“No society can surely be flourishing and happy of which by far the greater part of the numbers are poor and miserable.” – Adam Smith

The U.S. government rolled out a ‘red carpet, gold-plated bailout’ for the Wall Street financial sector during the great banking crisis of 2008 – 2010.

Public financing, $23.7 trillion worth, was rolled out in direct emergency loans, credit guarantees, toxic asset purchases, and other liquidity schemes to the very ‘players’ whose turbo-leveraged balance sheets ‘blew up’ when the default wave hit.

The big banks were resuscitated… and back to paying out billions of dollars in bonuses, in notable cases, by 2011.

Has that liquidity wave buoyed up the financial health of U.S. citizens?  Judge for yourself….

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Wall Street Journal, Dec 9, 2015                                                                               Excerpts:

A study released last year by the Brookings Institution, on whose board I serve, found that up to 40% of American households live hand-to-mouth. They spend all their available financial resources every pay period. Surprisingly, many of these people might be considered “wealthy” because at age 40 they typically hold about $50,000 of assets—but mostly in illiquid retirement accounts or home equity.

A 2011 Brookings study explored “financial fragility,” defined as the inability to muster $2,000 within 30 days to cover an unexpected expense—say, a car repair or medical bill. Half of those queried did not believe they could come up with the money. That includes almost a quarter of households making between $100,000 and $150,000.

A study released in May by the J.P. Morgan Chase Institute (JPMCI) analyzed a random sample of Chase accounts for 100,000 people. Middle-income earners—those making between roughly $40,500 and $63,000—needed about $4,800 in liquid assets to weather the volatility they regularly experienced. But they typically had only about $3,000. Similarly, 55% of Americans either break even each month or overspend, according to a March survey by the Pew Charitable Trust. Asked whether they would “prefer to have financial stability or to move up the income ladder,” 92% chose security.

One factor behind this trend is the changing nature of employment. Large numbers of jobs have been created since the crisis, but they don’t offer the security of the old ones. Positions in manufacturing and construction have been replaced with ones in hospitality or retail. Some 27.3 million people, more than 18% of workers, are currently working only part time, including 6.1 million who want but can’t find full-time jobs. Even more people, 7.4 million, hold multiple jobs.

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RealtyTrac Market Summary – November 2015:

“There are currently 909,740 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned)…”

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It is time to light up the U.S. economy and strengthen America at ‘ground level.’

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1263)

“Economic inequality” in the U.S.? We do NOT need wealth redistribution – we need The Leviticus 25 Plan..

The last thing America needs to address the burgeoning dilemma of  ‘economic inequality’ in the U.S. is a grand government-directed ‘wealth redistribution’ scheme.

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The top 10% of Americans enjoy disproportionately high share of both income and wealth in the U.S. economy… and there can be no doubt that a large percentage of people in that same privileged group, by virtue of their gold-plated Wall Street umbilical cords, benefited handsomely from the the U.S. Government (Fed, Treasury) massive Wall Street bailout extravaganzas during the 2008-2012 financial crisis and aftermath…

To illustrate the point, billionaire Warren Buffett, with his 27 percent ownership in Berkshire Hathaway enjoyed such heart-warming generosity when the U.S. Treasury Department pumped close to $100 billion into the eight financial companies under the Berkshire umbrella – courtesy of the TARP resuscitation disbursements to the Wall Street financial sector.

And Buffett’s Goldman Sachs stake paid off handsomely when the Fed covered the AIG counterparty payouts to Goldman … and then transfused billions to Goldman through various credit facilities during the financial crisis period.

(Chart accessed from OfTwoMinds blog)

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America does NOT need wealth redistribution to level the playing field, as so many liberal thinkers demand.

America needs just one thing: an economic plan that grants U.S. citizens the same access to liquidity that was provided to the wealthy and politically connected class during the 2008-2012 period.

And here is that plan:

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1260)

 

 

Big government health care – coming into full blossom…

The Affordable Care Act (ACA), better known as ObamaCare, was signed into law on March 23, 2010.  Its “…2,407 pages of text, backed up by more than 20,000 pages of regulations, are full of ambiguities and inconsistencies, leaving ample room for invention.” (WSJ 12-4-15)

Now, closing in on the 6-year anniversary of the ACA, here is how things are shaking out.

