This is an answer in response to the solicitation of Yahoo’s Daily Ticker column for alternating views of its news stories.

While Mr El Erian points out rightly so that the problem with America is not so much economic as it is political, he completely misses the mark.  The political blame lies in the model of governance in power, not the individual acts of Congress, for they are simply the result of a political system that has been so jury rigged as to enable a corrupt economic model to exist.   As an economist, Mr. El Erian justifies the unjustifiable because he utilizes half the equation that determines the eventual economic result of a nation.

PIMCO, the worlds largest bond trading firm, CEO, Mohammad El Erian on the Daily Ticker, opined on the impact of the political conditions in Congress. “We all know that our problems are less economic in nature and more political in nature,” said El-Erian. “The biggest setback is that [Congress] fabricates problems. It has been four years since Congress has approved a national budget and that is the most fundamental element of governance,” he said. “We need to stop creating these headwinds.”

Mohammad El Erian, a well respected economist, suggested that when it comes to the budget and long-term deficits, that a “mix of both” spending cuts and revenue hikes are necessary, noting that, “Our debt load is not a problem that can be solved by a one-sided approach.”

“Elect A New Congress, while pleased to see such an eminent economist as El Erian acknowledge the role of the political in the economic equation, believes Mr El Erian has entirely missed the boat,” Wm W Fawell, of EANC explained. “This has always been the Achilles heel for all economists.  They never realize the impact a political model has on their economic modeling, denying themselves half the equation inherent to the formulas they use to project economic results.”

“I appreciate Mr. El Erian’s sincerity, but he’s still treating the political equation as a variable, like it’s a “crazy Ivan”,” Fawell directed, “He should be applying its modeling, which in America’s current dilema, is tyrannically based, and is the very reason for our anemic economy.”

“Trying to place the blame and solution on one or two fragments of a corrupt political model while ignoring the model as a means to advance the economic half of any formula and equation is absurd,” Fawell pointed out.

“He’s ignoring the political model of the New World Order economy that’s driving America down, pretending there is no alternative when there is; it’s called Liberty and requires a political model of operation unique unto itself,” Fawell detailed. “It’s a common frailty of all economist trained in the science of economics that has gone academically stale, and Mr. El Erian is its latest victim.”

“Escape velocity” is what Mr. El Erian says America needs.

“He’s dealing with a failed political model, and you can’t put a few patches on it like El Erian suggests and then even remotely expect that its going to work, even modestly.   What America needs is a new political model attained by restoring the original Constitution.  Of course, this will get America an entirely new economic model to base the economy upon, but that’s the only way America is going to break out of the perpetual recession/depression cycle Washington DC, NYC, and the Federal Reserve has got the nation circling the drain with.   “Escape velocity” indeed.

An economy directed by a government that allows individuals to control the levers of government, unsurprisingly allows individuals to operate those powers in the interest of their faction.  This is called by many ism’s but all are defined as tyranny, or that government which rules its people.  The problem with tyranny, is that its economic and political modeling is so inefficient it is prone to eventual failure, as in such a state, key factions of power become the government, rewarding themselves and the politicians that serve them by enabling them to get re-elected through increasing growing campaign contributions, which essentially amount to bribes.   Bribes of not only the legislature, but of the executive branch; and by the executive branch, it is only a question of time before the judical branch too has been compromised, completing the circle of control of power by factions.

As an economist, Mr. El Erian only looks to the surface acts of politics as an impediment to his purely economic formulas, when the economic formula is but half the equation.  He, as every economist including the Austrians, are trained in half the cause and effect of their trade.  They never realize that the political model dictates the economic model, not visa versa.   They then attempt to forecast or manipulate an economic system that has nothing to do with their formula’s, but the very structure of the government.   They then ignore the structure and blame symptoms of this disorder because that is the extent of their realization.

It simply never occurs to them that the only way to change a nations economics is by changing its political structure, and not what that structure screws up by design.   Mr El Erian like most economists, fail to recognize the political model of Liberty and how that would change their economic model, by requiring  the operation of all the powers of the legislature to be conducted within the full view of the Public Forum.  This forces two things to happen.

The first is, it creates the transparency the people require in order to be able to vote their Consent of the Governed.   Consent of the Governed is considered a myth to economists, because they have no concept of political science.  However, if all the powers of Congress specified in Article I we’re returned and operated according to its dictates, there would no longer be an Imperial Presidency and most public and private governing agencies would have their powers returned to either the Congress or the states where they constitutionally belong.

Secondly and just as importantly, the factions that have grabbed hold of these usurped powers of the Congress and the States are no longer able to manipulate these powers for their factions reward.   Essentially, the foot of the ruling elite is removed from the throat of the American people, and the American people, having been freed from this parasite, are once again free to thrive.   Not only this, but by depriving these factions of their ill gotten gain, it then deprives both the Congress and President of the funding to re-elect themselves, at the very moment any facade to their actions has been stripped away by the transparency exclusive to the Public Forum.

Consent of the governed is neither a myth nor unattainable.  To the contrary, it is easily done simply by restoring the natural checks and balances of government and placing these powers wholly back within the strict confines of the Public Forum.  This forces a holistic change in the current economic model ruling America, because it would require the end of a number of Federal agencies including the private Federal Reserve Bank,.  These powers would then be restored to their proper constitutional posting to either the Congress, or the States.

The saving would be considerable.   Just by the “Orderly Removal and Replacement of the Federal Reserve Bank to the Congress”  would address 90% of the mis-allocation of all wealth in America. http://electanewcongress.com/the-orderly-removal-and-replacement-of-the-federal-reserve-bank/

The reduction in government coupled with the natural bounty of a Liberty based political and economic model merges well with a financial system that restricts the governments ability to finance through the central bank.  Certainly Congress can vote to over spend, but they must also vote to finance their spending, and in the light of the Public Forum and the transparency it inspires, it is a very difficult thing to do.

Can anyone imagine Congress voting to continually vote to bail out the 2B2Fail Banks?   How far would Congress get proposing QE II, much less QE IV whose purpose was and is designed to bail out the insolvent countries of Europe?  Introduced, discussed, compromised and voted upon exclusively in the Public Forum, no member of Congress will ever be elected by voting trillions of American taxpayer dollars to bail out this sewer of a financial system.

Any Congress that would vote for such a travesty would be replaced by, if not before, the next election and heads would roll.

Essentially, the issue comes to one of not only the economic tyranny draining America versus the Liberty that awaits, but there is a greater issue at hand.   It is the New World Order versus the Brave New World.   The first will lead to the end of civilization, while the latter will lift all of mankind to unlimited dominion.   For the tyranny of the New World Order is slavery as much as the Liberty of a Brave New World is freedom, and the distinction must be made, else the El Erian’s of this world will continue to point to the facade and illusion of a single political model, and forever restrain the power and freedom of Liberty.

Sign the Declaration

The time has come to hit the Big Red Reset Button.

Sign the Declaration of Liberty to Elect a New Congress.

Sign Now