Social Security System is running ‘in the red’ – lOUs now being redeemed to fund current obligations

The Burning Platform –  Jim Quinn (Excerpts):

“Liberals hate math. The Social Security System has an unfunded liability of $18 trillion. This means our politicians have promised $18 trillion more than they can possibly pay out.”

“99% of all Americans don’t understand what unfunded liability even means.”

“The Social Security system had a negative cashflow of $47.8 billion last year, after running a $48 billion deficit the year before. You may notice that 77% of this deficit was created by the SSDI program, where the depressed masses gather after their 99 weeks of unemployment run out.”

“There are nothing but IOU’s in the [Social Security] vault. The $2.7 trillion is long gone. The U.S. government had to borrow $47.8 billion to fund SS last year. They will have to borrow over $50 billion this year. There will be 10,000 per day turning 65 for the next decade. The borrowing will rise exponentially. If the $2.7 trillion actually existed, why would we need to borrow?”  Full article

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The Leviticus 25 Plan will deliver liquidity direct to American families, allowing Americans to reduce / eliminate debt.  Before the economic storm hits.

Updated version: The Leviticus 25 Plan – An Economic Acceleration Plan for America 2014 (6)

We’re all going to get ‘skinned’ – government-sponsored inflation heading our way.

“Deficits, Debt and the Fate of the Dollar” (WSJ 1-10-13)  Excerpts:

“[The] Fed’s manic buying—now running at $85 billion a month in Treasury and agency paper—will ultimately destroy the dollar.”

“Forget about the next Washington dog-and-pony show on the debt ceiling. The bond market will ultimately dictate the future of U.S. monetary and budgetary policy.”

“Bond markets only obey the law of supply and demand. When the flooding of markets with American debt causes the world to lose confidence in dollar-denominated securities, the nation will be in deep trouble. The only force standing in the way of that now is the Fed’s support of bond prices.”

“The Fed’s worst fear is that despite its long-term commitment to buying up government debt, it will lose control of interest rates. That’s why the early-January upward blip in bond yields was a yellow warning light. If Treasury bond prices decline significantly from the artificial levels that massive Fed purchases have supported, several things will happen, none of them good.”

“First of all, government borrowing costs will rise, making it even more difficult to control the deficit.                                                                                                               Second, the value of the Fed’s gargantuan and growing $2.6 trillion portfolio of Treasury and government-agency mortgage bonds will decline. It won’t take much of a portfolio loss to wipe out the Fed’s capital base. Without capital of its own, it would become a ward of the Treasury, costing the Fed what little independence it has left to defend the dollar.”

“Over the past four years, the damage to the dollar has been partly ameliorated by global investors fleeing weak currencies elsewhere for the relative safety of the dollar. But there has to be a limit to how long that will be true. We already are seeing signs of renewed asset inflation not unlike the run-up that occurred in the first half of last decade. Stocks and farmland are up and housing prices are recovering from their slump.”

“Throughout history, governments have inflated away their debts by cheapening the currency. That process is well under way through the Fed’s abdication to irresponsible government. If Fed policies continue, another huge tax—inflation—will weigh down the American people.”

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The U.S. Treasury and the Federal Reserve have thrown trillions of dollars at the ongoing financial crisis over the past four years.  The trillions in credit extensions and stimulus programs  have benefited major financial institutions (domestic and foreign) and politically-connected support groups.  This massive government allocation of resources has done nothing to benefit the average American family.  And in the process, basic freedoms have been eroded.

47.7 million Americans are living below the poverty line.  Means-tested welfare spending is approaching $1 trillion annually to provide day-to-day subsistence benefits for our citizens.

There were approximately “1.84 million U.S. properties with default notices, scheduled auctions and bank repossessions in 2012,” according to RealtyTrac.  “1.39% of U.S. housing units, or one in every 72, had at least one foreclosure filing during the year.”

It is time for a change of course.  The Leviticus 25 Plan provides the mechanism for U.S. citizens to receive sufficient liquidity extensions to achieve economic liberty – from debt and from government programs.  The Plan is voluntary and non-political.  All U.S. citizens are treated the same.  And the Plan pays for itself, via recapture provisions, over a 10-15 year period.

No other plan can make these claims and do as much at ‘ground level’ for Americans.

The Leviticus 25 Plan

 

 

The true U.S. debt – a ‘staggering’ $86.8 trillion. A bold, new plan is imperative.

“Why $16 Trillion Only Hints at the True U.S. Debt”

WSJ  11-27-12 Chris Cox, Bill Archer – excerpts:

“The U.S. Treasury “balance sheet” does list liabilities such as Treasury debt issued to the public, federal employee pensions, and post-retirement health benefits. But it does not include the unfunded liabilities of Medicare, Social Security and other outsized and very real obligations.

As a result, fiscal policy discussions generally focus on current-year budget deficits, the accumulated national debt, and the relationships between these two items and gross domestic product. We most often hear about the alarming $15.96 trillion national debt (more than 100% of GDP), and the 2012 budget deficit of $1.1 trillion (6.97% of GDP). As dangerous as those numbers are, they do not begin to tell the story of the federal government’s true liabilities.

