It's hard to watch the debate on the stimulus package without feeling quite frustrated.

Will it work as intended? Doubtful.

Do Mitch McConnell, John McCain, and others congressional Republicans have legitimate points in their criticism? Yes.

However, given the urgency of the situation, the Republican leadership would appear to be engaging in obstructionist antics, since I have not seen any credible alternative proposals being floated. If anything, doing nothing and hoping the stormy skies clear on their own is presumably their top contender for alternative policy. It's almost hard to believe that congressional leaders could engage in such behavior at this time of unprecedented national crisis.

It's most unfortunate that Obama failed to provide more leadership on the stimulus package. He left it to Dems in Congress to write the bill, and they responded by making up for lost ground in the Pork Barrel sweepstakes, having had spending somewhat constrained until now by the "pay as you go" rule. The Prez should have laid out the needed stimulus objectives along with a firm "no pork" directive. Also, Tim "What self-employment tax?" Geithner has inspired absolutely no confidence whatsover as Paulson's replacement, as improbable as that might appear.

Despite the flaws in the bill that is being finalized in conference, doing nothing does not appear to be a viable option. The people voted for change, with a nervous glance over their shoulders at the economic storm clouds that were gathering in the fall. Quite obvious to nearly everyone is the sense that something is going quite wrong in our corporate and financial institutions, and subsequent months have produced a daily barrage of deteriorating news.

My challenge to Republicans and independently-minded Democrats is to come up with an alternative proposal that is worthy of debate. I will get the ball rolling with the following starting points:

1) Start with a clear and honest disclosure of the cause and nature of the crisis:
a) Explain the rampant explosion in the derivatives market, coupled with widespread fraud involving brokerage firms, fund managers, and various government agencies.
b) Hold congressional hearings on this topic, and solicit testimony from figures such as former assistant treasury secretary Catherine Austin Fitts, who claims that Fannie and Freddie allowed multiple mortgage-backed securities to be created from the same real estate assets (this constitutes fraud). Make it clear to all that subprime mortgage lending was not the cause of the meltdown, and vow to investigate until all who perpetrated the scam are brought to justice
c) Investigate Hank Paulson's role in steering billions of bailout funds to his former employers and buddies at Goldman Sachs.

2) Disclose the extent of the derivative bubble, how it dwarfs the global GDP by several times, and is beyond the power of any bailout to resolve. Point out how this is the true underlying cause of the dark shadow being cast over financial markets, and how the bailout efforts thus far amount only to
a) Payoffs to powerful executives and investors in the financial markets, and
b) An attempt to forestall the inevitable collapse.

3) Given the above disclosures, governmental policy shall be as follows:
a) Cease further bailout of troubled banks, financial institutions, or corporate entities.

b) Allow any bank or entity imperiled by "toxic debt" to fail. Extend FDIC insurance on deposits up to $500,000.
c) Abolish the privately-owned Federal Reserve Bank, and incorporate central banking functions within the Treasury Department.
d) Announce an indefinite moratorium on home foreclosures.
e) Require all mortgages to be modified to a low, fixed interest, with loan values adjusted down to reflect current property values.
f) Focus federal spending on vital infrastructure, and assistance to the unemployed.

g) Outlaw derivatives and other abusive financial instruments.

Once the above measures have been enacted, the American people will need to be cautioned that a difficult depressionary period still lies ahead, and nothing can prevent that. Government can and must do what it can to alleviate suffering, but beyond that, a new system must arise. Once economic conditions have stabilized, recovery can begin.

A caveat: The amount of disclosure outlined above is not likely to happen. The fraud and corruption in the system are simply too widespread, and too many hands are in the cookie jar. Full disclosure would mean too many powerful names being implicated.

What will likely occur is that the expected "stimulus" bill will be enacted, Republicans will spout their meaningless opposition, and the economic house of cards will resume collapse after a short-lived spell of optimism. The truth behind the meltdown will eventually be known, but this results in a very hard landing as opposed the the soft one still possible through proactive leadership. Thus, I go on record as offering this challenge...

The rising tide of consciousness will eventually create the foundatation for a better economic system, but difficult days lay ahead prior to that.

-Darkwave