Following theFall 2008 housing market collapse and banking crisis, the U.S. government undertook extraordinary measures to re-liquify the banking industry, related financial institutions (including foreign institutions), automakers, and others.
The broad program categories for the trillions of dollars involved include: The Troubled Asset Relief Program (TARP) Federal Reserve Rescue Efforts Federal Stimulus Programs AIG FDIC Bank Takeovers Other Financial Initiatives Other Housing Initiatives
Source: CNN’s Bailout Tracker
Note: The Public – Private Investment Program (PPIP) happens to be one of the programs funded under the TARP umbrella. PIPP is a funneling mechanism for government (tax-payer) money to ‘reach’ Hedge funds – to ‘encourage’ them to buy some of the non-investment grade (crap) mortgages out there, and get them off the books of the banks.
It was recently reported that the Federal Reserve also offers a special “carry trade” for banks and primary dealers – to generate buying on the front end of the yield curve (2-year and 3-year Treasurys) – using an “overnight repo” everyday at “zero.” This amounts to another ‘free money’ program for the banks and PDs – courtesy of the U.S. taxpayer.
And these revolving overnight “repos” reportedly do not show up on the Fed Balance sheet.
So where does this all leave us, after more than 3 years?
The 2012 Projected Deficit: $1.33 trillion (www.whitehouse.gov/omb/overview ).
The “CBO says the public debt will climb this year to 72.5% of the economy from 40.3% in 2008. This isn’t as high as Italy or Greece, but it’s rising fast toward the 90% level that begins to debilitate an economy.”
And, “The other part of the fiscal story is that revenues have been in the tank for five years. In 2012 revenues will hit $2.52 trillion, down from $2.57 trillion in 2007. Revenues are still 16.3% of GDP, about two percentage points below the norm” (WSJ 2-1-12).
The interest on the National Debt reached an “all-time high of $454 billion in 2011 with an effective interest rate of about 3%.” Much of this interest is paid to “foreign governments like China, Japan and OPEC nations. This is $1.2 billion per day of interest paid mostly to foreigners.”
The Federal government ‘central planning’ efforts have accomplished very little, despite the trillions of dollars the government has ‘shuttled’ out to the dozens of well-favored domestic and foreign financial oligarchs.
It is now time for American families to be to receive their own round of direct credit extensions from the Federal Reserve.
The Leviticus 25 Plan is a comprehensive economic acceleration program, delivering direct credit extensions to American families – $50,000 per U.S. citizen. The debt relief benefits and productivity incentives at the family level would re-ignite economic vitality in America. Government tax revenues (state, local, and federal) would regain a healthy growth pattern – without raising taxes.
And The Leviticus 25 Plan will literally pay for itself over a 10-year window. It will reverse America’s burgeoning debt load and provide long-term stability for the U.S. Dollar.