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From 2008 to 2010, more than 280 banks in the United States collapsed. Only five banks went out of business within the same length of time before that. This figure means that the financial situations our banks confront are worse than we expect. Information is too bad to be disclosed! Obama’s government did not enough to control and help the banks. It simply funded banks and encouraged them to give out loan. It hopes increase trading in the real estate market and support the price of houses.

We do not have to study figures in details. All we need is to simply take an overall look. Up until 2010, mortgages that banks give out totaled over 10 trillion dollars. When the real estate market goes down 20% to 40 percents, banks’ fund will actually lose two to four trillion dollars. It is said in this country over 14% households are unable or unwilling to pay their mortgages. When banks giving out loan they charged about 5% to 7% interest, 14% bad debt means that their mortgage business actually made them lost money. Another data report shows that American’s mortgage loan is 280% of their GDP income. Beside mortgage loan, bank’s credit cards and business loan should also confront the financial difficulty. Bad debts make our banks are actually bankrupt.

In 2008, the four biggest investment banks in the United State vanished. The major cause related to their CDS payment. CDS (credit default swap) are insurance contract that guarantee risk investments are not default. Many specialists believe that this kind of deal is just like gambling. In the game, the insurance buyers do not have to own the risk investment and sellers did not prepare fund to pay off the debts in case something happen. CDS is just one of the financial products that financial institutions design for profit and end up they were trapped.

In real life, we know people hardly kill themselves for claiming life insurance, life insurance therefore make sense. Even that returns for most life insurance are just like savings. For the term insurance that pays less premiums, insurance companies set time limit. They only pay when people die before certain age. Car and fire insurance also make sense because if people set fire and create car accident to trick insurance they will be investigated and their insurance premium will be increased.

Only insurance about credit defaults swap make no sense. Risk investment of course carries risk. How can we guarantee that businesses are not default? Business default or not are influenced by many factors and it is almost out of controlled by insurance company. For example, it determined by the company’s management, the CEO’s IQ, ability, conscience and luck. A CEO will care about his own life more than caring about the default of his company. A CEO cannot save his company when some powerful powers purposely sell the company’s stocks in the market.

Guarantees risk investment are not default obviously make no sense. It is just like guaranteeing gamblers won’t lose money in the casinos. We usually allow people to do whatever they want because this is a free country. However, we also set up laws to protect the public’s benefit and that is why we need government for it. Financial institutions that get into the CDS trading have no common sense but have power to manage the publics’ wealth. When they fail they simply walk away and harm the public seriously. They have no fund but let the government and the public pay for the messes they left. For that reason our government has the right to control the banks before crisis happens. What should we do?

1 . Understand that CDS is gambling and stop trading relate to that. Wave bank’s insurance payments for CDS. However, the banks have to pay back all the premiums to the CDS purchasers. If this policy need to be back up by laws. We can say that customers who have deposits in the banks are the first creditors and the CDS purchasers are the second creditors. Since banks are actually bankrupt, second creditors will lose the right of claiming profit but have their investment back only.

2 . Families that are able to pay their mortgages are mandatory to pay their payments. Banks have right to deduct the payments from their mortgager’s pay checks. Government should give job priority to mortgagers who unable to pay their bills. Government should also encourage home owners to change their properties to income properties. The processes will create jobs for the market and increase the value for properties. Its investment usually can be returned in two years from rents. This kind of consumptions actually creating wealth and is more practical then stimulating consumptions that relate to green concepts.

3 . Re-estimate banks asset basing on their market value. Any banks that have higher liability than asset have no right to give out bonus. All their profits have to be used to cover their liability until their have financial balance. We cannot let the CEO take out bonus in the year they have profit on the book and let them shrug their shoulders when they fail to collect their loan.

In September 2010, New York State Governor David A Paterson declared that New York State will use up its fund by December, 2010. Before that he will have no choice but lay off people. He once tried to reduce working days from five days to four days to cut down the pay roll and his proposal was rejected by a judge. He complained that none of those unions gave a bit of co-operation. In his opinion, economic has not recovered at all.

