Economic Prescription for Growth and U.S. Survival

The following list delineates my prescription for what must be done, IMHO, for America to once again become fiscally sound:

1. Enact the Fair Tax immediately.  (If you don’t know what it is, check it out at Fair Tax.)
2. Limit government spending to 17% of GDP.  (Why 17% of GDP?  That is the long-term average.)  With the current GDP at $14.6 Trillion, this means that government spending would currently be limited to $2.5 Trillion.  At present, government spending is  $3.5 Trillion, or 24% of GDP.  And, the projected deficit is $1.6 Trillion.  (Congress cannot even agree on cutting $100 Billion from the federal budget.  If we cut $100 Billion, it is not a great victory, not a even a moral victory, because we would still have a federal deficit of $1.5 Trillion to finance.)
3. An immediate 20% cut in government spending is necessary to start the alignment of limiting government spending to 17% of GDP. 
4. Immediately open up the ANWR (Arctic National Wildlife Refuge) for oil drilling and resume offshore oil drilling.  With oil above $104 a barrel and gasoline closely in at $3.50/gallon and on its way to $4, we must increase the supply in order to bring down the price.  (I know if we open up ANWR today that we would not get a drop of oil tomorrow.  However, the reason why price of oil will come down is due to the fact that all markets are forward looking.  That is the expectation of the future supply of oil coming unto the market will drive the price down.)
5. No more bail outs to Wall Street, Main Street, or any other Street.
6. An immediate dismissal of the Federal Reserve Chairman, Ben Bernanke.  Why?  The Fed is required to promote both price stability and full employment (economic growth).  Enough said, because we have neither.  Therefore, since he is the individual responsible for monetary policy, he must be accountable and take full responsibility for his disastrous monetary polices that he has implemented.  Just look at the following to two charts on employment and retail gas prices:

Now, after examining the above two charts, do you still believe he should be employed?  If you want to give him the benefit of the doubt, just take a look at the following chart:

The answer to the above question in the chart is that I don’t know who is going to buy those Treasury securities when QE2 ends.  The Fed already is purchasing 70%.  What will happen to interest rates when the Fed ceases to be the main demand factor?  I think you know the answer.  And, we will still have to finance the $1.6 to $2 trillion federal deficits for this year along with refinancing all that other Federal Debt maturing.

The world economies need the United States to get its fiscal and monetary houses in order.  It must be done today, not tomorrow.  We must face economic reality.  We can no longer “kick-the-can” down the road, because we have definitely come to the end of the road.