One economic plan in America delivers $1.094 trillion annual surpluses for each of the next 5 years: The Leviticus 25 Plan

America is in a ‘slow-burning’ debt crisis.

National debt – current: U.S. National Debt Clock : Real Time – reports the national debt (on a cash basis) at $17.954 trillion – as of November 22, 2014.

Budget deficits – 2013, 2014:
The U.S. Government budget deficit for 2013 came in at $680 billion. The most recent annual budget deficit, for the fiscal year ending September 30, 2014, came in at $483.35 (WSJ Oct 15, 2014).

The Congressional Budget Office projects deficits to level off between $500-$600 billion over the next several years, and then begin climbing rapidly up to the $7.1 trillion level by 2024.

Budget projections (2013-2024) – CBO:

Note – CBO forecasts are typically based upon what is known as the “rosy scenario” economic baseline. The budget deficit projections listed above are likely to be worse than anticipated.

This will not end well if something doesn’t change soon to get America moving again.
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The Leviticus 25 Plan is the bold, new plan that will do just that.

The Leviticus 25 Plan grants the same type of direct liquidity infusions to U.S. citizens that the Federal Reserve granted to institutional fiduciaries during the banking crisis of 2007-2010.

The Plan assumes an 80% participation rate by U.S. citizens, with a $16.8 trillion credit extension through a Citizens Credit Facility into Family Accounts and Medical Savings Accounts of participating citizens.

The Plan’s recapture provisions alone would amount to a massive $1.694 trillion annually for each of the first five years.

Government budgets are currently projected to average $600 billion annually over the coming five years.

The Leviticus 25 Plan would therefore generate an average of $1.094 trillion in annual budget surpluses during each of those years.

$1.094 trillion in annual budget surpluses, every year for the next five years – that would be transferred back to the Federal Reserve to begin a gradual balance sheet reduction.

Recapture projections do not include the additional tax revenues that would be generated from a revitalized economy with more American working, paying taxes, and contributing to Social Security, Medicare and Medicaid trust funds.

Recapture projections do not include the annual interest expense savings from not accruing an average of $600 billion in additional debt annually over the next five years.

Recapture benefits do not include the additional tax revenues and cost savings that would be realized at the state and local levels.

The Leviticus 25 Plan recaptures $8.468 trillion (over 50%) of the $16.8 trillion outlay during the initial 5-year period.

The Plan further assumes that over the course of the next 10-15 years, continuing benefits from ”dynamic inertia” would generate ongoing Fed balance sheet reduction, back to pre-expansion levels.

Message to Congress: your status quo economic strategies are not acceptable.

It is time for change. Economic liberty. Free-market economic growth. Change in America’s debt dynamics.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                      The Leviticus 25 Plan 2015 (637)

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Income tax refund recapture:
The Leviticus 25 Plan’s recapture provision regarding income tax refunds (where participating families agree to give up their tax refunds for a period of 5 years) will provide for a massive revenue recapture. The IRS issued a reported 102,139,000 refunds in 2014 totaling $274.7 billion. $274.7 billion X 80% participation = $220 billion / year for five years for a total of $1.1 trillion.

Means-tested welfare recapture:
Cost savings over the course of a 5-year ‘recapture period (federal and state spending): Average Means-Tested Welfare spending of $1.1 trillion/year X 80% X 5 years = $4.4 trillion

Medicare recapture:
Cost savings over the course of the 5-year ‘recapture’ period:
57 million Medicare recipients (projected average per year for the next 5 years) X 80% X 5 years X $4,000 deductible = $912 billion
Note: The Plan also assumes that with individual Americans managing the first $4,000 of their Medicare eligible expenses, fraud, overcharges/billing errors would be reduced.

Federal Employees Health Benefits Program (FEHB) recapture:
Cost savings over 5-year ‘recapture’ period: 5.539 million X 80% X $4,000 X 5 years= $88.6 billion

TRICARE recapture:
Cost savings over 5 years: 9.6 million recipients X 80% X $4,000 X 5 years =     $153.6 billion

Supplemental Security Disability Income (SSDI) recapture:
Cost savings over 5-year ‘recapture’ period: $146.6 billion X 80% X 5 years =     $586.4 billion

Supplemental Security Income (SSI) recapture:
Cost savings over 5 years: $57 billion/year X 80% X 5 years = $228 billion

Unemployment insurance benefits recapture:
Cost savings over the 5-year ‘recapture’ period: $111.6 billion X 80% X 5 years = $446.4 billion

Miscellaneous recapture: Stimulus spending – Additional stimulus bills would not be needed.