He has reason to believe so. In the United States, Jobs related to government are the sum of jobs in construction and manufacture fields. Bonds issued by our State governments are over three trillion dollars, much more than two trillion dollars, bank’s funds that were tied up in the market. For creating jobs in the construction and manufacture field, president Obarma once encouraged consumers to throw away cars and refrigerators etc. He gave tax refund to people who bought houses. Thousands of bail out money was spent and jobs are not increased. Now his back yard is on fire. What is he going to do next?

Things surprise me the most is that even his judge did not co-operate with him. The judger sent people to collect unemployment insurance in order to maintain government employee’s income. According to research, in the United State, government employee’s salary and benefit are 100% higher than those in the private companies. Government said it is because they need high quality workers. However, as we know many government jobs require training more than knowledge and degree such as post office jobs and policemen jobs. Even though what government said is correct they are still not entitle to give out high salary because they are out of budget. Private companies never pay salary higher than the market range if they are losing money. The judge simply protected NYS employee’s benefit but will not protect tax-payers benefit in this country.

It looks like government employees have high salary is because they are controlling the tax-payer’s fund. In a small town of LA, some government officers’annual salaries went up to 1.6 million dollars, higher than a president’s income. If a woman did not found those people’s payroll register in a garbage can accidentally, we would never have known the truth. Although they are under prosecution, but we still cannot help to question, who decides government employee’s salary and who monitor them in this country. In New York City, if a policeman started his service at 21 years old after twenty years he is entitled to retire and get pension lifelong. If he retired at 41 years old and died at 85 years old, pension and benefit that tax-payers have to pay him will be more than 2 million dollars. That is why the deficit that all our States government short in their pension fund is over 1 trillion dollars and they will let tax-payers pay it no matter what. This will be our debt pass to our children. Let me raise another question here. If government can postpone tax-payer’s retirement age, why don’t they change government’s pension system as well. Theoretically, companies that are bankrupt do not have to pay their debt. Most of our States actually are getting into bankrupt situation, why should we still have to pay that kind of benefit?

Greek government are facing bankrupt, because their government employers collecting pension up to 80% of their salary and those pension can be pass to their children. Annual salary of their officers are up to half million U.S dollars as well. When their government start running around asking for loan, their people are protesting the benefit cut. I thought American will act better and they will share the burden of the country. It looks like I am wrong. Our government employees don’t want to share jobs.

Governor Paterson’s proposal made them lost nothing. When they lost one day salary they get time to increase their life quality and they don’t accept the deal. They are overpaid all these years. For changing the situation, we must have tough policies that back up by our legal system. Situation like the judger against governor Paterson should never happen.

Employees in one New York City department once refused to increase their job duties. Mayor Bloomberg threatened to close the whole department. This should be the way we handle things. We have to actually do something to solve the problem but not depending on creating debt or printing dollars. We should decrease our salary and tighten our belt. We should increase our import tax and force our business to move back. We don’t have to worry people’s protesting. We can simply tell our business traders that if we don’t do something dollars will turn into paper. Ask them which way they prefer.

Printing dollars is just like robbing — exchanging products with blood from develop countries and give them paper. This policy will shake the moral standing of our world and create bad consequence. We have to actually pay our debt that means even to sell our house, land and citizenship to people who have money. In average, resources that American own are more than that the Chinese, Indianans and Japanese have. For the fresh air, rich land, clean water and free social system, people would like to immigrate here with their money. Our land was taken from Indian and having people from all over the world live on it today. When we use it to exchange for money we actually lost nothing. In some way we can start to build up a real United Union, proof that people from different countries and from different religion actually can live together harmoniously.

Miss Wu Cai Mei is a business woman from An Huei, Huai Ling, China. She has a high school education only and once owned a garment factory. In 2005, she bought a coal mine which gave her half a million Yuan annually. However, water and dust from the mine pollute that area seriously and the vegetation in the area was decimated.

Every morning when she wakes up she compares her coal mine with the green hill from afar, feeling guilty. She realized that digging coal was not the right way to mak emoney. It is just like killing hen to take eggs. She decided to close down her coal-mine. A few people tried to buy the business from her she rejected them.Her letter to the localgovernment said : let us give the earth a break and do something to protect our environment.