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Fall 2015 headlines:

“$19,000 Premiums, Up 4x Since Passage”: The ‘Crippling Effect’ Of Obamacare On The Middle Class

SHUT DOWN: Arizona ObamaCare co-op bites the dust

Obamacare Is A Disaster: Co-Op Insurers Across America Are Collapsing, And Now There Is Fraud

Inflation Watch: Retiree Health-Care Costs Are Soaring

Obama Promised Healthcare Premiums Would Fall $2,500 Per Family; They Have Climbed $4,865

Obamacare’s Latest Casualty: Largest Health Insurer On Colorado Exchange Abruptly Collapses

WAKE UP CALL?: Higher health care costs top concern for 2016: Fidelity

 Why The Obamacare Exchanges Are Failing

Fate of ObamaCare co-ops uncertain after half collapse

UNITEDHEALTH CEO: ‘We did not believe it would become this severe’…

 HHS: Bailing out Obamacare insurers an ‘obligation’…   

Unpleasant Surprise on HealthCare.gov: Higher Rates… 

MISSING MONEY?
$1.6B in ObamaCare funds unaccounted for, GAO says

 The Decline of Obamacare…

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Big government is not the solution.  Big government is the problem.

Decentralized health care is the solution, with U.S. citizens allocating health care resources in accordance with their own needs and desires:

The U.S. Health Care Freedom Plan – the one clean and affordable, comprehensive alternative to ObamaCare

 

 

Fed hands out billions in IOER “riskless profits” to foreign banks each year. It is time now for U.S. citizens to be granted equal access to Fed liquidity flows: The Leviticus 25 Plan.

Foreign banks with U.S. subsidiaries currently have $1.15 trillion parked with the Fed, earning what is called “interest on excess reserves” (IOER).

Over the past three years,the Fed has paid out $15 billion in IOER “riskless profits” to foreign banks.  And with the Fed’s December rate the IOER will effectively double, and foreign banks will pocket a cool $6 billion in additional IOER payments in 2016.

And if the Fed hikes three more times in 2016, as they have intimated, these handouts to foreign banks will top the $11 billion level in the year ahead…

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The Federal Reserve Will Hand Out $11 Billion In Riskless “Profits” To Foreign Banks In 2016  – ZeroHedge 12/21/2015 –  Charts / Excerpts:

The chart above shows that between early 2013 and today, foreign banks received another $9 billion in cumulative interest payments from the Fed, a grand total which now amounts to just shy of $15 billion.

And now, with the IOER doubling to 0.50%, it means that foreign banks will collect interest from the Fed at double the pace. Indeed, assuming all else is equal such as total excess reserves parked with foreign banks remaining flat at the current $1.15 trillion level, it means that just over the next 12 months, foreign banks will pocket another $6 billion, increasing the cumulative Fed cash payment from $15 billion currently to $21 billion.

[And… if the Fed raises rates one-quarter point three more times in 2016, the result will be] a riskless “profit” handout for foreign banks, subsidized by the most famous US “public” institution – the Federal Reserves – amounting to approximately $11 billion in just one year.

And since there is no plan in sight for unwinding the Fed’s gargantuan balance sheet and soaking up the trillions in excess reserves parked at both domestic and foreign banks, this handout of risk-free cash will continue indefinitely.

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The U.S. Federal Reserve is handing out billions of dollars in “riskless profits” to foreign banks – and is on course to provide even sweeter liquidity flows for those banks – with the Fed’s recent rate hike – thanks to millions of U.S. tax-paying citizens.

It is now time for millions of U.S. tax-paying citizens to receive liquidity flows of their own from that very same Fed:

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 Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                        The Leviticus 25 Plan 2017 (1256)

 

 

Reagan – on “Government’s first duty”…

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The Leviticus 25 Plan restores economic liberty.

