I’m not an economist, but I have studied economics.

I’ve been described as a science-fiction writer and a futurist.

More than a couple of times I’ve made projections about the future — not only in fiction, but also in business plans — that have turned out close to the mark.

I’ve come up with one or two billion-dollar market cap ideas that made billions of dollars … for someone else.

These are the credentials I’m standing on when I offer a solution to the political and economic crisis that has weakened the economy of that geo-political entity called the United States, but which in reality is comprised of people, what they do, what they have access to, what they count on, and what is expected of them.

The United States of America as a geo-political entity is doomed.

That sector of the American economy tied to the entitlements and obligations of its federal and state governments — and whose capital and obligations are calculated in terms of a dollar issued by its secretive central bank — is “upside down.” Its debt and obligations far exceed the capital owned by and current productive capacity of its people.

The two alternatives, when reduced to essentials, come down to either a bankruptcy involving a repudiation of debts and entitlements — which means some people are going to be thrown to the wolves, and many will actually die — or a bankruptcy involving a reorganization that can lead to a real recovery.

This second plan involves risk and courage. But if it’s put into action, economic salvation lies this way because it relies on the one proven cure for any sort of poverty: the creation of new wealth.

Discussing only currently existing debts, obligations, and entitlements — which are the limits of all mainstream political, economic, and financial debates — is moving around the deck chairs on the Titanic. It’s playing zero-sum or negative-sum games in which the outcomes are already known: chaotic collapse.

Until now the collapse has been put off by a Ponzi scheme in which new marks were found to pay dividends to the older marks.

But the mathematics of all Ponzi schemes reach a point where the number of new victims needed to keep the scam going exceeds the number of new victims available.

We’re there.

The only benevolent solution is to close out the game — so no more new victims are added — and simultaneously to prevent the pyramid collapsing in on itself so rapidly that the victims are thrown to the wolves, to live or die.

I propose here not the anarchistic solution of allowing a full-on rapid collapse with the chaos that would follow starving millions of victims but a minarchistic Five-Point Plan to capitalize the creation of new real wealth with the slow retirement of current debts, obligations, and entitlements.

Here are the essentials of the Five-Point Plan.

1. The free sector of the economy must be immediately capitalized with new real wealth. Much of this wealth exists in exploitable resources currently under the control of the federal and state governments. This includes mineral and energy exploitables that can be developed on land currently claimed by the federal and state governments. This land and these resources need to be devolved to the private sector, but kept out of the hands of economic oligarchs who will continue to keep them unexploited. I propose a national lottery for private ownership of these resources in which only real American citizens — not corporations, foundations, or other fictitious entities — may participate. Then the new, private owners must be given the freedom to develop and exploit these resources.

2. An economy grows when new products are brought to market, but capital is required to invent, develop, and market these new products. Economic action free from the tax of bureaucratic paperwork and entry barriers, burdens of taxes and fees, and the hidden tax of monetary inflation can enable much of this. But much capital is currently tied up in the operation of government, itself. Merely eliminating government jobs creates more unemployed people — and repudiating their pensions creates a counter-revolutionary class that would poison-pill any possibility of economic freedom. I therefore propose that instead of continuing to pay bureaucrats to interfere with progressive capitalization of new products they be given the opportunity to become wealthy themselves by converting the budgets of government departments into prize monies available to current government employees when they entrepreneur new businesses that successfully find customers willing to pay for them.

3. Calculation of wealth must begin to be based on actual market value rather than the bookeeping fictions of the Federal Reserve Banking system, which builds in the hidden theft of having increasing amounts of ledger balances chasing a relatively smaller amount of real goods. A date certain must be set on which only actual commodities such as precious metals may be used as money.

4. The size of government and its operations must be regressive rather than progressive. A two-percent reduction per annum in the real budgets of all government entities — and a devolution of services from the public to the free and competitive private sector — should work. This will require closing foreign military bases and retiring the current policy of foreign wars, world policing, and foreign military entanglements — in other words, a return to the United States operating within the confines of its constitution. National defense must be defensive rather than preemptive. Defense against terrorism must rely on a well-armed and well-regulated militia — that means American civilians like those who stopped al-Qaeda terrorist attacks on United Flight 93 on September 11, 2001 and on Northwest Airlines Flight 253 on December 25, 2009. And, yes, American military personnel must be armed at all times. No more Fort Hoods.

5. It’s necessary to look beyond the earth’s atmosphere to produce sources of new wealth. Some of the current real capital — land and mineralogical wealth currently under the control of the federal government — must be allocated to prize-money for achievements in the fields of lowering the cost to lift payloads into orbit and beyond, produce goods in space that can be sold on earth, and create industrial and colonial habitats in space.

For anyone looking at this Five-Point Plan who thinks it’s undesirable, impractical, or otherwise unachievable, consider the alternative:

Collapse, chaos and violent revolution.

Not just in the United States, but everywhere dependent on the health of the United States economy.

Haiti. Ethiopia. Russia. Saudi Arabia. Japan. China. Malaysia.

Choose your future.

My comic thriller Lady Magdalene’s — a movie I wrote, produced, directed, and acted in it — is now available for sale or rental on Amazon Video. If you like the way I think, I think you’ll like this movie. Check it out!

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