o A Representative Republic Without Political Parties

The task of the current generation is not to bicker about individual issues, its to reorganize the entire system of government to ensure its continuous existence. Individual issues are fads that come and go with the social climate. The real challenge is to establish a solid governmental foundation for future generations. The macro system of government has to be overhauled to make sure the government is still in business to carry out policies.

The time decay of our current system of government is large. Nations fail when the government's overstep their legal, authoritative and budgetary boundaries. What's different about America than any other prior and now extinct or declining world power? America's strength lies in its ability to adapt and to evolve, but even those qualities can fail if people don't take action.

Political parties are a legacy of an antiquated system. Prior to the advent of communication through computers and other technologies, politicians had to articulate a set of ideas to the public. Currently political parties, their candidates and their ideas are joined as one. I put forth the proposition that ideas about public policy should be stripped from political candidates and instead reside with the voters. The personal views of a politician are irrelevant and should not cloud the political debate. Ideas should evolve and exist on their own merit. Issues should be debated in an open public forum, with both sides expressing their opinions. Its the politician's duty simply to pick up the ideas that "win" and carry them to Washington DC, much like a traveler carries a piece of luggage. Using this arrangement, the politician serves in a similar capacity as a defense attorney, unbiased and ready for hire.

How will politicians know what direction to vote? Voters can be asked to fill out a survey like the census. The feedback from the questions in the survey will capture their opinions on a wide range of political topics and attitudes on social issues. The election process should be about finding the best person to take the aggregated surveys and generally vote in the manner the polls indicate. Ideally, you would be voting a politician into office based on their abilities, not because of their personal views and not because of their personal ideologies. The politician simply becomes a conduit of information, someone who can articulate the concerns of their constituency. The political candidate's own personal views should not interfere with the task they are hired to perform. The public reclaims control over and the power to decide the ideas and issues, which are currently being held hostage by political parties. Political parties can no longer manipulate the public to vote for them based on how they spin each topic. The real power, the power to decide on how to vote for issues, is returned to the people. Under this schema, the hired politician may be carrying a basket full of ideas from both ends of the political spectrum to Washington DC. The constituents are not locked into a single platform.

I believe political candidates should be paid around $1.0 million per year in total compensation for their services, in order to attract the best and the brightest of our society. Politics must keep pace with private industry pay levels. You don't want lesser talented people to set the rules for society. This compensation number may seem high. Where does the money come from to pay such a large amount? The average cost of winning a House race in 2008 was nearly $1.1 million and almost $6.5 million for a Senate seat. The campaign contributions that normally go toward an individual candidate can be pooled and given to the person hired to do the task as a bonus on top of the salary mandated by law. Therefore tax payers are not paying for the total compensation of the politician. Its a combination of public money and private funds.

Further, search committees will have to be formed to find the best candidates and limit the candidate pool. The search committee will be charged with identifying the desired attributes and qualifications for the next office holder, gathering recommendations, conducting a comprehensive and thorough review of candidates, ensuring appropriate participation in the search by the community, and recommending finalists for consideration of the public. Politicians truly become public servants and not power hungry leaders. Voters will then have an election to vote in the candidate that best represents the issues into office.

Another step toward preserving the government is a balanced budget. A balanced budget amendment is a priority. I also propose changing the tax code to a 10% flat tax so that everyone in society contributes to the social services a government provides. There will always be underachievers and under performers in any society that need more in services than they are capable of paying for through taxes. Charitable donations can make up for the shortfall in taxes. For every $100,000 someone earns, that person should be required to donate 5% of their salary toward a charity. One of the stipulations on the charity is that it dedicates no more than 25% of its income to their overhead costs. The efficiency in giving to a charity to redistribute income far outweighs the inefficiency of giving to the bloated US government to perform a task or a service. I would estimate that for every $1.00 going to the government, only about $0.10 goes to the actual person a social program is intended to help. That's 90% waste caught up in the bureaucracy. The goal is to put wealth distribution back into the hands of the citizens, make it more cost efficient, and not politicize the process. Websites such as http://www.charitynavigator.org can help people navigate through the multiple charitable organizations.

The system needs to change, or else everybody will be worse off. The combination of talented, a-political people in office with a balanced budget should solve most of the current problems. The U.S. is the best country ever created, let's keep it that way. May everyone have a happy and prosperous 2011!

o Federal Budget Appropriations and Taxes

Imagine that each congressional district had its own IRS tax code crafted by the congressman in that district. For example, Congressional District 1 in Pennsylvania, the District that contains the city of Philadelphia might have a flat tax. While Pittsburgh's Congressional District 14 has a progressive tax structure. The Congressman in the district determines the tax code. Further the Congressman creates his own appropriations budget. The budgets from all Congressmen across the country are aggregated to create the national budget. This would put the budget and the tax structure in the hand of the voters through a democratic vote of the candidate.