The actual liabilities of the federal government—including Social Security, Medicare, and federal employees’ future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.

As of the most recent Trustees’ report in April, the net present value of the unfunded liability of Medicare was $42.8 trillion. The comparable balance sheet liability for Social Security is $20.5 trillion.

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Nothing like that $8 trillion amount is available for the IRS to target. According to the most recent tax data, all individuals filing tax returns in America and earning more than $66,193 per year have a total adjusted gross income of $5.1 trillion. In 2006, when corporate taxable income peaked before the recession, all corporations in the U.S. had total income for tax purposes of $1.6 trillion. That comes to $6.7 trillion available to tax from these individuals and corporations under existing tax laws.

In short, if the government confiscated the entire adjusted gross income of these American taxpayers, plus all of the corporate taxable income in the year before the recession, it wouldn’t be nearly enough to fund the over $8 trillion per year in the growth of U.S. liabilities. Some public officials and pundits claim we can dig our way out through tax increases on upper-income earners, or even all taxpayers. In reality, that would amount to bailing out the Pacific Ocean with a teaspoon. Only by addressing these unsustainable spending commitments can the nation’s debt and deficit problems be solved.

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A bold, new plan is ‘revving its engine.’

The Leviticus 25 Plan.

 

Europe’s grand, ‘central planning,’ fiat money printing extravaganza – a colossal failure. America on the same road…

The details on Europe (excerpts from The Coming Depression blog, ) :

 [America] should be watching, because this is what happens when nations accumulate too much debt. The United States has the biggest debt burden of all, and eventually what is happening over in Spain, France, Italy, Portugal and Greece is going to happen over here as well.

The economic implosion of Europe is accelerating. Even while the mainstream media continues to proclaim that the financial crisis in Europe has been “averted”, the economic statistics that are coming out of Europe just continue to get worse. Manufacturing activity in Europe has been contracting month after month, the unemployment rate in the eurozone has hit yet another brand new record high, and the official unemployment rates in both Greece and Spain are now much higher than the peak unemployment rate in the United States during the Great Depression of the 1930s. The economic situation in Europe is far worse than it was a year ago, and it is going to continue to get worse as austerity continues to take a huge toll on the economies of the eurozone.

It would be hard to understate how bad things have gotten – particularly in southern Europe. The truth is that most of southern Europe is experiencing a full-blown economic depression right now. Sadly, most Americans are paying very little attention to what is going on across the Atlantic.

The following are 20 facts about the collapse of Europe that everyone should know…

#1   10 Months: Manufacturing activity in both France and Germany has contracted for 10 months in a row.

#2   11.8 Percent: The unemployment rate in the eurozone has now risen to 11.8 percent – a brand new all-time high.

#3   17 Months: In November, Italy experienced the sharpest decline in retail sales that it had experienced in 17 months.

#4   20 Months: Manufacturing activity in Spain has contracted for 20 months in a row.

#5   20 Percent: It is estimated that bad loans now make up approximately 20 percent of all domestic loans in the Greek banking system at this point.

#6   22 Percent: A whopping 22 percent of the entire population of Ireland lives in jobless households.

#7   26 Percent: The unemployment rate in Greece is now 26 percent. A year ago it was only 18.9 percent.

#8   26.6 Percent: The unemployment rate in Spain has risen to an astounding 26.6 percent.

#9   27.0 Percent: The unemployment rate for workers under the age of 25 in Cyprus. Back in 2008, this number was well below 10 percent.

#10   28 Percent: Sales of French-made vehicles in November were down 28 percent compared to a year earlier.

#11   36 Percent: Today, the poverty rate in Greece is 36 percent. Back in 2009 it was only about 20 percent.

#12   37.1 Percent: The unemployment rate for workers under the age of 25 in Italy – a brand new all-time high.

#13   44 Percent: An astounding 44 percent of the entire population of Bulgaria is facing “severe material deprivation”.

#14   56.5 Percent: The unemployment rate for workers under the age of 25 in Spain – a brand new all-time high.

#15   57.6 Percent: The unemployment rate for workers under the age of 25 in Greece – a brand new all-time high.

#16   60 Percent: Citigroup is projecting that there is a 60 percent probability that Greece will leave the eurozone within the next 12 to 18 months.

#17   70 Percent: It has been reported that some homes in Spain are being sold at a 70% discount from where they were at during the peak of the housing bubble back in 2006. At this point there areapproximately 2 million unsold homes in Spain.

#18   200 Percent: The debt to GDP ratio in Greece is rapidly approaching 200 percent.

#19   1997: According to the Committee of French Automobile Producers, 2012 was the worst year for the French automobile industry since 1997.

#20   2 Million: Back in 2005, the French auto industry produced about 3.5 million vehicles. In 2012, that number dropped to about 2 million vehicles.

