Unprecedented Adoption Unanimously Agreeable Philosophy of Governance in USA

Sankarshan Acharya
Author of Unanimously Agreeable Rules of Governance
Director, Research Center on Finance and Governance

Founder, Pro-Prosperity.Com and Citizens for Development

October 14, 2014


To: President Donald J. Trump, Ex-President Barack Obama, Senator Bernie Sanders, Director of Federal Home Financing Agency, Director of National Science Foundation, Department of Justice

Please feel free to circulate.

Dear Honorable President Trump,

Kudos for your executive order a few days ago to eliminate subsidies in the Affordable Care Act. 

I happen to be the humanity's only author of no-subsidy mantra in governance, which I have proved (in a general economic equilibrium model published in the Journal of Governance and Religion in 2011 [1]), as necessary to attain the most efficiently competitive economy needed for survival (civilized co-existence) of humanity.  It, therefore, behooved me to inform you categorically a few days ago (as per attached emails), to user in an era of subsidy-less governance of USA. 

You took a first brilliant step in unanimously agreeable philosophy of governance.  This is first ever for any US President!    

I cannot congratulate you enough for your courage to ordain America's FIRST unprecedented unanimously agreeable philosophy of governance.  This is unambiguously benevolent for civilized co-existent of humanity, unless someone proves my theory wrong.  This is a courageous masterstroke of the presidential pen to effectively blunt the U.S. Congress (virtually making the Congress impotent) that had blocked your presidential mandate to repeal the subsidy-ridden Affordable Care Act.
While repealing the subsidies, you have stressed that the ACA subsidy was a bailout of health insurance companies.  Americans of all hues hate bailouts.  No one (including current bailout recipients) prefers bailout of others.  Government rules that impute no bailout is, therefore, unanimously agreeable. 

Bailouts are subsidies, which are unanimously disagreeable, unconstitutional, and inefficient and unstable for the economy.  These insurance companies have singularly failed in their promise (to help Democrats enact the ACA) to curtail the cost of healthcare.  But they have unconstitutionally usurped enormous subsidies from enterprising producers of USA.

Mega Bailout in US History

As I have stressed in my emails last month and in numerous correspondence with the Bush and Obama Administrations, America's biggest bailout occurred in 2008, when enterprising producers were blackmailed (due to laws of Congress surreptitiously foisted on them) to transfer their hard-earned wealth and to lose their high wages (in the name of rescuing bankrupted mega bank holding companies, which have been made the wards of the public due to federal deposit insurance and too-big-to-fail policy of the government) to private hedge fund accounts of political leaders and their allies secretly held in these BHCs. 

Two enormously profitable and highly solvent privately-chartered financial companies, Fannie Mae and Freddie Mac (which are the backbone of American enterprise and which have $5 trillion in assets) were confiscated by the Bush Administration through a new unconstitutional act, the Housing and Economic Recovery Act of 2008.  The BOD of Fannie and Freddie was disbanded and private shareholders of Fannie and Freddie were virtually liquidated by Bush Administration in connivance with the Democratic leadership in Congress. I was not a shareholder of Fannie and Freddie at that time, but was watching the events to perfect my papers and memos on ending such mega loot of mankind. 

President Obama claims to be a professor of constitutional law, which he taught at the University of Chicago, where he is now hosting his foundation as a colleague of Bush Administration's Treasury Secretary Hank Paulson who engineered the biggest unconstitutional heist of mankind and to suppress from public the surreptitious unconstitutional robbery that has been going on at mega BHCs like Citigroup, with active support of the Federal Reserve. 

The surreptitious unconstitutional robbery by mega BHCs was designed to transgress the unprecedented bank foreclosure law (enacted in FDICIA 1991) which was based on my research published in the Journal of Finance (1989). [2]

My bank regulatory research had brought me to the Federal Reserve (1990-1995) as a financial economist (1990-1995). 

