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“The FSOC’s decision to expand the too-big-to-fail designation to nonbank firms will be seen as the most damaging action taken under Dodd-Frank”

Instead of going away, “Too Big To Fail” is expanding:

 

It was no surprise that the Financial Stability Oversight Council (FSOC) decided last week to cite a number of nonbank firms as systemically significant, placing them in line for greater regulatory scrutiny by the Federal Reserve. What was a surprise is that — in the midst of a huge outcry in Congress about banks that are too big to fail (TBTF) — neither Congress nor the administration asked the FSOC to stop the designation process until the too-big-to-fail issue had been fully thought through. After all, by designating some nonbanks firms as TBTF — GE Capital, AIG, and Prudential Insurance are in the group — the FSOC has created a whole new set of institutions that will now be considered TBTF. [via The American]

 

America move from entrepreneurial capitalism to state crony capitalism continues step-by-step.

IMO, companies that are “too-big-to-fail” need to be broken up.

 

 

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Time for a Theme Song for the “Financial Cliff”

My choice is “Ship of Fools” by World Party:

I’ve used it before.

Idea for Avoiding the Fiscal Cliff: 4 X 4 X 4

How about this idea for 4 year plan:

  • 4% across the board income tax surcharge for all taxpayers regardless of income bracket
  • 4% across the board reduction in real spending (not projected increases in funding) for year one
  • In each subsequent year, total real spending has to decrease an additional 4% (it doesn’t have to be 4% across the board though)
  • At the end of 4 years, the income tax surcharge expires automatically
  • If in any year, total real spending doesn’t decrease 4%, the Income Tax surcharge is suspended
  • If in any year, total real spending doesn’t decrease by 4% the permanent base pay of members of congress, congressional political staffers, POTUS, VPOTUS, and executive branch political staffers decreases by 4%

Its better then the cliff. Also a “4 year” plan sounds like a “5 year” plan so the lefties should like that. I think Instapundit’s  ideas should be included as well.

Call it the Purpleslog 4 x4 x 4 Plan.

 

Brain Dump: Triple Entry Accounting?

Has anybody else heard about Triple Entry Accounting? I have four references: here, here, here, and here.

 

Would this really be an pro-transparency and anti-fraud control? Any accountants out there? This is outside my expertise.

 

 

Brain Dump: New States From Old

CA into 3 (maybe 4…Los Angles as a city-state)
TX into 2 (maybe 3)
FL into 2
IL into 2 (IL and Chicago as a city-state)
NY into 3 (maybe 4, NYC as a city-state, Long Island, West York, Buffalo)
PA into 2 (West and East)
Form Superior from Upper MI/Northern WI

My USA Job Creation Notes

…feel free to crib, comment, add to, or criticize them.  I needed to to do a brain dump.

Short Term

– Dump SOX

– Dump Dodd-Frank

– POTUS should grant 30-year waivers for Obamacare to all businesses and organizations and instead work to implement something like this

– Lease out and/or sell idle governement assets through dutch auctions

– POTUS should sign existing but unsigned Free Trade Agreements

– Smack down the NRLB. Defund it immediately.

– Defund the Lemonade stand police. Reduce aid to municipalities who go after kids Lemonade stands by the fund equivalent to 2 Police officers, 1 police supervisors, 1 alderman, 1 mayor, and 1 city attorney. This won’t create jobs but it will send a good anti-statist message. It will also make me feel better.

– Hands-off Gibson Guitars. Reduce the budget of those parts of USGOV going against it.

– Freeze regulations. No more regulations for 48 months.

– Publish the real debt numbers

– Freeze non-defense hiring for 24 months

– Raise small claims court limits

– Cheap plentiful / multi-source energy

– Instant green cards with fast track citizenship path for STEM-related Phd for foreign students graduating from US Universities.

– “Double the exemption numbers for small businesses: that is, whatever regulations you are exempt from by dint of having 10 or fewer employees, you will now be exempt if you have 20 or fewer; similarly for larger numbers. The regulations will still apply, but the exemption numbers are doubled.” [Jerry Pournelle ?]

Long-Term

– Implement modern fraud detection technology into all Federal billing and financial systems and increase OIG Forensic Accounting capabilities

– US Trade Systems should move to Free-but-not-a-sucker Trade with Tit-fo-Tat Tariffs

– Create five regulatory rollback commissions (National Security, infrastructure, Agriculture, Human Resources, Other) to present to congress (on an up and down votes only) regulations to repeal.

– Replace “base-line” budgeting with “zero-based” budgeting.

– Require all spending to be authorized regularly by Congress.

– Switch to 2-year budgeting

-Congress should establish a special Joint Committee on USGOV size reduction

– Tort reform – Basically loser pays and caps on damages

– prize for moon base
– prize for mars base
– prize for orbital habitat X 3

– Patent Reform: no software or process patents, crowd sourcing for prior art, late career path as HR source for Patent Examiners, fully funded

– only tax corps on us income
– tax holiday for repatriation for return of overseas profits

– amnesty for tax cheaters (they pay tax +$100 processing fee and sign

– no permission needed t start a sole proprietorship

– Reduce size and scope of USGOV

– Adapt Zubrin flex-fuel mandate for vehicles

Others…

– Moratorium on (or ceiling percentage)  IVY League grads at high levels in USGOV!

– Start up Lean Six Sigma Programs throughout the Federal Government (Put Jack Welch in Charge)  [This is Newts idea from a Debate

– reverse federalization of local/state crimes
– Create EOPOTUS ombudsman to identify and begin to reverse
– All future legislation should have sunset clauses

– A sort of SUper IRA to replace pensions and Social Security

– A Flat-ish Income tax  with low-to-zero deductions and no AMT to replace the current systems

– Balanced Budge amendment

– Reform Fed to have two missions: Sound Money and  use rule based inflation targeting

– immigration reform: Secure borders, migrant guest worker program

– Dramatically Rein In The EPA

– Reform The FDA By Streamlining The Testing And Approval Process

“We owe it to our veterans and to ourselves not to continue to blindly walk the path of the trajectory of 9/11, but to pause and reflect on what changes in the last ten years have been for the good and which require reassessment. Or repeal. To reassert ourselves, as Americans, as masters of our own destiny rather than reacting blindly to events while carelessly ceding more and more control over our lives and our livelihoods to the whims of others and a theatric quest for perfect security. America needs to regain the initiative, remember our strengths and do a much better job of minding the store at home.”

Zenpundit also gets it.