Corporate welfare recapture:
Cost savings over 5 years: $85 billion/year X 5 years = $425 billion
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Total from Recapture Provisions:
The Leviticus 25 Plan total recapture benefits over the first 5 years of the program: $8.468 trillion

 

 

Leviticus 25 Plan ‘recapture’ yields massive cost savings in Means-tested Welfare

The Leviticus 25 Plan provides a majority of participating U.S. citizens, who have been heavily dependent upon social welfare programs, with sufficient liquidity resources to get ‘off’ social welfare programs and get a fresh start in life.

A family of four ($70,000 per member) would receive $200,000 in their Family Account (FA) and $80,000 in their Medical Savings Account (MSA).

Participating families would be ‘off’ means-tested welfare programs for a period of five years.  A family of four would then have access to $40,000 (FA) per year for five years, tax-free, to manage their own lives.

The Leviticus 25 Plan assumes 80% participation by U.S. citizens.

This would result in a massive ‘Recapture’ from social welfare programs:

Total “means-tested welfare spending” (federal, state) reached the $927 billion level in 2011. This is projected to reach the $1.6 trillion level for the year 2022.
Source: Heritage Foundation, “Examining the Means-tested Welfare State: 79 Programs and $927 Billion in Annual Spending” – Robert Rechter, May 3, 2012

Appendix Table One (Spending in millions of dollars)

Categories       Federal Spending         State Spending         Total Spending
CASH TOTAL            162,717.75            19,412.14                182,129.88
MEDICAL TOTAL      289,816.86          168,854.66                458,671.52
FOOD TOTAL            102,288.00              7,126.73                109,414.73
HOUSING TOTAL        54,058.00              2,085.00                  56,143.00
ENERGY AND UTILITIES TOTAL                                               6,403.00
EDUCATION TOTAL    60,175.00                                              60,175.00
TRAINING TOTAL          7,324.90              1,085.88                    8,410.78
SERVICES TOTAL       10,411.40              4,866.13                   15,277.53
CHILD CARE AND CHILD DEVELOPMENT TOTAL
15 ,961.56               6,709.53                  22,671.10
COMMUNITY DEVELOPMENT TOTAL                                        7,937.00
2011 TOTAL               717,093.48           210,140.07              $927,233.55
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Cost savings (federal and state spending) from average projected annual means-tested welfare spending over 5-year period: $1.1 trillion/year X 80% X 5 years = $4.4 trillion

Note: Medicaid cost savings are projected as a factor of a $4,000 deductible and a significant reduction in Medicaid-eligible families as more Americans become fully employed and covered under other more beneficial plans. Medicaid hit a record of 72,600,000 people enrolled for at least one month in 2012. Reports for 2012 indicated that 55,000,000 people consistently enrolled. Projections show that Medicaid will expand rapidly to 85 billion recipients as the Affordable Care Act takes hold. And projections show the Medicaid roles further expanding to the 100 billion level by 2021.

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The Leviticus 25 Plan – the only plan in America that delivers real benefits to real people, allowing citizens to allocate resources in accordance with their needs and desires.

The Plan reduces the scope of government and the intrusion of government into the daily affairs of citizens.

The Plan unleashes the power of free market dynamics and pays for itself over a 10-15 year period.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   The Leviticus 25 Plan 2015 (630)

Nov 17th: European Central Bank set to adopt “unconventional measures” to fight inflation…(?)

Japan recently went ‘eyeball deep’ with QE… China is pumping 500 billion yuan into their sputtering banking system, and now Europe wants to ramp-up a new monetization scheme of their own.

ECB Says May Buy Gold, Stocks Next, Admits “Not Sure If Japan’s QE Has Worked”

ZeroHedge 11-17-14 –  Excerpts:                                                                                Yves Mersch (Luxembourg), ECB Board member, today floated the prospect of additional (creative) ECB balance-sheet expansion measures to combat low inflation.
Mersch declared: “Theoretically the ECB could purchase other assets such as gold, shares, ETFs to fulfill its promise of adopting further unconventional measures to counter a longer period of low inflation.”
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Global Central Banks naturally believe that ‘all roads to economic prosperity’ involve banking system as primary recipient in the of liquidity infusions and banking system control in the allocation of assets.

Nothing could be further from the truth.

Six years of Central Bank ‘solutions’ have led to nothing more than inflated stock prices, rising food costs, skyrocketing land prices, and economic stagnation.

It is time for ‘real people’ to be granted the same direct access to liquidity that the leverage-speculation-addicted banking system received (2007-10) to get themselves… ‘healthy.’

It is time for ‘citizens’ to allocate resources to regain their own ‘health’… and to restore economic liberty.

