Dear President Donald Trump
Your Tariffs inflate your ‘COST’ and ‘PRICES’. With NO income tax, workers’ take-home-pays will
increase, the same for other income earners. Increased spending will cause demand driven
inflation driving up interest rates adding further to ‘COST’. Your Volume/Cost/Price MIX will give
you a COST INDEX above that of the World’s TOP 25 Export Nations so NO Nation will trade with
you because ‘Made in America’ will be too expensive.
It has been reported that one of Australia’s biggest beef suppliers to the USA has cancelled his
contract in response to your Tariffs. Expect Beef Berger prices to skyrocket in the USA. This
Australian beef producer must have sourced an alternative market for his beef exports.
Have you thought about what is going to happen in America when other Exporters find
alternative markets?
All the above is avoidable if you END your Tariffs and research and implement 2% LIBERTY TAX.
From day one, all Americans will be in the streets celebrating as the Bells ring out across
America.
PART 2 of what you need to have changed in the Banking System in America.
The State Industrial Development Bank had three lending portfolios
1. Commercial lending.
2. Leasing.
3. Rural lending.
Ask any persons in the street which has the highest level of bad debts, and the answer was
Rural Lending.
For several years, I compiled and prepared the Annual Report of Banking Industry Comparatives.
These Annual Reports and the State Bank’s experience was that Rural Lending had the lowest
level of bad debts. The reason for this from my experience is that Rural Lending was conducted
over the tractor wheel face to face between the Farmer borrower and the Expert rural lending
officer with priority to
1. The productivity and profitability of the land managed by a competent farm manager.
2. The productivity and profitability of the land managed by an incompetent farm manager.
3. The Character of the Farm Manager and previous generations on the land.
The Expert rural lending officer’s loan risk assessment being based on Character and
Competency to result in the lowest level of bad debts.
From my personal experience, over the past 7 years, Gender and Age predetermine loan
applications not Character, not the borrower’s capacity to pay principal and interest and not
mortgage security. Loan Applications are determined behind a desk without regard and respect
for the individual and the real world.
At mid-year 2024, outstanding interest rate derivatives (IRDs) in the USA totalled $169.3 trillion.
Obviously, nothing was learnt from the 2008 Financial Crash and NO action taken by
Government to have Bank Depositors’ funds protected from the greedy Chair, Directors and
CEOs of USA Banks. With the Bank’s having the legal right to bail in Depositors’ Monies NO right-
minded person would have their money in USA Banks.
In the convention of Banking prior to deregulation, Bank Depositors Funds were sacrosanct,
NOT to be securitised, speculated and traded. The Bank’s Treasury that held these Bank
Depositors’ Funds was NOT a Profit Centre and NOT included in the Remuneration of anyone in
or connected with the Bank. With urgency, this Convention must be legislated and the Bank’s
required to account for and report their exposure to these Derivatives.
From my 62 years’ experience as a Chartered Accountant in Executive position is Business,
Banking is the easiest for making profits, subject to the lessons I have outlined above.
Banks must receive Depositors’ Funds and must lend to borrowers to stay in business
With 2% LIBERTY TAX Americans with Mortgage Home and Business Loans can have the funds to
fast-track the pay-off of their Bank Loans. This will force the Banks, with much reduced
operating costs, to be competitive and cut their interest rate margins to stay in business.
2% LIBERTY TAX is Big WIN for Bank customers and the Nation to MAGA.
Kind regards
Derek Smith CA
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