Today there are two posts. DO NOT miss Courage + Love = Unstoppable Force. It won’t take much of your time and you will be glad you did, I promise.
This has been an interesting, if not a bit strange, week for this blogger. On Moday, I wrote about Fed Chairman Ben Bernanke’s Quantitative Easing (QE) policies and why sooner or later we will suffer some serious inflation. On Tuesday’s post, I asked if Mitt Romney was too nice and wondered when his campaign would go on offense. I made the argument that Romney needed to win by a landslide if he wanted the mandate he will need to make the changes this country so desperately needs. Then, on Thursday, I made a case that Romney will win by a landslide. And now, on Friday, I am going to be so bold as to offer a new President Romney some advice.
First, let me say that I believe Mitt Romney will win because I believe enough Americans have woken up to the fact that Barack Obama is not the Messiah that the media and the Kool-Aid drinkers purported him to be. Likewise, conservatives understand that Romney will be no Messiah either. We conservatives know that a President Romney will likely promote some policies that we will not like. Policies that will perpetuate big government statism. In the Monday post, I suggested that if people want to avoid the pain of serious inflation, they should vote for Obama, because we know he will do nothing to inspire a burst of economic growth and, therefore, the day of reckoning of QE induced inflation will be delayed. A Romney presidency, on the other hand, will make changes that are likely to spur our economy into action and that, as I said in that Monday post, will unleash the QE caused pent-up inflation to commence. I expressed my opinion that this inflation that we Americans must accept as the price of years of bad fiscal and bad monetary policies. I, also explained, that the Fed would have to maintain their zero interest rate policy long after the economy starts to heat up. Normally the Fed would raise interest rates to combat inflation, but they know they can’t without throwing the economy back into recession or worse.
Although Romney has a 59 point plan and a five point plan, let’s focus on what he has said he would do to get our economy growing again and, as he has said, put 12 million people back to work over four years.
To get our economy growing and to promote job creation and to help make American businesses more competetive im world markets, Mitt Romney has said, as President, he would push to lower corporate tax rate from 35% to 25%, eliminate most if not all deductions or loopholes from our current tax code, he would repeal regulations that are punitive and do not serve society in general, and he said he would open up our coastlines and federal lands to oil and gas development and he would approve the Keystone pipeline. I do believe these measures will spark our economy and promote job creation; but I have some concerns.
Eliminating deductions or loopholes from the tax code is a very good idea. And, lowering corporate tax rate from 35% to 25% sounds like a lot. After all, most corporate taxes are passed on to we the consumers. However, at a tax rate of 25%, our companies will still be paying among the highest corporate tax rates in the world. And, by eliminating deductions and loopholes, it is possible that our companies will still being as much or more in taxes than they are now. That would defeat the goal of making our companies more competetive. Therefore, I would like to see a Romney administration consider lowering the corporate tax rate even further.
In my opinion, the most important thing a president Romney will do is to approve the Keystone pipeline and allow off shore and federal land development of oil and gas. This will have an immediate impact on the economy and will create many productive jobs. But, as I cautioned above and as I wrote in the Monday post, a growing economy will cause al those trillions of digital dollars of QE 1 and QE 2, and now QE 3 that are accumulating in the our TBTF bank’s excess reserve accounts to come rushing into the now growing economy. This can not be avoided and the Fed will be powerless to raise interest rates to curb the inflation. I would like to make a suggestion to the Romney administration that will minimize the length of time that Americans will have to suffer high inflation; all be it while the economy is growing and people are going back to work. During the primaries, some oil and gas experts advised Newt Gingrich that once oil and gas began to flow from the new off shore and federal land drilling, royalties to the federal government would be on the order of a trillion dollars per year. I would recommend to Mitt Romney that he pledge to use those royalties to pay down the national debt. Once the national debt is down to a more manageable number, the Federal Reserve could then begin to raise interest rates to bring inflation under control.
Lastly, I would recommend that a few weeks after Romney takes the oath of office that he address the nation. He should lay out his plan in clear and simple terms and explain why he is sure that these steps will get the economy going and put people back to work. He should warn the people of the unavoidable inflation that will come as a result of the Federal Reserves previous programs of Quantitative Easing. Then explain his plan to pay down the debt so that the new Fed can then bring the inflation under control He must convince America that there is no other way; but that we will be on the road to better times.
Folks, we know that Romney administration is not going to take us all the way back to a small central government controlled by the enumerated powers in the constitution; that we conservatives dream of. The best we can hope for is that a Romney administration can put us back on a track pointed in the RIGHT direction. A Romney win in November is not the end but the beginning of a long process of we freedom loving conservatives nudging our politicians and our fellow Americans out of their comfort zone a little at a time. We may never get back to the government our Founders envisioned. But, over time we can have a government so much better than we have had for the last decades.
Now, before I sign off, if you have not already checked out the other post today, please do. All I’m asking you to do is click on a link and scroll through 22 pictures. I promise you will find it a moving experience.
Well, now you know what I’m thinking. Why not tell me what is on your mind?