TRAVESTY

From the page https://www.facebook.com/BreitbartOneSilencedMillionsAwakened

The Chapman University of Military Law and its associated AMVETS Legal Clinic are blowing the whistle on what they say is an injustice set to be perpetrated on 157 Air Force majors on the last day of November

The Obama administration has ordered massive reductions in forces, resulting in many officers who are near retirement being involuntarily separated without retirement or medical benefits

There have been rather a lot, to say the least, of firings, demotions, relievings and disciplinings of hundreds of officers in our military under this present regime. The grounds range from "leaving blast doors on nukes open" to "loss of confidence in command ability" to "mishandling of funds" to "inappropriate relationships" to "gambling with counterfeit chips" to "inappropriate behavior" to "low morale in troops commanded" to you-name-it-you-got-it

We honor them not by handing them a pink slip as they are shipped off to combat

Grand Total: 197 Officers

Year: 2013 (9, so far).

1. Marine Col. Daren Margolin – Quantico – Oct. 18, 2013. Was in charge of Quantico’s Security Battalion.
2. Marine Major General C.M.M. Gurganus – Oct. 12, 2013. Commander Regional Command Southwest and I Marine Expeditionary Force (Forward) in Afghanistan.
3. AF Major Gen. Michael Carey – Oct. 8, 2013. 2-star commander of 20th Air Force. 3 wings of ICBMs. 450 nukes. Covered 3 AF bases across nation.
4. Navy Vice-Admiral Tim Guardina – Oct. 9, 2013. 3-star vice-commander all US nuclear forces (land/air/sea). Relieved of command. Demoted in rank to 2-stars.
5. Marine Major General Gregg A. Sturdevant – September 2013. Director of strategic planning and policy for U.S. Pacific Command and commander of the Aviation Wing At Camp Bastion, Afghanistan.
6. Marine Col. James Christmas – July 18, 2013. Commanded 22nd Marine Expeditionary Unit. Also, commanded the new Special-Purpose Marine Air-Ground Task Force Crisis Response Unit.
7. Army Brigadier General Bryan Roberts – May 2013. Commander, Ft. Jackson, SC.
8. Marine Gen. James Mattis – May 2013. Chief of CentCom.
9. Army Major General Ralph Baker – April 2013. Commander of Joint Task Force Horn of Africa at Camp Lemonnier in Djibouti, Africa

Year: 2012 (Overall total – 4 +24 = 28 Final total).

1. Marine General John R. Allen – Nov. 13, 2012. Commander, ISAF - International Security Assistance Force.
2. Army General David Petraeus – Nov. 9, 2012. Commander, International Security Assistance Force (ISAF) and Commander, U.S. Forces Afghanistan (USFOR-A). Director of CIA from September 2011 to November 2012.
3. Navy Rear Admiral Charles M. Gaouette - Oct. 27, 2102. Commander, USS John C. Stennis strike group. Relieved within a day or so of Benghazi.
4. Army General Carter F. Ham – Oct. 18, 2012. Commander, AFRICOM. Relieved during Benghazi from direct command of AFRICOM.

Naval Officers (all in 2012): Total - 24

1. Cmdr. Derick Armstrong, Commander, guided missile destroyer USS The Sullivans.
2. Cmdr. Martin Arriola, Commander, USS Porter.
3. Capt. Antonio Cardoso, Commander, of Training Support Center San Diego.
4. Capt. James CoBell, Commander, Oceana Naval Air Station’s Fleet Readiness Center Mid-Atlantic.
5. Cmdr. Joseph E. Darlak, Commander, USS Vandegrift.
6. Cmdr. Franklin Fernandez, Commander, Naval Mobile Construction Battalion 24.
7. Cmdr. Ray Hartman, Commander, amphibious dock-landing ship Fort McHenry.
8. Cmdr. Jon Haydel, Commander, USS San Diego.
9. Cmdr. Diego Hernandez, Commander, ballistic-missile submarine USS Wyoming.
10. Cmdr. Lee Hoey, Commander, Navy Drug Screening Laboratory, San Diego. (HL)
11. Cmdr. Dennis Klein, Commander, submarine USS Columbia.
12. Capt. Marcia “Kim” Lyons, Commander, Naval Health Clinic New England.
13. Capt. Chuck Litchfield, Commander, USS Essex.
14. Capt. Robert Marin, Commander, USS Cowpens.
15. Capt. Sean McDonell, Commander, Seabee reserve unit Naval Mobile Construction Battalion 14.
16. Cmdr. Corrine Parker, Commander, Fleet Logistics Support Squadron 1.
17. Capt. Lisa Raimondo, Commander, Naval Health Clinic Patuxent River, Md.
18. Capt. Jeffrey Riedel, Program manager, Littoral Combat Ship program.
19. Cmdr. Sara Santoski, Commander, Helicopter Mine Countermeasures Squadron 15.
20. Cmdr. Sheryl Tannahill, Commander, Navy Operational Support Center Nashville.
21. Cmdr. Michael Ward, Commander, USS Pittsburgh.
22. Capt. Michael Wiegand, Commander, Southwest Regional Maintenance Center.
23. Capt. Ted Williams, Commander, Mount Whitney.
24. Cmdr. Jeffrey Wissel, Commander, of Fleet Air Reconnaissance Squadron 1.

Year: 2011 Total – 1 + 157 = 158 overall

Army Major Gen. Peter Fuller - May 2011. A top U.S. commander in Afghanistan.

157 Air Force majors. Military advocates decry ‘illegal’ early terminations of 157 Air Force majors

Year: 2010 Total – 1 ( total)

1. Army Gen. Stanley McChrystal – June 2010. Overall commander Afghanistan. Replaced by Gen. Petraeus.

1. Year: 2009 Total – 1 (total)
Army Gen. David D. McKiernan – 2009. First 4-star relieved since Truman relieved MacArthur. Commanded in Afghanistan.

http://dailycaller.com/2011/11/25/military-advocates-decry-illegal-early-terminations-of-157-air-force-majors/#ixzz2iYo78Ke7

What do Rush Limbaugh, Hugh Hewitt, and Glenn Beck have in common?

