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

The Leviticus 25 Plan pdf (2670 downloads)

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February 2018 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, nor 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 A. Von Hayek

Aggregate Household Debt – record high: $13.15 trillion. Solution: The Leviticus 25 Plan

America needs a debt overhaul. Soon.

The clock is ticking…

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Household Debt Rises By $572 Billion, Ends 2017 At All Time High

ZeroHedge, Feb 13, 2018 – Excerpts:

Aggregate household debt increased for the 14th straight quarter, rising by $193 billion (1.5%) to a new all time high, and as of December 31, 2017, total household indebtedness was $13.15 trillion, an increase of $572 billion from a year ago – the fifth consecutive year of increases – equivalent to 67% of US GDP, versus a high of around 87% in early 2009. After years of deleveraging in the wake of the 2007-09 recession, household debt has risen more than 18% since the trough hit in the spring of 2013.

https://www.zerohedge.com/sites/default/files/inline-images/household%20debt%20q4%202017.jpg?itok=65M3GemQ

Some more big picture trends:

  • Mortgage balances, the largest component of household debt, increased by $139 billion during the quarter to $8.88 trillion from Q3 2017.
  • Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by another $4 billion and now stand at $444 billion.
  • Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $58 billion increase in the fourth quarter.
  • Auto loans grew by $8 billion to $1.22 trillion
  • Credit card balances increased by $26 billion to $834 billion
  • Student loans saw a $21 billion increase to $1.38 trillion

There were some red flags of caution: confirming recent negative data from Wells Fargo, and suggesting that the housing recovery is stalling, mortgage originations were at $452 billion, down from $479 billion in the third quarter.

Also troubling: There were $137 billion in auto loan originations in the fourth quarter of 2017, a small decline from 2017Q3 but making 2017 auto loan origination volume the highest year observed in our data.

Meanwhile, credit card balances increased by $26 billion. Aggregate credit card limits rose for the 20th consecutive quarter, with a 1.0% increase.

The table below summarizes the key changes in household debt and credit developments as of Q4 2017

https://www.zerohedge.com/sites/default/files/inline-images/household%20debt%20q4%202017%20table.jpg?itok=At4uBOgu

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America’s one and only ‘debt recovery plan will;

  • Restore economic liberty and financial health to U.S. families
  • Re-ignite economic growth
  • Stabilize the banking system
  • Provide $1 trillion budget surpluses at the federal level for each of the next five years

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

The Leviticus 25 Plan pdf (2668 downloads)

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

 

 

Feb 2018: Federal Receipts / GDP – sluggish. America need a new ‘powerhouse’ plan.

Federal Receipts as a Percent of Gross Domestic Product have been ‘down-hilling’ it since 2013.

The U.S. economy need a powerful new ‘kick start’….

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There is one dynamic economic acceleration plan with the raw power to generate massive new tax revenues sufficient to balance the federal budget:

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2659 downloads)

Fed: Household Debt and Credit Developments in 2017Q3 – A Sea of Red Ink

U.S. Households are drowning in in a sea of debt.

It is time for a reset…

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FEDERAL RESERVE BANK OF NEW YORK
RESEARCH AND STATISTICS GROUP
●MICROECONOMIC STUDIES
QUARTERLY REPORT ON HOUSEHOLD DEBT AND CREDIT
FRBNY Analysis Based on FRBNY Consumer Credit Panel / Equifax Data

Household Debt and Credit Developments in 2017Q3

Aggregate household debt balances increased in the third quarter of 2017, for the 13th consecutive quarter, and are now $280 billion higher than the previous (2008Q3) peak of $12.68 trillion.

As of September 30, 2017, total household indebtedness was $12.96 trillion, a $116 billion (0.9%) increase from the second quarter of 2017.  Overall household debt is now 16.2% above the 2013Q2 trough.

Mortgage balances, the largest component of household debt increased again during the third quarter. Mortgage balances shown on consumer credit reports on September 30 stood at $8.74 trillion, an increase of $52 billion from the second quarter of 2017.

Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by $4 billion and now stand at $4.48 billion.

Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $68 billion increase in the third quarter.

Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase.

New extensions of credit increased in the third quarter. Mortgage originations, which we measure as appearances of new mortgage balances on consumer credit reports and which include refinanced mortgages, were at $479 billion, up from $4.21 billion in the second quarter.

