The 700 Billion to possible 2 Trillion Challenge
The 700b to possible 2 Trillion challenge- I posted this as a reply on another thread, but I am too interested in seeing how all of you would spend it if you were in charge. This challenge goes out to Chris Martenson and Erik Townsend as well, all the staff of CM.com, and all of our multitude of backgrounds and opinions we users have here.
OK here we go. You are Paulson, or Congress, or anyone in power in the United States controlling bailout money from 700 Billion to a possible 2 Trillion fully or more in the future. How would you allocate it? List how and why, and let’s see how everyone comes up with ideas to help, solve or fail at saving the economy and the citizens of the US and the world as a result. Don’t just list like GM without an explanation why. Also explain how you expect to get a return on your investment in the future or how a return will stimulate the economy, create jobs, etc.
Don’t be shy, all ideas are welcome. Go for it and let’s see how really good you all are at this. I will list my plan later after you all have shown me some examples of what you think to do.
I’d probably weigh out all of the morals and good intentions I had when I pursued a political career, subtract the ones that I’d lost over the last few years and then on that consideration examine the current predicament. From that realize that the situation created is so god awful that it is beyond one person’s action’s to repair, excluding actions that would be so unpopular with the uninformed masses (imposing social changes), or unpopular with the people who’d kill me to protect their quadrillions already invested in this failing system (fed and whatever lies in it’s shadows). I might just have to organize some way to ensure I and those I know would benefit most to put us in the best possible situation for survival of the coming "new world order". A new order which will probably have a bumpy launch requiring much stick and little carrot persuasion on those less financially or politically well connected.
Maybe I could be so lucky as to have worked for a major financial institution like goldman Sachs, boy that would give me some great possibilities there. But who am I fooling myself. What are the chances of someone like Paulson having to be concerned about a massive montary policy mistake, an absence of morals, or be so lucky as to have had a major bank tie in recent history, or a general populace and capitol hill too incapabale or frightened to question any of my self interested actions……….
Investment would be my answer, tough love investment. 3 trillion smackaroos are alot of greenbacks. And while it might be tempting to go get them changed out for tens and twenties and build an escape ladder to the moon (I think it would reach), there is alot of good that it could do.
A couple thoughts off of my less than capable to fix such a massive problem mind are:
Infrastructure rebuilding. I’m pretty sure 3T would cover both the road/bridge issue and implement a smart grid system. Could potentially create a nice bit of jobs for a bit while it was done too.
Buy canada? 3,000,000,000,000 / Canada — Population: 33,390,141 (July 2007 est.) = That’s like 100k bucks for every person in canada. Then use their unexploited resources and surplus loonies.
Bail out china, buy up all their treasury offers.
Build 500 nuclear reactors and a great energy management solution like Beacon Power’s Energy storage flywheels installed nationwide and a hydrogen fuel cell system for automotive. (Last part would be off the budget of 3T, oh well)
Give everyone in america a puppy and a year’s supply of food?
Offer a 1 trillion dollar reward to the first company to come up with a solid comprehensive and executable solution to the national energy situation and then spend 2 trillion implementing it.
Create a 1 billion dollar federal lottery, use a balloon annuity payout or 20% cash option. Charge $20 a ticket, have bad odds, use the extra money generated for.. something.
massage and spa retreats. Hey failing banks get to, why not failing governments?
A comprehensive cloning program to bring back the founding father’s, genetically imbue them with old school Stallone and Arnold the Governator physical prowess and unleash them on capitol hill.
If I was to put any money in any companies it would be with huge demands and little lee-way. someone had a great idea on requiring auto industry to produce 100mpg cars.
Yeah I guess I have no great ideas.
No dude, your ideas are cool. Everyone’s opinion or ideas here are important. I like the cloning and buy Canada part.
I’m not a fan of printing money, but what I would have done was to give it to the people. Perhaps on a sliding scale to incomes up to $100K, people would have gotten up to say $5K. With this, they could have(I know I would have) paid off debts. Debts that were paid off would obviously end up back in the bank. This would do 2 things: help people pay off debt and re-capitalize the banks.
Other ideas that make too much sense to do: Cut the size of our military, balance the federal budget, pay down our debts, raise interest rates, end the federal reserve.
Ben Bernanke will keep printing money until he runs out of trees – Jim Rogers
Very interesting challenge,
1) I would not give one dime to any business unless they can produce a viable business plan with reasonable projections that they would be healthy after the ressesion or depression was over.
2) Re-align peoples housing costs to match there income. This could be done in many ways:
a) the new law in place is an easy method of fixing this problem, however it rewards foolish people for spending over what their income allows.
b) move people to a home they can afford, but this will be an enormous upheval and we would have many many empty larger homes that would soon go into disrepair becoming worthless or worse.
c) Let the forclosure process takes it’s course, potential caos for a long while
Comment: No fun answers here. I lean twards a) due to it would be have the least upheval.
