2009-2011: Fed QE and big-government central planning primarily benefitted the wealthy. It is time now for a catch-up plan with broad-based benefits for all Americans: The Leviticus 25 Plan.

PEW Research, April 23, 2013:                                                      

A Rise in Wealth for the Wealthy; Declines for the Lower 93%  

[Excerpts]

“During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.”

“From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896.”

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The Leviticus 25 Plan broadens out economic benefits for all Americans.

Key benefits:

1. Provide direct liquidity infusions to all American citizens.

2. Optimize the allocation of health-care services and spending (including Medicare and Medicaid).

3. Improve the economic climate for U.S. small businesses.

4. Improve employment opportunities for all Americans.

5. Generate a long-term, healthy stream of tax revenue for government (federal, state, local).

6. Reduce the cost of government.

7. Stabilize the U.S. housing market.

8. Stabilize the U.S. banking system – and moderate risk dangers from certain derivatives and rehypothication stratagies.

9. Reduce the scope of social programs and their control over U.S. citizens.

The Leviticus 25 Plan will revitalize economic progress and incentives for all Americans.

Economic lethargy – while Fed “pumps $100 billion per month” into Primary Dealer trading accounts. America needs a bold, new “U.S Citizen Credit Facility.” The Leviticus 25 Plan.

Wall Street Examiner – April 2, 2013:                                                                    Factory Data Shows US Manufacturing Dead In The Water As Headlines Mislead                                                                                                                         April 2, 2013                                                                                                                     By Lee Adler                                                                                                                (Excerpts)

“The headlines today blared of a 3% increase in factory orders in February, completely obscuring the truth of just how bad the US manufacturing trend is. The real story lies in the fact that factory orders have been flat for two years and have trended lower for the last four months.” 

“In spite of 6% population growth since 2007, the nation’s volume of factory orders is the same as it was 6 years ago.“

“New factory orders (actual, adjusted for inflation and not seasonally adjusted), a broader measure than durable goods orders because it includes non-durables, dropped 1.9% year to year in February. It was the 4th straight year to year decline.”

“More important is the big picture trend and the response of manufacturing to Fed stimulus. After rebounding sharply from the 2009 bottom through early 2011, the trend then stalled. The annual growth rate has been in a downtrend since April of 2010 and has been at or below zero for the past year. Since the Fed started settling its QE3 MBS purchases in November, this index has shown no material improvement. The money printing is not trickling out into the manufacturing sector. The just released ISM data suggests that the factory data for March won’t be any better and could be worse.”

“Don’t believe the hype about a return of US manufacturing.  As the Fed blows another stock market bubble, a US manufacturing revival just ain’t happening.  Another asset bubble not supported by real, qualitative and quantitative growth in what the economy actually produces, will not end well. They can obscure the truth for a while, but time is not on the side of the market manipulators.”

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 ZeroHedge headlines:

 4-15-13: Empire Fed Latest Economic Disappointment, Drops To Lowest Since January, Misses Expectations                                                                                           4-12-13: US Economic Data Plunges Most In 10 Months To 4-Month Lows                     4-12-13: Railcar Loadings Drop Most Year-To-Date Since Crisis                                      4-10-13: Housing ‘Recovery’ Shifts To Contraction                                                             4-9-13: Small Businesses Planning To Hire: 0%

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The U.S. ‘big-government, central planning extravaganza has dished out trillions of dollars over 4 years, and the U.S. economy remains moribund.

It is time to shift to a plan that features a “U.S. Citizen Credit Facility.”

The Leviticus 25 Plan                                                                                                        – Economic liberty and debt relief for American families                                                     – Market-based efficiencies in healthcare                                                                            – Economic growth acceleration for American small businesses                                        – Long-term Dollar stability

 

4 years of big-government central planning and Trillions of dollars later, U.S. economy still limping along and poverty still growing. Time to clean things up and get rollin’…

[Excerpts] from Michael Snyder of The Economic Collapse blog (accessed from ZeroHedge)

“Should we measure our economic progress by the false stock market bubble that has been inflated by Ben Bernanke’s reckless money printing, or should we measure our economic progress by how the poor and the middle class are doing? Because if we look at how average Americans are doing these days, then there is not much to be excited about. In fact, poverty continues to experience explosive growth in the United States and the middle class continues to shrink. Sadly, the truth is that things are not getting better for most Americans. With each passing year the level of economic suffering in this country continues to go up, and we haven’t even reached the next major wave of the economic collapse yet. When that strikes, the level of economic pain in this nation is going to be off the charts.

