The Leviticus 25 Plan

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“He who will not apply new remedies must expect new evils.” – Sir Francis Bacon

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

Leviticus 25 Plan 2025 (12181 downloads )

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April 2024 quote:  However human, envy is certainly not one of the sources of discontent that a free society can eliminate. It is probably one of the essential conditions for the preservation of such a society that we do not countenance envy, not sanction its demands by camouflaging it as social justice, but treat it, in the words of John Stuart Mill, as ‘the most anti-social and evil of all passions.’”  – Friedrich von Hayek, 1974 Nobel Prize, Economic Science

 

 

                                                                                           

 

 

$1.2 Trillion – Republican House Passes ‘Pork-orama’ Spending Bill – Now on to Senate for Final Approval

Business as usual in Washington

The good news: Republican are not going to be ‘tarred and feathered’ for shutting down the government as the campaign season heats up.

The bad news: 1) Deficit spending – unchecked; 2) Border security – weak; 3) Bewildering ‘pork’ funding measures – inserted, and worst of all; 4) Washington Republicans have no alternative master plan to re-instill spending discipline and reduce/eliminate federal budget deficits, restore financial security for millions of American families, and win over the hearts (and votes) of millions of hard-working, tax-paying U.S. citizens – to get America back on track.

See how your U.S. House Representative voted here.

Bewildering ‘Pork’ insertions:

– $850k for a gay senior home
– $15 million to pay for Egyptian’s college tuitions
– $400k for a gay activist group to teach elementary kids about being trans
– $500k for a DEI zoo
– $400k for a group to gives clothes to teens to help them hide their gender
[that includes giving 13-year-old children chest binders, tuck equipment, and “counseling” without parental consent].

Additionally, it would fund facilities providing routine abortion services, including late-term abortions.

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House Passes Pork-Filled Bill To Fully Fund Government

ZeroHedge, Friday, Mar 22, 2024 – Excerpts:

Update (1150ET):  With just hours to go before a shutdown, the House has passed the $1.2 trillion minibus bill, which will now head to the Senate.

The vote was 286-134, with 112 Republicans and 22 Dems against.

All 100 Senators will need to agree to a vote to pass the bill before midnight. If this fails to happen, the government would be forced into a partial shutdown on Saturday morning.

President Biden has urged Congress to pass it quickly so he can sign…

The bill funds the departments of Homeland Security, State, Labor, Defense, Health and Human Services, among other things. Combined with the $459 billion bill passed earlier this month, the latest funding packages fully fund the federal government to the tune of $1.659 trillion through September, NBC reports.

House Freedom Caucus member Chip Roy (R-TX) railed against the fact that members only had around 24 hours to review the bill – and attacked his fellow Republicans for failing to secure immigration wins.

Rep. Chip Roy: “All you social conservative groups, where the hell are you? Crickets. Silence. Because you care about political power more than the very thing you say you’re for. You know who you are. Where are the social conservative groups? Cowering in the corner.”…

In short, Democrats bailed out Johnson once again – the same move which resulted in the ouster of former Speaker Kevin McCarthy.

There are numerous House Republicans concerned with the package’s lack of strict border security provisions, the huge price tag, the secretive negotiating process and even the lack of a pay hike for members of Congress. The unrest is especially acute among conservatives…

The package accounts for approximately 70% of discretionary government spending – and consists of six out of twelve total bills that Congress must pass each fiscal year to fund the government. The six others, around $460 billion in spending, were passed earlier this month…

“This is not the bill that my subcommittee produced and supported. The Senate has taken liberties with their Congressionally Directed Spending requests that would never stand in the House,” said Rep. Robert Aderholt, (R-AL), chairman of the House Appropriations subcommittee on Labor and Health & Human Services (HHS).

“The House did not include these partisan funding projects in its Labor-HHS legislation. Based on these principles, the Senate shouldn’t either,” Aderholt continued. “I have multiple concerns, among them are the many new social services that this bill would create for the millions of illegal immigrants streaming across our border. Additionally, it would fund facilities providing routine abortion services, including late-term abortions. The Senate must respect the work of the House. In good conscience, I cannot and will not vote for these projects or this bill.”