It takes economic control away from government – that was never intended to be under the purview of government, and returns that control back to the citizens of the United States of America.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1254)

 

The U.S. Health Care Freedom Plan – the one clean and affordable, comprehensive alternative to ObamaCare

The Affordable Care Act (ACA) has been an extraordinarily expensive, red-tape laden, ineffective, inefficient, freedom-robbing, boondoggle.. of colossal proportions.

There is one comprehensive, citizen-centered healthcare plan in America that ‘resets’ the health care industry in a way that is clean, efficient and responsible.  Most importantly, this plan restores individual freedom and liberty for all participating Americans.

1.  Each U.S. citizen who wishes to participate will be granted a full and complete  exemption from the ACA.

2.  This plan offers freedom of choice and equal justice for all.

3.  Each U.S. citizen participant will receive a credit extension, through a special Federal Reserve Citizens Credit Facility, of $25,000, electronically deposited into a Medical Savings Account (MSA) – for direct allocation toward family health care needs.

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1.  The U.S. Health Care Freedom Plan is open to each and every U.S. citizen – with no mandates.

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Exemptions:                                                                                                                        The ACA currently offers hardship exemptions for individuals who have a recognizable inability to pay for a plan or pay the penalty.  The ACA also currently offers exemptions from certain provisions within the health care law, such as the reinsurance provisions, for various union organizations.

And certain U.S. Territories are exempt from specific ACA measures:                             The Hill, 7-17-14:  “Insurance companies in Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands are no longer required to implement a number of ObamaCare measures such as the community rating system, a single-risk pool, the medical loss ratio or guaranteed benefits.”

2.  The U.S. Health Care Freedom Plan – offers equal justice for all – and freedom of choice.                                                                                                                                 Any U.S. citizen desiring a full exemption from the ACA will be granted a full and complete exemption.  Exemptions from various ACA provisions and coverage mandates will not be limited to politically connected groups, hardship cases, or geographically diverse areas.

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Administrative costs – bureaucracy:                                                                                The Federal government has spent hundreds of billions of dollars to construct the monstrous ObamaCare ‘machine.’

Billions of dollars have been spent on the roll out costs, insurer subsidies, management, monitoring, advertising, technical ‘fixes,’… you name it.

There will be hundreds of billions of dollars yet to come with legal costs/prosecution, audits, regulatory costs/burdens, and much, much more.

News headlines from the past 2 years:                                                            Obamacare Adds 3,322 Pages of Regs to $234 Billion Tax Complexity Burden…

Obamacare Website Costs Top $1 Billion

Bloomberg’s Peter Gosselin finds, looking at the full range of ACA-related contracts for just 10 firms, more than $1 billion worth of contract awards. Perhaps even more mind-blowing is that more than one third of the funds going to the top contractors working on the federal exchanges were awarded in the last six months

Analysis: Feds gave states $4.4B for ObamaCare exchange site rollouts

TAX DOLLARS FOR NFL TEAM TO PROMOTE OBAMACARE…

HHS plans to spend up to $7B — to cut costs…

Administration spends $17 million a month on paid advertising…

REPORT: Taxpayers Shell Out $14,000 per Obamacare ‘Enrollee‘…

Feds Spend Another $20M on Healthcare.gov…

None of these hundreds of billions of dollars have had anything to do with “you” getting direct access to health care… and allocating resources directly for medical attention that you need and desire for your family.

3.  U.S. Health Care Freedom Plan – grants direct access to liquidity for U.S. citizens to allocate directly – for their health care needs:
The sum of $25,000 would be electronically deposited into a family’s Medical Savings Account for each participating family member under a new U.S. Health Care Freedom plan. These qualified accounts, opened through participating financial institutions, would allow families the freedom to allocate their healthcare dollars in a manner that best meets their needs.

Participating families would be granted exemption status from Affordable Care Act and allowed to allocate their own health care resources. Families would be allowed to enroll in high-deductible ($10,000 – $15,000) major medical plans, which would substantially lower costs for consumers and employers. Employers would be allowed to share cost savings employees through incentive-based employer MSA contributions under the

U.S. Health Care Freedom Plan provisions.
Qualifying medical policies must include a primary option that allows families the freedom to select a basic, no-frills, major medical plan with optional coverage riders (e.g. alcohol treatment coverage, mental health counseling, etc.), only as desired on a family-by-family basis. Policies would not be automatically loaded with expensive government healthcare mandates.