They all recommended this article yesterday.

And today, this same blog says that was "just the tip of the iceberg"!

10 worst states for retirement

COMMON THREAD: EXCESSIVE GUN CONTROL, HIGH CRIME RATE

The Fair Tax Act versus A Personal Accounts Plan (for Laymen)

by Dick McDonald
Ownership Society Institute
www.RiseUpAmerica.us

Rather than get into too many complicated inter-related issues, I am writing this to make crystal clear the main (but not all) of the differences between the highly touted Fair Tax plan and the less understood personal account plan I am supporting and writing about in my book “Make the Poor Rich.”

The Fair Tax Plan

The Fair Tax Plan is very attractive. It scraps all Federal taxes and replaces them with a 23% consumption tax. It eliminates the IRS. It eliminates the need to file income, estate, gift, excise and payroll tax returns. The Fair Tax abolishes them all. Your yearly trek to your tax accountant is eliminated and H&R Block evaporates. No need for copious tax receipts and support; all that is eliminated. Tax cheats who failed to pay their taxes in order to buy more stuff get caught in buying that stuff because the Fair Tax is a consumption tax.

The Fair Tax is based on the assumption that it is fairer to tax consumption than net taxable income which is based on ability to pay. The richer you are the more you pay in our 93-year old system. The Fair Tax doesn’t care how rich or poor you are it just imposes the tax on the new products you buy. It rebates (called a pre-bate) the 23% tax on the necessities the poor buy and exempts them completely from tax as the payroll tax will have been abolished. This is a good thing for the poor, but hardly a bonanza as they are prone to consume every dollar they get.

Under the Fair Tax the rich guy pays nothing except the 23% tax on that which he personally consumes. As he has most everything already, the portion of his income and wealth spent on taxable consumables will only be a fraction of the percentage the poor and middle class spend on taxable consumables. Granted the rich man will invest in the market and create jobs and economic activity which will up overall consumption. That is a good thing but I’m afraid the ordinary taxpayer will complain that the rich get richer under such a plan and the poor and middle class stand still and pay the freight.

The Personal Account Plan

This tax reform ”personal account” plan eliminates all payroll taxes going to the government and diverts them (the 15% which is already withheld) into a taxpayer’s own personal investment account to grow over his 40-year working life by compounding into a sizeable nest egg. As compared to the Fair Tax, the account cannot be reached until retirement as the plan calls for the transfer of the funding of retirement from the government to the individual and the government doesn’t want to have people be irresponsible and spend all their savings and come back as a ward of the state. The nest egg is sufficient in size that just the income off the nest egg will provide the retiree with an affluent retirement. At death, his sizeable estate can be passed on to his children. No other taxes are repealed. However with the repeal of the payroll tax, half of the national budget is eliminated and the need for half the taxes. As those taxes are invested in the economy a substantial increase in economic activity is anticipated.

Comparison of Some of the Features:

• Simplicity
  
  Nothing beats the Fair Tax for simplicity. It eliminates and abolishes all Federal taxes and replaces them with one simple consumption tax. It eliminates the need for a sizeable IRS. It reduces the need for complicated accounting and supporting documents. It eliminates the need for tax returns and the complicated determination of taxable income. Nothing could be simpler than the Fair Tax.
  
  By comparison there would be more complications with a personal account as all taxes stay the same and payroll taxes still have to be determined and paid into an individual’s personal account. In the present Social Security system the government takes care of funding retirement and old-age medical needs. Under personal accounts this responsibility falls on an individual’s shoulders.

  Advantage: Fair Tax

• Limiting the Size of Government
  
  The Fair Tax would substantially reduce the Government’s need to administer so many taxes but HR 25, its empowering legislation, makes this “consumption tax” revenue neutral. In laymen’s terms that means that if the government collected $2.8 Trillion in Federal taxes in 2006, the Fair Tax would be designed to tax the “consumables” subject to this Fair Tax so as to collect $2.8 Trillion in 2006. Therefore it doesn’t limit the size of government to any significant extent. Politicians would still retain the right to allocate that $2.8 trillion of tax receipts at their whim.
  
  The personal account plan would cut the Federal government in half. The Federal budget would fall from $2.8 Trillion to $1.4 Trillion overnight. As the government would no longer be charged with the responsibility of funding retirement and old-age medical needs, it no longer would be in the entitlement business. It would no longer be playing nanny to its citizens.

  Advantage: Personal Accounts

• Tax Cuts
  
  As the Fair Tax is revenue neutral, its imposition would not cut the nation’s tax burden. It would merely shift that burden among the various classes of taxpayers. The poor would be exempt from all taxes and the wealthy exempt from income, dividend and capital gains from which most of their wealth presently flows. Those whose income is spent on consumption over the poverty line would be hardest hit. However, as the Fair Tax is not designed to cut taxes, it is not a vehicle for tax cuts.
  
  As far as tax cuts are concerned, the imposition of full-blown personal account legislation would result in the biggest tax cut in the history of the planet. Eliminating the need for government to fund retirement and old-age medical costs would result in a $1.4 Trillion tax cut.. Unfortunately for those who want to spend their tax cuts now, that money will be put away for them to grow into millions over the years and will not be immediately available. They will be able to direct their investment into pre-designed indexed funds but that is all. Still it is a massive tax cut.

  Advantage: Personal Accounts

• Cost and Logistics of Transition and Implementation
  
  The cost and logistics of transitioning to the Fair Tax would be daunting logistically but not too costly. As the plan is revenue neutral, the federal government would still be raking in the same dough; they would just be in a scramble as to whose ox is gored changing job descriptions and desks.
  
  The transition to a full-blown personal account modality would be painful to those who look at the problem linearly. Today the payroll tax receipts are used to pay retirees. Upon implementation of personal accounts that source of funding disappears as those funds will be placed in personal accounts. The question then becomes how do we fund the benefits of those in the system now and those whose accounts won’t have sufficient time to mature into sufficiently large nest eggs.
  