Pork City – As usual, Democrats slipped in as much pork as possible, including:

– $850k for a gay senior home
– $15 million to pay for Egyptian’s college tuitions
– $400k for a gay activist group to teach elementary kids about being trans
– $500k for a DEI zoo
– $400k for a group [Briarpatch YS] to gives clothes to teens to help them hide their gender

… About that $400k for clothes – that includes giving 13-year-old children chest binders, tuck equipment, and “counseling” without parental consent.

Briarpatch YS gives 13-year-old kids chest binders, tuck equipment, “counseling” all… pic.twitter.com/CmMxmFivPU — End Wokeness (@EndWokeness) March 21, 2024

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Main Street America Republicans have a master plan – to win elections and clean this mess up…

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (12119 downloads )

Hayek: “Envy” the most evil of all passions…

However human, envy is certainly not one of the sources of discontent that a free society can eliminate. It is probably one of the essential conditions for the preservation of such a society that we do not countenance envy, not sanction its demands by camouflaging it as social justice, but treat it, in the words of John Stuart Mill, as ‘the most anti-social and evil of all passions.’”  –  Friedrich von Hayek, 1974 Nobel Prize, Economic Sciences ___________________________________

America’s dynamic new plan to dispense with envy………

The Leviticus 25 Plan – An Economic Acceleration Plan for America 2024

A Look Back: State Street Corp (2008) – #5 Recipient of Fed’s “Secret Liquidity Lifelines”

State Street Corp, a Boston-based financial services holding company, is one of the oldest financial institutions in the U.S..  This multi-national corporation became the largest security services firm in the world in 2003 – even larger than JP Morgan and The Bank of New York Mellon.

State Street Corp was one of the top recipients of the Fed’s targeted liquidity ‘fire-hosing’ operations during 2008-2010.

Bloomberg  Nov 28, 2011Excerpts:

“Unlike banks that drew liquidity from the Federal Reserve in 2008 out of desperation, Boston-based State Street Corp. initially did so for profit. State Street, the third-largest U.S. custody bank, collected $75.6 million as a middleman for the Fed’s Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF. Under the program, it borrowed from the Fed to buy securities from money-market funds, helping them meet customer redemptions while being indemnified against losses on the securities. By October 2008, State Street had joined peers in tapping the Term Auction Facility and Commercial Paper Funding Facility, emergency-liquidity programs. On March 31, 2009, its total borrowings from the TAF and CPFF reached $18.5 billion, about the amount its excess liquidity fell that year.”                                                                                          

Peak amount of debt on 10/1/2008 :   $77.8 billion

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The Federal Reserve’s massive balance sheet expansion during the Great Financial Crisis did nothing to solve America’s snowballing debt extravaganza, nothing to improve the long-term prospects for financial security for American families, nothing to stimulate long-term economic growth, and nothing to allay the ongoing erosion of the U.S. Dollar.

The Leviticus 25 Plan is a dynamic, ‘ground level’ solution with the raw power to eliminate vast tracts of public and private debt, and redirect trillions of dollars in debt service flows back into the economy.

The Leviticus 25 Plan reduces ‘dependence on government’ for millions of Americans, re-establishes a market-based,economy, a citizen-centered health care system.

The Leviticus 25 Plan produces massive new tax revenue flows for federal, state, and local governmental entities. It produces $112.6 billion federal government surpluses during each of its first five years of activation and pays for itself entirely over the first 10-15 years.

It is time to create a bright new future for America.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (12113 downloads )

A Look Back: Royal Bank of Scotland (RBS) – #4 Recipient of the Fed’s “Secret Liquidity Lifelines”

Bloomberg Nov 28, 2011:                                                                                                       “Royal Bank of Scotland Group Plc, whose 45.5 billion-pound ($74 billion) emergency capital injection from U.K. taxpayers was the world’s biggest announced bank bailout, also got more secret loans from the U.S. Federal Reserve than any other foreign bank. On Oct. 10, 2008, as the bank’s stock price plunged 21 percent in a single day, the Edinburgh-based RBS was borrowing $62.5 billion from the Fed through its U.S. broker-dealer, $11.5 billion through its New York branch, $10 billion through its RBS Citizens NA bank and $500 million through Citizens Bank of Pennsylvania. The Fed aid exceeded even the 36.6 billion pounds of emergency liquidity the Bank of England supplied in secret to RBS in October 2008. The BOE disclosed the aid package in November 2009, more than a year before the Fed aid was revealed.”

RBS’ secret liquidity line from the Fed served up a “peak amount of debt” totaling $84.5 billion on 10/10/2008.

