The USA Federal Reserve board could invest in foreign stocks and bonds and other debt instruments that would earn the US dividends and possible capital gain. If the Fed set up a portfolio of say $10,000,000,000,000 (that's 10 trillion) of investments, and the Fed had a reasonable rate of return of 10% a year, the typical gain on long term stock and bond investments, the return would be a full 1 trillion a year! This would be a good income and would allow substantial reductions in taxes while still providing for social needs, military, and even space exploration projects. Where would the US get 10 trillion to invest? The Fed should be able to easily come up with that at the rate it is printing money now, but of course it might take a few years of savings and financing activities here and there to do it without causing a massive inflation spiral! The US has a lot of agencies and operations that could be sold to private companies to operate. Examples are federal prisons, portions of NASA, some law enforcement activities, some agencies, some federal parks, and other federal activities that are not critical. If the US continued to invest in foreign stocks and bonds it could participate in the funding of foreign companies and nations and at the same time gain influence and wealth around the world as well! Another thing the US could do is venture capital activities, providing seed capital for new businesses in foreign lands in return for partial ownership and a share of profits. This would be a way to reduce the need for foreign aid as it is now provided, and instead be a way to build the economies and the standard of living in other countries without causing a cash drain on our economy. It would also be good if the US could be a net exporter instead of a net importer. We need to take a look at our trade practices to make sure we are not killing our own industries and businesses by allowing cheap imports without pricing fairness or adjustment with tariffs or import taxes. So lets get busy USA. And you people out there reading this, call and write your Congressmen about my plan!
