Market Watch – One quarter of American families in dire financial straits….

America needs a citizens QE plan.  Soon.

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Market Watch: 1 in 4 Americans on verge of financial ruinFeb 23, 2016

According to a survey released Tuesday by Bankrate.com of more than 1,000 adults, nearly one in four Americans have credit card debt that exceeds their emergency fund or savings. And that’s partially because many people, in addition to their debt, don’t have a dime in their emergency fund at all: another Bankrate survey released earlier this year found that 29% of Americans have no emergency savings at all.

These numbers mean that many Americans are “teetering on the edge of financial disaster,” says Greg McBride, Bankrate.com’s chief financial analyst — thanks to the fact that they might be hard-pressed to pay for an emergency should one arise. “Not only do most of them not have enough savings, they’ve all used up some portion of their available credit — they are running out of options.”

That’s particularly problematic considering that emergencies happen more often than you might think. A 2014 survey by American Express found that half of all Americans had experienced an unforeseen expense in the past year — some of which could be considered an emergency. Indeed, 44% of those who had an unforeseen expense(s) had one for health care and 46% for car trouble — two items that for many Americans are must-pay items, as you need a car to get to work and your health expenses are usually not optional.

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There is one economic plan that is capable of restoring financial health for American families, while at the same time generating massive tax revenue growth for all levels of government and re-establishing fundamental freedoms and economic liberty in America:

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 2017 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2017 (1349)

 

 

Eight years, $12.3 trillion in global QE and the economic recovery benefits have been ….. ‘anemic’

Global Central Banks dispensed trillions of dollars QE credit market intervention and  sovereign debt purchases, since 2008

They rolled out the liquidity cannons to rescue the world’s banking behemoths with massive, coordinated liquidity infusions for Wall Street’s financial sector – bailing out banks and insurance companies with trillions more in derivative payouts, toxic MBS purchases, stimulus programs and various other credit facility inventions.

Eight years later:  public / private debt levels are perched up at all-time highs…. and global economic health is ‘anemic.’

And things appear likely to get much, much worse.

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637 Rate Cuts And $12.3 Trillion In Global QE Later, World Shocked To Find “Quantitative Failure”

ZeroHedge 02/12/2016 – Excerpts:

From BofA

Whether the recent tipping point was the Fed hike, negative rates in Europe & Japan, or simply the growing market dislocations and macro misallocation of resources and wealth, the deflationary theme of “Quantitative Failure” is stalking the financial markets. A multi-year period of major policy intervention & “financial repression” is ending with weak economic growth & investors rebelling against QE.

In short, monetary policies of…

  • 637 rate cuts since Bear Stearns
  • $12.3tn of asset purchases by global central banks in the past 8 years
  • $8.3tn of global government debt currently yielding 0% or less
  • 489 million people currently living in countries with official negative rates policies (i.e. Japan, Eurozone, Switzerland, Sweden, Denmark)
  • -0.92%, the most negative yield in the world (2-year Swiss government bond)

…have in 2016 led to a macro environment symbolized by…

  • BofAML’s Chief US Economist Ethan Harris cutting potential trend real GDP growth in the US to 1.75%
  • inflation expectations in both the US & Europe dropping below 2008 levels & a global profits recession
  • one of the most deflationary recoveries of all-time: in the past 26 quarters the nominal GDP of advanced economies has grown 11%

and a significant impact on Wall Street…

  • a bear market in equities (median stock in ACWI is down 28% from its highs; 45% of global stocks (1123) are down >30% from highs)
  • bear market in commodities (10-year rolling return from commodities is currently -5.1%, the worst since 1938) & credit markets
  • $686bn of market cap loss for global banks since Dec 15th – the day before the Fed hiked – and worsening global liquidity conditions, which in-turn will likely cause bank lending standards to tighten further…..

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Central Banks need to start over and ‘retarget’ their endeavors, granting direct liquidity access for citizens.

And the developed world WILL see, finally, massive debt reduction, powerful economic growth, and dynamic productivity gains:

 “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 2017 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2017 (1344)

 

Entering the ‘black hole’ vortex of global debt…

Global debt is grinding its way to every higher levels.

“Something”… will have to ‘give’… sooner or later..

