The Leviticus 25 Plan – countering serfdom and ‘The Great Utopia’

F.A. Hayek is regarded by many as the greatest economist in the history of the Western world.  In his famous work, “The Road to Serfdom,” Hayek warned about the dangers of national centralization

_____________________________

F.A. Hayek On “The Great Utopia” | Zero Hedge                     Excerpts:

The Great Utopia

There can be no doubt that most of those in the democracies who demand a central direction of all economic activity still believe that socialism and individual freedom can be combined. Yet socialism was early recognized by many thinkers as the gravest threat to freedom.

It is rarely remembered now that socialism in its beginnings was frankly authoritarian. It began quite openly as a reaction against the liberalism of the French Revolution. The French writers who laid its foundation had no doubt that their ideas could be put into practice only by a strong dictatorial government. The first of modern planners, Saint-Simon, predicted that those who did not obey his proposed planning boards would be “treated as cattle.”

Nobody saw more clearly than the great political thinker de Tocqueville that democracy stands in an irreconcilable conflict with socialism: “Democracy extends the sphere of individual freedom,” he said. “Democracy attaches all possible value to each man,” he said in 1848, “while socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.”

To allay these suspicions and to harness to its cart the strongest of all political motives—the craving for freedom — socialists began increasingly to make use of the promise of a “new freedom.” Socialism was to bring “economic freedom,” without which political freedom was “not worth having.”

[snip]

Individual freedom cannot be reconciled with the supremacy of one single purpose to which the whole of society is permanently subordinated. To a limited extent we ourselves experience this fact in wartime, when subordination of almost everything to the immediate and pressing need is the price at which we preserve our freedom in the long run. The fashionable phrases about doing for the purposes of peace what we have learned.to do for the purposes of war are completely misleading, for it is sensible temporarily to sacrifice freedom in order to make it more secure in the future, but it is quite a different thing to sacrifice liberty permanently in the interests of a planned economy.

To those who have watched the transition from socialism to fascism at close quarters, the connection between the two systems is obvious. The realization of the socialist program means the destruction of freedom. Democratic socialism, the great utopia of the last few generations, is simply not achievable.

___________________________________

There is one economic plan with the raw power necessary to counter false utopian promises of security and equality.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (587)

So how is America doing after the recent 7 years of big-government central planning..?

Update – Not well.  Top 10 indicators (from TheEconomicCollapseblog):

#1 After accounting for inflation, median household income in the United States is 8 percent lower than it was when the last recession started in 2007.

#2 The number of part-time workers in America has increased by 54 percent since the last recession began in December 2007.  Meanwhile, the number of full-time jobs has dropped by more than a million over that same time period.

#3 More than 7 million Americans that are currently working part-time jobs would actually like to have full-time jobs.

#4 The jobs gained during this “recovery” pay an average of 23 percent less than the jobs that were lost during the last recession.

#5 The number of unemployed workers that have completely given up looking for work is twice as high now as it was when the last recession began in December 2007.

#6 When the last recession began, about 17 percent of all unemployed workers had been out of work for six months or longer.  Today, that number sits at just above 34 percent.

#7 Due to a lack of decent jobs, half of all college graduates are still relying on their parents financially when they are two years out of school.

#8 According to a new method of calculating poverty devised by the U.S. Census Bureau, the state of California currently has a poverty rate of 23.4 percent.

#9 According to the New York Times, the “typical American household” is now worth 36 percent less than it was worth a decade ago.

#10 In 2007, the average household in the top 5 percent had 16.5 times as much wealth as the average household overall.  But now the average household in the top 5 percent has 24 times as much wealth as the average household overall.

Source: 19 Very Surprising Facts About The Messed Up State Of The U.S. Economy

_________________________________

America needs a new ‘decentralized’ economic plan.

One plan delivers:

The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen                             Leviticus25Plan.org                                                                                                        Full plan:  The Leviticus 25 Plan 2015 (586)

 

Hudson Castle Group, Inc – #27 recipient of Fed’s ‘secret liquidity lifelines’

Bloomberg  Nov 28, 2011  Excerpts:

“Hudson Castle Group Inc., a firm started by former Lehman Brothers Holdings Inc. executives, sponsored three asset-backed commercial paper conduits — investment vehicles that bought financial assets and raised money by selling short-term bonds. Such conduits were among “shadow banks” that “contributed significantly to asset bubbles” by converting “opaque, risky, long-term assets into money-like and seemingly riskless short-term liabilities,” according to a July 2010 report by the Federal Reserve Bank of New York.

On a combined basis, Hudson Castle’s three conduits had as much as $16.2 billion of outstanding loans from the Fed’s Commercial Paper Funding Facility in March 2009. They included Belmont Funding LLC, Ebbets Funding LLC and Elysian Funding LLC.