RBS also happened to be one of a suspected dozen or so major banking interests involved in the big LIBOR ‘interest rate fixing” scandal – which bilked “U.S. states, counties, and local governments” to the tune of “at least $6 billion in fraudulent interest payments, above [and beyond the] $4 billion that state and local governments have already had to spend to unwind their positions exposed to rate manipulation,” according to Bloomberg (10 Oct 2012).

ZeroHedge 02/06/2013:  RBS Busted On Libor Manipulation: “its just amazing how libor fixing can make you that much money”

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All of this leads, as a matter of course, to a very simple question: How can the Federal Reserve and U.S. Treasury justify the transfusion of massive liquidity streams into the veins of major banks like Morgan Stanley, Citigroup, Bank of America, and subsidiaries of major foreign banks like RBS (note: RBS blatantly manipulated LIBOR rates, to the detriment of states, counties and local governments)…

… While denying access to those same direct liquidity extensions to American families – who have not broken any laws…?

It’s time to FIX these blatant imbalances.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (12112 downloads )

A Look Back (2005-2009): Bank of America – #3 Recipient of Fed’s “Secret Liquidity Lifelines”

Bank of America – the story behind the story (Source:  Bailout Nation)

June 2005:  Bank of America takes a 9 percent stake in China Construction Bank for #3 billion; China’s market tops out in 2007 and then plummets 72 percent.

January 2006:  Bank of America acquires MBNA for $35 billion.  The world’s largest issuer of credit cards [MBNA] is taken over right before the world’s largest credit crunch occurs and (whoops) just before the worst postwar recession begins.

August 2007:  Bank of America invests $2 billion in Countrywide Financial, the nation’s biggest mortgage lender and loan servicer.  It is a jumbo loser, dropping 57 percent in a few month’s time

January 2008:  Bank of America doubles down and announces a $4.1 billion acquisition of Countrywide.  The timing is flawless, and the purchase is announced as the worst housing collapse in modern history is accelerating.

September 2008:  Bank of America pays $50 billion for Merrill Lynch, including Merrill’s portfolio of toxic assets (along with some previously unannounced trading desk errors).

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Note – following the above cited BofA follies, the Treasury Department and the Federal Reserve stepped up to the plate and kindly dished out billions of dollars (at U.S. citizen taxpayer expense) to Bank of America to keep the big dog afloat.

To recap (Source: Bloomberg Nov 28, 2011 ):                                                                Morgan Stanley was the #1 recipient of Fed secret loans at $107 billion (peak loan amount – 9/29/2008).                                                                                                

Citigroup was the #2 recipient of the Fed’s secret lifelines $99.5 billion (peak loan amount – 1/20/2009).                                                                                                  

Bank of America was the #3 recipient with $91.4 billion (peak loan amount –  2/26/2009).

Bloomberg Nov 28, 2011:  “Bank of America Corp., which got two rounds of U.S. Treasury Department capital injections totaling $45 billion to stay afloat during the credit crisis, borrowed twice that amount in secret from the Federal Reserve. On Feb. 26, 2009, the Charlotte, North Carolina-based bank held $78 billion of loans from the Fed’s Term Auction Facility, $8.65 billion from the Primary Dealer Credit Facility, $4.75 billion from the Term Securities Lending Facility. The financing helped bolster the largest U.S. bank by assets as investors worried its 2008 acquisitions of Merrill Lynch & Co. and Countrywide Financial Corp. might lead to nationalization.”

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A final question: Is there anyone who still believes that it is OK for major Wall Street banking and financial services institutions to receive massive liquidity injections (at taxpayer expense) when their financial viability evaporates … due to their own failed risk management strategies and reckless, yield-driven investment decision-making.

But it is not OK for U.S. citizens to be accorded the same access to credit extensions?

It is time now to level the playing field…

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (12105 downloads )

A Look Back: Citigroup – #2 Recipient of Fed’s ‘Secret Liquidity Lifelines’

Citigroup – Following the repeal of the Glass-Steagall Act in 1998, Citigroup dove headlong into the derivatives market.  “By 2007 Citi was the largest issuer of CDOs [Credit Default Obligations] … $49 billion worth when the world’s total production was $442 billion.” (Source: Bailout Nation)

Citi later took advantage Structured Investment Vehicles (SIVs) to move high-risk investments off their balance sheets – into “Enron-like side pockets.”

