Game Plan

by Kevin D. Freeman

  The Heritage Foundation offers some suggestions, including a freeze on new regulations until the national unemployment rate drops under 6 percent, a ban on “midnight” regulations (issued after an election by an outgoing administration), and making the regulatory process far more transparent.62 The problem is serious, but it can be tackled.

  Step Six: A Workable Tax Code

  Reform of the tax code should go hand in hand with a reduction of regulation. Nearly everyone agrees that the current tax system is a convoluted mess. It does not maximize revenues, and it hampers economic growth.63

  So how do we fix it? There are four basic options:

  1.Simplify the system by stripping it of numerous breaks, leaving only those which help grow the economy or make the tax code fairer.64

  2.Implement a flat tax, which would give people more incentive to work and invest their earnings back into the economy.

  3.The so-called fair tax would eliminate the payroll tax and impose a national sales tax on purchases of new goods and services, excluding necessities. The fair-tax rate after necessities would be 23 percent, which equals the lowest current income-tax bracket (15 percent) plus the employee’s share of payroll taxes (7.65 percent).65

  4.A combination of the flat tax and the fair tax might ameliorate the problems with each. The flat tax does not eliminate the payroll tax, while the fair tax, depending on one’s state sales tax, could leave someone with a tax burden of close to 40 percent of his income. One proposal is to combine a flat income tax of about 16 percent (eliminating altogether the tax liability of the poorest) with a national sales tax or VAT of roughly 10 percent.66

  Each idea has merit, and each has its proponents. Regardless of what we do, we have to fix the tax code. Such a fix would dramatically enhance our ability to fight in the global economic war.

  Step Seven: Teach What America Is All About

  Immigration is a serious problem. Some argue that because our native population is declining, we need more immigrants to fuel growth and allow America to compete in the global market.67 Others argue that uncontrolled immigration will destroy the fabric of society. Richard Lamm, as governor of Colorado, “saw how employers were using illegal immigration for cheap labor and in some cases firing Americans so they could hire illegals who they could pay less and work harder. I saw the incredible flow of illegal aliens who crowded out American workers in construction, packing plants, the service industry, etc, many of whom were paid ‘off-books’ so we got no state income taxes from them.”68

  Others worry that our lax immigration policies will allow terrorists to infiltrate our nation. C. Stewart Verdery Jr., a former assistant secretary of homeland security, said in 2006, “[O]thers seeking to cross our borders illegally do present a threat—including potential terrorists and criminals. The current flow of illegal immigrants and people overstaying their visas has made it extremely difficult for our border and interior enforcement agencies to be able to focus on the terrorists, organized criminals, and violent felons who use the cloak of anonymity that the current chaotic situation offers.”69 Deputy Secretary of Homeland Security Admiral James Loy told the Senate Select Committee on Intelligence, “Several al-Qaeda leaders believe operatives can pay their way into the country through Mexico and also believe illegal entry is more advantageous than legal entry for operational security reasons. At home, we must prepare ourselves for any attack, from IEDs (improvised explosive devices) to Weapons of Mass Destruction . . . from soft targets like malls to national icons.”70 Congressman Louie Gohmert said in 2013, “We know Al Qaeda has camps on the Mexican border. We have people that are trained to act Hispanic when they are radical Islamists.”71

  Immigrants built our nation, and immigration is an essential part of the American story. What’s different, however, is that immigrants are no longer taught the uniqueness and greatness of America. It used to be that we were a cultural melting pot. Now political correctness teaches us to maintain and celebrate our differences rather than coming together.

  Our educational institutions seem intent on developing disdain for America by highlighting failure rather than celebrating success. Professor Haunani-Kay Trask of the University of Hawaii told students, “We need to think very, very clearly about who the enemy is. The enemy is the United States of America and everyone who supports it.”72 Princeton’s Richard Falk said the Boston Marathon bombings were a result of “all kinds of resistance” generated by “the American global domination project.” Darry Sragow of the University of Southern California told his students that Republicans are “angry old white people” who are “stupid, racist losers.” Rod Swanson, a UCLA economics professor, tells students, “The United States of America, backed by facts, is the greediest and most selfish country in the world.” Penn State’s professor Matt Jordan says supporters of voter ID laws are like the Ku Klux Klan, and the Georgetown law professor Louis Michael Seidman says America’s problems are derived from the Constitution, which he called “archaic” and “idiosyncratic” with “downright evil provisions.”73

  Our own government is in on the act—often leading the way. The air force teaches that the Founders of the United States were extremists: “In U.S. history, there are many examples of extremist ideologies and movements. The colonists who sought to free themselves from British rule and the Confederate states who sought to secede from the Northern states are just two examples.”74

  This is a nation that has lost its moral compass and so has lost its way. The corrosion of Americans’ self-understanding has seriously weakened us. But there is a solution. We can begin celebrating the Founders and their principles. We have to return to old-fashioned patriotism. And, we have to make such teaching a part of any immigration solution. Peggy Noonan described the challenge in 2006:

  What is the legend, the myth? That God made this a special place. That [immigrants are] joining something special. That the streets are paved with more than gold—they’re paved with the greatest thoughts man ever had, the greatest decisions he ever made, about how to live. . . .

