How do we fix this economic crisis?

I would agree with the military spending cuts only I would take it down to 33 and a third percent the first year. I would cut out unnecessary programs. Eliminate congressional pay and elected representatives. They would be replaced by a 'jury' type draft of registered voters. They serve for a period of 2 years like drafted military. All people of able body or mind must serve the government in some fashion. This eliminates government pensions for most government jobs. If you served in the military you can exempt yourself. I would legalize all victimless crimes so money can be used to fight crime more where it is needed. Legalize pot nationally and allow states to make their own law as to if it is acceptable in their sate and how so. Collect a national tax on it that goes to the Fed to pay for welfare and educational drug programs. Make a mandatory law that men fathering children that they should and don't support must have a vasectomy at their expense. That women who become pregnant while on welfare must give up welfare or have their tubes tied. Tax the crap out of those in the top 5% earnings group but, offer deductions for newly created jobs in additional to any current work force. Jobs must go to US citizens or Native Americans. Just lowering their taxes creates no incentive for them to hire. It hasn't worked for 12 years now. I would consolidate agencies if and where possible. American imports more than it exports. Charge more for imports this would give more jobs to those here. So you spend more you get better made. Cut out any foreign aid to any country that allows groups with in it's borders to commit acts of aggression on the US or US citizens.

I'd Start with 2013....

Cut 30% from Military Spending...About $250 Billion, by Closing All Overseas Bases, EXCEPT for RAF Mildenhall, UK, Rammstein AB, Germany, and Kadena AB, Japan. Each of those would have a Squadron of Fighters, Bombers and Tankers, Minimal Ground Forces for Security, and a Moth-Balled Major Hospital.

That Brings the Deficit down to about $1 Trillion for 2013.

Next, we cut 10% spending off the Top from Welfare and Healthcare Spending. Of course, we have to Means Test and Cut those that COULD do more for themselves if they so Chose To, and Maintain Support for those that are UNABLE to provide the Essentials for Survival. That would Save about $150 Billion.

That lowers 2013 Deficit to about $850 Billion for 2013.

That would be a good Start....Stem the Flow. I'd maintain that for 2014. While NOT Increasing any other Spending, keep the same Cuts in Place.

That would be $800 Billion LESS added to the $16.2 Trillion Debt that we will have after 2012.

For 2015, we Get Rid of the Bush Tax CUTS on ALL Americans. That is about $40 Billion in increased Revenue from the Richest 2.5% and about $60 Billion more Revenue from the Remaining 97.5%, ANNUALLY.

Now we are ONLY adding 3/4 of a Trillion $$ per year to the Debt by 2015.

Now we have to make the Tough Cuts...We have to Workout Social Security and Medicare. We need to get the systems to the point that they are OWNED by the People, and NOT a Slush Fund for Politicians to INCREASE Spending on Other Programs....I have Plans to fix them, too, but there is not enough Time or Space here.

In 2016, we have to Hit Defense and Welfare Again...No Choice. We have to Knock another 20% off of Defense...we can Eliminate Foreign Aid and Foreign Military Aid for awhile, that will save about $100 Billion per year. AND, another 10% off of Welfare and Healthcare....another $150 Billion in Savings.

That brings Annual Deficits DOWN to $500 Billion per year....the Growth is Slowing, our Interest Payment is NO Longer Increasing by 7-10% a year...We get our AAA+++ Credit Rating Back and will pay a Lower Interest Rate on our Borrowing...CONFIDENCE will Start Returning to the System.

Investment will Pick up, Production will increase, the GDP will Start to Grow, and EMPLOYMENT will Pickup which will Greatly Increase Tax Revenue for 2017.

Hopefully by 2025, we will be down to a Balanced Budget ANNUALLY, and start producing Surplus', which should be used to SHORE up Social Security and Medicare... AND Start paying down the Principal to what should be NO More than about $21 or $22 Trillion at that Point.

It may take 50 more years to pay it down slowly, but, we will have a Responsible, Confident, Fiscally Sound Economic System by then, and we will ALL be Better off.

(1)

SEC head Hank Paulson wanted to allow the banks to fail.

He allowed it with Lehman Bros.

He proceeded to allow it with Bear Stearns.

The stockmarket took a steep dive as a consequence.

With great reluctance he did an about-face and agreed to a bail-out.

He did so to maintain financial stability in the global banking system.

It would have been a rougher ride without the bail-out.

(2)

Obama has taken incremental steps by re-establishing some regulations.

These make it a bit harder for financial institutions to act irresponsibly.

It is, slowly, creating stability an confidence in our financial market which

is why the US is rebounding and actually looking pretty good and stable

as a place for investors (domestic & foreign) to put their money.