The following are 21 statistics about the explosive growth of poverty in America that everyone should know…

1 – According to the U.S. Census Bureau, approximately one out of every six Americans is now living in poverty. The number of Americans living in poverty is now at a level not seen since the 1960s.

2 – When you add in the number of low income Americans it is even more sobering. According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”.

3 – Today, approximately 20 percent of all children in the United States are living in poverty. Incredibly, a higher percentage of children is living in poverty in America today than was the case back in 1975.

4 – It may be hard to believe, but approximately 57 percent of all children in the United States are currently living in homes that are either considered to be either “low income” or impoverished.

5 – Poverty is the worst in our inner cities. At this point, 29.2 percent of all African-American households with children are dealing with food insecurity.

6 – According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.

7 – The number of children living on $2.00 a day or less in the United States has grown to 2.8 million. That number has increased by 130 percent since 1996.

8 – For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.

9 – Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.

10 – One university study estimates that child poverty costs the U.S. economy 500 billion dollars each year.

11 – At this point, approximately one out of every three children in the U.S. lives in a home without a father.

12 – Families that have a head of household under the age of 30 have a poverty rate of 37 percent.

13 – Today, there are approximately 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.

14 – About 40 percent of all unemployed workers in America have been out of work for at least half a year.

15 – At this point, one out of every four American workers has a job that pays $10 an hour or less.

16 – There has been an explosion in the number of “working poor” Americans in recent years. Today, about one out of every four workers in the United States brings home wages that are at or below the poverty level.

17 – Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even include Social Security or Medicare.

18 – An all-time record 47.79 million Americans are now on food stamps. Back when Barack Obama first took office, that number was only sitting at about 32 million.

19 – The number of Americans on food stamps now exceeds the entire population of Spain.

20 – According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

21 – Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, close to one out of every six Americans is on food stamps. Even more shocking is the fact that more than one out of every four children in the United States is enrolled in the food stamp program.”

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Vital features of a real economic recovery plan:

Massive debt reduction at the family level – first.

A priority on allocation of resources by individual citizens, rather than continued government allocation of resources through big-government programs.

Positive incentives for work and self-reliance.

Reasonable ‘recapture’ provisions – that cover the cost over a 10-15 year period.

The Leviticus 25 Plan – the only comprehensive economic recovery plan in America .

 

2009-2013: Fed ‘pumps and prints’ – Main street America stagnates

The Federal Reserve has printed, extended credit, and guaranteed credit lines worth trillions of dollars over the past 4 years — propping up major banks (including billions of dollars in excess reserves for foreign banks), GSEs (Fannie Mae and Freddie Mac), and other politically-connected big business enterprises.

The resulting recovery had been tenuous – and primarily ‘tilted’ in favor of high-end earners.  Main street America has stagnated.

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(Excerpt from THE GREAT DEFORMATION: The Corruption of Capitalism in America by David A. Stockman. Published by PublicAffairs.).  Accessed from ZeroHedge

“The tepid post-2008 recovery has not been what it was cracked up to be, especially with respect to the Wall Street presumption that the American consumer would once again function as the engine of GDP growth. It goes without saying, in fact, that the precarious plight of the Main Street consumer has been obfuscated by the manner in which the state’s unprecedented fiscal and monetary medications have distorted the incoming data and economic narrative.

These distortions implicate all rungs of the economic ladder, but are especially egregious with respect to the prosperous classes. In fact, a wealth-effects driven mini-boom in upper-end consumption has contributed immensely to the impression that average consumers are clawing their way back to pre-crisis spending habits. This is not remotely true.

