The Stimulus Package and Higher Taxes are being fueled by The Credit Card Industry!

I have always been good with simple math. In one way this has been a bad thing because it enables me to see the mathematical manipulation of peoples lives while others don't seem to notice, yet I have no standing because I am not a physics major nor do I have a PHD in math.

Imagine being the character who yells out that "soylent green is dead people",  and nobody knows what you are talking about. Imagine being the person who coined the phrase, "if you build it, they will come", and nobody was interested.  

The Credit Card problem is becoming the soylent green of our entire economy. Even economists who state that the credit card industry is causing a huge economic problem will then state that the credit card problem is on equal footing with other economic problems, without seeing that credit cards may be the UNDERLYING problem that is affecting the other economic problems as well.

What is frustrating to me is that people who don't have credit card debt feel it is a problem that is beneath them, that it only affects the reckless and self indulgent, those who ASKED FOR IT.

That sentiment cannot be farther from the truth for most americans.

We are all interconnected mathematically. You could probably count on one hand the number of businesses that DO NOT take credit cards but do take debit cards. Even if you don't have credit card debt, or pay off your debt every month (bravo by the way), the place that employees you, and the vendors that either supply or purchase products or services from your business, in all likelihood RELY ON CREDIT. Without those credit lines, you may not still have your job, and guess what you might end up relying on to get by.

Now is the time to link the credit card industries recent actions to higher taxes. The credit card companies, the FDIC, and the federal reserve continue to suck out the fragile, economic life lubricant known as credit lines and lower interest credit card rates from every small city in the United States and their local economies. The credit card companies are also shafting their most reliable, honorable, never late paying, never miss a payment type of customer.

Credit card companies are ALSO sucking out the very economic life force that helps local, state, and federal governments meet their tax goals. So now there are two equal anti-economic forces working against the working class. 

As local credit dries up, and interest rates rise (even as the federal reserve drops interest rates to the banks) governments receive less in consumption taxes and property taxes as people make less purchases, home values drop and people are foreclosed on.

It is NOT ENOUGH to just be against higher taxes. If you are against higher taxes but not against higher credit card interest rates, you have not figured it out yet.

Now is not the time to be either a democrat or a republican. Now is the time to find alternative ideas to the same old stuff that got us in this economic mess. Incentive based Credit Card Programs are the only way to stop the downward spiral of the world's economy.

Instead, we are being force fed a "This is going to hurt me, more than it is you" chant by the banks as they continue to raise interest rates and lower credit card limits. Creative, incentive based credit card programs have not been tried, and that is the real crime that is going on and on and on.

Credit Card Companies Increase Global Warming Risk Every Time they Increase Interest Rates on Old Credit Card Debt.

While the media trains us to believe that Wall Street is the God of all Gods, the wall street banks that received huge amounts of bailout money from the government continue to RAISE their credit card interest rates on their customers.

It is one thing to charge higher interest rates on new credit card debt, but it is evil to retroactively raise the credit card interest rate on old debt. The longer it takes a consumer to pay off an old credit card debt because banks are now increasing credit card interest rates, the more that consumer has to work to pay off their old, ever rising debt, and the less money there is available to maintain the present economy.

Old credit card debt requires the consumption of even more of the earth's resources by that consumer/worker as they attempt to earn more money so they can pay down their old debt that the banks have already profited from handsomely.  If this old debt could be paid down to zero, than the person has a choice, either buy new products, but at a slower rate, or just consume less and not run up new debt.

Plus, if the monthly minimum payment were increased to 8 or 10% of the total due, most people would not run up as much debt as they did when the monthly minimum payment was 2% of the total due, and more of their payment would go towards principle as well.  The higher monthly minimum payment would help conserve the world's resources by reducing life long indenturedness.  Life long indenturedness helps cause global warming, assuming you believe global warming is occurring.

Show me jobs that don't require the earth's resources and everyone could be a millionaire. Show me a person working to pay down an old debt that continues to inflate because of 15, 20 and 30% interest rates, and I'll show you why we are doomed as a planet.

Yes, older credit card debt causes increased global warming risks. If you don't believe in global warming risks, the accelerated overuse of limited earth resources occurs when people work to earn money to pay off old credit card debt that the banks have already profited from.

Old credit card debt continues to increase and multiply because of the obscene interest rates associated with them, sort of like the way cancer increases and multiplies. If you think cancer is good, then so is old, high interest, credit card debt.

As we move forward, the argument can be made that raising interest rates on NEW DEBT will result in less overall money being borrowed, and therefore the more profitable the bank's credit card divisions will become. In other words, people will borrow less money overall, but banks will profit more quickly from the higher interest rates. Additionally, a borrower will see more quickly how much they can actually afford to borrow before they can no longer afford the monthly payments.

However, those sneaky low monthly minimum credit card payments still entrap many consumers who use credit cards, and that is the way the banks have always wanted it, and is a significant part of the debt problem nowadays. If banks had just charged higher monthly minimums all along, there would be a lot less debt right now.