  We fought a war to free slaves. We sent millions of white men to battle and destroyed a portion of our nation to free millions of black men. What kind of nation does this? . . . Soviet communism stalked the world and we were the ones who steeled ourselves and taxed ourselves to stop it. Again: What kind of nation does this?

  Only a very great one. Maybe the greatest of all. . . .

  Do we, today, act as if this is such a special place? No, not always, not even often. American exceptionalism is so yesterday. . . .

  When you don’t love something you lose it. If we do not teach new Americans to love their country, . . . then we will begin to lose it.75

  Step Eight: Return to Our Spiritual Roots

  Of the eight steps, this one is the most important. American was founded on the Judeo-Christian principles of Western civilization. As George Washington affirmed, “It is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor.” He also said, “Of all the dispositions and habits which lead to political prosperity, religion and morality are indispensable supports.”76

  President Reagan warned us not to forget our national dependence on divine Providence: “If we ever forget that we are One Nation Under God, then we will be one nation gone under.”77

  I agree with President Reagan. Remembering our spiritual heritage is the most important step we can take in defending America, because our problem isn’t really economic or even political. Our real problem is spiritual. “Blessed is the nation whose God is the Lord,” writes the psalmist (Psalms 33:12). The Bible promises blessings to the obedient: “The Lord shall open unto thee his good treasure, the heaven to give the rain unto thy land in his season, and to bless all the work of thine hand: and thou shalt lend to many nations, and thou shalt not borrow. And the Lord shall make thee the head, and not the tail; and thou shalt be above only, and thou shalt not be b
eneath; if that thou hearken unto the commandments of the Lord thy God, which I command thee this day, to observe and to do them” (Deuteronomy 28:12–13).

  To the disobedient, in contrast, God promises a curse: “thou shalt not prosper in thy ways: and thou shalt be only oppressed and spoiled evermore, and no man shall save thee” (Deuteronomy 28:29). “The fruit of thy land and all thy labors, shall a nation which thou knowest not eat up” (Deuteronomy 28:33). “The stranger that is within thee shall get up above thee very high; and thou shalt come down very low. He shall lend to thee, and thou shalt not lend to him: he shall be the head, and thou shalt be the tail” (Deuteronomy 28:43–44). By these verses, America today sounds more like a nation under a curse than a nation under blessing.

  The Bible also warns that “the borrower is servant to the lender” (Proverbs 22:7). The decline of American influence has been rapid and has coincided with the rise in our federal debt. The Canadian newspaper publisher and biographer Conrad Black has observed, “Not since the disintegration of the Soviet Union in 1991, and prior to that the fall of France in 1940, has there been so swift an erosion of the world influence of a Great Power as we are witnessing with the United States.”78

  Now, if the problem is spiritual, the solution will be spiritual as well. America needs wise economic and security policies, but those policies alone will not restore our greatness. America needs a spiritual revival: “If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land” (2 Chronicles 7:14).

  Conclusion

  After in-depth research on behalf of the Pentagon, it became obvious to me that America suffered a financial terror attack in 2008. I explained what happened in Secret Weapon. As I continued my research, I uncovered a long history of economic warfare, which others, including Jim Rickards and Juan Zarate, have discovered as well. I have spent countless hours giving briefings to a host of agencies in our nation’s capital. Make no mistake; we are in a global economic war.

  The bad news is that we are fighting blindly. Too few in our nation’s leadership have grasped what we are facing. Call it ignorance or arrogance. Either way, we are not prepared to defend the dollar in world trade, protect trade secrets from corporate espionage, or safeguard our financial systems from cyber attack. There are even more serious risks, like the EMP that could send us back to a pre-industrial age. Our $17 trillion debt creates a whole host of vulnerabilities. Yet we go on as if American supremacy will endure forever.

  The implications are serious, and you need to be aware and prepare. This requires a thorough understanding of your investment options and how they might perform under different scenarios. Unfortunately, there aren’t any simple answers. What works for one problem may not work for another. Things can and will change. As a result, you will likely want to identify and work with a professional investment advisor who has been trained on these national security issues. That’s why my colleagues and I formed the National Security Investment Consultant Institute to train and credential investment advisors.

  Despite all this, you should have hope. There are eight steps that America can take to maintain its position as the best and strongest economy in the world. There are also seven spiritual truths, which I share in the appendix, that you can apply in your life for greater prosperity and success.

