Saturday, October 11, 2008

Excellect Time For Change - In Cuba

It is Cuba, not the United States, that is ripe for change. Here is why.

Americans still cling to the notion that their leaders can put the old fiat money financial scheme back into play. Most do not have a clue even today as to how our fractional marginal banking system operates. In short, the majority of Americans are socialists who rail against socialism while embracing the ideology. Sadly, what they'd hoped for was the type of socialism embraced by people the world around - family, friends, neighbors and business relationships. What they've gotten is Mussolini corporate welfare socialism. We even have the goon squads and secret jails to prove it.

Cubans, on the other hand, put their faith in a group that seized power violently from the older corrupt regime. But who are we to talk? We did the same thing here a few hundred years ago. This however, is not the point. The point is the group of people in Cuba did not have a sound grounding in economics or they would never have proceeded down the path Cuba has traveled. This is apparent to everyone today - even to those still trying to run Cuba and who fear for their lives.

The trouble is while in corporate welfare America we are permitted to work freely but have our wealth taken from us for the benefit of the corporations - in Cuba everything is centrally designed. I have the purest of motivations for Cuba. Having said that, I will tell you without hesitation that I do not have a clue how to "run" Cuba and would decline the position if available. How does anyone decide what is best for 11 million individuals with varying needs, abilities and motivations? No sirree amigos. That job can only be undertaken by those very same 11 million Cubans and now would be a great time to do that. Do you want to know why?

The rest of the world is in chaos financially and otherwise. People the world over are looking for a safe haven for their capital. Here is where Cuba comes in. If Cuba announces it is going to change to a genuine "free market" economy it would be a dagger in the heart of the international banksters. Some may think me crazy for envisioning such a thing because there is so much confusion about what a free market economy is. But it is possible to do following a number of concrete steps. If Cubans do these necessary steps then the capital will surge into Cuba looking for safety. If organized correctly, this will mean more jobs then can be filled by 11 million Cubans so wages and benefits will constantly be driven upwards for the average Jose. Here are the first steps that must be taken:

1. The top old guard in Cuba must resign. The reason is financial more than anything. If the current rulers of Cuba, who were never elected, are not in charge any longer then why should the Cuban people be responsible for the debt run up by the former regime? The last thing Cuba needs right now is to rebuild with two broken legs. Cubans owe the world financial players nothing - period. Sorry about that international banksters - not!

2. Release all prisoners of conscience and those convicted of economic crimes that would not be considered illegal in a free market. This would be announced to the Cuban people along with the new Cuban deal. This will give the Cuban people hope and motivation for the future.

3. Remove all taxes on remittances from overseas and in the marketplace that drive up costs for the Cuban people while suppressing the motivation from people outside Cuba to give.

4. Announce that Cubans will now be the only actual free humans on the planet. As proof make it clear that Cubans own their time, body and labor output free of all tax. Tell Cubans to do whatever is legally possible to create products and services for fellow Cubans and people everywhere. Explain that as long as they are not harming people or cheating them with fraud then each Cuban will get to keep the profit from their labor expenditures. Only this provision will ignite the marketplace and bring the Cuban people what they need. Every Cuban should start their own business - maybe two or three because they get to keep all the profits.

5. Invite the businesses and agricultural sector whom were robbed and evicted. Just give them their dilapidated infrastructure back or their farm. But here's the deal. They can bring any equipment into the country duty free. The only regular tax they will have to pay in Cuba will be the site value tax for their land holdings based on location value. Even this tax should be waived as compensation for their original losses for a time period and with this form of tax farmers are not even taxed as they are in outlying areas not possessing location value. So outsiders and exiles will have tremendous motivation to bring capital to Cuba to fire up the economy of the island. Being an otherwise tax free nation means they can employ Cubans with no tax expense or paperwork overhead.

6. Enact homesteading provisions that grant Cubans ownership of their property even though it may have a destroyed house on it or one in grave need of repair. That way the individual Cubans can decide if they want to rebuild there or sell the property and use the profits to buy or build a home elsewhere. Offer land grants of government held land to exiles as compensation for their lost homes and property as incentive for them to return to build a new, probably retired life in Cuba. Many of them in America would love a safe place for the wealth that they have earned in the U.S. which is now unsecured under corporate socialism.

7. Convert the peso into a hard currency based on precious metals. Local Banks should be legalized but strictly regulated to ban the practice of lending out money that they do not have in their vaults. They should otherwise be permitted to set their own individual lending rates. All precious metals stored in these banks from overseas should be held tax free as further incentive to park wealth in Cuba. Depositors should have great privacy for their accounts as a further lure for capital.

8. Announce "Reconstruction Tourism." Here is a way for those who have benefited from cheap Cuban labor in the past for their vacations to pay a little back. In addition those who come during this special tourist period to help jump-start Cuba will pay no tourist tax now or as long as they live. We must be very up front about this offer. It will be no picnic but will be a great investment for their future as well as personally rewarding. Tourists should know that they must bring their own accommodations like tents, mosquito netting, food, drinking water, necessary medications, etc. These tourists should also be sort of like mules carrying in the maximum payload possible of things like tools, appliances and building material. This will also be an opportunity to build lifetime relationships with Cubans.

9. Announce all travel restrictions removed from Cuban people. Explain that from here forward free Cubans can come and go as they like without checking in with the government. Ask that they please refrain from violating restriction on immigration to other less free countries like the United States of American. However, the reality is if these provisions discussed herein are followed then the real problem Cuba will face is too many people wanting to live in Cuba. It will be such a great place to live.

10. Finally, in reality this is the first thing we must do.

We should convene a Cuban Constitutional Convention in Havana. Ask the Cuban people now who they want to debate these constitutional questions and set forth a document for their approval. The entire proceeding should be constantly broadcast on television for the Cuban people and the world to see. Cubans everywhere should be involved in this peaceful, deliberate debate on the course of Cuba's future. It would please me greatly if Cubans would allow me to be involved in the economic debates of the convention. I see this as the next revolution even more profound than the American revolution of 1776. The Americans believed individual liberty worked the best but did not know all of the perils that awaited the implementation of these freedoms like the banksters and their money schemes. If Cubans are smart, and I believe they are, they will take these original concepts and improve upon them. They will avoid the pitfalls that have clearly befallen the United States. Doing these things in an unselfish manner for the good of the Cuban people will make Cuba rise up from the ashes of the past and become an economic super power - maybe in as little as ten years.

Give this some thought. One thing certain. In America there is still wealth and time to fiddle around. In Cuba there is no other way out of the dilemma left from hurricanes and failed economic policy. Lets do something constructive before something bad happens. Even a bit of hope goes a long way to calming the people. Don't you think amigos?

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