When the housing market began staggering badly in 2007 under the weight of increasing loan delinquencies and foreclosures, “Citigroup’s SIVs were festooned with $87 billion of toxic assets, mortgage-related CDOs, and other long-term paper…. ”

Short-term financing dried up, and the SIVs worked their way back “in-house.”  And “by December 2007, Citi assumed $58 billion of debt to ‘rescue’ $49 billion in Assets.” (Bailout Nation)

The Federal Reserve then cranked open the “Secret Loan” fire hose to flood Citi (and scores of others) with massive liquidity injections (or, in the common parlance, ‘free money’).

Citigroup – #2 recipient of Fed Secret Loans (2008-10)                                                 Bloomberg – Nov 28, 2011

“Citigroup Inc., the third-largest U.S. bank by assets, received a $45 billion capital injection in 2008 from the U.S. Treasury. The New York-based lender got a bigger bailout from the Federal Reserve: $99.5 billion of emergency loans, about the cost of paying, clothing, housing, arming and transporting the U.S. Army for fiscal 2011. On Jan. 20, 2009, as the bank’s shares fell to $2.80, down almost 90 percent in a year, its Fed loans included $34.1 billion from the Term Securities Lending Facility, $25.1 billion from the Commercial Paper Funding Facility, $25 billion from the Term Auction Facility, $14 billion from the Primary Dealer Credit Facility and $1 billion from single-tranche open market operations.”

Citigroup peak loan amount (1/20/2009): $99.5 billion      

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U.S. citizens deserve nothing less than the same direct access to credit extensions that was provided to Morgan Stanley, Citi, and the dozens of other financial enterprises whose high risk investment profiles led to financial calamity and rescue action by the Federal Reserve.

It is time now for the Fed to extend credit to American families via a “U.S. Citizens Credit Facility.”

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (12102 downloads )

Morgan Stanley – #1 recipient of Fed’s ‘secret liquidity lifelines’

As the banking crisis intensified in the Fall of 2008, with major banking institutions assuming, or on the verge of assuming, the classical ‘snorkel’ position (aka ‘underwater’ status), the Federal Reserve ran quickly to the rescue with secret liquidity lifelines” (Bloomberg 8-22-11).

The Fed substantially eased some important collateral rules for banks, “meaning that banks that could once borrow only against sound collateral, like Treasury bills or AAA-rated corporate bonds, could now borrow against pretty much anything – including some of the mortgage-backed sewage that got us into this mess in the first place….  ‘All of a sudden, banks were allowed to post absolute [expletive deleted] to the Fed’s balance sheet,’ [according to] the manager of the prominent hedge fund.” (Source: Bailout Hustle, Matt Taibbi).

The Federal Reserve ‘created’ various “facilities” to fire-hose liquidity out to major domestic and foreign banks, insurers, and brokerage firms, to include: Primary Dealers’ Credit Facility, Term Securities Lending Facility, Temporary Liquidity Guarantee Program, Commercial Paper Funding,Term Auction Facility, Public Private Investment Program

And, here we go – from the top (Bloomberg  Nov 28, 2011) :

Morgan Stanley, facing a crisis of confidence after the fall of Lehman Brothers Holdings Inc., got a $9 billion injection from Japanese bank Mitsubishi UFJ Financial Group Inc. and agreed to take a $10 billion bailout from the U.S. Treasury to shore up capital. As hedge-fund customers pulled funds out of the New York-based firm, it plugged the hole with $107.3 billion of secret loans from the Federal Reserve’s Primary Dealer Credit Facility and Term Securities Lending Facility, set up earlier in the year to supply brokerage firms with emergency financing.”

Peak amount of Debt on 9/29/2008:  $107B
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The Leviticus 25 Plan does not seek to ‘interrupt’ or reverse any of the special relationships that have developed in the Fed’s financial sphere.  It only seeks to level the playing field by providing U.S. citizens the same access to direct liquidity flows that the big banks enjoyed ‘in their time of need.’

The Leviticus 25 Plan proposes one additional upgrade to the Fed’s liquidity lines: A U.S. Citizens Credit Facility.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (11996 downloads )

WSJ: ObamaCare Subsidies Explode from $55 Billion to $470 Billion.

Behind the ObamaCare Boom – WSJ

Sweetened subsidies are attracting more takers, at taxpayer expense.

