What To Do With The Massive Surplus Of The John Borrow Economic Plan

The economic plan I have proposed (unlike the Paul Ryan plan) will start to generate projected surpluses within two tax cycles given the effects of its twin deficit reduction engines:  across the board equal cuts and revenue enhancement.  Remember:  how much every governmental activity gets cut each round and how often the cutting rounds occur will be up to the President and the Congress.  Also, shuffling the funding of various government programs between each round of cuts could be done to keep some marginally funded programs from being completely eliminated in the early rounds of cutting.  This provides the ‘scalpel’ Obama wants to wield instead of a scythe.  I prefer the scythe metaphor.  Nothing stops the sweep of the scythe except reaching the desired deficit level!  Every round, every program spends less.  Every round, more revenue is brought in by increases in taxation and inclusion of higher income brackets into Social Security. 

So, what to do with the increased revenues?

It wouldn’t make much sense to plow them right back into programs that are just going to get cut at some point.  The thing to do with these funds is:  form a rock solid ultra stable bank!  Let’s call it:  The First National Federal Bank of America (FNFBA).  (Note, no ‘k’ in Amerika this time.  Why?  Because the FNFBA cuts the kleptomania out of the banking!)

The FNFBA would be its own Glass-Stiegel Act < http://en.wikipedia.org/wiki/Glass-Steagall_Act > and be completely isolated from Wall Street.  No loans would be issued to support Wall Street trading.  It could not be bought or sold by law.  Its board and executives would consist of government employees on the GS schedule, so there would be no excessive salaries and NO BONUSES whatsoever.  The FNFBA would be a peoples’ bank, not a bank to support corporate shenanigans!   It would provide savings accounts, checking accounts, retirement annuities, mortgages, education loans, personal loans, and loans to non-profit community efforts like medical service collectives and non-profit community hospitals.  It would not charge ridiculous fees for overdrafts or late payments as do ALL commercial banks.  It would not charge ridiculous interest rates for loans at the same time it ‘stiffs’ its savers on savings interest rates, like ALL commercial banks!  It would not provide credit cards.  It would NOT provide services to shelter the rich man’s money from taxation!

The money flowing into the FNFBA would be enormous and quickly overtake all commercial banks.  And when the commercial banks fail on the next round of corporate executive frauds, the FNFBA will be unaffected, except for the influx of money to escape corporate bank ‘failures’.  The FNFBA would be the cornerstone of a solid new middle class.  Its motto could be something like: 

“No rich, No poor.  Just a solid middle class for America!” 

The FNFBA would be ‘green’ and a good neighbor, in every community it served, by providing ‘solid middle class wage jobs’ to all employees.  It would employee thousands of people nationwide and participate in collective bargaining with its workers.   A place for our money, safe and sound. What do you think, America?