Billions in taxpayer dollars landed in financial coffers of none other than.. (drumroll)… Warren Buffett during the 2008-09 Wall Street bailouts. Act 2: Buffett, the slumlord.

Thank you Hank Paulson, Tim Geithner, and Ben Bernanke – from the bottom of Warren Buffett’s heart…

The U.S. government, responding to a critical need to rescue the Wall Street financial sector and resuscitate the economy during the 2008-09 financial crisis, funneled trillions of dollars in direct cash transfers, emergency loans, credit guarantees, and balance-sheet-clearing toxic mortgage debt purchases – to many of America’s premier financial corporations.

Billionaire Warren Buffett lobbied hard for the massive bailouts, and with good reason. At least eight of these companies receiving billions of dollars of taxpayer bailouts were owned by Mr. Buffett’s Berkshire Hathaway.

Buffett’s Betrayal: Rolfe Winkler | Reuters  / Aug 4, 2009

Excerpts:                                                                                                                                 A good chunk of his [Warren Buffett’s] fortune is dependent on taxpayer largess. Were it not for government bailouts, for which Buffett lobbied hard, many of his company’s stock holdings would have been wiped out.

Berkshire Hathaway, in which Buffett owns 27 percent, according to a recent proxy filing, has more than $26 billion invested in eight financial companies that have received bailout money. The TARP at one point had nearly $100 billion invested in these companies and, according to new data released by Thomson Reuters, FDIC backs more than $130 billion of their debt.

To put that in perspective, 75 percent of the debt these companies have issued since late November has come with a federal guarantee.

buffett-bailout2

Without FDIC’s debt guarantee program, even impregnable Goldman would have collapsed.

And this excludes the emergency, opaque lending facilities from the Federal Reserve that also helped rescue the big banks. Without all these bailouts, the financial system would have been forced to recapitalize itself.

Banks that couldn’t finance their balance sheets would have sold toxic assets at market prices, and the losses would have wiped out their shareholder’s equity. With $7 billion at stake, Buffett is one of the biggest of these shareholders.

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Meanwhile, back at the ranch in 2015… the country’s second richest man is back, ‘sticking it to’ the very people whose billions of dollars bailed him out seven short years ago – U.S. taxpayers.

Warren Buffett, Slumlord – Predatory Loans, Kickbacks & Preying On The Poor   ZeroHedge /  04/06/2015                                                                                           Excerpts:

Buffett’s mobile-home empire promises low-income Americans the dream of homeownership. But Clayton [controlled by America’s second richest man – billionaire Warren Buffet] relies on predatory sales practices, exorbitant fees, and interest rates that can exceed 15 percent, trapping many buyers in loans they can’t afford and in homes that are almost impossible to sell or refinance, an investigation by The Seattle Times and Center for Public Integrity has found.

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U.S. citizens deserve nothing less than the same access to liquidity that was granted to wealthy elites during the Wall Street bailout.

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The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1214)

 

 

Central Banks are not at all “out of dry powder”…

Are the Central Banks out of dry powder, as several notable pundits warn?

Not at all.

It is easy to understand why some experts believe so.  Global debt loads (government, corporate, personal) are grinding up to new heights.  Economic growth remains anemic, labor markets are soft.  Deflationary winds are swirling and pricing power is weak.

Real median household income  – stagnant.

All this despite intense coordinated efforts by Central Banks to bail out member banks with debt relief and massive liquidity infusions,  Central Banks engaged in agency debt purchases, MBS purchases, sovereign debt purchases, zero-interest rate policies, stimulus programs.  All this has done little or nothing to recharge the economic system….

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“Central Banks Are Out Of Dry Powder” Stockman Warns “Another Financial Crisis Is Unavoidable” 

ZeroHedge  11-23-15 – Excerpts:

This is the final spasm of a dying bull market that has been entirely fueled by central bank money printing. But if you look at the underlying trends both in the domestic and in the global economy and the outlook for earnings, everything that matters is heading south and the real global recessionary forces are just getting started.”

