The Federal Reserve and the Treasury Department orchestrated trillions of dollars in liquidity transfusions to rescue the financial sector – primarily favoring the largest banking conglomerates in the world – along with a few other choice sectors, during the ‘economic meltdown’ years from 2008 to 2012.
Here is a partial list of the ‘big players’ (keep in mind that many, or most, of these companies created their own massive ‘capital holes’ with high-risk bets on subprime mortgage assets, collateralized debt obligations (CDOs) and enormous counterparty risk in credit default swap (CDS) hedging positions:
Bank of America
Royal Bank of Scotland
State Street Corp
JPMorgan Chase & Co
Deutsche Bank AG
Credit Suisse Group AG
Bailing out these big companies involves creating trillions of dollars of cash and credit, out of thin air, came with a price. It has degraded the purchasing power of the U.S. Dollar. And working Americans are now paying the price for these mega-giveaways – through the power of inflation.
QE1 was rolled out in March 2009. At that time, the average price of a gallon of gas in the U.S. was $1.91 / gal. The latest report for July 2014 shows the average price now at $3.59 / gal. This works out to an 88% increase in the price of gas – or more accurately an 88% decrease in the purchasing power of the Dollar vs gasoline.
This amounts to a 17% annualized loss of purchasing power of the Dollar vs gasoline.
The chart immediately below shows a more broad-ranging loss of purchasing power of the Dollar from 2000 through 2014.
This working American ‘haircut’ is particularly evident chart below. Note the decline in Real (inflation-adjusted) Median Household Income for the years 2008 – 2012.
(Charts accessed from ZeroHedge)
The Leviticus 25 Plan levels the playing field – providing American families with the same access to liquidity that was given to the mega-banks and other preferred entities during 2008-2012.
It provides the mechanism for American families to regain ‘financial health.’