The Investment Based Economy Plan Putting Wall Street to Work for The United States of America Consideration: Although I would never suggest, nor recommend that one take a crap shoot in the Stock market, hence, I would never endorse personally a private investment account for one's Social Security. I find this as proposed by the current administration as throwing the people a artificial sense of empowerment in determining their own destiny. Its like putting you in a row boat in rough seas, and then saying, now you are the Captain of your own ship, best of luck ! Simply, its okay to be in the markets as long as you can afford to, but most can't and shouldn't gamble their future. Also most of us will simply need as much money as possible before retirement age, regardless if smart enough to make the right investments at the onset. But then the question remains, 'why not put Wall Street to Work for us as America? Given the gamble and the scandal, and the lack of SEC over site over the past few years, we could easily dismiss this notion when considering its backlash on levels of investor confidence. The stymied lesson learned by some now broke, is that only the corrupt make money on Wall Street by fleecing the foolish. But then consider, if managed honestly and ethically, what Wall Street and its investment institutions could really accomplish if given specific guidance with compliance requirements ? Historically Wall Street had grown since the 70's into its own world of very sophisticated technology development that is specific for investment strategy management. More over, it does earn fortunes for those at the helm of these strategies. Regardless if the deck is not stacked, those at the helm could not view Wall Street as another Las Vegas, or Casino, as their business is to make money with money, and not to lose it foolishly. About financing our Government, historically, taxes from the people have always paid the way. No matter how we want to look at it, this can only sum up to nothing more than 'tax and spend'. We also know from common sense, and from Wall Street, that when given the opportuity, it is better to invest the dollar than to just spend it. For thousands of years, there has always been the cart, and in the 20th Century, the automobile was invented. For thousands of years there has been taxes, where in the 20th Century, Wall Street was born. The Question now becomes, 'should our Government, the people, and our economy be relegated to just carts, while those at the helm of Wall Street are the only ones entitled to automotive transportation ?' The Question evolves to, 'could Government apply investment wisdom into a viable paradigm, where The Treasury Department is the most valued client on Wall Street, which acts as our proxy, the tax payer; and where quarterly returns on Treasury trauche allocations are to pay down the interest rates, and ammounting debt, and where eventually this can allow infrastructure development, etc ?' Consider the collateral affects: o Regaining of investor confidence through Wall Street's demonstrated performance for the Treasury dept. o Obviating the need for more SEC overhead due to compliance incentives on the part of the market makers o Institutional and market investment strategies evolve through the liquity of funds o To Create momentum in the world economy due to new momentum on Wall Street Consider how we can put The world markets, and those at its helm such as J.P. Morgan/Chase, The Salomon's, the Goldman Sachs, Warburgs, and the rest of the market makers to work for America by having the Treasury Department act as our proxy. The Treasury Dept. becomes the most valued and respected client of these Market Makers. I propose for your consideration as a Perpetual Investment Engine. The Fundamental Plan: Oversimplified this is to incorporate 3 basic components: 1- A Perpetual Investment Engine: This is to be composed of the institutional banking systems of this world, commercial investment firms and companies; Most of which make significant returns on their investment strategies, regardless of the state of the Economy. 2- The Government/People: A Client of this Perpetual Investment Engine. In other words, let the Money Managers do what they do best for you, but "under A Performance / Bid Commitment"; Either make money or pay the equivalent from the money they made. Simply, if they make money, we make money. This also assures an impetus for a predicted return and the needed momentum on Wall Street. The Government is an investor or representative investor ( of American tax dollars ) but who is actually hands off except for such purposes as investment performance audits by the Treasury Dept. which is not a regulator as much as a preferred client with an assured return. Market makers bid to commit the highest return on the use of small allocations on a quarterly basis. The one with the highest bid for return to the Government is awarded the quarterly contract. If the market maker earns more on the use of the monies than was committed in the bid, then the market maker keeps the difference. If the market maker earns less, then it comes out of the market maker's pocket to make up the difference. 3- The Return On Investment: A Reinvestment, and then going to pay for such things as the principal behind the National Debt. This then twiked by Interest rate regulation at this point would really mean something; and then towards existing costs; and eventually as a return to what was the 'Tax Payer', but now a monthly Investor I.E. 'We the People'. In Retrospect: o As much has we still have needs for carts, we can't outright drop taxes and that is not what is suggested here, but investing in our country; and when considering the No-Win of expected escalating trillions in debt, and then assuming that who ever is left from the 300,000 layoffs per month to pay for it all, perhaps we could evolve to a more productive Investment Based Economy over the next few years. Lets assume that in the future, Economic Solvency is accomplished; and that eventually returns can be shared with tax payers. Those that avoid taxes end up getting less of a return than those who don't avoid paying taxes. Consequently, roll backs for the chosen result in less investment return for the chosen. o If the Market Makers were given the opportunity to work within such a paradigm, they will have been given a latitude that they have never had before. In other words, the opportunity to be an integral component in building confidence in the Capital Markets. Most of all, as they grow, so do we. o Additionally, we the people would have more confidence in the Capital Markets if our government demonstrated its confidence in it. It is not a question of more regulation or ducking from stock hype advice, but instead a question of an earned trust by the people. o Consider, in 1984 the Treasury Department had a Chrysler Management Group. Should we have Airlines, and other industry bailout groups there in the future, or should we have instead a management interface into the institutions that make up the burgeoning 21st Century world economy; and then be able to pay down our debt, and allow our industries a level play field instead. o Compared to the cart, the proposed is the equivalent of the Model T engine. If each of us start thinking about this now, putting many fine minds to engineer this as an efficient engine, within a few years enduring prosperity can be achieved where now a deficit based economy in lock step with a war that is without a horizon, cannot swing through to structured, and non escalating debt, and then continue to its next cycle to liquidity. o World Trade can be financed on a level playing field for the benefit of more than a few, and industries which are allowed to be competitive will galvanize, and those not competitive will be shift globally; the government can also have the cash flow to afford vocational transition training programs for those who wish to evolve into other industries. o 'Leave no child Behind' will mean something instead of just 'Endorsed Lip Service' as State budgets will not have to be slashed and educational programs will not have to compromise on the quality of tommorrow's human capital. o With ample real cash flow, Congress could have other things to focus on as opposed to how to get their particular part of a limited budget for one program over another; more decisions will be based on nonparitsan agreements which means more legislation will be efficiently accomplished. o Consider we have much to pay for these days, and more to come due to September 11th, recovery for many if not for all, and now a few wars; and that's in addition to our outstanding debt which has no real cap. o National Security is ultimately based on Economic Security, as who really owns our debt, which is currently mostly foreigners, own us. o Foreign Aid would not compromise domestic spending; at Present just how do we plan on providing foreign aid without compromising our domestic budgets ? Consider this - we will actually be able to pay to feed our own starving kids and care for our own aging; that is besides others. o Other countries can also key off of our Investment based system. Orion Karl Daley Presidential Candidate for 2008 for the Strategic Future of our country Balanced Party http://unity2008.org