I have had heated debate while exposing the surreptitious transgression of the bank foreclosure law at Citigroup in presence of senior Fed officials, when I was a financial economist at the Fed. 

Knowing that the Fed was complicit in such heinous transgression of the bank foreclosure law, I researched how to solve moral hazard (blackmailing) by BHCs-Fed-Allied-Politicians that bestowed enormous unconstitutional privilege on BHCs to privatize profits and socialize losses.  This gave rise to a paper "Elimination of Moral Hazard (Blackmailing) for Liberty."  I have first mimeographed this paper at the Board of Governors of the Federal Reserve System in early 1990's.[3]  This paper has a comprehensive mathematical general equilibrium model of the economy in which unanimously agreeable safe central banking (without federal deposit insurance) is attained in equilibrium. 

I left the Fed in 1995.  Not until March 2003, however, could I translate my mathematical model into an economic theory written in plain English.  I promptly conveyed to US Congress this economic theory on resolution of moral hazard through safe central banking (without federal deposit insurance) written in plain English in March 2003, with a warning that vested interests would not let them pass this law until taxpayers lost trillions of dollars.[4

I then followed up in 2005, 2006, 2007, ..., by warning the Bush Administration about a looming Great Depression due to the Ponzi Scheme centered around the Fed and BHCs.[5], [6

The surreptitious robbery at the mega BHCs was publicly exposed as the Bush Administration took my warning seriously.  President Bush hired Goldman Sachs CEO Hank Paulson (as Treasury Secretary) to solve the crisis.  Hank Paulson, Congressional leaders,

President Bush and emerging Democratic presidential candidate Barack Obama plotted to take over Fannie and Freddie through a new unconstitutional law, HERA enacted in 2008.  Then, massive private equity of Fannie and Freddie as well as $188 billion of taxpayer funds (ostensibly lent by Treasury to Fannie and Freddie) were funneled to the mega BHCs.  This constituted mortgage fraud, for which (thanks to Mr. Preet Bharara) Mega Banks paid nearly 200 billion in fines.  These fines were appropriated as subsidies to whosoever the Obama Administration deemed 'right'.  As if this was not enough, the Obama Administration conspired to loot all the profits of Fannie and Freddie since 2012 to grant subsidies under ACA.[7] The is the legacy of presidency by a constitutional professor!

Thank you for halting the unconstitutional Robbinhood style loot-subsidy. 

Your executive order can be consummated, however, only if you do the following consistent with your own constitutional thinking:

(1) Recap Fannie and Freddie by giving back to them all those fines collected due to mortgage fraud on them.  Fannie and Freddie are necessary for general economic equilibrium, constitutionality, fundamental fairness, efficiency and competitiveness of the economy.[7]

(2) Return all the extra profits collected by Treasury which is about $100 billion (total unconstitutional collections from Fannie and Freddie of about $300 billion less the unneeded 'loan' imposed on them of about $188 billion).

(3) Scrap the artificially imposed 79.9 percent government ownership of Fannie and Freddie equity because these institutions were highly solvent and profitable when HERA was enacted to confiscate them to bailout mega BHCs to rescue private hedge funds of political leaders and their allies.

(4) Release Fannie and Freddie from conservatorship.

(5) Relist Fannie and Freddie in NYSE where the two bluest of blue-chip American companies belong. 

This will restore confidence in US banking and finance.  Those who have short-sold enterprising American producers will pay a penalty that they ought to face for restoration of equilibrium (stability), efficiency, constitutionality, competitiveness and fundamental fairness. 

Above all, robbery from one group to subsidize another group is unanimously disagreeable.  No member of Congress or president or pundit in the academy wants to be robbed.  Neither does any other American.  Disbanding rules and policies which rob others even surreptitiously is, therefore, unanimously agreeable.  You have made history for teaching Americans this lesson from the presidential pulpit. 

With profound regards,

Dr. Sankarshan Acharya
Director, Academy of Unanimously Agreeable Philosophy of Governance

PS: Please feel free to circulate this memo to anyone you wish.