It is time for powerful new set of “unconventional measures” to be unleashed.

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                     The Leviticus 25 Plan 2015 (626)

The Leviticus 25 Plan yields an old-fashioned, powerful, tax revenue bonanza for government – without raising taxes.

The Leviticus 25 Plan provides for a $70,000 credit extension for every participating U.S. citizen from the Federal Reserve. The conduit through which these liquidity infusions would flow is a new Citizens Credit Facility.

For each participating member in a given family, $50,000 would be electronically deposited into a Family Account, and $20,000 into a Medical Savings Account.             A family of four would receive $200,000 in their Family Account, and $80,000 in their Medical Savings Account.

The Plan is not a wealth redistribution plan – taking from some to give to others.
Everyone receives equal treatment. Every U.S. citizen is eligible to participate.

The Leviticus 25 Plan Recapture provisions require participating citizens to give up their tax refunds for the next 5 years. Many wealthy Americans would therefore elect not to participate.

And the Recapture provisions would require participants to also give up general social welfare benefits for the next 5 years: Means-tested Welfare benefits, Income Security benefits, Unemployment insurance benefits, Workman’s Comp, SSI, SSDI – and a higher deductible for Medicare, Medicaid, VA, TRICARE, and FEHB programs.

Many Americans living below the poverty line, receiving expansive social welfare benefits, would therefore also elect not to participate – in lieu of losing those benefits.

The Leviticus 25 Plan assumes, therefore, that 80% of U.S. citizens would participate.

Giving up tax revenues – how significant would the effect be on government tax revenues? There would be a massive tax revenue recapture

The IRS issued a reported 102,139,000 refunds in 2014 totaling $274.7 billion.
Federal Income tax refund recapture:

Federal Income Tax Recapture:
$274.7 billion X 80% participation = $220 billion / year                                               $220 billion / year  X  5 years  =  $1.1 trillion

The $1.1 trillion estimate very likely understates the real Recapture amount, since it is not forward-adjusted for inflation. And the estimate does not take into account the additional gains in state income tax revenues.

Aside from the ‘recapture revenues,’ the debt reduction goals and benefits of The Plan would also lead to the elimination of major sums of mortgage / HELOC interest-expense and consumer loan interest-expense deductions – which would also generate considerable net gains in federal and state tax revenue.

Revitalized economic growth would result in more Americans working, paying taxes and contributing to social security and Medicare and Medicaid payroll taxes.

Massive government tax revenue gains every year for the next 5 years.

All without raising taxes.

It’s time to ‘think outside the box.’                                                                         Congress – are you listening?

The Leviticus 25 Plan 2015 – The $70,000 Solution                                                   The Leviticus 25 Plan 2015 (615)

Trillions in Central Bank stimulus – global economies ‘coughing’ and ‘sputtering.’ Debt relief needed at ‘ground level’ – everywhere.

We Have Just Witnessed The Last Gasp Of The Global Economy                    Brandon Smith via Alt-Market blog
Excerpts:

Global exports, and thus consumer demand, are plunging. Germany, the only pillar left to prop up the failing European Union, has experienced a severe decline in exports not seen since 2009.

China, the largest exporter and importer in the world, and Chinese companies, have been caught in a number of instances using fraudulent invoices to artificially inflate their own export numbers, in some cases reporting 50% more exported goods than had actually existed.

China’s manufacturing has also declined for the past five months, exposing the nature of its inflated export stats and indicating a global slowdown.

The Baltic Dry Index, a measure of global shipping rates for raw goods, and thus a measure of demand for shipping, continues to drag along near historic lows.

The U.S. consumer (the only economic asset the U.S. has besides the dollar’s world reserve status), has seen declines in spending as well as wages.

In the meantime, long term jobless Americans continue to fall off welfare rolls by the millions, making unemployment numbers look good, but the overall future picture look terrible as participation rates dissolve into the ether of government statistics.

How is such poverty being hidden? Food stamps. Plain and simple. Nearly 50 million Americans now subsist on food stamp programs today, and this number shows no signs of dropping. In states like Illinois, two people sign up for food assistance for every [one] citizen that happens to find a job.
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Global Central Banks have been pumping ‘stimulus’ since 2008, and global economic health is anemic.

In the U.S., as the banking crisis intensified in the Fall of 2008, with major banking institutions assuming (or on the verge of assuming) ‘underwater’ status, the Federal Reserve ran quickly to the rescue with secret liquidity lifelines” (Bloomberg 8-22-11).
The Fed torpedoed standard collateral rules for banks, allowing “banks that could once borrow only against sound collateral, like Treasury bills or AAA-rated corporate bonds, could now borrow against pretty much anything – including some of the mortgage-backed sewage that got us into this mess in the first place…. ‘All of a sudden, banks were allowed to post absolute [expletive deleted] to the Fed’s balance sheet,’ [according to] the manager of the prominent hedge fund.” (Source: Bailout Hustle, Matt Taibbi).

