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Dear Chris,           Subject: Depression or No Depression

As you know, I spent most of 1984 studying for an answer as to what caused the Great Depression. After spending months in Washington trying to prove it was something the government did, I walked away with one thought. The Great Depression was caused by the mood of the American business person. They were afraid of what the government was about to do. They were afraid to expand their thoughts, their business and withdrew doing nothing; zero growth. As we know, this country’s economy can only survive if we are in a growth pattern. I have spoken to several banks and dozens of different business people. They are all scared of what they are calling a double dip recession. In my opinion, what they should be afraid of is an all out depression. The only way we are going to avoid a depression is to stabilize the thoughts and minds of the American business person. Their will is so strong it will pull us out of the recession and avoid a depression. I laugh when Washington says we are on our way out of the recession. When you have the true unemployment rate at above 15%, which we currently have, you are in a recession; period!

It would be very easy to stabilize the economy and the American business person. Today they have no idea what Washington is going to do next. Congress just passed the healthcare bill that is going to add $250 billion a year to our national debt. This is frightening to any business person. Now they are talking about passing Cap and Trade; it is in the works! In a business person mind, where does this insanity stop? Every now and then Ron Paul explains to us that Washington is inept at their job. What is a business person to think?

What are doctors to think? The extensive reporting alone for doctors in the healthcare bill will eliminate most of the expansion in all healthcare fields. Many of the clinics and hospitals are financed by doctors. The healthcare bill has mandated that doctors must report all of their business dealings as though there was something wrong with them investing into the healthcare field. We need the doctors utilizing their funds to finance further expansion into the healthcare field. I’m sure that doctors are very confused as to what their future is. This is exactly what I’m talking about when I say we must stabilize our business climate. It is very dark and stormy and every business person knows there are severe thunderstorms on the horizon.

The solution to avoid a depression is very simple; Washington needs to say they are going to extend the Bush Tax Cuts for starters. Washington needs to say we are NOT going to pass the Cap and Trade bill. Washington must repeal the healthcare bill immediately. Washington must guarantee everyone that they will balance the budget within twelve months. The greatest action Washington could take is to eliminate the IRS and implement a 15% sales tax on everything other than food, clothing and fuel. The elimination of the IRS alone would cause every American business person to implement expansion plans and begin hiring people. We would have stability when it comes to the push, pull, stop and start with the IRS laws. This would also collect taxes from the underground economy in this country. Every drug dealer that spends drug money would be paying taxes. Wouldn’t that be nice? As we both know, only one-third of the people in the United States actually file a tax return where taxes are due. Two-thirds do not pay taxes at all. These two-thirds would immediately begin paying taxes to help balance the budget. If Washington would guarantee to balance the budget and not take this country any further into debt, I believe that the American people would be so moved, they would do almost anything to help their country pull out of the wreck that it’s in.

Addressing the thirteen trillion dollars that we are in the hole at this time, I personally see no way that it can be paid. You cannot tax Americans anymore than what they are already being taxed. This would be impossible. The average family in the U.S. that is actually paying taxes is barely surviving. If you were to put any additional taxes on these families in an attempt to pay off the national debt, you would then destroy the economy for sure. They simply can’t pay it. All we hear now is cut spending and raise taxes. If we raise taxes we are going into a depression. It may take awhile, but we will get there. The American people are very strong and they will struggle to succeed, but no matter how much they struggle they will fail if we add more taxes. If we continue on the path we are on in Washington, the national debt will be at sixteen trillion within two years. It can never be paid! We cannot tax our way out and if we try to inflate our way out, we both know what that means. Inflation alone is definitely additional tax on the American people. If a loaf of bread has doubled in price, consider that a new tax. I suppose we could go back to the Richard Nixon years when he put in place a price freeze on everything. This did stop inflation for a few months, but the minute the freeze was raised, everyone jumped prices afraid of the next freeze that Richard Nixon might put in place. This actually caused inflation! A price freeze will not cure what we have facing us if we continue to print money and try to inflate our way out of the debt that we now have. The truth is the government is running a giant Ponzi scheme; money they can take in today to pay yesterdays debts; knowing they can never pay it off. I truly do not understand how anyone could buy a treasury bill when you realize that two and two is still four. The government has tried to convince us that two and two is actually eight.

To answer your question as to whether or not this country is going into a depression; the answer is yes. Unless we repeal the healthcare bill, refuse to pass cap and trade, immediately stop the increase in the national debt, guarantee the American public there will be no new taxes; I could go on and on as to what needs to happen to turn this country around. You and I both know this is not going to happen. I have always told you that apathy runs very deep in the American people as a whole. Yes, there are business people that are trying to pay attention. It is amazing to me how few of them realize what is in the healthcare bill. I have interviewed no one that has understood cap and trade. Most business people are struggling to stay afloat and do not have time to concentrate on the destruction of America that is happening in Washington today. I asked myself the question, is there an agenda to destroy America? Is there a true plan to bring us down to a third world country status? It is hard for me to believe this, but some of the things I see happening gives me pause and makes me think.

We know that none of the solutions I have stated will come to pass. Healthcare will definitely be the law of the land. Obama will do everything he can to pass cap and trade. No one will stop the spending or eliminate the IRS. I am personally preparing for a depression to hit this country by the fall of 2011and my suggestion to you is to do the same. The only solution I see is for the Tea Parties to gather their strength and not only wipe out many of the politicians in Washington, but replace them with strong business leaders that can do what needs to be done. How about some elected officials who have actually had to balance a check book or make payroll? The apathy issue that I have always talked about when it comes to the American people is being corrected with the Tea Parties. If this country is going to be saved, it will only be by people gathering around the Tea Parties and stopping the government dead in its tracks. What a refreshing thought!

If you want for me to expand on any or all of these solutions, just give me a call.

More than a poll, The Peoples Pulse is a tool for those in public office to view the "Pulse" of America. We offer a wide range of questions that will engage everyone. The results of the poll will be sent to Governors, the Congress and the President of the United States.
If you have a question that you believe should be presented on this poll, please email it to: chris.cozby@leadyourcountry.com