Solving our virus problem hinges on social distancing to reduce contagion. But an economic depression that hits us like a tsunami will tax our economic system so hard it will tax our ability to maintain social distancing and optimize our healthcare response. It’s a Catch 22 – or more appropriately – a Sophie’s Choice. Let the economy go on as it was and millions will die. We’ve heard as high as ten million in the USA alone. There’s a delicate balance that has to be struck. We have to help people weather this storm. Where do we start?
There is one easy to effect and sure way to help people and companies at the same time: reduce maximum interest rates to 1% – 2% nationally by decree. That simple act would give “companies” the time they need to wait it out. That interest break would also give a lot of “people” the time they need to wait this out. Not all people for sure. But this will actually help all Americans regardless of financial status. Interest rates create financial pressure. It’s totally ridiculous for anyone to be able to collect interest above 1% and profiteer in this crisis when the Fed Rate is .25%.
This simple, charitable and wise action would set in motion the domino effect needed to help relax tension a bit for everyone at the same time. And we desperately need this relaxation.
Let me cite one example. I own a business in Los Angeles and I rent an office. My landlord, a true gem by the way, just told me not to pay the rent for April. I was going to ask, but I did not have to. Very human of him.
But he has a mortgage to pay too. If his bank rate went down to 1% that’s going to make it easier for him to continue to pass that break on to me. Every obligation, from mortgages to leases to accounts payable, revolves around interest rates. If interest rates were suddenly gone or minimized, it gives us all the time we need to wrap our heads around our virus issue and our economic depression that is inevitable if we are to keep the contagion rate down.
I did go to Wharton School and shared a class with Donald Trump. He paid absolutely no attention to what was being taught. I was no honor student, but I did learn a bit about how this all works. Interest rates are key. Mortgage rates should immediately go down to 1% across the board. It solves a lot.
I’m going to leave this here, keep it short and spend my time circulating this memo, hoping it finds its way up to people who can make this happen. Lowering our collective financial temperature will solve many of our imminent problems – medical, social and financial – in one fell swoop.
PS. I am also 99% sure that the Kushners and Trumps of the world won’t like this solution. They are landlords. They love foreclosures. It’s how they acquired a lot of their properties, on the backs of others. And they can afford to stay home and not catch the virus. They even know if they do get the bug, they will get the best medical attention. So watch as they don’t quite do the right things in the days ahead.
Get this circulating. It is very doable. Trump’s talking about “companies” because the right companies will pay him off in his foreign bank accounts for slush funds sent their way. And that is also why he has not used the National Defense Act yet. He has not found a way to get paid off for the contracts yet. He’s working on it. You can be sure of that.