(3)

That being said, it sucks that politicians can only go so far in regulating

which would ultimately solve most problems of the financial sector.

Indeed, corporations have too much influence.

(4)

Your goal of taking away power of influence from big money will not be

achieved any time soon.

I say this because it was just last year that the US Supreme Court ruled

that it was acceptable as free speech to make large contributions to

political campaigns.

This is why SuperPacs have suddenly been ‘contributing’ huge amounts

of money toward political candidates over the last year.

I hope that the think tank that you may form is less cynical than I am but

that it also has realistic goals that are achievable.

Think tanks would be a good idea if they're made up of people who know how the world actually works. There are people from the '60s who actually believe that it was due to their marches on Washington and other activism that the Vietnam war was ended. They will believe that to the end of their days. People will believe to the end of their days that their votes matter, that the powers-that-be are actually listening to them, that politicians lie awake nights worrying about "the people." I noticed the phrase, "why isn't something being done" in your post. Well, the answer to that is because too many are benefitting from what the bankers are doing - that is, too many people in power. Few know that every person in this country (corporation, actually - yes, it's true - USA has been a corporation since 1871) is a piece of property. Yes, that's a fact. Research it online. So that means that none of us can actually own anything. It appears that we can, i realize - but we don't. Those in power do NOT care about you. AT ALL. And as for your last statement, i just wanted to point out that we already DO live in a one-party system disguised as "the republicans and the democrats," and yes, it's all run by the super-rich. The economy will continue, like an avalanche, to come down. And we have no desire for this and we have no desire for that, but what meaning does that have if no one is listening? Harry S. Truman, the 33rd president said, "The presidency is less an office than a performance.” Let us think about that, and get past the idea that the president can "do" anything. The president is a "hood ornament" that appears to be running the country, and his "strings" are being pulled by the corporations. It's sleight-of-hand - it's stage magic - the president appears to do this, he appears to do that, but in fact, he's just there to keep our attention focused while, out of sight, the corporations go on doing what they're going to do. The reality is that the real power is underneath the "hood," and those are the people who are controlling everything. Woodrow Wilson told us this almost 100 years ago, but it would appear that no one was paying attention. (Read his book, "The New Freedom," available as a download online). So let everyone organize, march, carry signs, propose solutions - but if it involves the "science-fictions" we were taught in grade school with regard to how the government works, then there will be some of us who will opt out. The collapse of an empire, like an avalance, is scary, and that is precisely the time to steer clear of delusions because that's how we got into trouble in the first place. We should instead be thinking about things like self-sufficiency as the price of gas goes climbing steadily up. There are cars already running on compressed air but they're not allowed here because the oil companies would lose money. There are people who have learned how to extract hydrogen from water and run their cars that way, but as is to be expected, it's been called a "scam" by those who've never looked into it. Too many of us have grown up with a "cars-need-gasoline" mentality and we tend to ridicule anyone who tries to talk us out of it. Why don't we listen?? Electric cars are BS because the batteries cost thousands of dollars. How does that help anyone? But unless we want to go on being slaves of the corporations (who make trillion$ each time there's a war, meaning that they have a vested interest in them), we are going to have to come up with new and simpler technologies and ways of dealing with what i suspect will be the greatest worldwide financial collapse in history. The politicians will keep smiling, keep making promises, they will keep doing their act for us, and most of us will continue to believe that they can "fix" things. Those of us who know better will reject all that & think more about cooperation and survival, and what, realistically speaking, we will do when the "roof" falls in ...

Cut military spending and invest more in infrastructure. Reform the tax code so the wealthy people and corporations pay their fair share. Invest in American jobs and American businesses, not in companies that send jobs overseas.

In this time of crisis,the fear is the main factor.Ther are lots of money in possesion of Banks and rich people but they don't want to take risk.Fed keep on flushing money and that does not come out for investment.The right solution is not flushing liquidity but Govt.must work out system by which rich people must be compelled to spend.And for that "Purchase Tax"is the solution especially properties beyong ceratin price.Wealth Tax alone is not enough.

The fear factor also must addressed with pcychological means.Bernank enflame the fear with unwanted statements.Better he should keep mum instead of passimistic statement.

i understand i'm going to get thumbs down for this answer. i do no longer accept as true with this answer the two only an concept . If I have been Obama and that i had to end substitute usa. Then i might enable it sink into melancholy. in recent times that should create civilian unrest, for national protection i might enact martial regulation. i might then create extra government classes as a fashion of having usa by using this disaster yet my actual objective is to create extra dependency on the government. the persons would be so grateful that they gained't care what different rules I and congress will enact and that they gained't be paying interest as they are going to be consistently hectic approximately themselves and their families.