Craig Smith tells Savage crisis cure requires "just saying no!"
By David Bradshaw, Editor RMP
Jan. 28, 2008
Swiss America Chairman Craig R. Smith was invited onto The Savage Nation radio show Tuesday night to discuss everything from Obama's new Treasury Secretary Tim Geithner to the latest Obama-nomic stimulus plan.
With U.S. total debt now topping $100 trillion, Mr. Smith is convinced that the government numbers do not add up. "Just do the math!" says Smith. Listen: Savage Nation 1.27.09
Mr. Smith has offered his free market recommendations for solving the massive debt and credit crisis Americans now face in his latest Special Report, Bailout Nation: Truth and Consequences. Here's an excerpt:
Unless we want to inflate our way out with additional government spending of money we do not have, which will require taking on more and massive amounts of debt to be passed on to future generations, this is the time to just say no.
If we are serious about adopting the changes necessary to make this contraction produce long-term positive effects on the market we must:
1. Reduce government spending by 15% across the board over the next four years.
2. Reduce corporate taxes from 35% (world's 2nd highest) to 25% with targeted incentives to create new, high paying jobs.
3. Freeze personal income taxes at current levels so proper tax planning can occur.
4. Have a capital gains tax holiday for any company or individual who purchases distressed real estate from a lender to clean up the lender's balance sheet.
5. Ease the "mark to market" rules now in place to provide breathing room for lenders.
6. Ease the capital requirement currently in place at the banks.
Not one of these suggestions requires a dime of tax dollars and thus doesn't have a snowball's chance in Phoenix to be implemented. That does not, however, diminish the effectiveness they would have in setting the stage for future growth and prosperity in America.
Market cycles do and will happen as long as there are markets. One can only hope we as a nation accept that fact and plan accordingly. Then and only then can politicians, who are attempting to play economists, go back to protecting and defending the constitution as their job description outlines.
Politicians will only prolong the pain they wish to eliminate. History and gravity can be ignored temporarily but will never be stopped.
Nothing would send a stronger signal that America is serious about the future. We have already witnessed what the world thinks about our panicked "solution" of throwing money at the problem. Foreign investors ran to gold and treasuries last week in unprecedented numbers. Short-term treasuries have not seen these prices since the London Blitz in 1940. Millions around the globe moved money to safe havens.
The system desperately requires a fresh injection of confidence, NOT debt. These steps will restore confidence only as the world can depend on fiscal responsibility from the world’s largest debtor. Confidence is more important than capital.
For a free "Economic Realities of 2009" CD with a 45-minute interview between Michael Savage and Craig R. Smith plus "Bailout Nation" Special Report and 2009 newsletter Click here