The positive externalities of such a system is that voters feel directly involved with the budget process. Voter turn out will increase. People will see exactly how much government programs cost and will decide how much to fund them. A bank bailout will become a tax leveled directly on each citizen.

Couple this with a balanced budget amendment and you will have a government that spends less and a population that has a voice in how its taxed.

o Competition in Elections

I recommend a mandatory minimum of three political parties. Each political party must run a minimum of three candidates in all primary elections. If an election has no primary, then have three candidates for each party in the general elections. That is a minimum of nine candidates per election. Each candidate within a political party has to be equally funded. The competition will bring out the best candidates.

o Civil Unrest

Japan’s economy may unravel in the next two to three years if its interest payments on debt will exceed revenue. Greece and France are dealing with riots in 2010 This is what happens when governments over spend and then need to cut back programs drastically.

The civil rest will continue, its just taking a little more time to trickle down to the average person. Governments kick the can further down the road with their "quantitative easing". The days of overspending will lead to austerity measures that will catch up to them eventually. The political backlash could lead to future violence.

o Role of the Federal Reserve

Allan Meltzer, professor at CMU and author, talks about the history of the Federal Reserve.

http://www.c-spanvideo.org/program/id/217674

o Government Agencies

For most people, the four most common 'windows' into how government agencies operate are going to the post office (US Postal Service), filing income tax returns (IRS), voting (Board of Elections), and getting a drivers license (Dept of Motor Vehicles). I can't think of a worse torture than wasting time filling out confusing forms and standing in long lines. Pain and suffering epitomize all of these agencies. Now the government has expanded its scope and scale by taking over companies and blowing out the budget. The US government wants to be a health care provider when it should focus first on reducing health insurance costs. Allow for competition among health insurance companies, similar to what happens for auto insurance. And then start providing coverage one piece at a time. The government should concern itself with streamlining the agencies under its control rather than expanding its responsibilities.

o FDIC Bankruptcy

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation's financial system by insuring deposits. Each depositor insured to at least $250,000 per insured bank through 12/31/2013. In 2009, a total of 130 bank failed. Does the FDIC's insurance fund have enough left to cover all the losses?

o Drug Policy

Mexico is under siege by drug cartels, the drug war is at our doorstep. It can no longer go unsolved.

Many drugs such as caffeine, alcohol, barbiturates and nicotine are already legal. The reason drugs are outlawed is arbitrary. Its not a matter of a substance being legal or illegal that makes it bad or good for someone. In what circumstances and in what quantities is a drug used?

The drug policy should focus on putting drug dealers out of business while at the same time reducing the demand for drug use. Policy has to be crafted to fight drugs on both on the supply side and demand side. The solution is to legalize drugs and then give the proceeds to a socially deplorable organizations like a white supremacy group and a terrorist organization. And to Ogilvy and Mather so they can run an anti-drug ad campaign. The legal drug money cannot go anywhere beneficial to society because that would make drug use socially acceptable, which is not the objective. Drugs would become cheap, readily available and have a shameful stigma attached to their use. If you buy drugs, you are a racist and terrorist. Social pressure should eliminate all but the hardest hard core abusers. Hence the problem is reduced to a minimum.

Maybe that is too radical of a solution. But addiction to me will continue whether drugs are legal or illegal. The money from legalized drugs can go toward health education, prevention and treatment.

Anyone that is pro-abortion and under a libertarian banner of freedom of choice should be pro-legalizing drugs.

o Gulfo Currency

Saudi Arabia, Kuwait, Bahrain, and Qatar are set to launch a single currency called the Gulfo. The creation of the Gulfo is a statement by countries in the region that they have lost faith in fiat US dollars as the world's reserve currency.

o Senate Banking Committee votes 16-7 for Bernanke

It appears that Ben Bernanke will be reconfirmed as Federal Reserve Chairman. Its a mistake to reappoint the very person that lead the US into the financial downfall of 2008.

This from the website of the Federal Reserve Board (http://www.federalreserve.gov) :

"The primary responsibility of the Board members is the formulation of monetary policy.

In addition to monetary policy responsibilities, the Federal Reserve Board has regulatory and supervisory responsibilities over banks that are members of the System, bank holding companies, international banking facilities in the United States, Edge Act and agreement corporations, foreign activities of member banks, and the U.S. activities of foreign-owned banks. The Board also sets margin requirements, which limit the use of credit for purchasing or carrying securities."