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It is time for America to change course:  provide American families with the same opportunities for zero interest credit extensions that are being provided to major foreign and domestic financial institution.

The Leviticus 25 Plan – the only self-funding economic recovery plan in existence.

Fed revs up the printing presses for 2013. Another round of Argentina emulation – and rolling down the inflation highway…

Bloomberg December 21, 2012 reported that “Argentina is printing money five times faster than Ben S. Bernanke’s Federal Reserve, fueling a surge in inflation that’s saddled debt investors with the worst dollar-based returns in emerging markets this year.”

Well now, with QE4 – announced in late December – the U.S. will be catching up to the Argentines….  Here’s how well things have worked out for Argentina, so far (and does any of this sound familiar…?)

Bloomberg excerpts (Dec 18 and Dec 21):

“[Argentina] Money supply, as measured by the M2 gauge that includes pesos in the hands of the public and pesos in checking and savings accounts, soared 39 percent in the past year as Argentina tried to revive its economy, versus a 7.3 percent gain in the U.S. The flood of pesos has cheapened the currency by the most in Latin America this year, leading to an average 13 percent loss for local bonds in dollars. Notes from the region as a whole returned 16 percent, according to Barclays Plc.”

“The South American nation has increased the amount of currency in its economy by 30 percent or more in three of the last four years, causing consumer prices to jump an estimated 25 percent annually. While printing money fueled annual growth of 7.8 percent from 2003 to 2011, it’s failing this year as the government chokes off investment and extends its influence over an economy forecast to grow just 2.2 percent. Yields on peso debt are now too low to compensate for the declining purchasing power of the currency, Moody’s Analytics Inc. said.”

“The economic model is based off of negative interest rates and excess liquidity,” Juan Pablo Fuentes, an analyst at Moody’s, said in a telephone interview from West Chester, Pennsylvania. “Over a longer term, peso bonds aren’t attractive because inflation is eroding your capital.”

“Unable to tap international markets since its record $95 billion default in 2001, the government has turned to the central bank to finance spending and meet foreign debt payments.”

“Unlike Brazil, Chile and Colombia, Argentina doesn’t use monetary policy to target inflation.”

“They need all the help they can get from monetary policy,” Neil Shearing, the chief emerging-markets economist at Capital Economics Ltd., said in a telephone interview from London. “In Argentina it’s different because the money printed is actually being spent by the government so that has a direct impact on the economy and tends to be far more inflationary.”

“Since her re-election in October 2011, [Argentine President Cristina] Fernandez has banned most purchases of dollars, preventing Argentines from their traditional hedge against a drop in their own currency. In an unregulated market, in which investors buy local assets in pesos and sell them abroad for dollars, the peso has weakened 29 percent this year to 6.8635 per dollar.”

“Since former president Eduardo Duhalde abandoned a fixed exchange rate in January 2002, the [Argentine] peso has weakened 80 percent against the dollar, compared with gains of 12 percent by the Brazilian real and 38 percent by Chile’s peso.”

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It is time for America to solve its economic crisis from the ground level – up.

The Leviticus 25 Plan.

It pays for itself over a 10-15 year period.  And delivers real economic liberty to Americans.

Major U.S. Dollar debasement (2008-2012). With QE4 – more to come…

Since the fall of 2008 when the subprime debt crisis staggered the banking industry and began suffocating the U.S. economy, the federal government has borrowed and spent its way through billions of dollars dealing with the financial ‘fall out’ – and trying to stimulate economic growth.

They have generally targeted their billion dollar giveaway programs at politically favored groups.  And along the way they have seen fit to spend several billions of dollars bailing out foreign countries whose economies were failing, like Greece and Egypt.

The Federal Reserve has extended trillions of dollars of credit at ‘near-zero percent’ interest to major U.S. and foreign financial centers to help them regain solvency. They have purchased ‘junk’ mortgages from various banks and investment centers. They have purchased European debt. They have provided trillions of dollars in liquidity for foreign central banks via ‘Dollar Swaps.’

These big government central planning initiatives over the past 4 years have led to significant debasement of the U.S. Dollar vs hard assets:

Crude Oil Dec 31, 2008:  $44.60      Dec 31, 2012:     $91.74

Gold Dec 31, 2008:        $880.80      Dec 31, 2012: $1674.00

And the big government central planning initiatives have done virtually nothing to benefit individual Americans and their families. To the contrary, they have significantly ‘weakened’ the Dollar and therein driven up the costs of hard assets.  And Americans are bearing the brunt of the damage through creeping inflation, particularly in food and energy, and stagnating economic growth.

The Federal Reserve’s latest initiative, QE4, sets America on course for ‘open-ended’ fiat money printing.  America is on course for continued currency debasement.  Inflation.  More government control over free markets.  Continued economic stagnation.

The time has come to ‘decentralize’ and put American citizens first.

It is time to change course and solve America’s financial crisis at the ground level – providing financial resources directly to American families.

The Leviticus 25 Plan