There were $150.6 billion in auto loan originations in the third quarter of 2017, a small increase from the high level seen in 2017Q2 and among the highest quarterly volumes seen in our data.

The aggregate credit card limit rose for the 19th consecutive quarter, with a 15% increase.

The distribution of the credit scores of newly originating borrowers shifted up slightly for both auto loans and mortgages. For auto loan originators, the median score increased to 705, as the higher level of auto loan originations in the third quarter was mainly due to growth in originations to prime borrowers; origination volume to borrowers with credit scores under 660 declined.

The median credit score to individuals originating new mortgages ticked up to 760, from 754.

Aggregate delinquency rates ticked up slightly in the third quarter of 2017.  As of September 30, 49% of outstanding debt was in some stage of delinquency. Of the $630 billion of debt that is delinquent, $408 billion is seriously delinquent (at least 90 days late or “severely derogatory”).

Flows into delinquency deteriorated for some types of debt. The flow into 90+ delinquent for credit card balances has been increasing notably for one year, and that measure for auto loans has increased, and the flow into 90+ delinquency for auto loan balances has been slowly increasing since 2012.

About 208,000 consumers had a bankruptcy notation added to their credit reports in 2017Q3, a slight improvement over the same quarter last year.

Housing Debt.

  • There was $479 billion in newly originated mortgage debt this quarter.
  • Mortgage delinquencies continued to improve, with 1.4% of mortgage balances 90 or more days delinquent in 2017Q3.
  • Delinquency transition rates for current mortgage balances were unchanged, with 10% of current balances transitioning to delinquency.

There was a deterioration in the transition rate of mortgages in early delinquency, of which 16.2% transitioned to 90+ days delinquent, compared to 12.8% in the previous quarter.

  • About 70,000 individuals had a new foreclosure notation added to their credit reports between July 1 and September 30, a new historical low.

Student Loans, Credit Cards, and Auto Loans

  • Outstanding student loan debt grew, and stood at $136 trillion as of September 30, 2017.
  • 11.2% of aggregate student loan debt was 90+ days delinquent or in default in 2017Q3, unchanged since the previous quarter.
  • Auto loan balances increased by $23 billion, continuing their 6-year trend. Auto loan delinquency rates increased slightly, with 4.0% of auto loan balances 90 or more days delinquent on September 30.
  • Credit card balances increased by $24 billion.

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America’s needs a powerful, outside-the-box ‘reset’ solution:

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

The Leviticus 25 Plan pdf (2655 downloads)

 

Consumer Debt, Credit Card Delinquencies Surging. America Needs an Invigorating New Round of Debt Elimination: The Leviticus 25 Plan

Consumer debt is a major drag on disposable income.  It is difficult to imagine a robust recovery in real disposable income growth without a healthy draw-down in consumer and household debt.

Credit card debt and delinquencies are surging.  Disposable income is stagnating…

America needs a powerful new economic strategy…

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Credit Card Delinquencies Surging

Summary

Credit card delinquencies rose to 2.53% across all commercial banks.

Credit card delinquencies soared to 5.34% across small banks, the highest since the financial crisis.

The major four U.S. banks saw credit card losses surge 20% in 2017 compared to 2016.

The trend in credit card delinquency rates has inflected positively across all major banks, although still low on a nominal level. The trend in credit card delinquencies is soaring, however, at smaller banks to levels not seen since the financial crisis.

The data shows that over the past 5 years, real personal disposable income growth per capita has grown at a sluggish pace of only 0.76%.

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There is one economic acceleration plan in America with the raw power to re-instill positive work incentives and boost productivity across labor markets, improve credit quality within the banking system, and restore financial health and economic liberty to U.S. citizens and their families.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2654 downloads)

 

 

U.S. taxpayer dollars – ‘to Russia with love’….. (a look back in time)

2014 – Money flows to … Russia.

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Ukraine reached a preliminary deal with the International Monetary Fund to unlock $27 billion in international aid as U.S. lawmakers passed bills imposing more sanctions on Russians linked to Crimea’s annexation.”  Source:  Bloomberg, Mar 27, 2014

$18 billion of that aid package is being anted up by the International Monetary Fund (IMF).