Premium costs would be dramatically lower with the high-deductible feature and the elimination of expensive government mandates.

Families would pay directly (MSA debit card) for normal, day-to-day healthcare purchases, up to a level of $5,000 per single family member, for example, to $10,000 or $15,000 per family of four. Health care would not be under the ‘management’ and control of a big government bureaucracy. Insurance coverage would be in place for major medical expenditures above the deductible trigger.

With the elimination of millions of minor insurance claims across the nation over the course of each month, system-wide efficiency would improve, medical costs would drop significantly, and the direct patient-provider relationship would be restored. Medical professionals would not have to answer to HMOs, insurance companies, or government agencies in providing basic day-to-day healthcare access for their patients.

Those with extraordinary medical issues may be included in a high-risk category, with such plans being eligible for a government subsidy (similar to current Medicare Advantage).

Individuals enrolled in Medicare / Medicaid / VA / TRICARE / FEHB programs would be required to pay an annual deductible ($5,000 per year per enrolled family member) for a period of five years for those benefits. The dedicated MSA funds would fully fund the offset for the higher ($5,000) deductible feature. MSA funds could also be used to pay Medicare supplement premiums and other potential co-pay obligations.

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If all 300 million U.S. citizens were to participate in the plan, the total dollar transfer into family-based Medical Savings Accounts (MSAs) would amount to $7.5 trillion.

The potential cost savings from the $5,000 deductible provision for the ~150 million people currently enrolled in Medicare, Medicaid, VA, TRICARE, and FEHB would amount to   $3.75 trillion over the first 5 years (or, one-half the $7.5 trillion initial roll out cost).

This plan would generate trillions of dollars in cost savings, fraud-cutting,improved efficiency.  It would improve quality and ease of access to health care for all participating Americans.

For patients: It would dramatically lower the cost of health care, while improving quality and access for all who chose to participate.

For providers:  It would restore the patient-provider relationship and significantly reduce massive cost and time burdens imposed by a centralized system.

The U.S. Health Care Freedom Plan an integral part of a larger, comprehensive economic plan:

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1249)

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December jobs report – the story behind the numbers: 319,000 part-time jobs…

Big government central-planning has been exercised enthusiastically in America for at least the past eight years.

Economic growth remains anemic (Atlanta Fed GDP Now forecast for 2015 Q4: 1.9%)

The U.S. labor market – 94.5 million working-age Americans are officially ‘outside’ the labor force.  The Labor Force Participation Rate (62.4%) is sitting on a 37-year low:

And the December jobs report, heralded for creating 211,000 new jobs, shows an entirely different picture when you analyze the reports more closely.

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Where The Job Gains Were: 319,000 “Part-Time Jobs For Economic Reasons” Added

ZeroHedge 12/04/15  Excerpts:

On the surface, the December jobs number was better than expected, adding a 211,000 jobs at least according to the Establishment survey. However, a less pretty picture emerges when looking at the Household survey, and specifically the composition of full-time vs part-time workers.

This is what the BLS said about the composition of job additions from the Household Survey:

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 319,000 to 6.1 million in November, following declines in September and October. 

For those unfamiliar, this is a category of workers that includes “individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.”

As such this includes far more than merely workers hired on a temporary basis by retailers to fill seasonal worker needs.

Furthermore, this 319K increase in part-timers for economic reasons more than accounts for the total increase in employed workers according to the Household survey, which rose by 244K to 149,364,000.

Charted, it shows that the November jump was the highest since September 2012.

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Big government central-planning is a proven failure.  It is not the solution.

The time is now for a new economic plan for America – that reduces the scope and control of government over the economic affairs of our country … and over the daily lives of citizens.