  In my book, “Make the Poor Rich,” I have at least eight methods to easily accomplish this. None may be needed, however, if history repeats itself. In the 1980s when Reagan cut the tax rate from 70% to 28% the result was that government “income” tax revenues doubled because of increased economic activity. If that happens again and there is good reason to believe it will as the stimulus of personal accounts will pale to insignificance the tax cut of the 1980s then such increase in revenues will be more than enough to pay for the smooth transition to personal accounts.

  Advantage: Fair Tax

• Unfunded Debt Reduction
  
  The Fair Tax hopes to generate sufficient activity to make a big dent in the $13.2 Trillion unfunded Social Security debt. It makes no provision for the looming $30 to $50 Trillion of Medicare liabilities. I personally am unconvinced that it adequately addresses the Social Security problem as the Fair Tax is revenue neutral and present revenues are not adequate to pay the ever-increasing unfunded liability much less reduce the existing liability. It would be necessary to run enormous surpluses under the Fair Tax to even begin to address these unfunded entitlements. Under Fair tax these liabilities remain a severe problem.
  
  The personal account plan abolishes both the Social Security and Medicare unfunded liabilities on the date of the plan’s passage. They are written off the books with the stroke of a pen. Congress is not obligated to fulfill those promises and they have proven that in the Supreme Court. They have no contractual obligation to retirees. They can repeal any laws without consequence.

  Advantage: Personal Accounts

• Retirement Funding
  
  The Fair Tax makes no provision for retirement funding. Taxes presently collected to pay retirees will remain the same and substantial benefit cuts or an increase in the 23% consumption tax will be needed to keep those programs afloat. I don’t see any significant change in the dynamics of a revenue neutral consumption tax that would in any way ameliorate the problem.
  
  The personal account plan has been devised to make the poor rich and able to afford upon retirement an affluent lifestyle and the best medical coverage money can buy just off the income from their nest egg. Your $60,000 a year truck driver retires with a $4.8 Million nest egg and a $40,000 a month retirement check (2006 dollars) without invading his nest egg. He can afford a magnificent lifestyle and buy the best medical care money can buy.

  Advantage: Personal Accounts

• Crime, Discontent and the Pursuit of Happiness
  
  The Fair Tax and its abolition of all the taxes and the bother they create will do wonders for the people. It is a step up in the pursuit of happiness. I question, however, its effect on crime and discontentment. I think it will only marginally improve either of the latter. Its revenue neutrality bespeaks of its failure to lift all boats.
  
  Personal accounts have been designed to make the poor rich; even those who by circumstance or environment can’t compete for the big bucks. It carries them into a paradigm in which they can achieve the American Dream by merely working to survive. As most crime is driven by the lack of money, personal accounts will do wonders in reducing crime. As a disincentive for bad behavior for those who commit crimes for money we will subtract their incarceration costs from their personal accounts when jailed. As the poor get wealthier, both the tenor of life and its crisis will tone down and hopefully mute. Personal accounts and the security they provide should be the ultimate reward in the pursuit of happiness.

  Advantage: Personal Accounts

• Private Sector Retirement Funding
  
  The Fair Tax abolishes the payroll tax and provides Social Security and Medicare coverage assumedly at the same level presently paid. As those amounts are insufficient to provide just enough to avoid starvation and homelessness, I don’t see the Fair Tax helping the private sector fund retirement. As it presently stands business is abandoning fixed retirement benefit plans for 401(k)s which have no mortality pool (not payable until death). The Fair Tax should provide a cushion for corporations to provide retirement plans but I doubt they will do so considering the cost that must be added to their products and services.
  
  Personal accounts are designed to provide in one place all the retirement funding an American needs. He won’t need funding from his employer or employers. He can scrap his 401(k), his IRA. There will be no need with the nest egg he will accumulate under the personal account plan.

  Advantage: Personal Accounts

• Wealth Creation
  
  The Fair Tax is not designed to create wealth. It is revenue neutral and neither cuts overall taxes nor provides for an increase in the capital pool (here we assume the rich will be freer to invest but it should be offset by a reduction from other classes who pick up the shortfall in tax collections).
  
  Personal accounts have been devised to create enormous personal wealth for American citizens; even the poor and uncompetitive will become wealthy. . Under this plan the overall wealth of America will geometrically rise to supply the world with the capital it needs to improve the overall standard of living of the oppressed and unfortunate of underdeveloped nations. Advantage: Personal Accounts FairnessIf by fairness one wants to rid themselves of bothersome details, the Fair Tax is your number. However, as between classes of taxpayers I have concluded the Fair Tax is anything but “fair”. Were it not revenue neutral and created huge surpluses with which to liquidate our unfunded debt. I would feel differently. As it is, it loses my vote. This is of course predictable as it is my passion to implement personal accounts at 15% of income and wages and I am exceedingly biased. I leave it to the Fair Tax crowd to challenge my findings and my conclusions. I doubt they will be sitting on their hands.

  Advantage: Personal Accounts

• Legislative Potential
  
  Neither Fair Tax nor Personal Accounts legislation will go down without a massive battle with the establishment as both are designed to free the individual from the yolk of government. The forces of government are massive and impressive. Fortunately they already have personal accounts which I will use like a rapier to impugn their character and honesty with the American people. I predict they won’t get away so easily this time;. George W. Bush won’t be running interference.

  Advantage: Personal Accounts.

If you really believe in America, read this

The Ownership Society Institute (OSI) has been claiming that its Rise Up America (RUA) plan to reform the US Government, kick-start the economy, immediately eliminate over $100 trillion in unfunded US debt and deliver the American Dream of financial independence to every American is the route the political parties should be taking rather than the present slash and burn Republican plan to cut benefits, services and safety nets or the totally irrational spending spree the Democrats are planning to pursue right into Federal as well as state, county and city bankruptcy.

