The Leviticus 25 Plan vs ‘helicopter money’: The right way for targeting ‘ground level’ liquidity infusions vs the ‘wrong way’…

The Bank of Japan (BOJ) is rumored to ‘loading up’ policy cannons with a new $130 billion stimulus plan – that would incorporate some form of a ‘helicopter money’ liquidity option. Goldman Sachs is suggesting that the BOJ options may involve either direct purchases of Japanese Government Bonds or ‘retiring’ JGBs by rolling them into zero coupon bonds of perpetual maturity.

And now, Fed ‘hawk’ Dr. Loretta Mester is suggesting that “direct payments to households” in the U.S. may be necessary to jump-start the U.S. economy if all other options fail.

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ZeroHedge – July 23, 2016:                                                                                                 As Australia’s ABC reports, Mester, president of the Federal Reserve Bank of Cleveland and a member of the rate-setting Federal Open Market Committee (FOMC), signaled direct payments to households and  businesses to stoke spending was an option if interest rate cuts and quantitative easing fail.

“We’re always assessing tools that we could use,” Mester told the ABC’s AM program. “In the US we’ve done quantitative easing and I think that’s proven to be useful.

So it’s my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.”

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The Switzerland and Finland ‘helicopter money’ plans proposed over the past year have provided several key details into how the Fed and other Central Banks would likely design a similar basic distribution plan.

Primary details :  A monthly stipend, or guaranteed basic income payment, paid to each citizen (or ‘household’).  Amount may vary according to age of recipients.  May be means-tested.  May include a social welfare ‘offset’ of some type.

Benefits: U.S. households are having an increasingly difficult time of discharging their monthly debt obligations.  A ‘guaranteed basic income’ stipend would at least marginally relieve ‘debt stress’  burdens faced by a majority of U.S. households and provide additional discretionary income for millions of households to better manage week-to-week living expenses and other discretionary financial decisions.

Severe shortcomings:

A ‘helicopter money’ plan would have no appreciable long term effect on reducing either the national debt or the fiscal gap.

A monthly stipend would invariably keep citizens dependent upon government, and would almost certainly ‘add’ to the numbers of people dependent on government for their monthly subsistence.

Such an ongoing dependency would permit government to maintain a steady ‘control’ over the populace and would be a dangerous threat to freedom over the long run.

This type of plan does very little to effect a wholesale elimination of household debt.

A ‘helicopter money’ plan would do little, if anything, to scale back government-centered health care and provide a comprehensive, citizen-driven health care track for American families.

‘Helicopter money’ would do almost nothing to restore economic liberty for all American families.

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The Leviticus 25 Plan would manifestly reduce dependence on government. It would provide for massive debt elimination at the family level.

The Leviticus 25 Plan would generate a $1.135 trillion budget surplus for the federal government each of the first five years and would would pay for itself entirely over a 10-15 year period.  It would also provide substantive, bottom-line benefits to state and local budgets.

The Leviticus 25 Plan’s U.S. Health Care Freedom track would revitalize health care in America, by allowing citizens an opportunity for wholesale allocation of resources for their week-to-week health care needs.

The Leviticus 25 Plan would restore true financial health and economic liberty at the family level for all Americans.

The Leviticus 25 Plan is the most powerful, dynamic, freedom-centered economic acceleration plan in the world. Nothing else compares…

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1578)

 

 

 

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