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The Central Banks, however, do have one big weapon, a massive keg of dry powder they have never acknowledge – one that should have employed long ago:  aggressive targeted liquidity infusions – direct to citizens.

It is time to move.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1212)

Prins: System rigged, favoring “politically connected US and European banks”…

Global central bank policies have explicitly favored the Wall Street financial sector.  It is time to level the playing field…

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Nomi Prins: Crony Capitalism & Corruption – An Entirely Rigged Political-Financial System

ZeroHedge 11/16/2015   –  Via Jesse’s Cafe Americain,

Too big to fail is a seven-year phenomenon created by the most powerful central banks to bolster the largest, most politically connected US and European banks. More than that, it’s a global concern predicated on that handful of private banks controlling too much market share and elite central banks infusing them with boatloads of cheap capital and other aid.

Synthetic bank and market subsidization disguised as ‘monetary policy’ has spawned artificial asset and debt bubbles – everywhere. The most rapacious speculative capital and associated risk flows from these power-players to the least protected, or least regulated, locales.

There is no such thing as isolated ‘Big Bank’ problems. Rather, complex products, risky practices, leverage and co-dependent transactions have contagion ramifications, particularly in emerging markets whose histories are already lined with disproportionate shares of debt, interest rate and currency related travails.

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Prins:  “I’m talking about an entirely rigged political-financial system.”

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It is time to get the system “de-rigged.”

That means direct liquidity extensions to U.S. citizens to eliminate vast tracks of debt obligations to the banking system, particularly the large, politically-connected banks.

And here is the one and only plan to make that happen – via a Citizens Credit Facility:

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1206)

 

Highlights of America’s only true economic acceleration plan …

The Leviticus 25 Plan is the only economic plan in America that meets these goals:

All U.S. citizens are granted the same direct access to liquidity that was provided to major financial institutions (Morgan Stanley, Citigroup, Bank of America, State Street, Goldman Sachs, JP Morgan Chase, Royal Bank of Scotland, UBS AG, Deutsche Bank, Barclays Plc, Merrill Lynch, Credit Suisse Group AG, Dexia SA, Wachovia, Wells Fargo, Lehman Brothers, Bear Stearns… and scores of others) through the Federal Reserve Discount Window and funding facilities created by the Fed, including the Term Auction Facility (TAF), Commercial Paper Funding Facility (CPFF), Primary Dealer Credit Facility (PDCF), The Term Securities Lending Facility (TSLF), Single-Tranche Open Market Operations (ST OMO), the Asset-Backed Commercial Paper Money Market Funding Liquidity Facility (AMLF) and several other credit mechanisms.

All U.S. citizens are accorded equal treatment under the law governing under this Plan.  White, black, hispanic, Asian, rich poor, middle class – all offered the same opportunities and benefits.

The Plan reignites real economic growth with massive tax revenue inflows and cost savings for all levels of government (Federal, State, Local). It puts America immediately on course for balanced budgets and long term debt reduction at the Federal and State level.

It strengthens American families through rebuilding financial health and eliminating time and money stress burdens.

It reverses the dangerous course of growing government domination of the economy and control over the daily affairs of citizens.

It includes an American Health Care Freedom Plan for all who wish to participate – a plan that eliminates high-cost burdens and puts U.S. citizens in control of allocating funds directly for their individual health care needs.

It recharges free market dynamics and restores economic liberty in America.

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“He who will not apply new remedies must expect new evils.” – Sir Francis Bacon

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1199)

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Ex-GAO official: The real national debt? … $65 trillion

The real national debt, on an NPV basis (net present value) of unfunded liabilities, is beyond containment.  And it is growing worse by the month.

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The Hill  –  November 07, 2015
Ex-GAO Head: Real Debt Closer to $65 Trillion... 

Excerpts:

The former U.S. comptroller general says the real U.S. debt is closer to about $65 trillion than the oft-cited figure of $18 trillion.

Dave Walker, who headed the Government Accountability Office (GAO) under Presidents Bill Clinton and George W. Bush, said when you add up all of the nation’s unfunded liabilities, the national debt is more than three times the number generally advertised.

