Stockman: Household sector “$13 trillion of credit market debt” – Fed policies not helping. U.S. sovereign debt is now “too large and too embedded in social, economic, and political realities to be resolved.”

 The ‘clock is ticking’ for America…

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David Stockman’s book ‘The Great Deformation’                                                     Courtesy of ZeroHedge 6-22-13                                                                                    Excerpts:

“[After 5 years of Fed pumping and big-government central planning] the household sector still had just under $13 trillion of credit market debt outstanding, amounting to nearly 190 percent of wage and salary income.

The nation’s households are not even close to having repaired their balance sheets, meaning that the next phase of deleveraging will actually result in a body slam to the Keynesian aggregates.”

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 More…  Courtesy of ZeroHedge, 6-23-13

“The proximate cause of this recession waiting to happen is the federal government’s unfolding encounter with Peak Debt. The latter is not a magical statistical point such as a federal debt ratio of 100 percent of GDP, but a condition of permanent crisis. From the failed election of 2012 forward, every dollar of additional borrowing will induce new political and financial pressures while every dollar of spending cuts and tax increases will further impair the rate of GDP growth.

The mainstream notion that there is a choice between fiscal austerity and fiscal stimulus is wishful thinking. It does not recognize that owing to the triumph of crony capitalism and printing-press money America has become a failed state fiscally. Deficits and debt have now reached the point where they are too large and too embedded in social, economic, and political realities to be resolved. Accordingly, what passes for fiscal governance will become a political gong show that will make the New Deal contretemps pale by comparison.

What lies ahead is a continuous, mad-cap cycling back and forth – virtually on an odd-even day basis – between deficit cutting and fiscal stimulus to the GDP. Thus, deficit cutting will be in play every twelve months or so in order to purchase enough “conservative” votes to raise the federal debt ceiling by another trillion dollars or so. Yet every upward increment will become harder to pass in the House and Senate, ever the more so as the debt ceiling soon breaks above the $20 trillion mark and begins to soar well above 100 percent of GDP.

The fact is, the great unwashed masses on Main Street know full well that Washington is trifling with national bankruptcy, so the debt ceiling votes have become the one clarifying legislative moment in which they can demand a halt to the madness. Accordingly, the template from the August 2011 debt ceiling crisis will become the recurring framework of fiscal governance: in return for more debt ceiling, the reluctant House and Senate majorities which are finally assembled will get a new package of fiscal restraint in the form of targets, promises, and processes to develop plans to implement budget savings.

Before the ink is even dry on these deficit reduction packages, however, they will become part of the permanent, rolling “fiscal cliff”; that is, a recurrent series of pending tax and spending shocks that would cause negative GDP prints and adverse job reports if implemented. In effect, the Main Street economy will appear to be continuously confronted by the prospect of a “fiscal recession” or a dip in activity because it will be viewed as too weak to absorb the tax increases and spending cuts needed to close the nation’s yawning and unshakeable budget gap.”

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America needs a new plan.  One that takes care of business at ‘ground level’ first.

The Leviticus 25 Plan delivers real-time benefits for American families.

It provides massive debt relief at the family level.                                                          Massive reduction in the scope of government.                                                        Robust economic growth.                                                                                        Economic liberty for all U.S. citizens.

And The Leviticus 25 Plan pays for itself over a 10-15 year period.                              The only plan of its kind.

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