Peak amount of debt on 3/31/2009: $16.2B

___________________________________

Here we see the Fed providing emergency funding to bailout a company that had “contributed significantly to asset bubbles” by converting “opaque, risky, long-term assets into money-like and seemingly riskless short-term liabilities.”

The Leviticus 25 Plan would access to liquidity for U.S. citizens – who had not “contributed significantly to asset bubbles” through “opaque, risky” carry-trade schemes.

The Leviticus 25 Plan 2015 – $70,000 per U.S. citizen                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (578)

 

U.S. Fed providing ‘free cash’ to foreign banks… courtesy of U.S. citizens

Foreign banks are profiting from no risk ‘spread-pocketing’ via Fed interest rate policies… and U.S. taxpayers are ‘footing the bill.’

ZeroHedge 9-30-14 excerpts:

“Foreign Banks ‘pocket a spread’ by borrowing cheaply and parking funds at the Federal Reserve…. according to the Wall Street Journal:  “Fed Rate Policies Aid Foreign Banks: Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank”

Though small in relation to their overall revenues, interest payments from the Fed have been a source of virtually risk-free returns for foreign banks. Large holders of Fed reserves include Deutsche Bank, UBS AG, Bank of China and Bank of Tokyo-Mitsubishi UFJ, according to bank regulatory filings. U.S. banks including J.P. Morgan Chase, Wells Fargo and Bank of America Corp. are also big recipients of Fed interest payments, according to the filings.

“It is a small transfer from U.S. taxpayers to foreign taxpayers,” said Joseph Gagnon, a former Fed economist at the Peterson Institute for International Economics. The transfer, he added, was a side effect of Fed policy, not a goal.

Behind the payments is a complex interplay between new government regulatory policies and new methods the Fed has developed to control short-term interest rates.
The Fed has pumped nearly $3 trillion into the banking system since the 2008 financial crisis, increasing banks’ reserves, in efforts to stabilize markets and boost economic growth.

Since 2008, it has paid banks interest of 0.25% on those reserves. The Fed affirmed this month that the rate it pays on reserves will be the primary tool it uses to raise short-term borrowing costs from near zero when the time comes, likely next year.
…………………..
“The fact is that the Fed is going to be paying very large amounts of interest to banks,” said William Poole, a senior fellow at the Cato Institute and former president of the Federal Reserve Bank of St. Louis. “It’s highly likely that some politicians will notice that and given the proclivity of some politicians anyway to demagogue issues, the Fed is going to have some political explaining to do.”

Since 2009, foreign banks have earned roughly $5 billion by borrowing dollars cheaply, often at less than 0.10%, in short-term funding markets and depositing those funds at the Fed for 0.25%, according to the Journal analysis. That estimate doesn’t take into account the costs of raising money through other means, overhead and taxes, which affect net income.

But don’t blame the banks – they are merely doing what the Fed is encouraging them to do. And after all who wouldn’t collect billions in risk free cash?
____________________________________

So here we have the U.S. Federal Reserve providing risk free carry trades to foreign banks, along with major U.S. commercial banks – printing up ‘free money’ currency to hand as a free gift to these global commercial banks… and U.S. taxpayers ‘pick up the tab’ in the form of a drain on future purchasing power of the U.S. Dollar.

Again, “since 2009, foreign banks have earned roughly $5 billion by borrowing dollars cheaply, often at less than 0.10%, in short-term funding markets and depositing those funds at the Fed for 0.25%…”

ARE YOU KIDDING ME….?
…………………

It is time for U.S. citizens to get equal treatment from the Federal Reserve – the same access to liquidity that has been given to “Deutsche Bank, UBS AG, Bank of China and Bank of Tokyo-Mitsubishi UFJ, according to bank regulatory filings. U.S. banks including J.P. Morgan Chase, Wells Fargo and Bank of America Corp.”

The Leviticus 25 Plan provides the mechanism for this equal access to liquidity for U.S. citizens.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (560)

 

America’s social welfare programs are a breeding ground for fraud and abuse

A recent government report verified that for the 35th consecutive month in a row, over 46 million are receiving food stamps.  A recent GAO report also revealed that food stamp fraud is “rampant” (FoxNews.com August 22, 2014):

“Americans receiving food stamps were caught selling and bartering their benefits online for art, housing and cash, according to a new federal report that investigates fraud in the nation’s largest nutrition support program.

Complicating the situation is the fact states around the country are having trouble tracking and prosecuting the crimes because their enforcement budgets have been slashed despite the rapidly-rising number of food stamp recipients, according to the Government Accountability Office report.

Under the Supplemental Nutrition Assistance Program, or SNAP, 47 million people have been awarded $76 billion in benefits. State agencies are responsible for addressing SNAP recipient fraud under the guidance and monitoring of the Food and Nutrition Service.

“Such rapid program growth can increase the potential for fraud unless appropriate agency controls are in place to help minimize these risks,” the investigators said in their report.