Five years after the top of the second Greenspan bubble (2007), inflation-adjusted retail sales were still down by about 2 percent. This fact alone is unprecedented.

By comparison, five years after the 1981 cycle top real retail sales (excluding restaurants) had risen by 20 percent. Likewise, by early 1996 real retail sales were 17 percent higher than they had been five years earlier. And with a fair amount of help from the great MEW (measurable economic welfare) raid, constant dollar retail sales in mid-2005 where 13 percent higher than they had been five years earlier at the top of the first Greenspan bubble.

So this cycle is very different, and even then the reported five years’ stagnation in real retail sales does not capture the full story of consumer impairment. The divergent performance of Wal-Mart’s domestic stores over the last five years compared to Whole Foods points to another crucial dimension; namely, that the averages are being materially inflated by the upbeat trends among the prosperous classes.

For all practical purposes Wal-Mart is a proxy for Main Street America, so it is not surprising that its sales have stagnated since the end of the Greenspan bubble. Thus, its domestic sales of $226 billion in fiscal 2007 had risen to an inflation-adjusted level of only $235 billion by fiscal 2012, implying real growth of less than 1 percent annually.

By contrast, Whole Foods most surely reflects the prosperous classes given that its customers have an average household income of $80,000, or more than twice the Wal-Mart average. During the same five years, its inflation-adjusted sales rose from $6.5 billion to $10.5 billion, or at a 10 percent annual real rate. Not surprisingly, Whole Foods’ stock price has doubled since the second Greenspan bubble, contributing to the Wall Street mantra about consumer resilience.

To be sure, the 10-to-1 growth difference between the two companies involves factors such as the healthy food fad, that go beyond where their respective customers reside on the income ladder. Yet this same sharply contrasting pattern is also evident in the official data on retail sales.

That the consumption party is highly skewed to the top is born out even more dramatically in the sales trends of publicly traded retailers. Their results make it crystal clear that Wall Street’s myopic view of the so-called consumer recovery is based on the Fed’s gifts to the prosperous classes, not any spending resurgence by the Main Street masses.

The latter do their shopping overwhelmingly at the six remaining discounters and mid-market department store chains—Wal-Mart, Target, Sears, J. C. Penney, Kohl’s, and Macy’s. This group posted $405 billion in sales in 2007, but by 2012 inflation-adjusted sales had declined by nearly 3 percent to $392 billion. The abrupt change of direction here is remarkable: during the twenty-five years ending in 2007 most of these chains had grown at double-digit rates year in and year out.

After a brief stumble in late 2008 and early 2009, sales at the luxury and high-end retailers continued to power upward, tracking almost perfectly the Bernanke Fed’s reflation of the stock market and risk assets. Accordingly, sales at Tiffany, Saks, Ralph Lauren, Coach, lululemon, Michael Kors, and Nordstrom grew by 30 percent after inflation during the five-year period.

The evident contrast between the two retailer groups, however, was not just in their merchandise price points. The more important comparison was in their girth: combined real sales of the luxury and high-end retailers in 2012 were just $33 billion, or 8 percent of the $393 billion turnover reported by the discounters and mid-market chains.

This tale of two retailer groups is laden with implications. It not only shows that the so-called recovery is tenuous and highly skewed to a small slice of the population at the top of the economic ladder, but also that statist economic intervention has now become wildly dysfunctional. Largely based on opulence at the top, Wall Street brays that economic recovery is under way even as the Main Street economy flounders. But when this wobbly foundation periodically reveals itself, Wall Street petulantly insists that the state unleash unlimited resources in the form of tax cuts, spending stimulus, and money printing to keep the simulacrum of recovery alive.

The breakdown of sound money has now finally generated a cruel endgame. The fiscal and central banking branches of the state have endlessly bludgeoned the free market, eviscerating its capacity to generate wealth and growth. This growing economic failure, in turn, generates political demands for state action to stimulate recovery and jobs.

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It is time for a bold, new approach – one that will provide resources for economic liberty and broad-based debt reduction at the family level in America.

The Leviticus 25 Plan