It is all over the national news, the economy is slowing and a recession is coming. Even President-elect Bush and his team are talking about it. This could not have come at a worst time.

The Political Parties Battle

President-elect Bush has a large tax cut planned, but it looks like the Democrats are going to force a much smaller tax cut, if any. They are more interested in destroying the economy the next two years so that they can take control of Congress in 2002 and the White House again in 2004. In reality, neither party is interested in the American people, only their own power base.

This battle of tax cuts and Federal surplus spending may take months to determine who wins. If there is a large tax cut then the economic slow down can be a soft landing over time. But even if these tax cuts become law, it will take 9 to 18 months to have any effect on the economy. The longer Congress debates the issue, the sooner the recession will arrive, the deeper the recession, and longer for the economy to recover, hurting most Americans and creating another lose in the standard of living of all Americans except the super wealthy.

Most of the super wealthy cashed out on the stock, commodities and real estate markets at their peak. Their money is on the side lines waiting for the recession in order to buy back at depressed prices, causing another transfer of wealth from the middle class to the super wealthy. This is just the way things happen.

Alan Greenspan Has A Big Problem

Alan Greenspan, Chairman of the Federal Reserve, has a problem because he does not want to lower interest rates and then have Congress institute a large tax cut. He believes this will "over fuel" the economy, cause wage increases for the average worker and create inflation. If the tax cuts do not materialize, then he should have lowered interest rates yesterday.

Mr. Greenspan's problem is timing. If he waits to see what Congress is going to do, it may be too late to avert a deep recession, referred to as a hard landing. He and Wall Street want a soft landing. But any kind of landing, soft or hard, hurts the American people.

The People, Companies, and Financial Institutions are in Trouble

Many people are maxed up on their credit cards, have second mortgages and car payments. If they or their spouse lose their job or if their salaries and wages are cut, big problems emerge immediately, even potential bankruptcy.

Consumer debt is at an all time high. Consumer bankruptcies have been increasing during this economic boom that is coming to an end. Consumer spending is slowing. Companies are already starting to layoff people and curtail employment recruiting. Company debt is also very high. Some large companies debt has junk bond rating. Banks and financial institutions under performing loans are sky rocketing. The Trade Deficit and Account Balance with other countries are draining capital from our economy at an alarming rate.

Even Bill O'Reilly of Fox News is Concerned And Speaking Out

Bill O'Reilly of Fox News (The Factor) has been greatly concerned about the election, Alan Greenspan, and the political parties about the up and coming recession. He believes that none of the parties involved are really concentrating on immediately taking the necessary steps to solve the problem. Mr. O'Reilly believes that Mr. Greenspan spends too much time looking in closets for inflation and not seeing the writing on the wall regarding the up and coming economic slow down and recession.

What your local economy needs is more fuel (money) to keep the engines going and to help reduce the consumer debt burden, reduce consumer bankruptcies, and stimulate the local economy. Consumer spending and investing are 2/3 of the economy. Where can this extra money come from?

Surpluses of your tax money are being held by State and local governments.                                               The amounts are huge!

State and local governments have huge surpluses of your tax money they are not using. This is proven in the web site http://www.cafrman.com. Getting these surpluses back into the hands of those who earned the money in the first place will have a tremendous economic impact on your local economy. You do not have to wait to see what Congress or Alan Greenspan decide to do about your future. Take the reins and determine your own future.

NOW IS THE PERFECT TIME

Now is the perfect time to determine the amount of potential surpluses in your school district, city, county and/or State; prepare a report; and ask that the surpluses be returned to the people, especially if your area has or anticipates an economic slow down/recession.

You just tell your politicians a recession is coming, the people will be hurting. They will lose jobs, not be able to pay their bills, and some will go into bankruptcy. Local businesses will experience decreased sales resulting in salary and wage reductions and/or bankruptcy. In other words, the people need the excesses of the taxpayers money NOW in the form of cash refunds to keep the economy going. No tax reductions, reduction of debt, or other scheme that will allow for most of the surpluses to go to the wealthy (the usual trickle-down approach). Insist on a trickle-up approach.

Your politicians will probably say if a recession comes, they will need these surpluses to pay their bills because their revenues will decrease because of the recession. Your response should be that if the surpluses are returned to the people, government revenues will increase not decrease. With the same budgeted amounts, revenue surpluses probably will develop. This is proven on the www.cafrman.com site.

Any politician that objects to this type of request from the people should be fired (recalled) immediately and any judge that objects should be recalled if elected or impeached if appointed. Throw the bums out immediately. Let them know that you, the silent majority, will no longer be silent.

The methods (tools) needed to conduct a review of the a governments potential surpluses, prepare an economic impact analysis, prepare a report and what to do with the report are all contained in http://www.cafrman.com. A comprehensive report on each of the governments listed below are also on the site.

HERE'S HOW IT WORKS

Increase in Gross State Product (GSP)

The Gross State Product (GSP) measures the amount of economic activity in a particular State of all goods, services, and financial data activity. When the five year average for GSP is compared to the increase in GSP if the State surpluses were returned to the people the results are staggering.

From the Department of Commerce, Bureau of Economic Analysis (BEA), we see that for all States the five year average increase each year has been 5.37% per year. For the nine States below the average has been 5.80% per year. Remember, the last five years have been boom years for the economy.

Now take a look at the increase in GSP for the nine States listed below if the potential surpluses at just the State-level governments were returned to the people.

The economic increases in these nine States would more than triple and in some cases over 4 times the rate of increase in the last five years of a booming economy.

What does this mean? More jobs, increase in wages, more government revenue and an increase in everyone's standard of living. All when the economy is slowing and the country is going into a recession. If the surpluses were returned to the people in the above nine (9) States there would be no recession, but an economic boom.

Many jobs will be created

An economic principle is that for every $100,000 in increased economic activity (above chart), one job is created. Here is the number of jobs created if the potential surpluses are returned to the people:

Increase in Salaries and Wages

Another economic principle is that for every $1 returned to the people, salaries and wages increase by $.50. So when the above data is converted to a per capita basis here are the results.

So not only at a time when the rest of the country could be in recession with the loss of jobs and salary and wage cuts taking place, the people in the above governments could be experiencing wage increases.

Does your school district, city, county, and/or State have surpluses of your tax money?

Save this email

You may not need it now or do not care now. But in the months to come, you or a friend of yours will need it to get started. Forward it to friends and relatives that you think may be interested. Because if you, a relative and/or friend becomes unemployed, that person has the time to conduct a review of the local school district, city, county and/or State.

It is coming. It is only a matter of time. You and your community can get a step ahead of the rest, start now.

Also, I am here to help.