What the (USA) Government needs to do but won’t

Hi All,

I received the following email and liked it so much I’m reposting it on here – accreditation for this is at the bottom of the post and I’d recommend the books of this company:

Weak fundamentals continue to support  the secular bear market, which we’ve been in since 2000. Next week, I’ll have an article that focuses on  the fundamentals for the last twelve years. If you had simply bought the S&P500  on December 31, 1999 and held it since then, you’d be down more than 7%. Furthermore, if you compare GDP growth to REAL  inflation as the folks at shadowstat.com do, you’ll see that we’ve also been in  a recession since 2000.

I think the current political  arguments are quite funny. They’re really nothing more than an interesting  game. Basically, you find something to  criticize about your opponent and try to get the public to believe you so that they  vote for you. The problem is that nobody  seems to bring up the issues that actually matter—like our asymptotic  government debt and weak dollar. Politicians can’t resolve those issues, however; they can only postpone the solutions. Any politician who actually tried to do what you’d need to do to solve the issues that actually matter would never win another election.  Here are some sample solutions: Slash government spending at least  50%. Slash military spending by more than  50% and end U.S. involvement in all foreign conflicts now. Institute a national sales tax of  about 20% until the debt is reduced to zero. Void social programs (this will happen  anyway when they become too burdensome) and develop vested pension programs  like Singapore and other well-run countries have. If the government bought and held the S&P  500 average with, say, a 0.5% fee, Americans would be better off than they are now  with Social Security. We could also allow  people to invest pension money in a house in the form of a 30% down payment. Tell all politicians that they  cannot be re-elected unless the budget is balanced. Get rid of the central bank (The  Federal Reserve is owned by the large private banks). Make sure that the Secretary of the Treasury  has no ties to big businesses or big banks.

When someone proposes these kinds of  solutions nowadays, he’s considered an idiot and not taken seriously in the  political arena. But implementing these solutions is necessary if we’re going  to correct what’s wrong with the United States government.

Actually, I just found this graph, and I take back my solution. How about cutting the military by 95%?

Wars such a good idea?  clearly the major necessary wars that the USA has entered have put it into a very tricky position!  I wonder how many USA citizens got to vote whether they entered a war or not!

Clearly as myself, Dr. Van Tharp recogonises the self-importance of politicians chasing votes regardless of the better course of action – my own thoughts on this are due to the fact that political terms can be as short as 4-5 years so you win the votes and then don’t rock the boat as you seek re-election.

Readers who understand Socionomics also know that the state of the stock market plays a big part in this too.

Dr. Van Tharp has written some great books on risk and trading/Investing and I find his site http://www.iitm.com/

You’ll also find throughout this site on various pages some videos Dr. Van Tharp has kindly produced to enhance your knowledge and understanding of being a trader/investor – they are well worth viewing if you have the time to seek them out.


The Hovis Trader

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