Note 1: The U.S. finances 17.7% of the IMF budget, so U.S. taxpayers are kicking in a cool $3.2 billion in the deal – to ‘bail out’ Ukraine.

It was also announced (NY Times, March 27, 2014): Congress Approves $1 Billion of Aid for Ukraine

WASHINGTON — The House and the Senate voted overwhelmingly on Thursday to approve a $1 billion aid package for Ukraine….

Total from the U.S. – approximately $4.2 billion

Note 2:  A significant $2.2 billion from these bailout packages will actually go to pay off some Ukrainian debt to……. Russian natural gas giant, Gazprom.

Gazprom has been playing some ‘hard-ball’ lately when it nearly “doubled the gas price for Ukraine to $485 per 1,000 cubic metres, compared to the $370-$380 it charges Europe on average. Ukraine says the new price is unacceptable and is politically motivated.”  Source:  Ukraine fails to pay for gas on time, debt stands at $2.2-billion: Russia’s Gazprom

U.S. taxpayers to the rescue.  Money to Ukraine. Money to Russia.

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This raises an important question: How is it that our government could see fit in 2014 to authorize billions of dollars in bailouts to Ukraine… to help relieve their Russian debt, while at the same time our government would not consider granting equal access to credit extensions to our own U.S. citizens, to advance the cause of debt relief for American families?

It is time for some powerful new economics in America.

The Leviticus 25 Plan – the equal opportunity plan for American families.

The Leviticus 25 Plan pdf (2650 downloads)

Social Security Trust Fund Trouble – 2034: “Depletion”

The Social Security Old Age Survivors Insurance (OASI) and Disability Insurance (DI) funds are being ‘drawn down.’

The OASDI combined Trust Fund is sustained each year by contributions and interest income, which are currently in surplus versus the annual cost of the program.

The interest income represents an internal governmental entry, since the government has ‘borrowed’ the funds in their entirety, $2.6 trillion, and is ‘booking’ interest obligations at an effective rate of 3.156% in 2016, on those borrowed funds.

The annual ‘contributions’ no longer cover the ‘cost’ of the program, so the earned interest is needed to cover the deficit, and that deficit is growing.

In other words, the ‘interest coupons’ are being redeemed, currently at a $51 billion / year average (2017-2021), and that will rise “steeply” into 2034.

And then… trouble ahead.

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Status of The Social Security and Medicare Programs

A SUMMARY OF THE 2017 ANNUAL REPORTS

Excerpts:

Social Security

The Social Security program provides workers and their families with retirement, disability, and survivors insurance benefits. Workers earn these benefits by paying into the system during their working years. Over the program’s 82-year history, it has collected roughly $19.9 trillion and paid out $17.1 trillion, leaving asset reserves of more than $2.8 trillion at the end of 2016 in its two trust funds.

The Trustees project that the [OASDI] combined fund asset reserves at the beginning of each year will exceed that year’s projected cost through 2029. However, the funds fail the test of long-range close actuarial balance.

The Trustees project that the combined trust funds will be depleted in 2034, the same year projected in last year’s report.

Social Security’s total income is projected to exceed its total cost through 2021, as it has since 1982. The 2016 surplus of total income relative to cost was $35 billion. However, when interest income is excluded, Social Security’s cost is projected to exceed its non-interest income throughout the projection period, as it has since 2010.

The Trustees project that this annual non-interest deficit will average about $51 billion between 2017 and 2020. It will then rise steeply as income growth slows to its sustainable trend rate as the economic recovery is complete while the number of beneficiaries continues to grow at a substantially faster rate than the number of covered workers.

After 2021, interest income and redemption of trust fund asset reserves from the General Fund of the Treasury will provide the resources needed to offset Social Security’s annual deficits until 2034, when the OASDI reserves will be depleted.

Thereafter, scheduled tax income is projected to be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2091. The ratio of reserves to one year’s projected cost (the combined trust fund ratio) peaked in 2008, declined through 2016, and is expected to decline steadily until the trust funds are depleted in 2034.

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U.S. citizens need a powerful, proactive economic plan ‘in place’ to help insulate them from the effects of the longer-term financial inadequacies of our of our Social Security Trust Fund.

There is one Plan with the raw power to strengthen the future financial health of our citizenry.