By The Editorial Board | Jan. 28, 2024 5:30 pm ET

Excerpts:

Government entitlements and subsidies invariably cost more than politicians advertise. Take the ObamaCare premium tax credits, which Democrats during the pandemic turned into a de facto public option for health insurance.

President Biden took a victory lap last week after the Health and Human Services Department reported that a record 21.3 million Americans had signed up for coverage on the ObamaCare exchanges. That’s nearly five million more than last year and nearly double as many as in 2020. “It’s no accident,” the President tooted. He’s right, but not in a good way.

The March 2021 American Rescue Plan Act sweetened the premium tax credits to make insurance on the exchanges free or nearly free for many middle-class Americans for two years. The Inflation Reduction Act extended the bigger subsidies through 2025, while his Administration rewrote ObamaCare rules to enable more families to qualify.

Because the enhanced subsidies make the plans cheaper than employer coverage, many more Americans are signing up on the ObamaCare exchanges. The pandemic Medicaid expansion also ended last spring, enabling states to remove people who no longer qualify. HHS says many who left Medicaid signed up for ObamaCare plans.

Recall that Democrats claimed that extending the sweetened subsidies for three years would cost a mere $64 billion. But a conservative back-of-the-envelope calculation based on enrollment and the average tax credit indicates that the subsidy boost this year alone will cost some $70 billion—meaning it could end up costing three times what the politicians claimed.

When the government creates an open-ended subsidy, more people than predicted always show up to the buffet. The pandemic Medicaid expansion cost more than six times the original $50 billion estimate. The Covid-era Employee Retention Credit was initially estimated to cost $55 billion, but the final price tag may be upward of $470 billion as tens of thousands of businesses continue to claim it.

The truth is that you can’t trust Congress’s budget estimates. The bipartisan tax deal now moving through the House to boost the child tax credit and renew some business tax breaks is estimated to cost $78 billion. The smart money will take the over.

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And on we go… more people dependent on government programs, more price distortion in private markets, ongoing ‘projected cost’ blowouts, ballooning federal budget deficits.

Washington Democrats (and Republicans) have America on track for credit market chaos.

There is currently one plan (and only one plan) on the table with the power to: 1) Revive free-market efficiencies and economic viability in the U.S. healthcare system; 2) Restore order and stability to credit markets, and; 3) Get America back on track for federal budget surpluses, sound money, and financial security for millions of hard-working, tax-paying U.S. citizens.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (11994 downloads )

GOP-led House 1,050-page Spending Package Approved: $13 Billion in earmarks.

Washington Democrats and Republicans are driving America headlong into a full-blown debasement of the U.S. Dollar – and an inevitable conversion to a Central Bank Digital Currency (CBDC) system.

Congress added $7.5 trillion to the debt over the last 2 years, according to The Heritage Foundation report. This comprehensive report exposes the historic spending spree from both parties in Congress, March 2020 – December 2022, has added a massive $7.464 trillion to the national debt (not counting accrued interest costs). Source: Fox News, Sep 21, 2023.

Congress’ latest spending package, approved by the GOP-led House of Representatives, covers six appropriation bills totaling $460 billion.

It also includes over 6,600 earmarks at a cost of $12.7 billion dollars.

See how your state’s Congressman voted here.

The U.S. Congress has no appetite whatsoever to change its’ free-wheeling ways.

Main Street America Republicans, however, do have a plan to put this chaotic mess back in order….

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GOP-led House passes spending package to keep government open, includes $13 billion in earmarks

The spending bill passed 339-85 with more Democrats voting in favor of it than Republicans

By Nicholas Ballasy, Updated: March 6, 2024 10:35pm / Dig Deeper Excerpts:

The GOP-led House of Representatives on Wednesday passed a 1,050-page spending package that includes nearly $13 billion of earmarks, commonly referred to as “pork barrel” spending.

The bill passed 339-85 with more Democrats voting in favor of it than Republicans. In total, 207 Democrats and 132 Republicans voted yes. 

There are earmarks in the legislation sponsored by members of the Democrat and Republican parties. The spending package contains six appropriations bills totaling about $460 billion.

The first spending deadline in the temporary spending bill Congress passed last week is Friday, March 8. The appropriations bills in the new spending package would last for the rest of fiscal year 2024.