At about the same time, the government allow private citizen to develop the mountains in that area. She signed a forty years contract with the government and sign nother 70 years contract with local people. All together she got 3000 acres land that cost 300 Yuen for each acres. She got advises from professional consultants to set up plan for her farm. She planted flowers, herbs, vegetable , delicious fruit and good quality timbers. She raised organic chickens, pigs and put down thousands of small fish in the water reservoir.

Roads are built all the way up to the mountains. Two years later, the trees alone bring in one million Yuan profit for her. Tourists from the city pick fresh fruits and vegetables in her farm which also give her another good income. She recycles waste material from her farm to produce marsh gas and supply that to the public free of charge. Altogether she created 80 jobs in the area.

She said if she continue to dig the mine, after three years the coal would all gone and the mountain would be destroyed. She believed the smarter way is living with our earth but not taking from the earth. She spent all together 5 million Yuan to build up her farm. Her next project is to repair all the ancient temples in the mountain. She appreciated how our ancestors saved resource for us and her goal is to maintain a nice environment for our descendents.

Let us see what we are doing in the United States. Being mislead by our business men, economists and politicians, all we care is to maintain high GDP. Things make me worry the most is the ways that we produce meat, egg and milk. We put hormone into animals and fertilizer to plants to enhance growth. These chemicals accumulate in our body and change our body structure. A statistic showing that in the United State, 12% of our girls are premature at 7-8 years old. Our men’s sperm are less than the standard rate. Public have no choice but eat things with chemical. Seeking high profit let our government totally ignore its people’s health.

Actually we do not need to eat that much but to eat healthy. We should accept what the natural give us instead of interfering the growth of animals and plants. I once made comment in Paul Krugman’s blog. When he mentioned the growth of GDP, I told him that we should care about the things that grow on the land more. From generation to generation land provide all mankind the needs for surviving. Land provides grain that feed human and animals. Animals then provide us with egg, milk and meat.

Land provides timber that make shelters. Land growth cotton that make clothe. Why I mention this here. If we following the footsteps of our ancestors we do not have to panic if one day our banks collapsed and make us lost our money or jobs. All government needs to do is to help people to get what we need from land. People can built shelters and plant in the farm. We can use marsh gas or sonar as energy. Life there will be different from ancient time because we have internet and, TV that report news in the world. We can work during the day and have party or play poker at night. That will be another kind of life experience for us. We can make friends or even meet our soul mate there. We can learn how to cook nice food with organic raw material. We will have food for both our physical and spiritual well being. We can also see sunrise and sunset and the moon rises

in fresh air. …Isn’t that nice?

It is time to re-evaluate from outside of our system. Many economic and financial concepts need to be updated because they did not work any more. All these years our economists were busy using mathematical graphs and paths to explain what the economic situation is instead of questioning why things happened in that way. Consumption could stimulate economic was formed hundred years ago and our economists still talking about it just like scientists believe Newton’s laws. They encourage consumption to maintain high GDP. Their philosophy make our banks our individual and our government broken. If we don’t point that out we will go farther and farther in the wrong direction.
Many years ago, I told my professor that seeking for high GDP actually encourage mankind throwing away things and I got a C in his course. Economists ignore one fact: if people in China and India practice the same consuming philosophy, resources on the earth will be used up within this generation. In another word, if people in our world live in the standar that American live resources in the Earth have to increase five times. This is the reason that we have to challenges their consumption philosophy.

The second factor is that the American has no more money to spend. High consumption needs back up from high salary rate. That forces the outsourcing of many of our business to oversea and no jobs are created in the market. We have no jobs and no saving. We take out loan from banks to maintain our consumption and unable to pay the loan payment. Over-consumption causes most of our banks theoretical bankrupt

Government’s consumption creates a black hole in Medicare and the Social Security system. Our healthy care fields, health insurance and legal fields do not create wealth for this country. Instead, they generate blackmail to the public and the government.

Our stock market is no longer, as what we expect, helping the public to share businesses’ profit. Lacking of control gives CEO chances to steal public’s money through the stock market. We lost our saving in the stock market as well.

