Export of JobsAs of May 14, 2015 we've a $50 billion dollar trade deficit, mostly with China and what we need is a balanced trade deficit, one that is equitable for all and not lopsided as we have today.
In a recent interview on the Thom Hartmann program was an interview with Dr. Ravi Batra. Batra is the author of six bestselling books, two of which appeared on The New York Times Best Seller list, with one (The Great Depression of 1990) reaching #1 in late 1987.
In this video Dr. Batra present his take on how to eliminate joblessness.
Create Low Interest Credit Cards at 5% Rate
Credit card companies can borrow at zero percent interest rates from the FDIC and yet in turn they charge high interest rates to those in the lower and middle incomes, those profits go into CEO salaries.
To assist these lower and middle income groups Dr. Batra states that current law allows for the FDIC to start a "Bridge Bank" but instead of selling it off to another large bank, like Bank of America, the FDIC can create their own bank and offer the low interest rate cards to consumers.
This would effectively give much credit relief to those who need it most. Of course, ideally it would be beneficial to break up the big banks, thereby promoting more competition, but Congress would never allow that since the banks contribute greatly to their financial campaign funds.
The President can bypass the ineffective Congress by creating this new bank via the FDIC.
Helping the Retired
The Federal Reserves low interest rates have depressed the incomes of many retirees, Dr. Batra suggests the government provide a 5 year bond at a fixed rate of 3.5% which will help the income of retirees and can be done without going through Congress. This will make a big difference in retiree income.
Treat Oil Futures the Same As Stock
Oil futures can be purchased now with only 10 percent margins which creates artificially high oil prices due to speculation. Currently at $60/barrel. Stocks have a 50% margin requirement and if this same rule were applied to oil futures we could see a drop in oil to more stable and realistic value of $20/barrel. This is turn would greatly help low and middle income groups.