The Leviticus 25 Plan – An Economic Acceleration Plan for America –  The Leviticus 25 Plan pdf (2643 downloads)

 

 

Wachovia Corp: #14 Recipient of Fed’s “Secret Liquidity Lifelines”

Wachovia had grown into a coveted spot of the fourth largest bank holding company in the U.S. when the Mortgage Backed Securities mania imploded and Wachovia melted down and was eventually acquired by Wells Fargo.

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Wachovia Corp’s investment portfolio “began to go up in smoke” in the fall of 2008 with the collapse of the “housing boom.”  Depositors got nervous and began “pulling their money out of the bank.” (Griftopia  –  Matt Taibbi)

Something had to be done. The bank was deemed “systemically important” by a frantic Fed and FDIC.

Wells Fargo was urged to assist, but was naturally reluctant to get involved.  But then some old-fashioned “backroom” prompting by the Fed/Treasury sweetened the deal, and Wells Fargo stepped up to save the day.

Treasury Secretary Hank Paulson “promised” a deal that would work out to “an almost $25 billion tax break for Wells Fargo” going forward.  And then Wells Fargo received their TARP apportionment of $25 billion in cash.  Wells Fargo immediately decided it could “help the government out” and purchase Wachovia – for the fire-sale price of $12.7 billion.

Thank you America’s working taxpayers.

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Bloomberg  Nov 28, 2011Excerpts:

Wachovia Corp., which almost collapsed in September 2008 because of a deposit run, floated itself with Federal Reserve funds the following month after becoming the object of a takeover battle between Citigroup Inc. and Wells Fargo & Co. Fed assistance for Charlotte, North Carolina-based Wachovia included a $29 billion loan on Oct. 6, 2008, from the discount window, the biggest of any U.S. bank during the crisis from the central bank’s 97-year-old lender-of-last-resort program. Wachovia also borrowed from the Term Auction Facility, bringing total Fed liquidity to $50 billion.

Peak amount of debt on 10/9/2008:  $50B

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U.S. taxpayers to the rescue…

The banks regained their ‘healthy glow’ …  while main street America remains buried in debt.

The Leviticus 25 Plan would level the playing field with equal access to liquidity for American families. It would restore economic liberty and provide dynamic, long-term benefits for all U.S. citizens.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2633 downloads)

 

Dexia SA: #13 Recipient of Fed’s “Secret Liquidity Lifelines”

The Federal Reserve extended hundreds of billions of dollars in emergency lending to foreign banks during the great financial crisis.

Dexia SA was one of the big ones.

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Dexia SA – Excerpts from  Bloomberg  Nov 28, 2011:

“The biggest U.S. banks avoided the discount window, the Federal Reserve’s 97-year-old last-resort lending facility, partly out of concern that tapping it might brand them as weak. Dexia SA, a lender to local governments in Belgium, showed no such reservation.

The bank, based in Brussels and Paris, was the discount window’s biggest borrower during the crisis, tapping it for $37 billion in December 2008.

Dexia simultaneously borrowed $21.5 billion from temporary Fed programs that were primary sources of emergency funding for U.S.-based Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. In all, Dexia owed about 120 billion euros ($168 billion) to central banks at the end of 2008. As of June 30, 2011, it still had 34 billion euros of central-bank funding.”

Peak amount of debt as of 12/31/2008:  $58.5B                          ___________________________________________

Dexia SA suffered massive net losses during 2008 and 2009 from a stream of wild, reckless investments involving Icelandic Banks, Lehman Brothers, Washington Mutual, Greek government bonds, and of all things.. investments involving Bernard Madoff’s revolving Ponzi scheme.

Since Dexia had an office in New York, they qualified for massive liquidity infusions, courtesy of the U.S. Federal Reserve.

There is perfect justification for U.S. citizens to now be granted the same access to liquidity, to mitigate debt burdens, that was provided to major foreign banks including Dexia, Barclays, HSBC, UBS, Royal Bank of Scotland, Deutsche Bank and others.

It is now time for U.S. to level the playing field.

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

The Leviticus 25 Plan pdf (2627)

Credit Suisse: #12 recipient of Fed’s “Secret Liquidity Lifelines”

The U.S. Federal Reserve generously infused major Wall Street global financial institutions, including foreign banks, with massive liquidity infusions during the height of the great financial crisis of 2007-2010.