For those of you unfamiliar with the Rise Up America plan it is based on a simple tax shelter device used by the wealthy that has allowed the likes of Bill Gates and Warren Buffett to amass $50 billion fortunes without so much as paying one dime in income tax. The device is simple – the appreciation in the value of their stock is not taxed currently – or ever if they don’t sell shares and pay the 15% capital gains tax. RUA by privatizing the entire 15.3% of annual payroll tax and allowing it to be placed in an unreachable investment account and invested in the stock market for every taxpayer’s working life will enable every American to become a millionaire at retirement. See tables here. The appreciation in their stock over the years will enable them to escape the current taxation of their gains.

From the chart below one would have to be delusional or fatally partisan not to believe that this is the moment for the people to jump on the RUA bandwagon and institute the RUA plan at every level of government. The expectations for stock market returns after inflation will be over 11% which if it holds would mean the average American family ($50,000 annual income at today’s price levels) would generate a $14, 200,000 nest egg after his or her 40-year working life. Now this sounds too good to be true but that is what the calculator tells us. Remember in 2006 Warren Buffet made $833 million each and every month for the entire year as that was the result of his accumulating stock the appreciation on which he paid no tax. RUA merely adopts that shelter to make the poor rich and the rich ever so much richer.

Dick McDonald, General Manager
Ownership Society Institute
April 6, 2011

Rate of Return Nonsense

by Dick McDonald Ownership Society Institute

The most effective argument against the privatization of Social Security and Medicare that Democrats and their propagandists have used to defeat any meaningful discussions is “the stock market is too risky.”

Ignoring the reality that almost all existing government and private retirement and old-age medical plans invest in the stock market (with the exception of Social Security and Medicare which are pay-as-you-go “Ponzi-type” schemes) their “too risky” propaganda doesn’t hold water.

First we have to consider what we are doing in crafting plans to finance Social Security and Medicare costs. Isn’t it true that we are looking to finance costs that won’t arise until after the taxpayer retires from an active working life of 40 to 50 years? Therefore we need to craft a plan that is very long-term in nature not short-term.

This brings us back to the rate of return nonsense that is accepted by so many Americans – “the stock market is too risky.” Well it isn’t risky over the long-term. In fact its average rate of return in 40-year increments ever since the S&P 500 started being tracked in 1871 is almost 10% per year.

In its long march from 1 to today’s 12,000 the DOW industrial average has experienced dramatic “short-term” swings. The DOW fell 60% in the great depression. Generally it falls 40% in recessions. In today’s Great Recession it fell 50%. It tumbled from 12,000 to 6,000. However, we are not in unchartered waters. The market always rebounds and then moves higher. Isn’t it over 12,000 today?

Now let’s add to the anti-privatization rhetoric the common argument that I can only get 1% interest on my savings account. Well bank interest is not worthy of discussion. Let’s take a look at the rate of return stocks have experienced on the rebound as of today February 26, 2011.

1. The DOW is up 85% from its March 9, 2009 low.
2. NASDAQ is up 119% from its March 9, 2009 low.
3. S&P 500 is up 95% from its March 9, 2009 low.

Therefore if you funded your retirement on March 9, 2009 your portfolio has probably doubled in value. Now discard the nonsense about bank interest and embrace stocks – they are our salvation.

The long-term advantages of investing in a fund of stocks that track average rates of return are undeniable. A plan that invests in indexed-type stock funds is the only answer to solving our present entitlement-debt crisis.

By replacing Social Security and Medicare with a reasoned stock-investment plan we not only solve our debt problem but our economic problems as well. By investing our annual payroll taxes of $1 trillion in the stock market will generate trillions in new economic activity and tens of millions of jobs.

We must realize such a plan will make even a janitor a millionaire at retirement. The rich will become richer and the country that promised shining city on the hill. It will deliver the American Dream, not the political one but the one we all day dream of.

Today society is in a budget-cutting frenzy to solve its financial problems. However they are ignoring the revenue factor. New Congressman Colonel Adam West put it bluntly this morning “we don’t have a revenue problem we have a spending problem.” I totally disagree, we have both and the Tea Party is missing the boat by agreeing with West.

Republicans, Tea Partiers, Democrats and the talkers are presently recommending less than 1% solutions to our endemic spending problems and zero on direct revenue raising solutions. The solution in raising revenues is not by raising taxes but increasing tax revenues which only occur in a free society when tax rates are low and the returns on investments high.

Now if you understand the rate of return issue turn your focus on to increasing economic activity by reducing tax rates. The attending increase in economic activity will solve many of our problems by exploding the tax revenues without raising rates.

Those interested in cutting Federal taxes by 40% and reducing the average tax load on Americans by 40%, solving our debt crisis and exploding the economy upwards might consider the plan enumerated here.

The rate of return will take care of itself. Invest in America.

Does one man have the answer for America?

I emailed Al Martinez (The Daily News) twice about my friend Dick McDonald...and look what finally happened today!

Al Martinez: "Does one man have The Answer for America?"

PS: Dick has a free e-book on his website called "Make The Poor Rich and America Wealthier" that is over a hundred pages of specific details that show why his plan will save our country. (Please forward to your lists and spread the word!)

Social Security Goes into the Red in 2010 not 2018

by Dick McDonald - Ownership Society Institute

In 2010 the Congressional Budget Office has projected a $92 billion surplus of payroll tax receipts over Social Security benefits paid. That figure includes $120 billion in “non-cash” receipts of fictional interest paid on fictional US Bonds – a bookkeeping trick like Enron used to cover up Congress’s theft of over $4 trillion of excess payroll tax receipts it has been appropriating from Social Security since the early 80’s. See here.

http://finance.yahoo.com/focus-retirement/article/108747/next-in-line-for-a-bailout-social-security?mod=fidelity-readytoretire

That means that by September, 2010 the US Government will need a $28 billion cash infusion just to meet its Social Security obligations. So much for the age-old denial that Social Security isn’t broke. That it has unfulfilled promises of over $14 trillion in future benefits in excess of projected receipts. Similarly Medicare is in the tank for $93 trillion. The jig is up and the Democrats and RINOs have no where to go on this issue.

