{"id":8619,"date":"2009-01-21T21:13:07","date_gmt":"2009-01-21T18:13:07","guid":{"rendered":"http:\/\/www.turkishnews.com\/en\/content\/?p=8619"},"modified":"2014-01-01T20:22:13","modified_gmt":"2014-01-01T18:22:13","slug":"poor-richards-report-22","status":"publish","type":"post","link":"https:\/\/www.turkishnews.com\/en\/content\/2009\/01\/21\/poor-richards-report-22\/","title":{"rendered":"Poor Richard’s Report"},"content":{"rendered":"

POOR RICHARD\u2019S REPORT\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0<\/span>\u00a0<\/span><\/span><\/span><\/span><\/em><\/h2>\n

Over 300,000 readers<\/span><\/p>\n

Too Big to Fail<\/span><\/span><\/strong><\/p>\n

Or<\/span><\/span><\/strong><\/p>\n

Too Big to Save?<\/span><\/span><\/strong><\/p>\n

We now have two economic and political philosophies dominating the agenda in Washington.<\/span><\/span><\/strong><\/p>\n

The first chaired by John M Keynes and championed by FDR are now known as Keynesians. Their valid point is that when business falters; the government should step in and create jobs so that the money flows from the poor to the top or wealthy. This can done by primarily taxing the more affluent segment of our society, or redistribution of the wealth.\u00a0 <\/span>The problem here is that this stimulates tax avoidance schemes that show little improvement to the economy and cuts back on needed revenues over time.\u00a0 <\/span>\u00a0<\/span>The Social Security and Medicare programs are now teetering on insolvency. Instead of refining it, politicians have bastardized it beyond recognition. One politician once remarked to me \u201cIf FDR knew what LBJ is doing he would be spinning in his grave.\u201d<\/span><\/span><\/strong><\/p>\n

The monetarist headed by Milton Freedman and championed by Ronald Reagan, believe is less government interference, lower taxes and more business freedom. In this case the wealthy eagerly invested their monies and new research begat new inventions. 100 years of inventions and progress has been compressed into 10 years. Products that we enjoy today were not around 10 years ago.<\/span><\/span><\/strong><\/p>\n

The main problem here is that we did not appoint any umpires or inspector generals to hold back certain greedy individuals that would create many bubbles that are bursting among us today<\/span><\/span><\/strong><\/p>\n

Following the old rules will simply foster the \u201cToo big to Fail\u201d syndrome will rack future havoc on our societies as well as the present. <\/span><\/span><\/strong><\/p>\n

Our politicians are eager for as showdown battle. This could be an epic struggle for glory and fame, but as in the clash of all battles \u2013 the public loses. As this battle unfolds there will probably be more burst of bubbles.<\/span><\/span><\/strong><\/p>\n

Right now everyone in Washington is throwing around trillions of dollars on pet projects and ensuing and assuring reelection at the public expenses. We should have term limits of say 12 years and that would curtail the hedonistic atmosphere that prevails in our Congress today. If a Congressman knew they had term limits they would consider it a badge of honor to serve the public.\u00a0 <\/span>Members would be able to say \u201ccalm down\u201d and not let tings get out of hand. Everyone wins. Term limits could be set up by drawing straws. I believe this would entice greater sense of responsibility among our public representatives.<\/span><\/span><\/strong><\/p>\n

Our problem today is that the public is tapped out and so are our governments. This is true of most world economies I believe. Who is going to buy our debt? Why bid on a billion bonds when you know there will be another billion coming down the road at a higher rate?<\/span><\/span><\/strong><\/p>\n

I received an answer to this question through my email. At first I thought it was a joke, but I started thinking about it. Our economy is the largest in the world by sheer size. You have to combine the next four largest just to equal ours. Europe and Asia depend upon us. So here was the answer in the email.\u00a0 <\/span>Take the 100 trillion dollars and instead of bailing out the greedy people, divide the trillion dollars among United States citizens. A 100 trillion divided by our population, approximately 304 million comes out to a little over $328,947.37 for every individual. There would be some provisos. First they would have to promise to pay down their debts. Mortgages and credit cards and only allow debit cards thereafter. Free cash must be deposited in a bank and any purchases would be made for cash. No borrowing. Then they would be expected to pay their fair share of income tax. No Tim Geithner here.\u00a0 <\/span>Anyone convicted of tax fraud faces 10 years jail term and funds and trust held by the entire family will be confiscated. Only the slimiest individuals would put their kids at risk.<\/span><\/span><\/strong><\/p>\n

This would also encourage other governments to spread their wealth around. Taxes would have to be paid and banks would have to invest and they must put a certain portion into the newly issued government bonds. States and local communities could decide where and what projects to invest in. with local banks lending the funds. <\/span><\/span><\/strong><\/p>\n

It is much easier to watch a local business spend your tax dollars efficiently that watching the federal government. The simple fact is that there are less people to watch!<\/span><\/span><\/strong><\/p>\n

\u00a0<\/span>Now after the wealth has been distributed, much business will become solvent and healthy. Others that showed a lack of leadership will probably die on the vine. There will be many more to assume the leadership and lessons so generations will be learned. <\/span><\/span><\/strong><\/p>\n