“If you end up adding to that $18.5 trillion the unfunded civilian and military pensions and retiree healthcare, the additional underfunding for Social Security, the additional underfunding for Medicare, various commitments and contingencies that the federal government has, the real number is about $65 trillion rather than $18 trillion, and it’s growing automatically absent reforms”…..

The former comptroller general, who is in charge of ensuring federal spending is fiscally responsible, said a burgeoning national debt hampers the ability of government to carry out both domestic and foreign policy initiatives.

“If you don’t keep your economy strong, and that means to be able to generate more jobs and opportunities, you’re not going to be strong internationally with regard to foreign policy, you’re not going to be able to invest what you need to invest in national defense and homeland security, and ultimately you’re not going to be able to provide the kind of social safety net that we need in this country,” he said.

He said Americans have “lost touch with reality” when it comes to spending.

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No, Mr. Walker. The U.S. government “lost touch with reality” when it fire-hosed trillions of dollars in direct liquidity extensions, credit guarantees, toxic debt purchases, and emergency loans to the Wall Street financial sector – to rescue them from their greed-driven stupidity.

And the U.S. government has “lost touch with reality” in its approach to allocating resources for social welfare programs.

Our $65 trillion debt signals “game over.”

It is time for a new beginning – and some old-fashioned “outside-the-box” thinking.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1193)

Schiff: “U.S. economy is slowing remarkably…” America needs a debt-quenching plan.

America is trapped in a deadly debt fire pit – and no one is thinking ‘outside the box.’

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Peter Schiff “QE’s creeping Communism” – ZeroHedge 11-3-15

The U.S. economy is slowing remarkably, and despite the continuous assertions by the Fed that rate hikes are likely in the very near future, I believe we are stuck just as firmly in the stimulus trap as Japan. The main difference between the U.S. and Japan is that Japan began this “experiment” from a much stronger economic position. Japan was a creditor nation, with ample domestic savings and large trade surpluses. In contrast, the U.S. started as the world’s largest debtor nation, with minimal savings, and enormous trade deficits. So if Japan, with its superior economic position, could not extricate itself from this trap, what hope does the United States have?
 
If the Fed is unable to raise rates from zero, it will also be have no ability to cut them to fight the next recession. So the next time an economic downturn occurs (one may already be underway), the Fed will have to immediately launch the next round of QE. When QE4 proves just as ineffective as the last three rounds to create real economic growth, the Fed may have to consider the radical ideas now being contemplated by the Bank of Japan.
 
So this is the endgame of QE: Exploding debt, financial distortion, prolonged stagnation, recurring recession, and the eventual government takeover of industry and the economy. This appears to be the preferred alternative of politicians and bankers who simply refuse to let the free markets function the way they are supposed to.
 
If interest rates were never manipulated by central banks and QE had never been invented, the markets could have purged themselves years ago of the speculative bubbles and mal-investments. Sure we could have had a deeper recession, but it also could have been much shorter, and it could have been followed by a far more robust and sustainable recovery.

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For America, there is a path back up out of the debt fire pit.

There is a plan which provides for massive debt reduction at ‘ground level’ and restores free market economics.

The liquidity flows from this plan would act as powerful debt quenching ‘blackline’ – in forest fire fighting terminology – and allow for gradual rate normalization and price discovery in the credit markets.

In the precisely the same way that  ‘back fires’ are set to eliminate combustible fuel in the advancing path of a wildfire, this economic acceleration plan would quench the explosive deflationary power of debt across all levels of society.

There is only one plan in America that returns the allocation of resources to our citizens, thereby scaling back government control over the daily affairs of the people.

This plan treats all Americans equally.  It does not confiscate wealth or redistribute income.  It does not involve big government social engineering agendas.