Things could get chaotic when when it the ‘reset’ blows in.

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Return of Crisis

by Chris Martenson   –  Monday, February 8, 2016, 11:28 pm                                  Excerpts:

Financial markets the world over are increasingly chaotic and either retreating or plunging. Our view is that there’s a gigantic market crash in our future and it’s possible that this has started now. read more »

Too Much Debt
Our diagnosis of the fatal flaw facing the global economy and its financial systems has remained unchanged since before 2008. We can sum it up with these three simple words: Too much debt.
The chart below visualizes our predicament plainly. It has always been mathematically impossible (not to mention intellectually bankrupt) to expect to grow one’s debt at twice the rate of one’s income in perpetuity:

 

All but the most blinkered can rapidly work out the fallacy captured in the above chart. Sooner or later, borrowing at a faster rate than income growth was going to end because it has to.  Again, it’s just math. Math that our central planners seem blind to, by the way — all of whom embrace “More debt!” as a solution, not a problem.

Despite being given the opportunity to re-think their strategy in the wake of the 2008 credit crisis, the world’s central banks instead did everything in their considerable power to create conditions for the most rapid period of credit accumulation in all of history:

Lesson not learned!

The chart’s global debt number is only larger now, somewhere well north of $200 trillion here in Q1 2016.  But consider, if you will, that entire world had ‘only’ managed to accumulate $87 trillion in total debt by 2000 (this is just debt, mind you, it does not include the larger amount of unfunded liabilities). Yet governments then managed to pour on an additional $57 trillion just between the end of 2007 and the half way point of 2014, just seven and half short years later. 

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Central Banks need to think ‘outside the box’… in very short order.

And here is the only ‘outside the box’ plan anywhere – that can steer the U.S. clear of this global  black hole (note – others should follow)…:

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1338)

 

2015 U.S. economic growth came in at a stagnant 1.8%, and the biggest contributor to that snail-paced growth was…”

Economic growth in the U.S. stagnated during 2015.

Q1 came in at 0.6%, Q2 at 3.9%, Q3 dropped to 2%, and Q4 plunged back to 0.7%, for an average of 1.8% on the year.

That 1.8% GDP growth included another peculiarity.

The biggest contributor to economic growth in 2015: Personal Consumption Expenditures (PCE).

And within PCE… (drum roll…)… Health Care related spending represented a full “quarter of the growth in US personal consumption expenditures, almost 100% higher than the second highest spending category…”  And – those health care related expenditures included “Obamacare” taxes.  (Source: Zero Hedge 1/29/2016)

“And that, ladies and gentlemen, is how you convert a tax into a source of economic progress.”

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There is a better way to ‘drive’ economic growth, and that is through a citizen-directed economy.

There is also a better way to express health care spending, and that is through a citizen-directed allocation of health care resources.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1331)

 

 

 

Feb 2016: Deutsche Bank, Credit Suisse post enormous losses

The U.S. Federal Reserve extended $126 billion in direct liquidity benefits to European banking giants Deutsche Bank and Credit Suisse during 2007-2010.

The details:

Bloomberg, Nov 2011: Fed’s ‘secret liquidity lifelines’ to Wall Street

Deutsche Bank AG, Germany’s biggest bank, navigated the financial crisis without capital injections from the German government. The Frankfurt-based bank, which in 2008 reported its first annual loss since World War II, wasn’t so shy about getting liquidity in secret from the U.S. Federal Reserve. The lender tapped the Fed for $66 billion on Nov. 6, 2008 — $28.2 billion from the Term Securities Lending Facility, $21.8 billion from single-tranche open market operations and $16 billion from the Term Auction Facility….   Peak Amount of Debt on 11/6/2008:  $66 billion

Credit Suisse Group AG, Switzerland’s second-biggest bank by assets, was the biggest user of the Fed’s single-tranche open market operations, or ST OMO, borrowing $45 billion in August 2008. Under ST OMO, securities firms swapped eligible mortgage bonds for cash. The Zurich-based bank’s U.S. brokerage also used the Term Securities Lending Facility, which allowed firms to swap certain debt securities for Treasuries that could be loaned out or sold for cash….                                                                                            Peak Amount of Debt on 8/27/2008: $60.8 billion

 

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And here we are today:

ZeroHedge 2/4/2016: Deutsche Bank and Credit Suisse post massive losses

Seven days ago, Deutsche Bank turned in what various sellside desks described as “horrible”, “grim” results for both Q4 and 2015 as a whole.