One of the biggest recipients of the Fed’s generosity: Switzerland-based Credit Suisse…

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Bloomberg  Nov 28, 2011Excerpts:

Credit Suisse Group AG, Switzerland’s second-biggest bank by assets, was the biggest user of the Fed’s single-tranche open market operations, or ST OMO, borrowing $45 billion in August 2008. Under ST OMO, securities firms swapped eligible mortgage bonds for cash.

The Zurich-based bank’s U.S. brokerage also used the Term Securities Lending Facility, which allowed firms to swap certain debt securities for Treasuries that could be loaned out or sold for cash. Credit Suisse took no part in any central bank’s collateralized funding facilities in the crisis, said Steven Vames, a bank spokesman in New York. TSLF doesn’t count because it involved no cash transfers, he said, and the bank borrowed from ST OMO only as a so-called primary dealer. Primary dealers weren’t required to bid in ST OMO.”

Peak Amount of Debt on 8/27/2008:  $60.8B

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What are single-tranche open market operations?

The Fed’s ‘secret liquidity lifelines that ran from 2007 – 2010 generally involved various credit facilities, set up to ‘rescue’ the banking system, and make banks ‘healthy.’

ST OMO’s were another unique form of liquidity infusions that provided “term funding” to the (big bank) Primary Dealers, primarily benefiting major European (Primary Dealer) banks. –  for the purpose of “mitigating heightened stress in funding markets.”

These ST OMO “secretive bailout operation” pumped out $855 billion between “March and December 2008.”

“These operations were conducted by the Federal Reserve Bank of New York with primary dealers as counterparties through an auction process under the standard legal authority for conducting temporary open market operations. In these transactions, primary dealers could deliver any of the types of securities–Treasuries, agency debt, or agency MBS–that are accepted in regular open market operations. By providing term funding to primary dealers, this program helped to address liquidity pressures evident across a number of financing markets and supported the flow of credit to U.S. households and business.”

“Well, not really. As the chart below shows the banks, pardon, primary dealers, that benefited the most from this secret iteration of Fed generosity were once again foreign banks, with the Top 5 borrowers being Credit Suisse, Deutsche Bank, BNP Paribas, RBS and Barclays. Together these five accounted for $593 billion of total borrowings, or 70% of the total.”

Below is a summary of who borrowed how much in total from the Fed’s ST-OMO program.

Source:  Fed Releases Details On Secret $855 Billion single-Trnache OMO Bailout Program: Just Another Foreign Bank Operation

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And this brings us back again to the main point.

U.S. citizens deserve the same access to liquidity and credit guarantees that the Fed pumped out to rescue the banking system during the crisis period (2007 – 2010) when high-risk sub-prime debt took on ‘junk’ status, and fairly well ‘froze’ the system.

Certain Fed operations, like single-tranche open market operations, heavily favored major European banks – designed to mitigate “heightened stress.”

It is now time for the Fed to activate a credit facility to help relieve “heightened stress” at the family level in America.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2623)

2007-2016: Median Family Net Worth reveals severe erosion. The plan to get America back on track: The Leviticus 25 Plan

Federal Reserve monetary strategies and massive liquidity infusions targeting Wall Street’s financial sector have done nothing to restore financial stability and economic health to main street America.

U.S. citizens are mired in debt, economic growth is sluggish.

America needs a new plan…

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Median Family Net Worth Below 1989 Level: Debt-To-Money Worst Since ’62

Authored by Mike Shedlock via www.themaven.net/mishtalk,

ZeroHedge, Jan 9, 2018 – Excerpts:

As the stock market soars to new highs, here’s some sobering statistics to consider.  The stock market is at an all-time high but Americans Owe More, Save Less, and are Poorer Than in Decades.

Negative Wealth Percentage On the Rise

https://www.zerohedge.com/sites/default/files/inline-images/20180108_debt1.png

https://www.zerohedge.com/sites/default/files/inline-images/20180108_debt2.png

Sobering Stats

  1. A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok.
  2. 30.4% of US families have negative net worth despite the recovery in housing and the stock market.
  3. Median net worth is below where it was in 1989.

But perhaps the most shocking stat of all is that, on an inflation adjusted basis, net worth may be the worst in history.

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There is one dynamic new economic acceleration plan with the with the power to eliminate America’s massive debt drag, reignite economic growth, and restore economic liberty.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2621)