The100k Solution to Restoring Consumer Confidence and Stimulating Our Economy

Portal Islam

Ever felt after you've read the paper or watched the headlines in Yahoo or Google the world requires some serious headspace adjustment.  Ever wonder what kind of medication or recreational drugs our political and financial leaders are on?  It is almost like we're in a waking dream or hallucination where down is up and right is left.  When Banks began to collapse because of bad decision making; the authorities stepped in and gave them a huge number and the first thing the executives was to provide themselves millions in pay increases and "performance" bonuses.

Performance bonuses to the greatest presiding over the best economic failure in over 70 years!   Now from the small business world failure means bankruptcy - from the major business, it means the government will spare you - without any worries.   For the rest of us 9%   unemployment, $2 trillion debt and more taxes - how do we get a deal on this?

Let's flip the equation on its head and see how $100,000 maybe not $700 billion will spare the market and rest of us.  Government is so worried about saving large business they don't understand the country's financial structure has been moving out of traditional economics for the last 15 years.  From the 1930s the response was to prime the pump (business or government programs) and the financial engine would get moving.  In the present financial environment, this won't work as efficiently.  Those funds get absorbed by the very businesses government is expecting to redistribute the wealth and it doesn't reach the market.

The present market is driven by the customer and their personal confidence - most economists understand this but they do not know the effect.  Consumerism is the financial engine in today's market - technology, alternative, transportation, etc. has freed the buyer from traditional attachments.  The market is evolving from shirts downs to some other equilibrium driven by a bottom-up orientation.  What does this mean?  It means that if you would like to prime the pump do not go to the business that just showed poor judgment and expect great things to trickle down - supply relief directly to the taxpayer. 

For $100,000 we could change the market by the end of the year.  Here is how:

The government establishes Consumer Confidence Accounts (CCA) with a $100,000 equilibrium for many citizens that filed individual tax returns during this past calendar year.
This money is not disbursed, it is held by the national government.  It can only be used for debt associated with specific existing actions (home loans, car loans, credit cards, medical bills, etc.).
Money could be applied to numerous kinds of debt together with the sum not to exceed $100,000.
Funds can be disbursed either by the borrower authorizing the creditor to access the account for a specific sum or from the authorities releasing the funds to the creditor after the taxpayer submits identifying paperwork.
The CCA equilibrium times out in the end of the year.