Tim Geithner June 30, 2012 Secretary of the United States Treasury 1500 Pennsylvania Avenue Washington, DC 20220

Subject: Growing Americas GDP using Federal Government Deficit Spending (1) Growth occurring from making tough decisions builds a strong GDP (Gross Domestic Product) and a strong nation . Growth occurring from avoiding tough decisions builds GDB (Gross Domestic Bloat). In America this includes a Bloated Health Care Industry, a Bloated Military Industry, Bloated Individual Wealth, Bloated Population, and Bloated Federal Debt . Economic analysis can be used to estimate trends in Per Capita values for GDP, GDB, and FD (Federal Debt from deficit spending). (2) After World War II and through 1975 our Politicians made the tough decision to cut back on the use of Federal Government deficit spending. At the same time America became not only a manufacturing powerhouse but also a creator of advanced technology for the labor saving devices that we take for granted. Labor saving devices (combustion engines, electric motors, and the computer chip) improved our standard of living and reduced the need to create more workers. By 1975 our birth rate had declined to 3.1 million births per year. (3) During this same period our foreign competition adapted American technology and also improved ocean-going container ships that reduced the cost of shipping manufactured goods to America. Our foreign competition also improved ocean-going supertankers to help Americas economy become dependent on imported crude oil. America adapted to these improvements by exporting manufacturing jobs to lower cost foreign competition. By 1975 America had became a debtor nation with a Trade Deficit -- our imports began to exceed our imports. (4) At this critical point in our history we needed Politicians willing to make a tough decision -- tell Americans that they needed to be willing to work for less if they wanted to compete with the rest of the world. What our Criminally Dysfunctional Political System delivered was Morally Corrupt Politicians who avoided this tough decision by using Federal Government deficit spending to transform America into a bloated economic and social mess. This sad result is depicted in our Federal Debt Credit Card and an Illusion of Prosperity Graph. Some tough decisions that have been avoided are listed below. (a) If we want Affordable Health Care our Health Care Industry employees need to take a pay cut. (b) If we want to reduce Health Care Bloat our elderly need to accept less Health Care. (c) If we want to reduce Military Industry Bloat our Military Industry employees need to take a pay cut. (d) If we want to spread the sacrifice our Federal Government employees need to take a pay cut. (e) If we want to spread the sacrifice we need to cut the bloated tax breaks for our wealthy. (f) If we want to reduce the size of Student Loans our Education Industry Employees need to take a pay cut. (g) If we want to reduce our bloated population we need to reduce our current birth rate of 4.1 million births per year. (h) If we want to reduce our dependence on imported crude oil we need to increase our gasoline taxes. (5) America found workers who were willing to work for less -- our Hispanic immigrants, both legal and illegal. (6) In 1972 our PCGDP increased by $700 and our PCFD by $230 -- a 3:1 ratio. There was no GDB. In 2011 our PDGDP increased by $1,500 and, based on 1972, should have required only $500 in new PCFD. Since our PCFD increased by $3,800 we can surmise that the remaining $3,300 represents PCGDB (Per Capita Gross Domestic Bloat). (7) Our current economic and social mess was created by Federal Government deficit spending by Morally Corrupt Politicians. These Politicians expanded the mess by winning votes using the Illusion of Employment called a Housing Industry Bubble. Their method was to allow banking practices with excessive risk that eventually resulted in the 2008 financial crisis. Their accomplice was a Politically-appointed Federal Reserve Board of Governors that enabled these risky banking practices. (8) Barack Obama has yet to define the cause of the economic and social mess he inherited. Mitt Romney criticizes Obama for not fixing the mess but has never defined the cause of the mess he claims he can fix. American voters are being asked to choose between two Morally Corrupt Politicians who will make the mess even worse. (9) In 2010 our Morally Corrupt Politicians weakened Americas Pension Fund -- our Social Security Trust Fund. Without ever obtaining voter approval they decided to reduce our contributions and claimed this would stimulate our GDP You were (and still are) the Managing Trustee of that Fund and should have been aware of the real problem -- our GDB. (10) Hopefully America can work out of this economic mess and prevent the development of a Soylent Green Economy. A key criterion is that we disregard any advice from our Nobel Prize winning economists that does not account for the impact of Morally Corrupt Politicians. These Politicians are easy to identify -- they are willing to allow campaign contributions to be converted into slopbuckets used to drench our communities in media sewage containing SHOD (Smear, Hypocrisy, Outlandish Claims, and Deception). Michael F. Patterson 6115 Fairlane Drive Clarence Center, NY 14032 Cc: Andrea Kimbriel, The Clarence Bee Angela Merkel, c/o German Embassy Francois Hollande, c/o French Embassy Jamie Dimon, JPMorgan Chase & Co. Robert Samuelson, WPWG Prof. Roger Meiners, University of Texas Melanie Sloan, Executive Director, CREW Dr. Satish Tripathi, SUNY at Buffalo Prof. Robert Reich, Univ. CA at Berkeley

Bruce Bartlett, Author Moodys Analytics Internet at scribd/6115oversight Prof. Silvio Laccetti, Stevens Institute of Technology Ben Bernanke, Federal Reserve Board of Governors Justice John Roberts Jr., U.S. Supreme Court Prof. Jeffrey Sachs, Columbia University Prof. John Taylor, Stanford University Prof. Paul Krugman, Princeton University Prof. Peter Diamond, MIT David Koch, Americans for Prosperity Barbara B. Kennelly, Americas Pension Fund