Paraphrasing the words of then Treasury Secretary Henry Paulson, who created and forced the FED to implement TARP (September 19, 2008):

"The Fed allowed banks to carry illiquid 'troubled' assets on their books, that clogged up the financial system, and undermined the strength of the financial institutions. As a result, Americans' personal savings were threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation was disrupted."

The Fed helped to create the financial turmoil that the US and the world is suffering from. The passage of TARP has bought some time but the economy remains weak. Congress needs to elect a leader that solves problems, not creates and perpetuates them.

o Economic Meltdown Videos

The following videos reveal insight on what lead to the bank bailouts and how the bailouts were handled.

PBS Frontline special called "The Warning".
http://www.pbs.org/wgbh/pages/frontline/warning/view/

Senator Jim Bunning speaking at the Banking, Housing, and Urban Affairs Committee Hearing on December 03, 2009.
http://www.youtube.com/watch?v=rka9VbPPMys

o Ratios to Evaluate for Stocks and for Real Estate

Ratios, one number divided by another, are a far better way to compare prices across a plane instead of looking at just the outright value.

For example, price per square foot for real estate is an important measure in real estate. Price per earnings for stocks gives a better way to compare the relative value of stock prices.

o The Nobel Peace Prize

The five members of the Norwegian Nobel Committee award the Nobel Peace Prize each year. It carries no official powers or responsibilities. The five judges can award the prize to whomever they want, unlike an election or Olympic gold medal which is won in competition.

If people don't like how the Nobel Prize is awarded, there is something that can be done. Create an independent peace prize.

Create a website with an award called the "World's Noble Peace Prize". Allow people to nominate persons or organizations for the award. Have people register for the site and pay $10 for the right to vote once on who they feel should win the "World's Noble Peace Prize". Tally the votes online or have people send in ballots. An outside auditor can verify the results. Donate the proceeds to the winner's charity of choice. This will democratize the process and give a global voice to the decision.

o Voting Along Political Lines

Party identification holds more significance than the quality of the candidate up for election. The two party system does not give voters much choice. I think a third party would help reflect the views of more moderate voters.

The message to people is to vote your conscience, however please refer to the party platform so we can tell you what your thoughts are.

For empirical evidence of how voters behave, please view the ANES data: http://www.electionstudies.org/

o FTC Toughens Endorsement Rules For Bloggers

Going forward, the FTC will require bloggers to clearly state when they receive cash or "payment in kind" for endorsing a company's products or services. So if Blackberry pays a blogger $5k to say good things about the new Blackberry Curve, the blogger must disclose he or she was paid by Blackberry for the rave review.

Failure to disclose the connection could lead to fines of $11,000 per violation. Its a way to separate unbiased endorsements from paid endorsements.

Does that mean the government cannot pay public relations firms to promote certain programs or laws without full disclosure? Does that mean the "earmarks" on spending that benefit special interest groups have to be reported? Because as a lawmaker, you want to endorse a bill independently and not get paid in kind with political favors or campaign funds, right? I think the FTC rule should be pushed to its logical conclusion, that if you get a kick back or pay someone for opinions or votes, the public should know about it.

o Chinese Money Habits

This is from a post on http://www.wisebread.com.

1. Being frugal is a virtue - Being frugal did not start as communist propaganda. Actually it is a concept that has been taught for thousands of years. The classic Chinese text Dao De Jing states that the three greatest treasures one can have are love, frugality, and generosity. Frugality is really a integral part of the Chinese culture.
2. Save as much as possible
3. Pay for things in cash - Chinese people are wary of debt.
4. Always look for a bargain
5. Your salary is not a secret
6. Cash gifts are the best

Maybe, if economists would have known a little bit about Chinese culture, they would have downgraded their foreign consumption expectations. OMG, there are a billion people in China with disposable income now that the USA has outsourced jobs to that nation. Therefore, they will all buy TVs and drink Coke and upgrade their I-pods every year. Wrong, they will buy nothing. And time has run out, because now our debtor nation has no purchasing power either. Coal is being added to the consumption economy furnace through low interest rates, yet the flames shrink and the embers turn from white hot to red to grey. The Fed and the US government are no wiser than the Little Match Girl, yet they have to come up with the ideas to resuscitate the economy. Scary.

o Change the Constitution

The constitution was signed and agreed upon in 1787. Because of the change in global economics and the advent of the internet, its outdated in key areas.

Here are a few suggestions to make things better and more competitive.

1) Stop gerrymandering and redistrict states in a fair way. Create an independent commission whose priority is to create competitive districts. Limit the number of Congressmen in the House of Representatives by half by increasing the district sizes. Voters should have access to polling websites to indicate how they would vote on certain issues and laws.