The real benefit to be gleaned from this is that Americans will seriously try to solve this problem by any means other than raising taxes and/or cutting benefits. Believe me Americans will insist on it. The baby boomers will demand their full benefits as they come on stream in the next 15 years and the kids will resort to violence if they are unfairly taxed because it will take 2 kids to support one retiree

President Obama has challenged the Republicans to come up with some ideas to solve the dilemma and the best they came up so far is Paul Ryan’s proposal to raise the retirement age to 70 years (benefit cut of major import), cut the Medicare benefits (benefit cut of major import) and allow a small portion of a worker’s payroll taxes be invested in a personal investment retirement account (step in the right direction).

The real tragedy is that current benefits don’t begin to cover retirement costs and trying to save these entitlements is merely rearranging the deck chairs on the titanic. What Americans want and will insist on is a re do of the funding of retirement costs so that more than the solvency of the government entitlement programs is achieved. Bush limited his Social Security reform to solving the solvency issue – Ryan appears to have limited his approach to solvency as well. There should be no limitations placed on what Americans can do in solving this issue.

We at the Ownership Society Institute (OSI) recommend these entitlement programs be scrapped with the proviso that the government guarantee that all benefits under them will be honored and form the floor under which no future benefits can ever fall.

In place of these programs we institute personal investment accounts we like to call “USAs” – Universal Savings Accounts. That into these accounts the entire 15.3% of payroll taxes presently sent to Congress will be redirected and immediately invested in the stock market for the 40-year working life of every taxpayer. The details of OSI’s plan are outlined here. It is called the Rise Up America plan.

In addition to solving the solvency issue RUA does the following:

· Generate the biggest tax cut in history

· Reduce the size of government by half

· Alleviate poverty and economically emancipate lower class citizens

· Infuse enormous sums directly into the economy and accelerate growth

· Eliminate the need for government pensions and Medicare

· Pay off $110 trillion of unfunded Social Security and Medicare liabilities

· Give back to Americans the money that they earn

· Increase the economic opportunities of all Americans

· Avoids Bankruptcies of cities, counties and states from pension liabilities

· Makes everyone a shareholder and responsible for oversight

· Reduces crimes especially those triggered by poverty

There a hundreds of other benefits of privatizing the entitlements but let’s leave it to a simple example.

The average American household makes over $50,000 a year and pays more than $7,500 in payroll taxes. Under RUA those taxes are placed into a USA and immediately invested in the stock market for 40 years. The $300,000 (40 years times $7,500 a year) grows into a $4,004,000 nest egg because of the magic of compounding. Just the annual income off that nest egg will generate a $33,000 a month retirement check – more than enough to support an affluent lifestyle.

RUA uses the principle of small government and takes away from government the responsibility to fund entitlements. It relies on the words of Alfred Einstein as everyone should. “The most powerful force in the universe is compound interest.”

All those concerns about such a sea change in the way the government does what its citizens will want is explained at www.riseupamerica.us including how to simultaneously fund the transition, place $1.3 trillion into the stock market annually, pay benefits under the old programs and miraculously enough increase the value of the US dollar. See here.

The Magic Transition

by Dick McDonald
www.riseupamerica.us

When I tell people that the Rise Up America plan has a way to simultaneously (1) place $1.3 trillion in payroll taxes annually collected by the government into personal accounts owned by the tax payer and immediately invested in the stock market to ignite the creation of new businesses and jobs, (2) pay $1.1 trillion in Social Security and Medicare benefits to participants, and (3) magically increase the value of the US Dollar heretofore crippled by the overuse of the printing press, I get looks that can best be described as “Are You Nuts?”

So I best explain.

OK, let’s start with a fictitious country where we pretend it is worth $400. That is all its cash, bonds, stock, real estate, its ports, airports, roads, bridges, corporations, businesses – in fact all tangible and intangible assets owned by the private sector and the public (government) sector total $400.

Now let’s assume the people make $14 a year but after $3 in taxes they spend every dime leaving no money to invest in the economy. So the government decides because it is a capitalist economy to print $1 dollar every year for the next 40 years and give that dollar to the people and let them invest it in the stock market.

Because the way capitalism works the people would get a return investing in the stock market for 40 years. For the last 30 years the S&P 500 stock index had an average annual return of 12.8% so let’s assume the return the people of our fictitious country got was 10% annually. Under those circumstances the $1 invested for 40 years compounds into $443 at the end of 40 years.

Now let’s compare the results. Every year for forty the government printed $1 dollar for a total of $40 dollars. The investment by the people of those $40 dollars increased the assets of the country by $443. So we can conclude that there was a small devaluation of the dollar - $40 over 40 years – whereas there was an immense increase in the country’s net worth of $443, Quite a bargain wouldn’t you say?

Investing is the trick –The simple truth this example illustrates is that investing money increases value of a country even if you invest money you print. A country who’s net worth increases has a currency worth owning from an international a trader’s standpoint.

Consuming is at fault –The reason the value of our dollar has fallen regularly ever since we went off the gold standard in the 1930’s is that we insist on printing money to pay for our mistakes. The most recent example was our use of the printing press to enable the banks to lend money to home buyers at 1% which has resulted in a 40% fall in the value of the dollar. It has been a costly mistake the government supported. We needed help out of a recession but we didn’t need to leave the door to the vault wide open.

The magic transition – Now it is as simple as this. We take $1.3 trillion in payroll tax receipts, put them in the taxpayer’s personal accounts, invest them in the stock market and start the compounding miracle of $443 for a $40 investment.

Simultaneously we print $1.1 trillion in new money and pay retirement benefits. As the recipients will be dieing off during that 40 year period and others will be self-funding their needs from the income off their personal accounts we will never print the entire $40.

