Posted by Armstrong Economics 3/5/2016 10:53:43 AM
Blog/2016 U.S. Presidential Election
Posted Feb 29, 2016 by Martin Armstrong
QUESTION: Mr. Armstrong; Why do you not advise Trump as Rubio and the Media demand details from him but not from anyone else as to their economic plan?
ANSWER: I do not advise Trump. If he really wants to make an impact, he should watch the “Solution” DVD. If he demonstrated that we need major reform because we are going broke under the management of career politicians, then he might attract more people who are on the fence. Let’s be realistic. Those supporting Trump distrust government politicians. They really do not care about his message. I would prefer Trump, not for any policy, opposed to any career politician who would bring the same line of thinking to the table. A career politician will not think out of the box and will blast us with more regulation and taxes that will kill the economy. They will continue to hunt money until nothing is left for us but total enslavement, and that does not matter if we are talking about Rubio or Hillary.
Obama stuffed Christine Lagarde in the IMF and that has been far more devastating than any appointment to the Supreme Court. She has destroyed the global economy by threatening countries to hand over their info on everyone (except exempt politicians like her, of course) so they can hunt money absolutely everywhere. They do not look at the net result and only look at the world through their own greedy eyes. I would hope Trump would look at this as a businessman and say, “You people are nuts.”
The standard of living for families is declining — not because the “rich” are making more from investment — because the government continues to raise taxes and rob our savings that they pretend are there for retirement. In reality, they keep lowering benefits because they stole all the money. Anyone in the private sector who did this would be in jail. We are prosecuted for fraud in the private sector, but fraud in public sector is rewarded and called “politics.”
Advice for Trump
- Eliminate all taxes whatsoever if you are not present to use such services. Eliminating taxes would allow for greater savings, and citizens would be required to save a portion of their income. Instead of QE for bankers, eliminate taxes and try QE for the people.
- We will not raise the minimum wage. Instead, we will eliminate payroll taxes and stop borrowing from the poor as it robs them of interest. Currently, they receive a refund check so they think politicians are fantastic.
- No person should have to pay more than 15% of their salary to state and local government. If a government needs more, then something is wrong and they need to reform.
- Eliminate property taxes. You should be able to retire without having to cope with rising property taxes.
- Eliminate Social Security for those under 50 and pay out those over 50. Replace Social Security with mandatory 401K investment plans.
- Eliminate domestic corporate taxation. This will provide the incentive to bring jobs home.
Government spending and policy:
- Stop government borrowing. Limit the creation of new money to 5% of GDP (I do not want to hear that will be inflationary since QE failed to produce inflation, which is all about confidence and not the quantity of money). At times, up to 70% of the national debt has been accumulated interest.
- All government pensions must be eliminated. Part of the QE process should be the bailout of pension systems for government workers and end the process.
- Retire the national debt; stop borrowing federally and competing with the private sector for capital.
- Return the central bank to the original design of 1913. Eliminating government debt will do the job. During economic declines, the Fed should buy corporate short-term paper with its “elastic money,” which will compensate for banks when they stop lending. Short-term corporate paper would actually be paid off and that would then contract the money supply back to its original state prior to the crisis.
- Merge SEC & CFTC so advisers can provide advice on the best investments rather than just what they have a license for in equities vs. futures.
- Judicial reform is mandatory. I would retire ALL federal judges and nominate replacements by their legal profession. Penalties for bribes and such would be life imprisonment or death — the person the judge illegally sentenced would choose.
- Expand the Supreme Court and make it an ABSOLUTE right to be heard rather than winning a lottery. Moreover, a panel of judges nominated by the legal community shall determine the constitutionality of ALL legislation BEFORE it is enacted. It should never be the burden of the citizen to PROVE the government is acting unconstitutionally. The Constitution is NEGATIVE and was intended to be a “restraint” upon government. ALL LIVES matter — do this and they will.
- Reform the Grand Jury process. Both sides should be allowed to present ALL evidence to the Grand Jury and they alone will decide to indict. State prosecutors who protect police should be in prison.
- Restitute the Roman position of Tribune of the people. The Tribune would be citizens who prosecute government employees from police up to judges and politicians. Then, and only then, will the system clean out.
- Forgive all student loans and end subsidization for college. Without competition, the education is worthless anyhow.
- Restore the Roman system of apprenticeship. In Switzerland, less than 10% of students go to college. They enter an apprenticeship in the field they desire. Learning in the real world is far better than theory.
- Reform lawsuits that cap jury awards to reduce medical costs
- Introduce artificial intelligence systems that can provide reliable diagnoses. Hospitals are turning into big corporate businesses that reduce family doctors.
- Eliminate medical expenses as a liability so they cannot take someone’s home or put them into bankruptcy (opposite of what Clintons did to students). This will cause healthcare to have a normal business cycle. The current healthcare system is an extortion that is like government consuming a larger proportion of disposable income. Return hospitals to their Hippocratic Oath and FIRST take care of anyone irrespective of money (i.e. end Obamacare).
- Eliminate TSA at airports. You would be cleared as to whom you are, and there would be no need for x-rays or strip searches if you are known to be a normal citizen. Foreign visitors should go through TSA if they do not have prior clearance.
This is the start of my short list of policies that I would advise Trump to adopt. Then he just might beat everyone in history with the percentage of the popular vote exceeding 65%.