Government mandate for retirement accounts to: “Purchase U.S. Treasuries”…?

November 29, 2012

World Net Daily  recently reported  that, “Since 2010, the U.S. Treasury Department and the Department of Labor have been holding combined hearings on various plans designed to introduce government-mandated retirement plans and investment options, including government annuities invested primarily in U.S. Treasury debt, into the private retirement savings market.

“This hearing was set up to explore why Americans are not saving as much for their retirement as they could,” explained National Seniors Council National Director Robert Crone, describing a recent Treasury-Labor hearing held in the Labor Department’s main auditorium.”

Now the problem with this – for those who have been watching the Fed print fiat money and extend it to the major banks and financial centers at ‘near zero percent interest’ – to solve America’s problems… Is that purchasing medium-to-long-dated Treasuries yielding 1.80% or even 3%… while the Fed keeps ‘printing away’ and ‘paper’ keeps losing value vs hard assets like food, oil, commodities, precious metals….those 1.80% to 3% Treasury yields will not (as in ‘no way in #%!!’) keep up with the inflation racking hard asset classes.

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The Leviticus 25 Plan provides a better option for all Americans…

Allow U.S. citizens the same direct access to ‘zero-interest’ credit extensions from the Federal Reserve as that given to major domestic and foreign financial centers – in order to effect a ‘massive debt pay-down’ at the family level.  Mortgages, HELOCs, car loans, credit card debt.

This massive reduction in debt service would provide for significant and long-lasting disposable income gains for Americans.  And one of the many important benefits:  It would slow (or stop) the home mortgage foreclosure waves ‘hitting’ every month.

And what would the banks and loan centers do with the heavy cash inflows received from debt pay-downs…?

Very simple.  Let them buy the Government’s U.S. Treasuries.                                    And let Americans make their own decisions about what investments are best for their own retirement accounts.

America needs a bold, new economic recovery plan that delivers real benefits direct to American families.  A Plan that is non-political and presents the same opportunity for economic liberty to each and every American citizen.

The Leviticus 25 Plan.

Global economoc crisis presents on-going danger…

The global economic crisis presents an on-going danger, despite all of the trillions of Dollars, Euros, and Yen thrown at it.

U.S. economic activity remains stagnant:

(11-3-12, accessed from ZeroHedge): This index of real economic activity is its lowest since the 2008-9 recession and sends a considerably more pessimistic message than many of the business ‘surveys’ from the Philly Fed or Chicago PMI.

Goldman Sachs Analysts Index suggests the economy is deteriorating rapidly…

CapEx:  A recent Wall Street Journal report indicated:  “U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.

Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.

At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms’ expansion plan.”

FHA Also from the WSJ (accessed from ZeroHedge):  “The Federal Housing Administration is expected to report this week it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the agency’s finances, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.

Together with Fannie and Freddie, federal agencies are backing nearly nine in 10 new mortgages.  The FHA accounted for one third of loans used to purchase homes last year among owner occupants.

Though the agency guarantees fewer mortgages than either Fannie or Freddie, it now has more seriously delinquent loans than either of the mortgage-finance giants. Overall, the FHA insured nearly 739,000 loans that were 90 days or more past due or in foreclosure at the end of September, an increase of more than 100,000 loans from a year ago. That represents about 9.6% of its $1.08 trillion in mortgages guaranteed.”

“Europe is now officially in a recession.  The euro-area eocnomy slipped into a recession for the second time in four years, with GDP falloing 0.1 percent in the third quarter.”  (11-15-12 report, ZeroHedge)

U.S. Banks –  49 more banks have failed this year through November 16, 2012 ( http://www.fdic.gov/bank/historical/bank/ ).

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Big-government solutions are not working.

A bold new economic plan is needed.  Decentralize.  Put resources directly into the hands of U.S. citizens – for them to allocate according to their needs.

The Leviticus 25 Plan

Business conditions regressing to 2009 levels…

Zero Hedge 11-15-12:  “General Business Conditions expected six months forward dropped to its lowest level since March 2009.”  [And] “for the first time since April 2009, the employment outlook for employment turned negative.”

America’s economy is not responding to the trillions of dollars ‘invested’ in solving it with big government programs.

America doesn’t need a government-directed solution.  It is time to give Americans the resources to solve our problems at the ground-level, with market based solutions.      The Leviticus 25 Plan

 

 

 

 

U.S. Household debt growing. American families now ‘eyeball deep’ in debt. Bold, new debt relief plan needed at ‘ground level’ for America. The Leviticus 25 Plan

Excerpts from ZeroHedge 10-15-12:                                                                              US Households Are Not “Deleveraging” – They Are Simply Defaulting In Bulk

U.S. households are reported to have “deleveraged to the tune of $1 trillion, primarily as a result of mortgage debt reductions.”

The numbers behind the headline reveal a starker reality.  According to the ”NY Federal Reserve’s own data, there has been $800 billion in mortgage debt deleveraging since the end of 2007.”  At the same time there has been “$1.2 trillion in discharges…”

Again, since 2007, there has been $792 billion in legitimate Mortgage Reduction.       And there has been $1.297 trillion in 1st and 2nd Lien Discharges (write downs).

At the same time, Total Consumer Debt continues to hit “new record highs,, primarily due to soaring student and GM auto loans.”

America needs a bright new economic plan that puts American families first – one that ushers in a new era of economic liberty for our citizens.   The Leviticus 25 Plan

2011 Medicare costs ($564 billion) and Medicaid costs ($228 billion) – headed for bankruptcy.

In 2011 48.9 million Medicaid beneficiaries collected approximately $228 billion in benefits (CATO).