Increase in the value of the dollar – Establishing an economic policy wherein investment in the country is the tool used to create wealth can only convince international traders into bidding up the price of the US Dollar.

It is just as simple as that.

A Historical Clue –It has been the international socialist movement that has encouraged consumption and the confiscation of property from the productive elements of society. Unfortunately the free market capitalists have failed to fully support the investment principle and have too long tolerated the inflationary effects devaluations have fomented because socialists always spend more than they have.

It is time America wakes up to the fact that socialism is a failed economic philosophy and adopts Rise Up America’s plan to vault the USA into the 21st Century.

How to get rich

Break Socialism’s Back
Start A Capitalist Revolution www.riseupamerica.us
Teach Your Teachers A Lesson

One way to destroy socialism is to take away the perception that socialism can deliver the “common good”. Academics may embrace it theoretically but in practice socialism has never has nor will it ever deliver the “common good.” Therefore why don’t practical people attack it at its weakest point – the entitlement fallacy. Entitlements have never made the poor rich. They have just put a band aid on socialism’s perpetuation of poverty. Man needs to replace entitlements with a plan that makes the poor rich – rich enough to make their own way in this world - and there is a way capitalism can do just that.

If so, America’s youth needs to start a capitalist revolution to reverse the creeping socialism that plagues the free world

The Rise Up America plan employs capitalism and lets that economic miracle eradicate poverty from the American experience. It does so by not asking Americans for tax dollars to redistribute to the poor - nor does it ask the poor to invest that which they don’t have. It merely diverts those monies presently taken by the government in the form of payroll taxes and places those monies in a personal investment account owned by each individual taxpayer who immediately invests those funds in America’s capital markets.

Leaving those funds in the personal investment account to compound into millions throughout his or her working life allows a retiree to afford an affluent retirement, the best medical care on the planet, a million-dollar nest egg to will to the kids and freedom from a dependence on government. The millions in their personal accounts deliver the American Dream of financial independence that socialism promises but capitalism delivers

We hope to arm the American youth with the Rise Up Theory of Economics with which to fight this battle and instruct their revolution.

The Rise Up Theory of Economics does for the poor and middle class what the "Trickle Down" Theory did for the rich - it makes them wealthy. It is a simple concept, It redirects the 15.3% presently paid by individuals (and in the case of employees, their employers too) in the form of payroll taxes into a personally-owned investment account that will grow into millions over the citizen's working life. The funds are invested in safe indexed stock funds that have historically been growing at an average rate of over 10% for the last 30 years. See the schedules, tables and graphs at www.riseupamerica.us to verify the millions an ordinary American can accumulate during their working life and the history of the rates of return on indexed stock funds.

This is not a Republican or a Democrat plan but an American plan. A plan that transcends politics and immediately creates an American economy annually infused with over $1.3 trillion of new capital with which to grow at a more rapid rate than at any time in its history.

Adopting Rise Up will not only make America and Americans wealthier it will reduce the size of government by half; generate the biggest tax cut in history; pay off all unfunded entitlement liabilities; economically emancipate women and minorities;; reduce crime, poverty and gangs; eliminate the need for government pensions and Medicare; eliminate the need for business to fund retirement needs and a myriad of other benefits – see the Mission Statement at www.riseupamerica.us.

Under the Rise Up plan, the government will guarantees to pay all benefits presently payable to retirees and welfare recipients under existing programs. The amounts so payable will be forever frozen at existing levels and the government will guarantee they won’t be altered.

The Rise Up plan also includes a unique method to finance the transition from existing programs like Social Security and Medicare to personal investment accounts. An exciting feature of that method will be the manner in which it will increase the value of the US dollar internationally.

All organizations and individuals interested in improving the American experience are invited to endorse and promote the Rise Up America plan. Please contact Dick McDonald, Managing Director of the Ownership Society Institute* at 818-998-6800 or e-mail him at dickmcdonald73@att.net for further details.

It is important that the youth if America “rise up” and take charge of its future. The path to further stagnation through socialism must be reversed. Taxing the rich is a failed prescription – un taxing the poor and middle-class is the prescription to free Americans and enable all of them to reach the American Dream – painlessly. Take that to your teacher and see if he or she supports making the poor rich or if he or she is in favor of keeping the poor permanently poor?

* OWNERSHIP SOCIETY INSTITUTE
The Ownership Society Institute is a new think tank dedicated to increasing the wealth and property of all Americans and the reduction of taxes imposed on them. It sponsors ideas and plans that reduce the size of the Federal and state governments while at the same time increasing the efficiency of their constitutionally mandated responsibilities. It sponsors the enactment of the Rise Up Theory of Economics and the elevation of the power of the individual over the power of the state. It opposes the weaknesses that the state imposes by making its citizens rely too heavily on government to so lve their problems and fund their failures. See www.ownershipsocietyinstitute.com

RISE UP AMERICA

1. Making the poor and middle-class rich

2. Making America wealthier

3. Cutting the national budget in half – eliminating the entitlement bureaucracy

4. Enacting the biggest tax cut in history

5. Immediately extinguishing $45 trillion in unfunded entitlement debt

6. Flooring old age benefits at their present levels – forever guaranteed

7. Taking the national savings rate from -1 ½ % to positive 15%

8. Annually infusing over $1.3 trillion of new capital into the economy

9. Eliminating the need for business to cover retirement costs for workers

10. Immediately reducing the national debt from $9 trillion to $5 trillion.

11. Reducing the need for millions of public and private retirement plans

12. Stabilizing and increasing the value of the dollar internationally

13. Reducing crime and incarceration caused by financial hardship

14. Economically emancipating women

15. Reduce labor-management conflicts and costs

16. Eliminate the need for state and local government retirement plans

17. Ending endemic poverty

18. Giving hope to the powerless

19. Getting a pool of capital for everyone to participate in the economy

20. Eliminating the socialism of the government’s entitlement bureaucracy

21. Return power to the people

www.riseupamerica.us

Social Security – The Biggest Con Job in History

Our Social Security system is really a safety net, not a retirement plan. When you put money away for retirement you invest in, and build, a nest egg – assets you can spend in retirement. After handing over 15.3% of their working life income in the form of payroll taxes to the government there is no nest egg waiting for Americans at retirement. Instead the government sends you a paltry monthly check only large enough for many to avoid starvation.


