Government ‘misadventures’ and the current economic track…

The financial news wires report analyses every day which reveal the ‘cracks’ in the current economic track that our government has us on – and why continuing down this road is an exercise in futility.

One recent analysis sums things up well (and shows why we need an economic acceleration driver like The Leviticus 25 Plan’s direct credit extensions for American citizens):

Financial Blogger, Matt Taibbi (TAIBBLOG – May 8, 2012):

 1. Let banks inflate massive asset bubbles with the aid of cheap or even free government cash, and tons of leverage;

2. Before it all explodes, carve out gigantic sums for bonuses and compensation for the companies that inflated those bubbles;

3. After it explodes, get the various governments to bail those companies out;

4. Pay for it all by slashing services to what’s left of the middle class.

This is the model we used in America. We had a monster asset bubble based on phony mortgages, which Wall Street was allowed to inflate to spectacular dimensions with minimal reserve capital, huge amounts of leverage, and tons of fraud for good measure. When that bubble exploded, we first rescued the banks who inflated the thing in the first place…

Source: http://www.rollingstone.com/politics/blogs/taibblog/austerity-cant-be-a-one-way-street-20120508#ixzz1uZKHj700

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Meanwhile, massive debt continues to pile up in Europe.  Bloomberg recently reported on the heavy bond issuance coming next week in Europe – one of 2012’s heaviest:

* Monday May 14

    • Spain to sell 12- and 18-mo bills
    • Italy to sell up to EU3.5b 2.5% 2015 bonds
    • Italy to sell 4.25% 2020 bonds
    • Italy to sell 5% 2022 bonds
    • Italy to sell 5% 2025 bonds
    • Germany to sell EU4b 6-mo bills
    • France to sell up to EU4b 92-day bills
    • France to sell up to EU1.9b 168-day bills
    • France to sell up to EU1.5b 351-day bills
  • Tuesday May 15
    • Greece to sell bills
    • U.K. to sell GBP2.75b 5% 2025 bonds
    • EFSF to sell up to EU1b 2% notes due 2017
  • Wednesday May 16
    • France to sell 0.75% 2014 notes
    • France to sell 3.5% 2015 bonds
    • France to sell 3.25% 2016 bonds
    • France to sell 1.75% 2017 notes
    • Germany to sell additional EU5b in 10-yr notes
  • Thursday May 17
    • Spain to sell bonds
    • U.K. to sell GBP 1.5b 5% 2014 bonds

Source: Bloomberg

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The world needs liquidity.

The Leviticus 25 Plan would deliver for America.

The Leviticus 25 Plan – dynamic benefits and a positive return

The Leviticus 25 Plan assumes that 80-90% of U.S. citizens would participate in the plan.  At a 90% participation rate, the Federal Reserve balance sheet would expand by $12 trillion. At 80% the Fed balance sheet would expand by approximately $11 trillion.

Certain ‘wealthy’ American citizens would voluntarily exclude themselves – due to anticipated loss of income tax refunds or a ‘lock in’ tax obligation over the succeeding 5 years.

And certain recipients of sufficiently large benefits from “means-tested welfare programs” and “income security programs” would also voluntarily exclude themselves from participation – since their current benefits status would be more advantageous than the plan’s one-time credit extension.

Under the ‘recapture provisions’ of the plan, the Federal Reserve would ‘recapture’ 8-10% per year – using a conservative ‘scoring’ system.  And this would generate a total ‘recapture’ of close to 50%, or $5-6 trillion, over a 5 year period.

The Leviticus 25 Plan’s dynamic financial benefits for American families are primarily related to long-term reductions in debt burden and a revitalized economy.  The plan assumes that with such benefits, there would not be an immediate, large-scale return to “means-tested welfare” and “income security” programs at the end of the 4-year period by the majority of the Americans who had been prior recipients.  Positive ‘recapture’ inertia would continue.

General tax revenue would substantially rise at the same time, due to economic growth, more Americans working and more people paying taxes and contributing payroll revenues to the Social Security and Medicare trust funds.

The U.S. government currently has no plan that would realistically generate any meaningful liquidity benefits to American families, reignite healthy, grass-roots driven economic growth, and reduce the risk exposure for long term currency debasement.

Instead, the U.S. government has the country on track to add an additional $8-10 trillion to the national debt by the year 2022.

The Leviticus 25 Plan, on the other hand, will deliver on all counts.