In 2011 49.4 million Medicare beneficiaries collected approximately $564 billion in benefits.  “Americans paid $274 billion in Medicare taxes and premiums,” resulting in a deficit of approximately $290. Source: CATO – 8-24-12.

“Looking into the future, even the most optimistic estimate by the program’s trustees puts Medicare’s future unfunded liabilities at more than $38.6 trillion. More realistic projections suggest the shortfall could easily top $90 trillion.”  Source: CATO – 8-24-12.

A 2011 GAO report estimated “$60 billion to $90 billion in fraudulent claims paid out each year.”

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The Leviticus 25 Plan assumes a 90% participation rate by U.S. citizens.

Recapture provisions:  Each participating citizen agrees to forgo receiving benefits from the following three programs for 4 years:  Means-Tested Welfare benefits, Income Security program benefits,  and unemployment insurance.

Are Medicare and Medicaid  benefits affected?  Only slightly.

Social Security Disability Insurance (SSDI) benefits fall under “Income Security” programs.  Under the Income Security benefits.

There were 11 million beneficiaries receiving benefits during 2011 (averagng approximately $1,100 per month).

Applying The Leviticus 25 Plan’s 90% participation rate to SSDI beneficiaries would reduce the number of beneficiaries by approximately 9.9 million.  And there would be a corresponding savings for Medicare of approximately $10.8 billion annually.

Each U.S. citizen participating in The Leviticus 25 Plan who, during the 4-year period, is enrolled to receive Medicare benefits, there will be a $1,000 dedutable.  In other words, the first $1,000 in Medicare-eligible health care costs would be paid from the participant’s Medical Savings Account.

Example:  Retired couple (U.S. citizens) enrolled in The Leviticus 25 Plan would each receive $50,000 (credit extension direct from the Federal Reserve), for a total of $100,000.  20% of that total ($20,000) will be automatically deposiited in the couple’s Medical Savings Account and (80% $80,000) is deposited in the Family Account.  The husband and wife would each pay the first $1,000 each year on their Medicare-eligible health care costs.

Applying The Leviticus 25 Plan’s 90% participation rate to the 49.4 million Medicare beneficiaries would result in Medicare savings of approximately $44.5 billion annually.

Total Medicare savings for each of the first 4 years:  $55.3 billion.

Putting individual Americans themselves in charge of allocating at least part of their Medicare and Medicaid dollars will also improve efficiencies in the system, and eliminate a certain level of the fraudulent charges each year.

Applying The Leviticus 25 Plan’s 90% participation rate, annual Medicaid savings ($1,000 deductable X 48.9 million beneficiaries X .90) during each of the first 4 years would amount to $44 billion.

Medicare and Medicaid savings for each of the first 4 years:  $99 billion        

The government’s Medicare and Medicaid poverty-fighting attempts have been called “scandalously ineffective.’

It is time to put American families in charge of their own healthcare dollars.

The Leviticus 25 Plan.

 

“…Medicaid is Broken”

The following ‘Letter’ appeared in the WSJ on Oct 28, 2012:

You’re Wrong, Medicaid Is Broken

The letter of Oct. 20 from Emily Spitzer of the National Health Law Program proclaims that Medicaid isn’t broken. Having been in medical practice for over 30 years, I beg to disagree. Talk to physicians, Ms. Spitzer. I have some Medicaid patients who really are poor and in need of medical care—we see those for free. I quit seeing other Medicaid patients.

Then we have Medicare, for which I am not only a working physician but also a Medicare patient. Talk about loss of access to care! I can’t get in to see a doctor without begging. Access to care doesn’t mean that you have a “card.” It means that you can see a physician. Not only is Medicaid broken, but because so much has been taken away from Medicare by President Obama, he has broken Medicare as well. ObamaCare is just Medicaid plus.

I bring my pet to the vet—who gets more per visit than I do from Medicare—but at least there is access to care, and I pay with my credit card. That seems to work pretty well. Perhaps the fix with Medicaid would be to just give Medicaid patients a prepaid debit card, let them seek their own care and pay with the card. If they don’t spend all of the money, they can roll it over to the next year.

Robert Frischer, M.D., Wichita Falls, Texas

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Precisely.

Allow American families to allocate their own healthcare resources.

Big, ‘government-run programs’ are not the answer.  They are the problem.

The Leviticus 25 Plan provides the mechanism to shift the allocation of resources ‘away from the government,’ and ‘to the people.’

This ‘decentralization’ would optimize the natural efficiencies of  the marketplace:     “We need decentralization because only thus can we insure that the knowledge of the particular circumstances of time and place will be promptly used.”  – F. A. Hayek

It would protect the freedom to allocate resources which are consistent with an individual’s personal values”  “A society that does not recognize that each individual has values of his own which he is entitled to follow can have no respect for the dignity of the individual and cannot really know freedom.

Once wide coercive powers are given to governmental agencies for particular purposes, such powers cannot be effectively controlled by democratic assemblies.”   – F. A. Hayek

The Leviticus 25 Plan would reverse the easy dependence on ‘government-driven, government-administered’ solutions:  “It would scarcely be an exaggeration to say that the greatest danger to liberty today comes from the men who are most needed and most powerful in modern government, namely, the efficient expert administrators exclusively concerned with what they regard as the public good.”    –  F. A. Hayek

The Leviticus 25 Plan safeguards individual freedom and liberty for All Americans.