There is one plan, and one plan only that delivers.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1245)

 

 

Schiff: Debt-choked America headed toward “collapse”… believes it is “too late to do anything about it”

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Peter Schiff – Future Money Trends, Dec 5, 2015  

Excerpts:
We’re broke. We’re basically living off of debt. We’ve had a huge transformation of the American economy. Look at all the Americans now on food stamps, on disability, on unemployment.
The whole economy has imploded… the bottom hasn’t dropped out yet because we’re able to go deeper into debt. But the collapse is coming.
I read a statistic… The average American has less than a $5000 net worth… it’s pathetic… we’re basically broke… but in fact it’s much less… If you actually took the national debt and broke it down per capita, the average American has a negative net worth because the government has borrowed in his name more than the average American is able to save.
The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.

And then the party is going to come to an end.

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But look around. A lot of bad stuff has happened. We just haven’t had the final and complete collapse. But what good is it when that happens? Now it’s too late to do anything about it.

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Peter Schiff makes a powerful argument… except for his final statement, “Now it’s too late to do anything about it.”

It is not “too late” to do anything about it.

There is one plan that eliminates debt at ground level – vast swaths of mortgage debt, consumer debt, college loan debt,

There is one plan that will dramatically reduce the scope of government control over the daily affairs of citizens and unleash the power of free market dynamics.

This plan generates immediate, massive government surpluses and pays for itself over a 10-15 year period.

It is not “too late” to act.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1242)

 

 

October Treasury auction – 3-month bills ring out at 0% interest

October 5, 2015:  After trillions of dollars of liquidity benefits for major Wall Street banks and insurers, courtesy of the Fed (and by extension, U.S. citizens), the Treasury pushed out $21 billion in 3-month bills in their Oct 5, 2015 auction.

Is this a sign of economic health?

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Financial Times:

However, that is not the first time. Since 2008, the US government has held 46 Treasury-bill auctions where yields have been zero.

The next step after zero is negative… and it’s becoming a real possibility. Welcome to the European model of starving savers to death!

The implications for investors are monumental.

Ask yourself, what would you do with your money if your bank started to charge you to deposit it there? Would you pay hundreds, perhaps thousands of dollars a year just to keep your money in a bank?

Option #1: Hold your nose and pay the fees.
Option #2: Move those dollars into the stock market; perhaps into dividend-paying stocks.
Option #3: Buy real estate; perhaps income-generating real estate.
Option #4: Invest in collectibles, like art or classic cars.
Option #5: Stuff your money under a mattress.

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America needs a restart.  One that reinvigorates financial health at the family level, and all across main street America.

The elimination of vast swaths of consumer and corporate debt is critical for any move toward rate normalization.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1236)

 

Finland hits the economic ‘bulls-eye’ – floating powerful ‘Leviticus 25 Plan’ dynamics..

The nation of Finland is proposing an economic acceleration plan that bears key similarities to the powerful dynamics of The Leviticus 25 Plan.

Finland is proposing to extend liquidity (€800, or approximately $1,000 per month) to every citizen.  That is every citizen, regardless of any other income.

All citizens are treated the same.  Exactly like The Leviticus 25 Plan.

The monthly liquidity extensions are tax-free.  Exactly like The Leviticus 25 Plan.

The payments would “replace all other benefits payments.”  Very similar to The Leviticus 25 Plan.

The Finland proposal shifts from a system centered on ‘government allocation of resources’ to one centered on a ‘citizen-based allocation of resources.’

Freedom is on the march in Finland…

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The Telegraph, 6 Dec 2015Finland considering giving every citizen $1,000 a month..

“Authorities in Finland are considering giving every citizen a tax-free payout of €800 (£576) each month.

Under proposals being draw up by the Finnish Social Insurance Institution (Kela), this national basic income would replace all other benefit payments, and would be paid to all adults regardless of whether or not they receive any other income.

Unemployment in Finland is currently at record levels, and the basic income is intended to encourage more people back to work. At present, many unemployed people would be worse off if they took on low-paid temporary jobs due to loss of welfare payments.

More than 10 per cent of Finland’s workforce is currently unemployed, rising to 22.7 per cent among younger workers….”  Continue

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The time has come for America.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                   The Leviticus 25 Plan 2015 (1232)