2) Create a fourth branch of government called the Commerce Branch. Within the Commerce Branch, have separate departments for the major industrial and farming sectors. For example, Agriculture, Banking, Energy, Manufacturing, Shipping, Retailers. The head of each department is an elected official serving a 5 year term. The departments responsibilities are to draft laws, taxes, rules, and regulations regarding their sector. Any changes to the regulatory code will then be put forth in front of the Senate.

3) Introduce a third viable party, the Independent Party. A two party system does not allow for "tie breakers". It also doesn't give voters much of a choice. A two party system is too dogmatic and doesn't foster the freedom and expression of independent thoughts. People vote along "Party Lines" meaning voters' opinions are given to them by their political party.

4) Require the Democrats, Republicans, and Independents to field at least two candidates to run for each primary. Keep each primary closed meaning only registered members of a particular political party can vote for their primary candidates. Fund both candidates equally. Most incumbent Congressman face no challenges in the primary elections. In fact, party leaders discourage others from running against an incumbent. Primary elections should be heavily advertised and open for any eligible candidate to participate. Competition among candidates will ensure the government will have the best possible people in office.

5) Address the need for campaign finance reform. Utilize the internet as an inexpensive way to disseminate information about each candidate. Have each person running for public office fill out a standardized questionnaire and have the answers readily available online.

6) Pass a balanced budget amendment.

7) In lieu of the House of Representatives, let citizens become involved with the law making process. Have 2 people for each county sign a sworn affidavit that they have read and understand a bill before their Senators are allowed to vote on the bill.

8) Give states more power to decide social issues. The federal government should worry about larger issues such as war, treaties, and border protection.

9) Require military enlistment for sons and daughters of elected officials. The decision to use the military should be given to people with some skin in the game.

10) Level the playing field for all citizens until the age of 21. This means investing heavily in schools, educational resources, food and health care for those under the age of 21. After you turn 21, you're on your own baby. The Government ain't your mommy, the sooner you realize that the better off you'll be.

11) Impose a three term limit to Congressman. Politicians should not be entitled to a seat in Congress, nor should they be lauded for holding a seat for 40+ years.

12) Don't allow lobbyist to have offices within the borders of Washington DC. Have congressman report all meetings with lobbyists.

13) No business taxes on new businesses for the first 2 years. The government needs to encourage job growth.

14) Institute a flat income tax combined with a federal sales tax.

15) States and regions should encourage local currencies to keep jobs and money circulating in their area.

Websites:
Please visit http://www.publicampaign.org, http://www.govtrack.us and http://smallisbeautiful.org for more information.

o CFTC Looking for Excessive Speculation

The CFTC has woken up to the fact that speculation may have behind the commodity bubble of the last few years. The easiest place to look for speculation in with Exchange Trade Funds (ETF's) and Commodity Index Funds. These "investment" vehicles allow retail traders, mom and pop Smith, access to the commodity markets. Billions of dollars worth of investment money pour through these funds and that are used to buy (long only) front month futures contracts. One of the biggest sources of speculation are the "investors" in these types of funds, driving prices higher by buying futures contracts each month. Its retail money, aided by the ease of electronic trading, that leads to the speculative bubbles. The government is misdirected when it focuses on institutional players. Large financial institutions provide liquidity that enables end users and producers to hedge their risk in the financial markets.

Recommendations:

I see the problem as retail "investors" being involved in an institutional market.

1) Keep all futures contracts in "big" volume sizes. E-mini's cut the size of a contract in half or a quarter allowing smaller speculators to trade.

2) Disallow the aggregation of funds to purchase a futures contract. This will effectively eliminate ETFs and Commodity Index Funds. The market should be left to large, professional traders. Then prices are determined by supply and demand and not retail money flow.

3) Force all futures exchanges, whether on shore or offshore, to publish volume data.

o Federal Government Intervention of Social Issues

It’s impossible to keep 200 million people happy while focusing on bigger issues of national security. Let states handle social issues on a state-by-state basis. If the temperance movement lives on in Utah, that’s their own business. Abortion can be legal in Maine but illegal in New Hampshire, it’s not a winner take all issue so it shouldn’t be dictated from the top down. The Federal Government does not have time to waste debating Roe v Wade. If people are so opposed to their state laws, they can move states.

o Changes in Public Education

Public schools should teach logic for two years in junior high school. Its better to know how to think than to just learn facts through rote memorization. Also computers are logic driven machines, and everyone should be given the ability to interact with computers because they are an integral part of our society. Chess should be a mandatory class to force students to learn strategy and forward thinking.