During the Panic of 1907 JP Morgan instructed all the NYC bankers to give him their books by Friday and on Monday morning he would tell the presidents who was solvent, who would merge and who was worthless. The Knickerbocker Trust was deemed worthless. It was at that time the nation\u2019s oldest bank. Everyone did as he said without a peep. That was real power and respect. <\/span><\/span><\/strong><\/p>\n

So \u201cToo big to Fail\u201d has no historical precedent along with \u201cToo big to save\u201d. Sometimes the market place does the governments work. Xerox is reported to have turned down the personal computer because it would compete with their copying machine. IBM downgraded their person computer for years because their main frame was the big money earner.<\/span><\/span><\/strong><\/p>\n

My point is that if we start bailing out large inefficient corporations then this country could end up wallowing in non performing bureaucratic cesspools.\u00a0 <\/span><\/span><\/strong><\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>We are destined to become the economic and political power of the 21st<\/sup> century, but first we must show the world we are internally strong and can make self sacrifices in order to improve the common good. <\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Once all debts paid down then the recipients can figure out how much taxes they owe. Then they are free to spend it what ever way they want.\u00a0 <\/span>This will provide new orders for varied businesses and really jump start the economy for it will produce honest demand.\u00a0 <\/span><\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Then the US Government can put out for bid 100 trillion dollars of bonds with varied maturities and the savings banks will be ready buyers in order to pay their depositors. Instead of facing a prospect of bidders wanted we will probably face the welcomed problem of allotted the issues that that there is an equal distribution<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>During biblical times the slaves were individuals who could not pay back their debts so they had to work them off. It is better than having illegal usury rates. <\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>This process would instantly halt deflation, but inflation is farther away since goods will be purchased at the cheapest price.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Large corporations will have to start making sure that their pipeline is full with orders. Those depending upon large orders might someday find their pipeline is empty because they did not cultivate the smaller growing accounts. A nickel can be a dime; a dime can be a quarter etc, <\/span><\/span><\/p>\n

One sign of a market top is when financial institutions cater to Wealth Management accounts only.\u00a0 <\/span>The little guy is the seed that NEEDS TO BE PLANTED.<\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>In order to create a MORE stable form of government we must not bail out the greedy. Their demise will be tragic lessons for future generations. We must also set up a global reorganization of security laws to protect the investor. Countries that do not endorse these safeguards will have be allowed to our markets. This includes their citizens.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Countries that renege of corporate contracts will eventually have armed aggression. Countries that trade among each other fairly should have a hard time declaring war on each other since the person public pocket book is involved. One does not want to cut off its family food supply.<\/span><\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>So the redistribution of wealth can be done more easily, honestly, and quickly by Congress authorizing the distribution of a $100,000,000.000 among the US citizens who speak English. <\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>We should have a public program free of charge or how to protect your wealth from unscrupulous money changers. <\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>You might laugh at the 100 trillion figure, but if we let our Congress run wild with THEIR pet projects we will be at that figure in just a few years and our currency will be debased and gold will have risen beyond even the most optimistic price,<\/span><\/span><\/p>\n

If you agree with me email this letter to your Congress person and Senator. I am emailing this also to the Federal Reserve because I know they run a tight ship. A few months ago I emailed about the \u201cUptick Rule\u201d to the SEC and the Federal Reserve. Within a day I had an answer from the Federal Reserve. I have yet to hear from the SEC.<\/span><\/span><\/p>\n

Cheerio!!! <\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Richard C De Graff<\/span><\/strong><\/p>\n

256 Ashford Road<\/span><\/strong><\/span><\/strong><\/p>\n

Eastford Ct<\/span> 06242\u00a0 <\/span><\/span><\/p>\n

860-522-7171 Main Office\u00a0 <\/span><\/span><\/p>\n

800-821-6665 Watts<\/span><\/p>\n

860-315-7413 Home\/Office<\/span><\/p>\n

rdegraff@coburnfinancial.com\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>1\/21\/2009 12:22:56 PM<\/span><\/p>\n

This report has been prepared from original sources and data which we believe reliable but we make no representation to its accuracy or completeness. Coburn & Meredith Inc. its subsidiaries and or officers may from time to time acquire, hold, sell a position discussed in this publications, and we may act as principal for our own account or as agent for both the buyer and seller.<\/span><\/span><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

\u00a0<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

POOR RICHARD\u2019S REPORT\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 Over 300,000 readers Too Big to Fail Or Too Big to Save? We now have two economic and political philosophies dominating the agenda in Washington. The first chaired by John M Keynes and championed by FDR are now known as Keynesians. Their valid point is that when business falters; the […]<\/p>\n","protected":false},"author":83,"featured_media":746809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[750],"tags":[983],"class_list":["post-8619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-richard-de-graff","tag-us-stock-markets"],"_links":{"self":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/8619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/users\/83"}],"replies":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/comments?post=8619"}],"version-history":[{"count":0,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/8619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media\/746809"}],"wp:attachment":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media?parent=8619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/categories?post=8619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/tags?post=8619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}