Politicians call Social Security a retirement plan to fool the people into believing the all-giving, all-knowing, all-powerful government has got their back when they retire. In reality, the government and their “common good” politicians have been stabbing Americans in the back for over 70 years. They justify their con with the sound bite that 50% of the people would fall below the poverty line without their Social Security check, After investigating the truth this article reveals that line should make you ill.


The “con” is what you could have done with the 15.3% of your lifetime income if you didn’t have to pay it to the government. This year the government’s payroll tax collections will be over $1.3 trillion or $7,650 for each of America’s 170 million households. That means the average household must earn just shy of $50,000 per year.


Now what could this household do with the annual $7,650 it pays to the government to prepare for retirement. If it had invested that amount on a weekly basis for 40 years or 2,080 weeks into indexed stocks (funds with 500 or more different stocks in them) it would have compounded into a nest egg of $9,878,000 at the average rate of return for the S&P 500 stock index for the last 30 years or 12.8%. That rate is just about half of the 25% return on investment that Warren Buffet, the multi-billionaire investor, has made on his investments over the last 30 years.


Now if the taxpayer just earned 10% in the first year of his retirement – his 41st year – he would get a $82,000 monthly retirement check just off the income from that nest egg. His yearly income would be $987,800 or nearly 50 times his last annual salary. Now the 12.8% includes a price inflation factor of 3% but doesn’t include a wage inflation factor in the computation. A lower rate of return will generate a smaller nest egg - even a 4% real growth rate and 3% inflation rate or a 7% combined rate generates in 40 years a $1,700,000 nest egg. and a $14,000 a month retirement check.


The proof of the con can be understood in the recent study of the net worth of the average non-Hispanic black and non-Hispanic white. The average black has a net worth of $11,800 and the average white $118,000. What is really important is not the discrepancy between black and white but the enormous difference between these amounts and the millions they would have accumulated if they had “personal investment accounts” for the last 40 years. Roughly speaking Americans would have over $500 trillion in stocks and bonds instead of the $23 trillion households presently hold. If one concentrates on just reforming or replacing Social Security – you miss the bigger picture of wealth creation altogether.


Personal investment accounts will not only make the poor and middle-class rich it will vault the American economy to new levels. Annually diverting payroll taxes of $1.3 trillion into each taxpayer’s personal account and immediately investing such amounts in the capital markets (stocks and bond funds) will explode the growth of the American economy – explode it geometrically. As the nest egg can be willed to their kids succeeding generations will be wealthier and further explode the growth of the economy by the investment of those inherited funds in the capital markets.


Personal account legislation has ancillary benefits. It cuts the American budget in half as mandated entitlements are extinguished along with their many unfunded liabilities. As the payroll taxes are eliminated, the tax cut will be the biggest in the history of the planet. As this plan we call “Rise Up America” really delivers the “common good” utilizing free market principles capitalism will relegate socialism to the dustbin of history. By having one personal account for every person, millions of other retirement plans can be scrapped, played out or merged into a person’s personal account.


Business has incurred substantial retirement costs with which foreign manufacturers aren’t saddled. They say a new American car has as much as $2,200 of costs associated with retirement plan costs for older workers. Personal accounts will eliminate the need for business to incur and be saddled with these costs thereby improving their competitive position in the market.


There are so many benefits we can’t list them all here. For blacks personal accounts will act as a substitute for reparations. Women can stay home, rear the kids, never work a day in their life and retire a millionaire by means of automatically accumulating 50% of her husband’s personal account in her own personal account – the ultimate solution to increasing the birth rate, solving our demographic problems and increasing the supply of labor domestically. For a list of other benefits read the Mission Statement on the www.riseupamerica.us website. There are numerous tables there proving the compounding effect of nest egg accumulations.


Some will say that we can’t afford the cost to transition to personal accounts. We say that we can do it off-budget for 6% of what it has cost us to lower interest rates to revive the economy. Actually America is so wealthy it is embarrassing. We have a country worth $400 trillion and a debt to all foreigners of only $2.3 trillion. We can transition to personal accounts out of petty cash and have the government guarantee existing and all future retirees that their monthly checks will never be less than what is promised to them today by existing entitlement programs including Social Security, Disability and Medicare. The potential $83 trillion of unfunded liabilities we hear so much about we owe to ourselves so they are a wash on America’s balance sheet as are 77% of our national debt of $9 trillion which we owe to ourselves. Remember this is a government of, by and for the people.


We manufacture as well as consume almost 30% of the world’s goods and services with only 4.5% of the world’s population. We have built 4 million miles of interstate highway and 350,000 bridges and overpasses on $3 a barrel Saudi crude that would cost $150 trillion to replace today at $100 a barrel. America is so far ahead of the game it may take centuries for the third world’s large populations to catch us –if ever.


Yet we are running on one cylinder as the comparison of what our individual net worth is now to what it can become. Taxing the poor and middle-class with punitive payroll taxes is a major mistake made by America’s political leaders. It is best to get off the tax the poor and middle-class train right now and transition to personal accounts. See www.ownershipsocietyinstitute.com. It should be the people’s rallying cry in electing Congress and a President in 2008.


Dick McDonald
www.riseupamerica.us
12/3/07

Ladies: How to stay home, never work, and retire a millionaire--guaranteed!

Family Really Matters



by Dick McDonald



It is sad commentary that so little attention is paid to strengthening the family unit in today’s warp-speed world. The family is the basic building block of all civilizations yet today fewer and fewer women are having babies and those that do are shrinking in numbers. In Europe the problem has become genocidal as couples are not having enough babies (minimum replacement is pegged at 2.1 babies per couple) to even replace themselves. In some countries the rate of replacement has fallen to 1.2.



