Leviticus 25 Plan – Austrian economics

This Plan advances economic liberty at the family level – allowing for the direct allocation of resources at the indivudual level – rather than yielding to a centralized, or government-based, allocation of resources.

This track alligns closely with the Austrian school of economics – as recently explained in a WSJ article (9-24-11) on F.A. Hayek:

“Knowledge is dispersed and shared. Friedrich Hayek was the first to point out, in his famous 1945 essay, “The Uses of Knowledge in Society,” that central planning cannot work because it is trying to substitute an individual all-knowing intelligence for a distributed and fragmented system of localized but connected knowledge.
So dispersed is knowledge, that, as Leonard Reed famously observed in his 1958 essay “I, Pencil,” nobody on the planed knows how to make a pencil. The knowledge is dispersed among many thousands of graphite miners, lumberjacks, assembly line workers, ferrule designers, salesmen and so on..”
The political implications are obvious; that human collaboration is necessary for society to work; that the individual is not – and has not been for 120,000 years – able to support his life-style; that trade enables us to work for each other not just for ourselves; that there is nothing so antisocial (or impoverishing) as the pursuit of self-sufficiency; and that authoritarian, top-down rule is not the source of order or progress.
Hayek understood all this. And it’s time most archaeologists and anthropologists, as well as some politicians and political scientists, did as well.”

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Progress Report:  The Leviticus 25 Plan has now been sent out to all 50 governors in the U.S..  Major financial media centers are now in the process of being contacted, also. This will be a year-long process.  All it will take is for one or two of the lines to “catch fire.”  Stay tuned….    -Bh

 

 

 

 

 

Looking ahead: More massive cash infusions for U.S. banks?

U.S. banks, with a reported $3 trillion in exposure to European debt, may need massive additional infusions of cash from the Federal Reserve – if that European debt ‘goes bad.’

The Washington Post recently reported (12-22-11):  “The European crisis of 2011 and the associated deleveraging of the European global banks will have far reaching implications not only for the eurozone, but also for credit supply conditions in the United States and capital flows to the emerging economies,” Shin [Princeton University economist Hyun Song Shin] wrote in a paper presented at an International Monetary Fund conference in November and which has been widely read among economists.

The vast extent of those European bank obligations to U.S. institutions, or counter-parties, helps explain U.S. policymakers’ anxiety as they watch European leaders try to head off a crisis like the one that followed the Lehman Brothers failure in the United States in 2008.”

Washington Post with Bloomberg:    http://www.washingtonpost.com/business/economy/economists-ponder-effect-of-european-banking-crisis-on-us/2011/12/22/gIQA0rvYCP_story.html

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 Progress Report:

This economic rescue plan has been about 18 months in development.  The first edition (32 pages long) was originally named, The American Patriot Dividend Plan.  That version was submitted, some 18 months ago, to the WSJ, Barrons, Heritage Foundation, World Magazine, and other major media outlets.

The WSJ, Heritage, and World Magazine responded back – encouraging.  The Plan received a major re-work / updating – now 18 pages (with the FAQ section).  And it has been given a new, name.  It will be resubmitted to those same media outlets, along with many, many more in the near future.  -Bh