The mass spending and printing of money is reaching dangerously high levels. From 2000 through 2007, the money supply rose on average by $351 billion a year, with annual growth once exceeding $400 billion. In 2008, the money supply grew by $691 billion thanks to the last stimulus package which failed miserably. This year growth will surpass $1 trillion.

The national debt will soar beyond 12 trillion before year end if this spending continues. A declining GDP makes it virtually impossible to shrink the national debt. If this trend continues, the only way out in the coming years will be through rampant inflation.

Government does not create jobs, capital does and we learned in the 60’s and 70’s that if you tax it all away recession is the by-product. We learned in the 00’s if capital is not properly regulated and greed goes unchecked, wealth evaporates. In the 10’s, if government spending is not curbed and the Neighborhood Recovery Act is not enacted declining real estate will insure massive debt will accumulate beyond our taxpayers ability to pay the interest let alone the principal. The increases in the U.S. money supply are eerily similar to the levels of Continental dollars issued by the U.S. government in the 1770's and 80's. The later resulted in hyper-inflation of the Continental Dollar, which was not backed by either gold or silver.

So it was in the 18th Century, a collapse of the United States Currency and government, and so will it be in the 21st Century if spending isn't curbed and the private sector empowered to purchase residential real estate. If we fail, the re-occurrence of hyper-inflation will prove to be the most devastating baby boomer economic lesson of all.

In our current state a world return to a Bretton Woods system gold/silver standard will be a near impossibility leaving very few constitutional options to preserve the republic fiscally. Perhaps the State Legislatures will realize the ultimate constitutional power lies within their chambers. According to the current U.S. Constitution in Article V:

In other words, the method prescribed above is for a Constitutional Convention to be called by two-thirds of the legislatures of the States, and for that body to propose one or more amendments. These amendments, once adopted by the Convention, are then sent directly to the states to be approved by three-fourths of the legislatures or conventions. This path has never been taken. In such a convention, as the founders did in 1787 under the first constitution, each State Delegation would have only one vote. Unlike in Congressional amendments also prescribed in Article V, small States would hold the same powers of constitutional change as the large States. The Delegates, in reality, could re-invent the United States for a third time forming an entirely new government that could preserve the Perpetual Union in a radically new constitutional form.

[1] Klos Stanley, Neighborhood Recovery Act, September 17, 2009, www.uspresidency.com/recovery

[2] Klos, Stanley, Uncommon Sense - An analysis of the U.S. Economy With Solutions For the Current Recession, RE/MAX of Pennsylvania n/w, Carnegie, PA - 1992

[3] Source: http://www.measuringworth.com/calculators/uscompare/result.php

[4] Zillow.com, http://zillow.mediaroom.com/index.php?s=159&item=103 February 24, 2009

[5] Blum, John Morton, "Roosevelt and Morgenthau ", Published by Houghton Mifflin, 1970, page 256

[6] From: 2009 NAR President Charles McMillan [mailto:NAR@newsletters.realtor.org]

Sent: Sunday, February 22, 2009 11:02 AM

To: sklos1@tampabay.rr.com

Subject: REALTORS(R) Score Big Win for Housing

Dear Fellow REALTOR®,

For nearly four months, NAR has been working to deliver to you and to our nation a comprehensive plan to stabilize the housing market.

This week, we saw countless hours of hard work pay off – in a MAJOR way – when the federal government implemented NAR's recommendations to stimulate housing with the signing of the American Recovery and Reinvestment Act of 2009.

This bold and unprecedented move to help housing did not happen by chance. Just a few months ago, the auto industry had Congress' ear. Yet, thanks to countless meetings, letters, phone calls, and public pressure that we – the REALTORS® of America – placed on lawmakers in Washington, D.C., housing emerged as the top priority in the new Administration and in Congress. While some of the items in the Act are controversial and are currently being debated, most of our top priorities were addressed.

Thanks to all of our hard work, America’s homebuyers and homeowners will soon have:

1. Lower interest rates for home mortgages;

2. A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;

3. A true tax credit incentive to buy a home NOW; and

4. Foreclosure mitigation and short-sale standards.

As a direct result of NAR's advocacy, we hope REALTORS® will see an increase in home sales this year. NAR also continues to make significant progress on our efforts to unclog the pipeline for foreclosures and to address administrative problems with short sales.

Such significant movement on these critical issues is rare. I personally thank and congratulate each and every member of the National Association of REALTORS® for helping to make NAR's Housing Stimulus Plan a reality. For more information and details on these new laws and programs, visit the Unlock America's Economy Page on Realtor.org:

http://www.realtor.org/government_affairs/gapublic/gses_conservatorship?LID=RONav0023

Make no mistake -- we're just getting started. NAR will continue to push for other important laws and policies that can help you in your business. From keeping banks out of real estate to providing you with affordable health coverage, you can count on the "Voice for Real Estate" to help you gain an advantage in every kind of market.

That's the power of NAR, and it's why I am proud to be a member and to serve as your 2009 President.

Once again, thank you all, and keep up the great work!

Sincerely,

Charles McMillan, CIPS, GRI

2009 NAR President

[7] ABC News - http://abcnews.go.com/Business/Economy/story?id=6899801 President Obama today pledged to help up to 9 million homeowners facing foreclosure or struggling to make their mortgage payments.

The economic recovery bill tackles mortgages, loans and interest rates. Obama's plan, unveiled in a suburb of the mortgage-strapped city of Phoenix, specifically targets two groups of homeowners who have been hurt by the mortgage crisis.

First, some 4 million to 5 million families who have seen their home values drop, but are not at risk of foreclosure, would now be able to refinance into new mortgages.

The other group, 3 million to 4 million homeowners with adjustable-rate mortgages, would be able to temporarily have their loans modified to a lower interest rate -- for at least five years.

The cost was not initially clear, but just one aspect of this plan was given a $75 billion price tag. The overall program is likely to well exceed that.

ROI.us Corporation | Suite 211 | 687 Alderman Road | Palm Harbor Fl 34683

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