After 4 years and trillions of Dollars in Fed-generated liquidity: Food stamps – “UP to an all-time record.” Foreclosure activity up strong in certain major markets. Velocity of M2 Money Stock – “Dropping like a rock.”

Food stamp nation:                                                                                                         Nov 2012 (3-month delayed report): 47.7 million Americans on Food Stamps up 141,000 recipients from prior month.

Nov 2012 Total U.S. households on Food Stamps:  an all-time record 23,017,768 (at $281.21 / household / month).   ZeroHedge 2-11-13


Foreclosure activity across the U.S.:                                                                          RealtyTrac (Jan 17, 2013) has reported that “a total of 2,304,941 foreclosure filings — default notices, scheduled auctions and bank repossessionswere reported on 1,836,634 U.S. properties in 2012.”                                                                         That is down slightly (3%) from 2011 and down more significantly from the peak year, 2010.  It was also noted that during 2012, 1 out of every 72 housing units in the U.S. received at least one foreclosure filing during the year.

Foreclosure activity in 2012 increased from 2011 in 25 states — 20 of  which primarily use the longer judicial foreclosure process — including  New Jersey (55 percent increase), Florida (53 percent increase),  Connecticut (48 percent increase), Indiana (46 percent increase),  Illinois (33 percent increase) and New York (31 percent increase).”

 And how is the new year starting out?

RealtyTrac (Feb 14, 2013) reports that for January 2013, “foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on [an additional] 150,864 U.S. properties in January.                                                                That is down 7% from December 2012.


On the liquidity front, the Fed is pumping it out at a current rate of $85 billion per month.   And Velocity of M2V is dropping like a rock:  View here 1959 – 2012

The big-government central-planning approach is not working.                                         A new approach is needed.

The Leviticus 25 Plan

Fed QE flows – primarily going to foreign banks. Along with ‘billions’ in interest.

Source:  Zero Hedge 2/11/13:  “How The Fed Is Handing Over Billions In “Profits” To Foreign Banks Each Year

Fed QE flows over the past 4 years, dating back to March 2009, show that foreign banks have been the primary recipients of “cash generated by Fed excess reserves.”

Small domestic banks and large domestic bank cash reserves have been flat to modestly higher (a ‘steady’ $800 billion) over the 4-year period, while “Foreign Banks” have nearly doubled their cash reserves during that same time – from the newly created reserves.

This was confirmed by the Fed itself, which in a paper from November 2012, admitted just this when it said that “the recent unprecedented build-up of cash balances by [foreign banks] was almost entirely composed of excess reserves.”

And where does this “foreign bank” cash ‘park itself?’ 

Answer:  These foreign bank excess cash reserves are parked at “Reserve Banks” – currently about $954 billion, earning 0.25% interest (which the Fed decided to start paying out in December 2008).

The “Fed paid some $6 billion in interest to foreign banks, in the process subsidizing and keeping insolvent European and other foreign banks, in business and explicitly to the detriment of countless US-based banks who have to compete with Fed-funded foreign banks and who have to fire countless workers courtesy of this Fed subsidy to foreign workers.”

“From December 2008 through the last week of January [2013], the Fed has paid out some $6 billion in cash (red line) to European banks simply as interest on excess reserves:”

“But that’s just the beginning. If we are correct in assuming that QE3 will be a replica of QE2 when all the new reserves created ended up as cash on foreign bank balance sheets, it means that we can quite accurately forecast what the total foreign bank cash position will be on December 31, 2013 (as the Fed will certainly not end its open ended monetization of the US deficit before then, or likely, ever). The result: just under $2 trillion in cash held by foreign banks operating in the US, which also means that in calendar 2013, the Fed will fund and subsidize foreign banks a blended interest payment of $3.5 billion! This is entirely separate from the $2 trillion liquidity subsidy that Bernanke will also have handed out to keep these banks afloat, and is $3.5 billion that will flow right through the P&L and end up in the pockets of offshore shareholders who otherwise would very likely be wiped out had it not been for the Fed’s relentless efforts to bailout foreign banks.”


If foreign banks are deserving of Federal Reserve-generated liquidity flows, then U.S. citizens are equally deserving.

It is time for U.S. citizens themselves to move to the head of the line – and receive their own credit extensions direct from the Federal Reserve.

The Leviticus 25 Plan.