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The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1188)

 

Five years and trillions of dollars later – and America is still ‘limping’ along…

America is now five years past the official 2010 end of the financial crisis in America. Billions of dollars were been disbursed in government-sponsored stimulus programs (some of which actually went to Chinese solar companies), trillions of dollars have flowed into government social welfare programs and income security programs, billions of dollars in government TARP benefits flowed out to major banking institutions to allow them to unload distressed assets off their books (and in many cases, on to the Fed’s balance sheet), and massive liquidity transfusions were quietly provided to Wall Street’s financial sector, including major insurers and scores of U.S. and foreign banks.

And here’s where we’re at:

1.5% GDP in Q3 2015.

A record 94,031,000 Americans not in the labor force.

And… there are currently “896,971 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned),” according to RealtyTrac (September 2015) …

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September 4, 2015 (CNSNews.com) – A record 94,031,000 Americans were not in the American labor force last month — 261,000 more than July — and the labor force participation rate stayed stuck at 62.6 percent, a 38-year low, for a third straight month in August, the Labor Department reported on Friday, as the nation heads into the Labor Day weekend.

The number of Americans not in the labor force has continued to rise, partly because of retiring baby-boomers and fewer workers entering the workforce.

In August, according to BLS, the nation’s civilian noninstitutional population, consisting of all people 16 or older who were not in the military or an institution, reached 251,096,000. Of those, 157,065,000 participated in the labor force by either holding a job or actively seeking one.

The 157,065,000 who participated in the labor force equaled only 62.6 percent of the 251,096,000 civilian noninstitutional population — the same as it was in July and June. Not since October 1977, when the participation rate dropped to 62.4, has the percentage been this low.

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RealtyTrac September 2015 – Market Summary

There are currently 896,971 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned) ….

In September, the number of properties that received a foreclosure filing in U.S. was 0% lower than the previous month and 2% higher than the same time last year.

Home sales for August 2015 were down 56% compared with the previous month, and down 97% compared with a year ago. The median sales price of a non-distressed home was $216,500. The median sales price of a foreclosure home was $117,000, or 46% lower than non-distressed home sales.

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The Leviticus 25 Plan will revitalize powerful economic growth in America.

It will restore free market dynamics, create jobs, and eliminate negative work incentives.

It will provide debt relief on a massive scale for American families and effectively end  home foreclosure actions.

The Leviticus 25 Plan will restore economic liberty, and it will get America back up on its feet again.

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The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1186)

Nov 2015: New U.S. national debt numbers (all is not well)

$18,492,091,120,833.99 is the new official U.S. national debt number (cash basis).

And Congress, in the process, has now suspended the debt ceiling until March 2017.   So there is, for the next year and a half, no official debt ‘ceiling’ to constrict our budgetary imaginations.

And, over the course of time, by the way, this will not end well.

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162 Days Later, The Treasury Finally Updates The Total US Debt Number, And It Is…

ZeroHedge 11/3/2015 –  Excerpts:

On March 16 of 2015, the US Treasury officially hit what was then the US statutory debt limit of $18.113 trillion. At that moment the Treasury started using “emergency” measures to fund itself while the total reported debt remained unchanged and just dollars below the technical debt limit. This prompted much confusion among the punditry, leading to questions how is it that for many months the US has not updated its official debt number.

The reason is that until last Friday, the US had no official debt deal and as a result was unable to show legally the official current debt holdings.

As of Friday, this peculiar situation has been resolved following the latest deal by both parties to suspend the debt ceiling until March 2017 which also means that we finally got an updated total public debt number.

And so, after 162 work days without an update, the latest US debt number is $18,492,091,120,833.99 (yes, and 99 cents), an increase of $339.1 billion since the latest official pre-debt ceiling update. This is also 102.5% of GDP.

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Now, for the rest of the story…

On a GAAP basis, the real debt, or what is known as the Net Present Value of Unfunded Liabilities, sits up at a sky-high $127 trillion.

That is…. $127 trillion – according to a  Forbes report – January 2014.  And that is officially ‘beyond containment’  by any conventional measure.

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America needs to ‘think outside the box.

It needs to start with massive debt reduction at the family level and powerful economic growth.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1183)