3) Develop public works jobs. Our infrastructure is in desperate need of repair, so lets fix it.
4) Develop jobs in renewable energy (wind, geo-thermal, etc.). Make studies of all areas of the US, make sure all possible renewable methods are being used.
5) Develop jobs in urban areas to remove abandon buildings. This would reduce crime, infestation, make it easier for businesses to have sights to rebuild and we could reclaim materials like steel for other uses.
Comment: 3), 4) and 5) are to keep people working and rebuild.
6) While this is happening: We need to look at restructuring our monitary system from a fiat system.
This is what I would have done. What do you think??
Make all people in power take courses in economics, sustainability, applied sciences and social sciences. If Paulson had taken my sustainability class he would have failed and been forced to pick a new major. I am not saying being educated will solve all the problems, but it always helps. I know a copy of the crash course for congress is less than 2 trillion. 🙂
It’s hard to know whether you did indeed turn the sarcasm off…. nukes? Really? And Hydrogen? More fantasy land… go read https://www.peakprosperity.com/forum/peak-oil-not-peak-energy
You can’t spend your way out of this mess. The debts must be canceled. If you don’t cancel the debts, the problem remain, and there’s simply not enough money available to fix the debt problem. Debt IS the problem, it’s like a cancer, and it must be cut out.
Once you get rid of debt, THEN you can start thinking about spending all this dough.
Call me back after the Jubilee…..
OK Matrix, let’s not criticize anyone.
This topic is for what you would do if you were in power and had to make the decisions, so it is open to all ideas dealing with the issues we have now in front of us. Paulson looks like he is getting his hands smacked. So you are the new Treasury Secretary, or Obama, or Congress or whoever. What would you do? That’s what this is for, not criticizing ideas. Once we get a lot of people to participate in this discussion, then we can talk about the ideas presented. If your solution is the cancelling of debt, then that’s your plan, so you have not spent 2 Trillion on anything or spent anything at all. After more members comment on what they would do or plans they would have for this, we can also comment on what you would do, debt forgiveness, not spending anything and the ramifications of this.
Say I managed to cancel all the debts….. I would start spending your bundle of cash on Railroads. All electric, all powered by new renewable energy.
Rail could probably be built in the middle of freeways where grades are mostly flat, and this would save a lot of hassles resuming properties.
I’d put a $5 a gallon tax on gas too. Let’s face it, now nobody has debts to pay off, they can afford it, and this gives a price signal to reduce consumption… might even raise loads of cash for the new sustainable infrastructure.
I’d convert all the GM and Ford factories into wind turbine and solar concentrator manufacturing centres. Best to use all the left over resources doing something worthwhile…
I’d also implement an education regime to teach school kids Permaculture. They’ll need to know how to grow food without oil and gas in the very near term and they are after all the new kids on the block who will feed us in our old age. This is already starting to happen in Australia you might be surprised to learn..
Oh one other thing…. why do all your posts have acres of blank space at the bottom of them?
OK now your being critical about my Whitespace. Just kidding. OK, well. I need to do my posts in Word and then paste them into CM.com because they have a bug that if you use the spellchecker too much, it will crash the website, so I guess the Whitespace is an effect of cutting and pasting. I will try to do my pasting better so your not so bothered by this.
As for your comment about cancelling the debt, that’s not the question. The question is what would you do with CURRENT CONDITIONS we are facing. Since you are so centered on canceling the debt as a basis, I guess we will need to comment on this now since you don’t get the question here.
Cancelling the debt will never, ever, in a million years, if aliens land on the planet, if Gandhi comes back with his head and the body of a Cow, or Jesus pops up in a Disco, ever ever ever happen. SO basing your ideas on cancelling the debt as a starter is not only unrealistic, it’s delusional. It’s not only unfair to people who have PAID debt on time, the fallout alone would cause massive problems never seen before because we have never done it, starting with rioting from people (the masses by the way) who are paying off things on time like mortgages and car payments. Debt is NEVER and I repeat NEVER forgiven. It is simply sold to someone stronger to collect from you regardless. Or you can simply not pay and be thrown out of your house. DEBT and TAXES will never go away in your or my lifetime.
SO let me state this in a way your Matrix obsessed mind can understand it. YOU ARE OBAMA, what would your do with 700 Billion to 2 Trillion dollars if it was allocated to you to spend, without debt forgiveness, taxes abolished, the Federal Reserve closed or whatever else you come up with. In other words, THE CONDITIONS WE LIVE WITH NOW, NOT THE MATRIX. Understand? Or do I need to spend more time with this?