“One Republican Senator gets 8 earmarks in the omnibus today. No one voted to add these and no one gets to vote to take these out. We have gone backwards 14 years, to before the 2010 Tea Party wave,” Rep. Thomas Massie, R-K.Y., said in a post on X, formerly Twitter, referring to Sen. Lindsey Graham, R-S.C. “The swamp is back to buying Republican votes for the omnibus with earmarks.”

Sen. Rick Scott, R-Fla., wrote on his X account that the spending package is “packed with 6,600+ earmarks totaling $12.7 BILLION DOLLARS.”

“Skyrocketing inflation. Massive debt. But Washington keeps spending your money on stupid pet projects. NO MORE EARMARKS,” he wrote.

Sen. Rand Paul, R-K.Y., said it’s “disappointing that Republicans are going along with Democrats” in moving forward with the spending bill that has hundreds of earmarks.

“This is a real step backwards, and I will oppose it with every fiber of my being,”  Paul said.

Sen. Mike Lee, R-Utah, said there was “no way any mortal could actually vet all of the earmarks in the 48-hour time period they’ve given us so far.” 

“Earmarks are the corrupt currency of Congress. No self-respecting Republican should touch them,” he wrote.

Lee said Senate lawmakers can still request that their earmarks be stripped from the bill…

Sen. John Thune, R-S.D., has reportedly sponsored many earmarks in the spending package. Thune is running to replace Senate GOP Leader Mitch McConnell, R-K.Y., who is stepping down from his leadership role in November.

Lee called on Thune to request removal of the earmarks from the spending package. Thune’s office was not available for comment before press time.

Rep. Bob Good, R-Va., chairman of the House Freedom Caucus, argued that Congress “should not be giving $12.7 billion to Congressional pork projects when we are $34 trillion in debt.”…

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The Main Street America Republican plan to save America:

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (11967 downloads )

2024: America Drowning in Debt – Near-term Liquidity Problems Clearly Visible.

Liquidity Problems Are Closer Than You Think

ZeroHedge, Mar 06 – Authored by Michael Lebowitz via RealInvestmentAdvice.com,

Excerpts:

In 2019, the Fed cut interest rates and restarted QE despite a healthy economy. Today, inflation is higher than the Fed’s target, economic growth is above historical trends, and financial markets display complacency and exuberance. Yet, the Fed is talking about cutting rates and reducing QT. The only rationale for them in such an environment must be a concern with potential liquidity problems, as the declining balances in the Fed’s Reverse Repurchase Program (RRP) suggest.

…Total debt is growing much faster than the economy’s collective income. To facilitate such a divergence and try to avoid liquidity problems, the Fed has increasingly employed lower interest rates and balance sheet machinations (QE). Numerous bank and investor bailouts have also helped.

 As the country becomes more leveraged, the Fed’s importance will increase.

What is the RRP? – A repurchase agreement, better known as a repo, is a loan collateralized by a security. The Fed’s RRP is a loan in which the Fed borrows money from primary dealers, banks, money market funds, and government-sponsored enterprises. The term of the loan is one day.

The program provides money market investors with a place to invest overnight funds….

Think of RRP as money market supply offered to help balance the supply-demand curve for overnight funds.

During the pandemic, the Fed bought about $5 trillion of Treasury and mortgage bonds from Wall Street. As a result, a massive amount of liquidity was injected into the financial system. Since banks did not use all the liquidity to make loans or buy longer-term assets, financial institutions had excess liquidity that needed to be invested in the money markets. The result was downward pressure on short-term yields.

The Fed raised its Fed Funds overnight rate to help combat inflation. But, with the excess funds sloshing around the market, hitting their target rate would prove difficult. RRP allowed the Fed to meet its target.

The Current Status Of RRP – At its peak, the RRP facility reached $2.5 trillion. Since then, it has decreased steadily. Currently, it is half a trillion dollars and will likely fall to near zero in the coming months. Essentially, the market is absorbing excess liquidity. Over the last year, excess liquidity has been needed by the Treasury to fund its swiftly growing debt and to help the market absorb the bonds coming off the Fed’s balance sheet via QT.

Excess Liquidity Is VanishingIt’s difficult to experience liquidity problems when liquidity is abundant. The extreme actions of the Fed in 2020 and 2021 made it much easier for the banking system, financial markets, and economy to handle much higher interest rates and $95 billion a month of QT.

However, excess liquidity is diminishing rapidly.