As the leader of the free world in so many categories, the USA is presently just keeping its head above water birthing 2.1 babies per couple. The trend, however, appears headed lower. The question is what can be done about improving these downward spiraling demographics. As this is primarily a problem of modern western societies, the USA should lead the way in restoring the family to prominence and reverse the impending demographic disaster.



The Ownership Society Institute (OSI) believes it has the answer. Were women secure financially in staying home to rear their kids and grand kids, a big family and the joys of having one would not only become more attractive but possible. Unfortunately our laws, policies and economics are presently stacked up against the creation of big families.



What if we change the laws and policies to allow women to stay home, never work a day in their entire lives and guarantee they retire a millionaire? Sound crazy? Just stick with me a moment longer.



Politicians, the media and the public focus discussions almost exclusively in economic matters on income taxes - raise taxes on the rich – lower taxes on the rich. Candidates for President are exclusively focused on income taxes, e.g. the Fair and Flat Tax proposals and the income disparity issues. OSI wants to refocus attention to the real snake in the woodpile –payroll taxes.



OSI does not want to destroy Social Security, Disability and Medicare but merely change the way those worthy projects are financed. In the process women will become financially emancipated, among many other benefits emanating from such a change, This is how it works.



Today 15.3% of the income of working Americans (up to $97,500) is taken by government as payroll taxes. The self-employed pay the entire 15.3%, employees split that cost with their employers. An average household earning $40,000 a-year pays $6,000 a year in payroll taxes. In return for that $240,000 40-year lifetime investment the government gives the taxpayer a $1,122 a-month retirement check and no nest egg to will to his kids. Under Medicare most old-age medical costs are also covered.



Under OSI’s Rise Up America plan the entire $240,000 is placed in a personal investment account owned by the taxpayer and deposited weekly over a 40-year working life to grow into a $3.2 million nest egg. This computation was made using the average rate of return experienced by the S&P 500 stock index (actually the 10% rate used in computing the $3.2 million is less than the 12.5% actual rate experienced in the last 25 40-year periods.) Just the income off that nest egg will generate a monthly retirement check of $27,000 ($3.2 million @ 10% divided by 12 months).



One can find all about the feasibility of this plan and the tables proving various nest egg accumulations at www.riseupamerica.us as well as ways you can assist in seeing to it that this change in funding entitlements is enacted. But let’s get back to the family and how Rise Up America benefits the family and makes the stay-at-home mom a millionaire.



Rise Up proposes that one-half of the withholding of payroll taxes (in the future that 15% deposited into personal accounts) from your spouse is credited to your personal account. In the case of the stay-at-home mom in the above mentioned case she would end up with a $165 million nest egg and a monthly retirement check of $13,500. Her husband would have the same amount in his account and an identical monthly retirement check.



OSI believes that its plan will be a stabilizing influence on the family because it secures its most important element – the mother. She will, during her lifetime, watch her personal account grow and find comfort in the financial security it provides. It will allow she and her husband to consider the joys of having a big family and how that will not only provide them comfort in their old age but a lifetime of joy rearing them. At the same time they will be doing their patriotic duty to reverse the looming demographic disaster. As an added benefit, they can spend all their lifetime income (after taxes) on their kids and still retire millionaires.



Under the Rise Up America plan all obligations under the old entitlement programs would be honored and exempted from reduction of benefits by Congress and such monthly checks and Medicare benefits guaranteed by the government.



In addition, all unfunded entitlement liabilities would be extinguished; the national budget cut almost in half; the need for millions of pension plans eliminated; the biggest tax cut in American history enacted; the largest infusion of funds into the capital market in history ($1.2 Trillion in the first year just from personal accounts); the wealth of the country and each citizen geometrically improved even for those without the tools to make the big bucks; and many more benefits enumerated on the website at the mission statement.



Under Rise Up the cost to transition from the existing programs to personal accounts can be painless, the cost to maintain them inexpensive and the risk to invest in the American economy non-existent over the working life of the participants. All this and more is covered on the website and in the free e-book offered there.

Wanted: Book Publisher

I know someone who actually CAN provide the solutions presented below and he has a completed manuscript to prove it (along with a VERY distinguished background). There's no doubt he will find a publisher for this just-completed manuscript, but if you are (or know someone) who is interested in publishing his book, you'll be at the head of the line--just leave a comment below.

• Make the poor rich
  
  
• Deliver the American Dream to even those that can’t compete
  
  
• Honor the capitalist system by using it to solve these many problems
  
  
• Create Personal Accounts for everyone
  
  
• Provide retirement checks that allow retirees to live affluently
  
  
• Force a 15% Savings on citizens at no new cost to them
  
  
• Create wealth by compounding
  
  
• Reduce the National budget by one-half
  
  
• Eliminate $65 Trillion of potential entitlement liabilities
  
  
• Deliver the biggest tax cut in history
  
  
• Give the disadvantaged a reason to live and care about their life
  
  
• Reduce crime, victimization, and dependence on government
  
  
• Reduce stress caused by crime and financial difficulties
  
  
• Eliminate the need of the private sector to finance retirement
  
  
• Make business more competitive by eliminating costs their competitors don’t have
  
  
• Eliminate the union’s need to bargain for retirement funding
  
  
• Solve State and municipal pension concerns and unfunded obligations
  
  
• Energize the economy with an immense injection of capital
  
  
• Teach 50% of Americans about capitalism and stock investing
  
  
• Infect America with the optimism this plan can effect
  
  
• Reduce ethnic and racial tensions by making everyone wealthy
  
  
• An air-tight way to eventually deliver the American dream to everyone
  
  
• Bring back the market to areas convoluted by government intervention
  
  
• Make America the shining light it once was before this dissonance surfaced
  
  
• Get everyone on the same page pulling in the same direction
  
  
• Infect the population with a desire to win and increase stock values
  
  
• Restore America’s confidence in her politicians