Free international trading is not practical at all because American unwilling to accept salary rates that set in the developing countries. Different currency rates make the competitions are not under the same conditions at all. However countries that have trade suplurs doesn’t have to be the winner but will become big losers eventually. Because they are holding large amount of dollars. We have machine to turn paper into dollars and bring down their suplurs.

Americans once are fighters for democracy. They are also super consumers to support international economic. Very soon we will be considered robbers who print paper to exchange for products from all over the world. For cumulating wealth some powerful and greedy people shift American play different roles.

On whole there are two losers in this picture. 1) The broken Americans who at least enjoyed the consumptions once. 2) Labors from foreign countries who tighten their belts and work hard. They exchanging their products for dollars that can be printed through machine by us anytime. There are winners of course. The winners are those who created free trade and encourage consumptions. It is the consumption philosophy cause the messes. Our economists can not deny the role they play in the whole process. They should reevalate things from outside of the system and give us a good explaination. Or they have to step down from their positions.

Today’s picture shows that lawyers and insurance companies hijack doctors and blackmail Americans. That makes America’s medical expenses a few times higher than the other developed countries. My friend has to pay $1,110 medical insurance monthly. That is higher than her rental expenses. This kind of premium is obviously unaffordable, neither by the individuals nor by the government. Obama notices that getting sick can make American bankrupt today. However, reform bill concerned how to pay medical bills more than how to reduce the fee. For him finding some resources to pay the bills means solving health insurance problems. Bush once believed that when the American troops reached the capital of Iraq-Baghdad he could declare that the war was over. Our presidents are so naive! For actually decrease the medical cost we have to do things as below
1) Follow the rule of demand and supply. America has less doctors and nurses than the other developed countries. We should release more medical licenses, reduce requirement courses and deduct the tuition. No matter how many things they learn, doctors’ treatments are limited by the medicine on markets — Only certain medicine heal certain illness. Government should financially help intelligent students who qualify to become medical workers and let them provide professional service in return later. The Medical field, related to peoples’ health and lives, should be ruled by nonprofit concept.
2) Government should directly control heath-care premiums and only used it for treatment purposes. We should minimum our management fee, check up fee and eliminate the legal fee. People who give up their suing rights will pay lower premiums. Those want to get rich by creating medical suing cases have to pay higher premiums. For maintaining quality medical services government can suspend doctor’s license instead of giving them financial penalty.
3) Government should set up limit for it medical coverage. Everybody has certain amount of quota that can be roll over life long and can be forwarded to his or her family members. In that way people will not visit doctors for no reason and will not allow doctor to overcharges them as well. Meanwhile government should set up a system monitoring medical rates intensly. People who use up their quota have to pay a higher premium. They can also work or let their family members work in a hospital to pay for the extra quota they spend. The medical service is so expense today and we have no reason to let people spend whatever they want to spend.
4) Allow doctors to set up their own insurance rate based on the service they provide. Put doctors into a competitive market and protect them from being threatened by insurance companies and lawyers. There was an American doctor who provided lower premium to his patients and was considered illegal. Today, each American doctor is being watched by three lawyers who are waiting for medical malpractice cases. For that reason doctors have to make different kind of check up to protect themselves. It is said those unnecessary check ups cost 20% to 30% of our medical fee.
5) Reduce management fee in medical field. Today 31% of our health care dollars went to heath cares’ administrative cost and that is nearly double the overhead in Canada. If government controls the health insurance business, the first thing we have to do is minimize the management fee. We can pay a low salary to unemployed people and lay off those who do not do their jobs. Without a lower government’s management cost we cannot go anywhere.
6) Promote the theory of preventive medicine. People who are willing to use substitute treatments, such as herbs and acupuncture can pay lower premiums. Instruct terminally ill patients to eat appropriately, to do physical and internal exercise. Giving them the right to choose to die with dignity instead of forcing them to suffer in their deathbeds.
Up to today nothing was done because this country tent to protect small groups’ privileges and ignored the public’s benifit. If we do not end this kind of situation our economy and our social security system will collapse early or late.