The bank posted its first annual net loss since the financial crisis, reporting red ink that totaled more than $7 billion as investment banking revenue fell plunged by some 30%.

On Thursday, we learn that Credit Suisse lost nearly $6 billion in the fourth quarter. The 2015 net loss came to nearly $3 billion. 

Shares in the Swiss bank plunged 13% to their lowest levels since 1991 …..

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During the very period that the Fed was power-hosing hundreds of billions of dollars out to U.S. and foreign banking behemoths, over 14 million American families were losing their homes and millions of working Americans were losing their jobs.

America, right now, has a golden opportunity to restore financial health to American families – through the same type liquidity ‘life lines’ that were used to rescue global banking / insurance conglomerates five short years ago.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1328)

Big bank bailouts and ‘secret Fed loans’ 2007-2010

The Federal Reserve and U.S. Treasury Department ‘flushed’ billions of dollars (courtesy of tax-paying U.S. citizens) out through their big-big-bank-connected umbilical cord credit extension system during the height of the Great Financial Crisis.

The ‘biggest of the big’ made out well – and their insiders did even better.

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“Secrets and Lies of the Bailout” –  RollingStone, Jan 4, 2013 

Goldman Sachs, which had made such a big show of being reluctant about accepting $10 billion in TARP money, was quick to cash in on the secret loans being offered by the Fed. By the end of 2008, Goldman had snarfed up $34 billion in federal loans – and it was paying an interest rate of as low as just 0.01 percent for the huge cash infusion. Yet that funding was never disclosed to shareholders or taxpayers, a fact Goldman confirms. “We did not disclose the amount of our participation in the two programs you identify,” says Goldman spokesman Michael Duvally.

Goldman CEO Blankfein later dismissed the importance of the loans, telling the Financial Crisis Inquiry Commission that the bank wasn’t “relying on those mechanisms.” But in his book, Bailout, Barofsky says that Paulson told him that he believed Morgan Stanley was “just days” from collapse before government intervention, while Bernanke later admitted that Goldman would have been the next to fall.

Meanwhile, at the same moment that leading banks were taking trillions in secret loans from the Fed, top officials at those firms were buying up stock in their companies, privy to insider info that was not available to the public at large. Stephen Friedman, a Goldman director who was also chairman of the New York Fed, bought more than $4 million of Goldman stock over a five-week period in December 2008 and January 2009 – years before the extent of the firm’s lifeline from the Fed was made public. Citigroup CEO Vikram Pandit bought nearly $7 million in Citi stock in November 2008, just as his firm was secretly taking out $99.5 billion in Fed loans. Jamie Dimon bought more than $11 million in Chase stock in early 2009, at a time when his firm was receiving as much as $60 billion in secret Fed loans. When asked by Rolling Stone, Chase could not point to any disclosure of the bank’s borrowing from the Fed until more than a year later, when Dimon wrote about it in a letter to shareholders in March 2010.

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It is now time for ‘Part 2’ – granting the same direct liquidity access for U.S. citizens that was provided to major banks and insurers during 2007 – 2010.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1327)

U.S. Economy Feb 2016: Anemic growth, plunging labor force participation levels, and booming lay-offs. There is only one legitimate answer on the table: The Leviticus 25 Plan.

The Federal Reserve pumped trillions of dollars through its secret liquidity lifelines into Wall Street’s financial sector during 2008-2010. The Fed also bailed out AIG’s derivative contract counterparties – to the tune of $85 billion.  And the Fed sanitized GSE and big bank balance sheets by vacuuming up billions of dollars worth of distressed agency debt / mortgage backed securities (MBS) and parking it on the Fed’s balance sheet.

And here’s where we stand:  94.6 million working-age Americans no longer in the labor force.  Anemic economic growth.  And booming layoffs.