The Federal Reserve invented various “facilities” to fire-hose liquidity out to the big banks and big brokerage firms, including these:                                                                    Primary Dealer Credit Facility (PDCF)                                                                            Term Securities Lending Facility (TLCF)                                                                Temporary Liquidity Guarantee Program (TLGP)                                                Commercial Paper Funding Facility (CPFF)                                                                    Term Auction Facility (TAF)                                                                                            Public Private Investment Program (PPIP)

And now it is time for the Fed to create one final ‘facility’ – one that will eliminate vast swaths of debt at ‘ground level’ and get America moving forward again.

A Citizens Credit Facility – for direct credit extensions to U.S. citizens.
The Leviticus 25 Plan 2015 – The $70,000 Solution                                                         The Leviticus 25 Plan 2015 (612)

 

 

 

 

 

Fed’s Fischer: “QE3 was a gift to the rich”

Federal Reserve Vice President Richard Fischer has been unequivocal about the broader effects of QE.

At the London School of Economics, March 2014,  Fischer explained the Fed’s QE wealth effect goals: “It was deliberate in that we were hoping to create a wealth effect.”

The “wealth effect” created by the Fed was anything but broadly based.

Fischer: “There was a more concentrated effect. And you see it in the kind of earnings that are announced by certain private equity groups and individuals and so on.” … “the distribution of the wealth effect was heavily concentrated.”

Indeed.  Here are the illustrations of how heavily concentrated it has been –  in favor of the rich:                                                                                                                             A steep drop in Mean Net Worth for the Bottom 50% from 2007 – 2013…

Thanks to QE, a modest dip for the “Top 5%” … and now rising…

Financial Asset grew nicely for the “top 5%” grew from 2007 – 2013.

They dropped for everyone else….

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Dallas Fed President Richard Fischer: “So that’s been one of my bigger disappointments.”

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Don’t be disappointed, Mr. Fischer.  Let’s just go ahead now and square things up.

The Leviticus 25 Plan.                                                                                          $70,000 per U.S. citizens extended through a Citizens Credit Facility.

The Plan restores economic liberty, eliminates debt at the family level,              re-ignites economic growth in America, generates healthy tax revenue growth, and pays for itself over a 10-15 year period.

It’s time to get moving, Mr. Fischer:  The Leviticus 25 Plan 2015 (600)

Global debt and the looming ‘dead end’

Growth in the global debt load is outpacing GDP growth, and something will eventually have to give.  And when it starts, things could get out of hand very quickly.

As the old saying goes, “nations go broke very slowly, and then all at once.”

Global Debt-to-GDP Is Exploding Once Again
(% of global GDP, excluding financials)

*Data based on OECD, IMF, and national accounts data.
Source: Buttiglione, Lane, Reichlin, & Reinhart. “Deleveraging, What Deleveraging?” 16th Geneva Report on the Global Economy, September 29, 2014.                                Chart courtesy of John Maudlin / Oct 26, 2014  / The EM Borrowing Bonanza

Debt service is a drain on a economic vitality.  And when debt service demands a continually greater share of a nation’s available resources, and nations are forced to ‘create’ (print) fiat currency to ‘manage’ their debt obligations, paper ‘money’ will inevitably lose value in relation to hard assets.

Central Banks can coordinate monetary policy and utilize their various policy ‘tools’ (tendering favorable, or blatantly gainful, liquidity access for their financial conduit  institutions) to give the appearance of economic health and price stability.  But coordination has its limits and can be difficult to maintain.

And socio-political events can swamp the best laid plans of Central Banks.

A harsh ‘reset‘ is coming.  No one has a crystal ball to know exactly when, but the clock is ticking.

Paper assets will lose value in relation to ‘real assets’ (land, income producing assets, precious metals, energy, food).

When it comes, the reset could lead to complete disorder in the credit markets, pricing mechanisms in global trade, and disruptions in supply – globally and nationally.

The reset could have devastating effects for the general populace.

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America needs a plan that will provide substantial access to liquidity for U.S. citizens, and there is one plan that delivers that access through a Citizens Credit Facility.

The Leviticus 25 Plan is a powerful economic revitalization plan that provides massive debt relief at the family level – a crucial benefit for a nation’s citizens during a fiat currency reset.

There is no other plan anywhere that offers the dynamic benefits of this plan.