Do you see what is happening? LESS IS MORE! Banks give out less money, but charge higher interest rates, thereby making the God of Cable Media, Wall Street, happy. The problem is the EXISTING CONSUMER CREDIT CARD DEBT that was borrowed when everybody had more wealth and opportunities to pay it off, has gotten railroaded into the new, less money borrowed, higher interest rate charged paradigm. The result is increasing consumer indenturedness from their old time credit card debt, which in turn suffocates the worldwide economy from maintaining as we move forward.

Banks were forgiven on their old time debt, can consumers at least have the luxury of paying down their OLD CREDIT CARD DEBTS INTEREST FREE? The ratio of unsecured debt versus home equity has never been worse, and to allow the banks to continue to charge outrageous interest rates on old time credit card debt that they have already made huge profits from is an abomination that will offset any consumer benefit that lower mortgage rates may bring.

What makes Wall Street happy, does not necessarily translate into better times for the consumer, and that is something the media refuses to acknowledge, let alone report.

Six Simple Ideas to help people, the economy, and reduce foreclosures.

1. All Renters should be allowed to fully deduct their yearly rent charges on their income tax. The renter's "deduction / savings" would automatically be deposited into a 4% interest bearing account that could be spent on education, medical emergencies / insurance, or used towards a down payment on a home.

2. Instantly reduce ALL primary home mortgages to a Fixed 4% interest rate.

3. Send Full Tax Disclosure statements to all tax payers that calculate and reveal the SUM TOTAL of all the taxes they paid throughout the prior year.

4. Reduce interest rate charges on ALL credit card debt that is older than 1.5 years to zero percent for those that can keep on making their monthly payments.

5. An Additional credit card incentive, pay twice the monthly minimum due and ALL INTEREST RATE CHARGES FOR THAT MONTH ARE WAIVED.

5. Make Tax Refund Checks instantly depositable into special savings accounts that pay 4%, allow citizens the ability to deposit a matching amount as well, don't tax the interest from this account.

6. Make balloon mortgages illegal, instead, have the monthly mortgage slowly inflate, even if it is a month by month increase, have it be such a small amount that the mortgage payer can afford the increases for a few years after the increases have started.

Taking all the fun out of Stimulation, even when we're still paying for it anyways.

It just dawned on me what bugs me most about the stimulus package. I would much rather see congress give out 300, three billion dollar stimulus checks over a years time, then do it all at once. Suddenly the flaw of the stimulus program is exposed.

300, three billion dollar stimulus checks would be the equivalent of two a day if we factor in how many days a year congress is actually in session. Um, maybe even three a day! Clearly it would take congress a week to two weeks to approve each 3 billion dollar check, and if one factors in that some bills won't be approved right away, we see that congress can only give away so much money, so fast, and do it in a responsible fashion.

Why can't all the stimulee's out there make a case as to why their program deserves immediate attention. and money? Why can't all the projects that might be eligible for funding get their project in order in a coherent, realistic and rapid manner as soon as possible so they can get their cut? Why can't stimulus equal incentive?

Are we possibly headed for a situation where the government will be so anxious to hand out money that they will practically be begging organizations to take the money and run? We should be grateful that car sales are down 40%. Why do we want people buying old school gasoline technology when we should be spending money fast tracking lighter weight transportation that also converts the suns rays to battery power?

I am intrigued by the UCLA plastics / photovoltaic research currently going on. The UCLA photo voltaic plastics research program could actually be a cornerstone towards any new breakthrough in weaning americans off of gasoline.

People need to survive on less money right now so that science and industry can maneuver society towards superior modes of transportation. This is why allocating all of that stimulus money all at once is not the way to go. Let society come forward with their proposals. Governments need to call a time out when it comes to taxation and interest rate charges being assessed on their own citizens.

Instead of figuring out ways to loan citizens more money, lets figure out ways to get people to reduce the debt they already owe without just writing it off as a bad debt. Let the people of this country help guard the stimulus package money. Calling a credit card interest rate time out for all americans interested in paying down their debt would require that bankers sit on their assets and not continue to charge outrageous interest rates on the one trillion in credit card debt.

Perhaps UCLA comes forward and asks for 250 million dollars in research for their photo voltaic plastics research projects. Would it be so bad to hire two hundred and fifty out of work people, pay them a stipend of 3,000 a month, and have their job be to monitor how that 250 million dollars is being spent? Some may say, well that's only one new job per million dollars. Wrong, that is just one job to help supervise the spending of each million dollars.

UCLA would be spending to purchase materials, conduct tests, have prototypes made, etc. The end result could be closer to one new job for every 100,000 dollars spent. That is probably an acceptable ratio, and the end result will then feed Michigan with entire new types of vehicles to build.

This is the type of cross pollination that needs to be going on. Use the Western Sun to accelerate plastic photovoltaic research, then use that technology in Michigan to create jobs for the new age of cars. Trying to revive a tired old economic system all at once will reduce money that could be going towards real progess.