The Atlanta Fed’s GDPNow model …. projected that GDP grew by an anemic 0.7% in the fourth quarter of 2015. That was a drop from the model’s last prediction from December 23 that forecasted growth of 1.3%. The Atlanta Fed noted that the drop in the prediction came after disappointing net exports, construction spending, and ISM manufacturing numbers were released in the last week.

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Peak Prosperity: Mass Layoffs To Return With A Vengeance
by Adam Taggart  – Wednesday, February 3, 2016, 3:58 pm                                    Excerpts:

Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival.

Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. With those giga-tons of liquidity sloshing around, as well as taking on massive amounts of new cheap debt, companies were able to finance their working capital needs, hire workers back, and even buy-back their shares en mass to make themselves look deceptively profitable. The nightmare of 2008 soon became a golden era of ‘recovery’.

Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.

Since January 1st, here is but a subset of the headlines we’ve seen:

Note that nearly all of these companies are in the Energy, Finance and Tech sectors — the three biggest engines of growth, profits and market value appreciation within the economy over the past 7 years.

What will the repercussions be if those three industries go into contraction mode at the same time?

Whatever the specifics may be, the general answer is easy to predict: Nothing good.

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There is only one plan in America to revitalize the economy and restore economic liberty.

The Leviticus 25 Plan will pay off trillions of dollars in U.S. citizen debt obligations and recharge America’s citizen-directed economy.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                   The Leviticus 25 Plan 2017 (1324)

 

 

 

2016: Wallet-busting health care on the move…

U.S. citizens are beginning to feel the ‘big financial pinch’ from big-government health care. And it is likely to get a lot worse….

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ObamaCare’s Wallet-buster Health Plans                                                WallStreetJournal 2-1-16 – Excerpts:

[Freedom Partners Chamber of Commerce analysis]                                                        The findings: Nationally, premiums for individual health plans increased by an average of 14.9% between 2015 and 2016.

Consumers in every state except Mississippi faced increased premiums, and in no fewer than 29 states the average increases were in the double digits. For a third of states, the average premiums rose 20% or more.

Health-insurance premiums rose by more than 30% in Alaska and Hawaii; Oregon’s average rate increase was 23.2%. California’s premiums on average rose by a modest 1.5%.

Consumers in Kansas, Missouri, Iowa and Illinois faced increases exceeding 20% on average. The East Coast north of Maryland was the least hard hit (New York’s average premium increase was 6%), although Pennsylvania and New Jersey consumers faced premium increases of 14.6% and 13.1% respectively.

In 11 of the 16 states defined as southern by the U.S. Census Bureau, premiums rose by more than 10%. Premiums rose on average by 13.9%, and by more than 20% in Maryland, Delaware, West Virginia, Alabama, North Carolina and Oklahoma. In Texas, where data was only available for 98.5% of individual-market health-care plans, premiums rose by 14.1%.

Average premiums in Tennessee rose 35.2%—mostly because of the state’s largest individual-market insurer, BlueCross BlueShield of Tennessee, which sold 82% of all exchange plans in 2015. After losing $141 million on these plans last year, the company had little choice but to request average premium increases of 36.3%. The state insurance commission approved this request, lest the company leave the exchange altogether and leave 231,000 Tennesseans in the lurch.

Minnesota holds the dubious honor of having the highest year-over-year premium increases, 47.7%. Why? Because that state’s BlueCross BlueShield, the largest insurer, with over 90% of the market, lost tens of millions of dollars during the Affordable Care Act’s first two years. The company requested an average 49% rate increase, which was approved by state regulators.

Remember: These premium increases are only one piece of the health-care cost puzzle. Deductibles are also rising under the Affordable Care Act. Silver plans—the most popular on the exchanges—had average deductibles of nearly $3,000 in 2016, according to the Robert Wood Johnson Foundation. This represents an 8% increase over last year.

Millions of Americans are coming to believe that the Affordable Care Act’s costs far outweigh its benefits. In 2014, the latest year for which data is available, roughly 7.5 million Americans paid the IRS penalty rather than purchase the law’s insurance. This penalty is rising to an average $969 per household in 2016 in an attempt to force people onto the exchanges. Yet even a $1,000 fine is cheap compared to thousands—and sometimes tens of thousands—of dollars for an Affordable Care Act-compliant plan.

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Big government is not providing health care solutions.  It is expanding America’s health care problems.

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