Step 1: We declare the US bankrupt and announce default on all loans to non-us citizens. We also set a date three years down the road to have hearings on re-affirming this debt.
Step 2: We Issue bills to every country we have issued aid to over the past 10 years including the entire cost of the Iraq war. We assign the proceeds of these bills to those countries we owe. Let China collect from Iraq.
Step 3: We put an immediate freeze on most foreign aid.
Step 4: Get out of the United Nations and take our building back.
Step 5: We announce federal govt. loans to homeowners all current homeowners at 4.25% interest and to new all homebuyers (new buyers must qualify) for a 90 day window begining Ocotber 1 and ending December 31.
Step 6: The Fed will offer discounted rates for those banks who dollar for dollar buy back the morgtgage.
Step 7: Stop bailing companies out (especially banks) but we insure all deposits. We let bankruptcy courts do what they are supposed to do.
Step 8: Destroy the treasuries printing presses after buying the mortgages.
What this does do? Saves a boatload of money, ruins our credit, ends the housing crisis, stimultes the heck out of the ecomony (except for the banks -which need to learn a lesson anyway), and get us out of the UN. Ruining our credit is the key to long term fiscal responsibility, because we surely have no hope of congress doing it on their own. Can’t fund a deficit when no one will lend to you. I am convinced that bad credit is the only way to return to fiscal responsibility.
This also gives every other country in the world a chance to sit and think for a few years about all the good we have done for them. Kind of like taking the x-box away when your Kid goes on a 1/2 hour rant about not having an i-phone. Teaches gratitude. In the meantime, Israel can blow Iran to kingdom come and it wont be on our watch becuase we are taking a break.
Banks will hopefully extend 4% loans to existing homebuyers ahead of the October 1 window and the Fed. Govt. will not have to take all these loans. If it does, then the banks will have to buy it back in order to get cheap money. We stop throwing money down the rat hole of bad banks and we let those banks fail, but we protect the deposits. New banks or good old banks can recapitalize while taking loans paying them 4.25%, which is probably the best game in town. People who cant pay 4.25% will be the beneficiaries of government sloth and will by nature have time to work out their mortgages. If they can’t work them out, they will ultimately be foreclosed on.
Just a thought