The GAO report resulted from a review of 11 state and federal efforts to fight food stamp fraud, effectiveness of certain fraud detection tools and how FNS oversees state anti-fraud efforts.

The report found that “most of the selected states reported difficulties in conducting fraud investigations due to either reduced or maintained staff levels while SNAP recipient numbers greatly increased from fiscal year 2009 through 2013.

[snip]

Allegations of fraud and abuse have long-plagued SNAP and have been used by lawmakers in Washington to argue that the program has spiraled out of control.”
________________________________________________
Government-created social welfare programs promote negative incentives for self-reliance, and are next-to-impossible to efficiently monitor.

Congress has no plan for any type of transition to a better outcome for America’s financially distressed citizens.

America needs a better solution – one that helps lift Americans up out of poverty, instead of one that simply keeps them in a state of on-going dependence on government.

The Leviticus 25 Plan offers the fresh start. It is time for change.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (560)

 

Stockman: “The single most important number…102 million” in September jobs report

Excerpts from: September Jobs: Some Numbers Bubblevision Didn’t Mention               by David Stockman • October 6, 2014

Indeed, the single most important number in today’s report is 102 million, which is the rounded sum of adults either not in the labor force or unemployed, and it amounts to 41% of the adult population. Stated differently, that’s the number of adults who do not contribute to current production and must be supported either by family breadwinners or the state—-and nowadays especially the latter.
………………………..
This means there has been a 26 million gain in the number of adults not working—-even part-time—during that 14 year period [2000 – 2014]. About 10 million of that gain is accounted for by retired workers on social security—-a figure which has risen from 28.5 million to 38.5 million during the interim. But where are the other 16 million? The answer is on disability (+4.5 million), food stamps (+25 million), survivors and dependents benefits, other forms of public aid, living in parents’ basements on student loans or not, or on the streets.

There should be no mistake about the implications of these baleful trends as once again reinforced in today’s “jobs Friday” report. They do not represent merely a social problem or the fact that Washington’s fiscal calamity is going to get steadily worse in the years ahead. They also embody an endemic economic problem and staggering challenge to the Keynesian money printing regime now incumbent in Washington.

……………………………………

The employment ratio has plunged; full-time breadwinner jobs have actually shrunk; total labor hours employed have been stagnant; real GDP has grown at only 1.8% annually for 14 years—compared to 4% annually between 1956 and 1970; and real net capital investment is 20% below its turn of the century level.
________________________________

America needs a new plan – one that restores economic liberty for all Americans.
One that will lift people up out of poverty and help them off the social welfare treadmill.

America needs a plan that will generate massive debt relief at ground level – and reignite America’s economic growth engine.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (560)

Bloomberg: “Libya-owned Arab Banking Corp. drew at least $5 billion from Fed in crisis”

The nation of Libya, officially christened, the “Great Socialist People’s Libyan Arab Jamahirya” on March 2, 1977, received generous liquidity transfusions from the U.S. Federal Reserve during the 2007-2010 financial crisis.

This is the same Libya whose intelligence service and Libyan embassy planned the 1986 bombing of the West Berlin nightclub, LaBelle, targeting U.S. servicemen (2 killed and dozens injured).

And this is the same Libya that was involved in the tragic Lockerbie airline terror bombing on December 21, 1988, that brought down Pan Am Flight 103 over Lockerbie, Scotland, killing 283 passengers and 16 crew members. A 3-year investigation pinpointed Libyan involvement.   Libya later took responsibility (but did not admit ‘guilt’) and paid reparations to families, in order to get relief from ‘sanctions.’

And now…

April 1, 2011 (Bloomberg)                                                                               Libya-Owned Arab Banking Corp. Drew at Least $5 Billion From Fed in Crisis  Excerpts:

Arab Banking Corp., the lender part- owned by the Central Bank of Libya, used a New York branch to get 73 loans from the U.S. Federal Reserve in the 18 months after Lehman Brothers Holdings Inc. collapsed.

The bank, then 29 percent-owned by the Libyan state, had aggregate borrowings in that period of $35 billion — while the largest single loan amount outstanding was $1.2 billion in July 2009, according to Fed data released yesterday. In October 2008, when lending to financial institutions by the central bank’s so- called discount window peaked at $111 billion, Arab Banking took repeated loans totaling more than $2 billion.

Fed officials say all the discount window loans made during the worst financial crisis since the 1930s have been repaid with interest.

The U.S. government has frozen assets linked to the regime of Libyan ruler Muammar Qaddafi and engaged in air strikes against his military forces, which are battling a rebel uprising in the North African country. Arab Banking got an exemption that allows the firm to continue operating while barring it from engaging in any transactions with the Libyan government, according to the U.S. Treasury Department.

_________________________________________

U.S. citizens deserve nothing less than the same access to liquidity that was granted to the Arab National Bank Corp. at the height of the financial crisis.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   September 2014 – Updated versionThe Leviticus 25 Plan 2015 (556)