image # 19 in that set of 35 images.

THE WAY FORWARD:
FUNDAMENTALLY REEXAMINE & TRANSFORM

  • Restructure existing entitlement programs
  • Reexamine and restructure the base of all other spending
  • Review & revise existing tax policy, including tax preferences and enforcement programs
  • Expand scrutiny of all proposed new programs, policies, or activities
  • Reengineer internal agency structures and processes, including more emphasis on long-term planning, integrating federal activities, and partnering with others both domestically and internationally
  • Strengthen and systematize Congressional oversight processes
  • Increase transparency associated with government contracts and other selected items
  • Consider a capable, credible, bi-partisan budget, entitlement, and tax reform commission

From the Tucson Citizen:

Head of GAO to talk on downturn, U.S. budget David Walker, U.S. Comptroller General and director of the Government Accountability Office, will discuss the economic downturn and the status of the federal budget at 10 a.m. Thursday at the YWCA Auditorium, 525 N. Bonita Ave. The lecture is part of the national Fiscal Wake-Up Tour, sponsored by the GAO, the Brookings Institution, the Heritage Foundation and several other entities. RSVPs are requested by 10 a.m. Wednesday by calling 881-3588. Congresswoman Gabrielle Giffords is hosting the event.

Charles Skelley: The US can generate 69% of its electricity from solar by 2050, generate 3 million new domestic jobs, switch to plug-in hybrid cars, reduce imported petroleum costs by $300 billion per year (referenced to 2007 dollars) and reduce CO2 emissions by 92% in 2100.

Quoting from Scientific American magazine:

It is paramount that major market incentives [for photovoltaic energy] remain in effect through 2020, to set the stage for self-sustained growth thereafter. In extending our model to 2050, we have been conservative. We do not include any technological or cost improvements beyond 2020. We also assume that energy demand will grow nationally by 1 percent a year. In this scenario, by 2050 solar power plants will supply 69 percent of U.S. electricity and 35 percent of total U.S. energy. This quantity includes enough to supply all the electricity consumed by 344 million plug-in hybrid vehicles, which would displace their gasoline counterparts, key to reducing dependence on foreign oil and to mitigating greenhouse gas emissions. Some three million new Continue reading

Charles Skelley: Adam Smith’s economics shows how to cure both the US Social security and healthcare problems

Life expectancy for US citizens at the age of 60 years has increased by 3 years since 1983, the last time Social Security was reformed. Therefore it is logical to study the effects of delaying the start of Social Security benefits by 3 years. A three-year delay could move the SS program closer to the degree of solvency it had when the Greenspan commission reform was activated in 1983. The following life expectancy table suggests that a 3 year delay probably would average about 17% decrease in lifetime benefits for future SS retirees.

My Presidential program advocates sharing the burden of Social Security reform among all US generations. So I expect a 1.5 year delay for starting to collect Social security benefits is fair IF SIMULTANEOUSLY all current retirees have their SS benefits reduced by a total of 9%, in three increments of 3% per year.

But a careful inspection of the life expectancy table, when viewed from the perspective of Adam Smith’s economics, also shows where another serious problem Continue reading

Charles Skelley: It is time for a bipartisan “city’s rights” initiative in the US

I believe the time has come to group several big US cities together in a new economic unit, which will have “city’s’ rights”. Some basic models for my “city’s rights” program come from the Renaissance era in Europe. Wikipedia has several articles which discuss “City Rights” inside various countries: Netherlands and Germany; also Sweden and the United Kingdom.

Also the Hanseatic League cities of northern Europe were autonomous.

In regard to the US today, there are several Democrat big cities which probably deserve an opportunity to set up their own Federal “big government” programs which would only apply inside these “city’s rights” communities. Meanwhile the Federal Government would continue to supply the whole US with a group of “small government” programs, including even the cities which participate in my “city’s rights” initiative. In this way US citizens could choose whether to live in a “big government” region or in a “small government” region of the US. Here is a preliminary list of big cities (CSA’s) which I might invite to participate in my “Cities Rights” initiative. The following 11 CSA’s contain a combined 1/4 of the US population.

2003 population

Greater New York 18.0 million

Greater Los Angeles 12.9 million

Chicago 9.5 million

Philadelphia 5.8 million

Detroit 4.5 million

S. F. Bay Area 4.2 million

Baltimore 2.7 million

Boston 4.5 million

Seattle 3.3 million

Washington DC 5.2 million

Las Vegas 1.8 million

—————

combined population 72.4 million

Charles Skelley: The Constitutional mandate to punish $53 Trillion of counterfeit US securities

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Quoting the Constitution of the USA:

Article 1, Section 8: The Powers of Congress

“To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;”

When interpreting the US Constitution, wherever it says Congress “may” do something, the Constitution actually means Congress “must” do something. Therefore Congress itself “must” get rid of all these $53 trillion of “Unfunded Liabilities” (= counterfeit securities) which the Government Accounting Office has identified, and has declared to be endangering the continued existence of our US way of life.

The problem to date seems to center on Congress’s failure to provide “punishment” for itself, both as a whole and for its individual members, in regard to legislating $53 Trillion of off-budget (counterfeit) debt chargeable to “we the people”.

In other words, the US today is facing a mirror image of the Trust problem that Theodore Roosevelt confronted. But today it is Congress which is abusing the powers “entrusted” to it under the Constitution, and using that leverage to endanger the stability of our US way of life.

Consequently, as President, I will ask the US Supreme Court to step in and save our way of life.

Perhaps this will end up with a requirement for the Federal Government to operate with balanced budgets each and every year (and end Federal off-budget accounting), just as State and Local Governments have been doing for many decades.