So, what type of problems occur when the excess liquidity is gone? For starters, banks will still have to use their reserves to help the Treasury issue debt and absorb the Fed’s balance sheet decline. Such actions will force liquidity to migrate from other parts of the financial system to the Fed and Treasury. Without RRP to draw funds from, banks will have to tighten lending standards for consumer and corporate loans. Further, they may likely pull back on margin debt offered to speculative investors.

The cost of higher interest rates and QT will likely be felt at this point.

Revisiting 2019 – In 2019, Treasury-backed repo interest rates between banks and other investors were trading well above uncollateralized Fed Funds. Such a circumstance didn’t make sense.

As a hypothetical example, JP Morgan was lending Bank of America money overnight at 5.50% with no security (collateral) despite a hedge fund willing to borrow at 5.75% fully secured with Treasury bonds. Yes, Bank of America has a better credit rating and lower default risk, but the hedge fund is pledging risk-free collateral. While small, the odds of JP Morgan losing money in this example are greater for the Bank of America loan than the hedge fund repo trade.

At the time, the Fed was raising rates and reducing their balance sheet for the prior year and a half. Liquidity was becoming a big problem. There was no RRP to draw liquidity from to offset QT. Simply, liquidity was lacking.

To combat the liquidity shortage, the Fed added liquidity by reducing the Fed Funds rate and re-engaging in QE. It’s important to remind you that they took these actions while the economy was in good shape and broader financial markets showed little to worry about.

The graph below highlights when the Fed quickly reversed course.

2019 is very relevant because similar problems may arise as the excess liquidity from the pandemic finally exits the system.

The Fed Is Prepping For Liquidity Problems – The Fed appears to be aware of potential liquidity shortfalls. Over the last month, they have started discussing reducing their monthly amounts of QT. A formal announcement could come as early as the March 20th FOMC meeting.

Such discussions and planning occur even though inflation is still above target, the economy is growing faster than the trend, and the stock market is near record highs. Under those circumstances, one would think the Fed would maintain its tight monetary policy.

The Fed is aware that large institutional investors have to sell assets to reduce leverage if there isn’t sufficient liquidity. Such collective actions could significantly weigh on financial asset prices and, ultimately, the economy.

To wit, consider a recent article by the New York Fed. In The Financial Stability Outlook, author Anna Kovner states the following: “Achieving a strong U.S. economy and stable prices is paramount, and remaining aware of the impact of policy choices on the financial system is a key ingredient to maintaining the ability to execute policy. To close with the snow metaphor I began with, if there is a blizzard in March, we will be prepared to dig out quickly, plow the streets, and get back to work.

March is not just a random date. March is when the RRP program is expected to fall to near zero!

Will The Fed Know When Liquidity Is No Longer “Ample”?

No magic number or calculation tells the Fed when excess liquidity is gone. Furthermore, they will only know when liquidity becomes insufficient after the money markets have reacted negatively.

Dallas Fed President Lorie Logan recently made that clear. Per a speech she gave on March 1, 2024: “The challenge today is knowing how far to go in normalizing the balance sheet. In 2019, the FOMC decided that it would operate in the long run with a version of the floor system where reserves are “ample.” The word “ample” suggests comfortably but efficiently meeting banks’ demand. As I’ve argued elsewhere, the Friedman rule provides a guide to the efficient supply of reserves in the ample-reserves regime. Banks’ opportunity cost of holding reserves should be approximately equal to the central bank’s cost of supplying reserves.

Further, she notes: “So, I don’t think we can identify the ample level in advance. We’ll need to feel our way to it by observing money market spreads and volatility.

Summary – Excessive amounts of debt support our economy and asset valuations. Therefore, the Fed has no choice but to keep the liquidity pumps flowing to support the leverage.

As in 2019, the Fed will likely take stimulative policy actions to provide liquidity despite an economic and inflation environment where policy should remain tight. 

Keep a close eye on the excess liquidity gauge RRP and be aware of irregular activity in the money markets.

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The Leviticus 25 Plan provides an powerful new channel that retargets liquidity flows to effectively solve America’s looming liquidity crisis – and restore economic liberty for millions of American families.

The Plan will: 1) Eliminate massive amounts of public and private debt; 2) Support corporate credit markets; 3) Restore order in Treasury auctions / reduce interest rates; 4) Set America back on course for long-term economic strength and stability.

“He who will not apply new remedies must expect new evils.” – Sir Francis Bacon

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (11946 downloads )