IMF, ECB and Natural Gas Expansion
What would be the effect of the IMF and ECB loaning Southern Europe funds for natural gas infrastructure expansion to the homes of their citizens, and to allow each government to issue credit to homeowners to compress it and convert their vehicles to burn it? A 1/4 Euro tax on diesel and quarter euro tax on natural gas would pay on the principal of sovereign debt. Nations would be able to service debt from increased revenues resulting from jobs created by infrastructure expansion, installation of compressors and conversion kits. Austerity could be eased and a rising tide floats all boats.
If we had a similar program in place to reduce our national debt but with the Euro taxes substituted by $1 per gallon gasoline tax and .25 cent per ccf natural gas, we also could reduce our debt and create millions of jobs here.
The opportunistic use of QE and QEII funds by banks to buy oil futures and other commodities would end, and they would begin to loan monies. Speculative upward pressure on oil futures would slow, as well as the transfer of wealth from the lower and middle incomes to the investor class. Monies held by these, the consumers, would be spent, rather than hoarded or reinvested creating that rising tide that floats all boats.
As gasoline and natural gas levies are paid to the principal of the national debt, they become available to finance the conversion loans. Repayment of these loans will further reduce the debt, and in turn become available to make other loans. Competitively priced loans from this burgeoning fund could be made to victims of usury, such as high interest credit cards, student loans, payday and title loans. As these loans are repaid, they replace yet again the national debt, and can fund other loans for mortgages to those left out since 2009.
Another source of revenue to reduce the debt can come from the illegal immigrant. Eleven million strong, and frequently skilled labor, they are hidden in the shadows, frozen out of much of commerce, and fearful. Allow them to pay 10% per year of their income to the national debt for 10 years. Require them to file a tax return to do so, and give them a double deduction each year for the previous year’s donation. They become taxpayers and receive refunds and social security benefits when entitled. Their 1040 can serve as proof of legal residency to immigration. They will do this voluntarily, and we will need them to man factories for compressors and kits, as well as for customers.
We have created millions of jobs here and in Europe. We have increased the money supply worldwide. We have acted to hold down the price of oil, and increased the price of natural gas. We have decreased interest rates. Will bond yields rise? Governments will earn more revenue, because unemployment will fall. Social spreading should decline, and factory output will rise. The Southern tier of Euro states will become solvent with increased revenue and decreased debt, pushing down their borrowing costs.