The Bear Aug. 08.07

I check out a guy, pretty well known, been aroudn forever - lyndon LaRouche. He seems to think that US system is collapsed, and that its time for a "New New deal in American Politics."

One reason why I believe his warnings are headlines like this:
China threatens 'nuclear option' of dollar sales - Telegraph

Just that they could even threaten this means that they have the capability to do so,
which means our economy is missing a 'national' perspective.'

Anyway, what this guy proposes is this:\
- I. National Infrastructure Bank -
At the top of the entire effort must be a Federal credit mechanism, shown on the schematic here as the National Infrastructure Bank. This facility can be established under the powers of Congress, authorizing it to create debt for the sole purpose of funding approved infrastructure projects--the direct costs, the inputs, and all functions related to accomplishing the job. Thus it operates as a capital source, outside the demands and constraints of the Federal operating budget. Loans can be made at the rate of 1-2% interest, and the appropriate long-term conditions will apply.


- II. Economic Recovery Act -
On the next tier, comes the function of directing the effort and funding for restoring the industrial and infrastructure-building capacity of the nation. As originally laid out, the Economic Recovery Act of 2006 focussed on stopping the takedown of the auto/machine-tool sector, by creating a Federal public corporation to assume control of, and operate--directly, or by contract--the discarded and unused plant-and-equipment capacity of the automobile/auto-supply sector. The entity was called the Federal Infrastructure Plants Corporation, and would also utilize unused facilities in other sectors such as military bases, shipyards, fabricating plants, and so on. In turn, this capacity could be retooled to produce, along with remaining corporate manufacturing, the array of components necessary to refurbish decaying infrastructure: bridge trusses, flood gates, lock valves, and all the rest, simple or complicated. Among the precedents, is the famous period of World War II, when auto plants were converted to tank, truck, and aircraft assembly lines.


- III. Legislative Initiatives -
The third tier of this recovery picture involves carrying out the various Federal, state and local projects qualified as part of the recovery effort. The schematic illustrates the combined effect this infrastructure drive will have on reviving various productive sectors, from machine tools, to agriculture, to manufacturing capacity.




copy and pasted from here:

A Table of Organization for U.S. Economic Recovery | LaRouche Political Action Committee

I tend to think that this is what is needed now. One thing that the Republicans always confuse me on is that they cry 'no more govt spending' 'im a fiscal conservative', but yet Alexander Hamilton, the man who built up our national economy in the first place, did so through govt spending, govt regulation, govt owned banks, etc. Push through Congress laws that will re-write jurisdictional issues over outsourcing. Tax hedge funds. Establish US jurisdiction in the cayman islands if you have to.