  This is your game plan. It is a practical understanding of economic warfare and how you can defend against it.

  APPENDIX

  Preparing Your Family

  In chapter twelve, I outlined eight steps to restore American greatness. Whether or not we take those steps as a nation, you have to take care of yourself and your family. I have given you a game plan for your investments. Now I’ll share seven basic truths that will help in good times and bad. For the most part, these are lessons I learned from John Templeton, the greatest mentor I ever had. They’re based on the Bible, and I have seen their truth confirmed time after time in my own life and in others’.

  1. Order Your Priorities

  Much of our nation’s vulnerability is the result of misplaced priorities, even on the personal level. Jesus’ instructions about our priorities couldn’t be clearer: “But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you” (Matthew 6:33).

  Many of the most successful people I know put their priorities in that order—God first, then family, then business. But too many of us put business first. When that happens, life loses meaning.

  2. Know Where Your Treasure Is

  Jesus said, “Where your treasure is, there your heart will be also” (Matthew 6:21). Most people get this backward: they let their treasure follow their heart. But that’s not what Jesus says. He says your heart follows your treasure. It was a dramatic revelation when Pastor Robert Morris of Gateway pointed out this truth to me. You can actually direct your heart by moving your treasure.

  When you consider this verse from Matthew in its full context, it becomes obvious that storing earthly riches keeps your heart set on earthly things, which will surely disappoint. But heavenly riches are permanent. “Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: For where your treasure is, there will your heart be also” (Matthew 6:19–21).

  3. Count Your Blessings

  John Templeton devoted a good deal of time to what he called “discovering the laws of life.” He even wrote a book with that title, and I treasure the autographed copy he gave me in 1995. “Counting your blessings,” he wrote, “can transform melancholy into cheerfulness; laughter and joy are expressions of praise and thanksgiving for life’s glories. When looking at the glass that symbolizes our life, we can view it as half full or half empty. The choice is ours.” Templeton also wrote: “Thanksgiving is a creative force that, if lived on a continuous basis and not just for one day each year, will create more good in your life and more to be thankful for. Perhaps we could call this the life of thanksliving. Thanksliving is an attitude of perpetual gratitude that will draw good to you. It is based on the premise that ‘thanksgiving leads to having more to give thanks for.’”1

  I can tell you that the most successful investor I ever met, John Templeton, believed this with all his heart and practiced it daily. And he became a billionaire following his laws of life.

  4. Giving Is Living

  As his coining of the word “thanksliving” suggests, John Templeton was struck by the relationship between giving and living. The words ultimately denote the same reality, he believed. “Life’s greatest investment,” he declared, “is the tithe”2—that is, the biblically enjoined return to the Lord of a tenth of your income. As Templeton wrote:

  Tithing often brings prosperity and honor because it’s an important aspect of the law of giving and receiving, which is an integral part of the law of cause and effect. As you give forth, so shall you receive.

  A lot of people right now are seeking economic healing. Many of them are probably thinking, But I can barely make ends meet with the money I’m currently making. How can I give 10%, 5%, or even 1% to charity? Well, this is a case where conserving your resources in order to give a portion away actually has a paradoxical effect. Many people who are living paycheck to paycheck are so focused on their own financial situation that they rarely have time to think of the needs of others. But . . . spiritual and material abundance can result only by focusing on the needs of others. By conserving your money and spending it more efficiently, perhaps through a budget, you will not only find money that you were previously wasting on trivialities, but your tithing will actually bring about economic healing. . . .

  Tithing establishes a consistent method of giving and for stewarding the bounty in one’s life. . . . I can say that, almost witho
ut exception, the family that tithes for more than 10 years becomes both prosperous and happy. This is the one investment suitable for all people.3

  The prophet Malachi wrote, “Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it” (Malachi 3:10).

  The important thing is to recognize that everything you have belongs to God, Who asks that we give a tenth of it back. Sometimes we give beyond that as well. If one of the greatest investors of all time says that tithing is the best investment, we ought to take it seriously.

  5. Depend on Your Trust Fund

  Most people think of a trust fund as a store of money set aside for their use. But I think of Proverbs 3:5–6: “Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge him, and he shall direct thy paths.”

  In this complicated and crazy world, no one can figure out everything. At some point, you have to trust God and move forward. That’s why this proverb is so powerful. It gives you confidence that if you put your trust in God and start taking steps, He will direct your path.

  6. Never Give In

  There will no doubt be many challenges in the days and years ahead. We can take comfort from the wisdom of one who went before us and in terribly dark days persevered. Winston Churchill had watched his beloved nation lose its grip on the greatest empire in history, and then its very existence was threatened by Hitler’s Germany. In October 1941 he returned to the ancient Harrow School to speak to the students. Standing before them, he simply said, “Never give in, never give in, never, never, never. . . .”4