Volker and Peterson: “Why the Fed can’t raise rates”… and why their despair is ingenuously misplaced

Paul Volcker and Peter Peterson in the NYT, depicted the long term debt-laden ‘fiscal realities’ facing the U.S. as… fundamentally insurmountable.

Volker and Peterson do not have their free-market ‘thinking caps’ on.

Their analysis is not true at all when bold, fresh, outside-the-box thinking is applied.


ZeroHedge 10/23/2016: “Volker explains why the Fed can’t raise rates”

“The widely respected Congressional Budget Office has estimated that by midcentury our debt will rise to 140 percent of G.D.P., far above that in any previous era, even in times of war.”

US debt continues to grow, and as of Friday hit an all time high of 19,785,585,189,878.12, just $214 billion away from a nice, round $20 trillion…


 “Our current debt may be manageable at a time of unprecedentedly low interest rates. But if we let our debt grow, and interest rates normalize, the interest burden alone would choke our budget and squeeze out other essential spending. There would be no room for the infrastructure programs and the defense rebuilding that today have wide support.”

US government debt is just a tiny fraction of total US liabilities and future obligations. How tiny? As the following chart from Bridgewater shows, it is less than 10% of the massive stack of US obligations that amount to well over 1,100% of GDP!

 “A realistic approach toward the major entitlement programs is required…. [and] we face an immutable fact. Fair and responsible [entitlement and tax] reforms will take years to implement.


Volker and Peterson are viewing the world through their green-visored Central Banker eye-shades, jointly contending that a new, tough-minded, bare-bones, long-term government plan is the only possible answer to our debt-swamped fiscal future.

Government-orchestrated ‘solutions’ have done nothing curb the growth of public and private debt in America over the past 50 years.  Why should we think now that a new government-driven solution, drowning in political side-deals, would ever provide even a shred of benefit to our current debt crisis.

We need a bold, fresh, ‘outside-the-box’ solution.  And there is just such a solution, warmed up and ready to launch.

The Leviticus 25 Plan is a dynamic, free market economic growth acceleration plan with the raw power to generate massive government tax revenues and restore financial stability and economic liberty for millions of American families.

The Leviticus 25 Plan reduces dependence government, providing opportunity for millions of Americans to get their lives back in order, so that they no longer need social welfare benefits.

The Leviticus 25 Plan sets America back on course for balanced budgets and fiscal stability: The Leviticus 25 Plan: $1.135 trillion federal budget surpluses each year (2016-2020)

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1738)


October 2016: Velocity of M2 money collapsing; U.S. corporate debt on recession track; real median household income gliding along in extended ‘stall’ pattern

U.S. economic policy has robbed us of our economic freedoms.  It has mired our economic engine down with massive debt loads, regulatory disincentives and socialist central-planning goals.

We are headed for the fiscal cliff…


The St. Louis Fed shows velocity (turn-over) of M2 money stock decelerating down to multi-decade lows…

M2 money velocity


The Daily Shot – corporate debt…:

Real (inflation adjusted) Median Household Income levels are pathetically weak… no gains in over  16 years… .



 Federal Reserve and U.S. Treasury ‘central planning’ strategies have been a miserable failure. 

They have pumped trillions of dollars out into the banking system and other favored financial and political entities over the past 9 years… and the U.S. economy is limping along at barely 1.6% GDP growth.

The Fed’s M2 velocity of money stock has plunged down to 60-year lows. Corporations are mired in debt.  U.S. households are financially stalled.

There is one powerful, dynamics-driven, comprehensive economic plan that can get America out of this disgraceful mess.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                    The Leviticus 25 Plan 2017 (1735)



Central Bank QE strategies powerless against global debt explosion. There is one way out: The Leviticus 25 Plan

Central Banks ramp up QE (government bond purchases) to all-time highs…..

The Daily Shot Oct 17, 2016:.

…While global debt explodes to an all-time record high $152 trillion…

ZeroHedge Oct 5, 2016The IMF Sounds An Alarm As Global Debt Hits A Record $152 Trillion Or 225% Of World GDP


Global Central Bank monetary policy strategies are a dead end bust… and will end in outright financial chaos.

There is one, and only one way out: economic liberty and massive debt elimination.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                              The Leviticus 25 Plan 2017 (1732)

Global economies headed for another major cliff-dive, financial risk levels – “enormous.” Solution: The Leviticus 25 Plan

Global Central Banks have pumped trillions of dollars in liquidity out through their favored channels – global heavyweight banking institutions and sovereign debt purchases – over the past nine years, and the results have been appalling.

Excessive ‘all sectors debt’ levels are suffocating the system.  Economic growth is pathetically weak. Government-driven social welfare programs are draining away energy and resources and leaving societal dysfunction in the wake.

There is a new, powerful economic plan to get America back up and running again.        It is up and ready to go.


El-Erian Warns Of “Enormous Risk In Public Markets… Better Seller Of Stocks Than Buyer”   – ZeroHedge – Oct 20, 2016

Allianz’ Mohamed El-Erian warns “the probabilities are now starting to tip in the likelihood of a bad outcome.”  Simply put, El-Erian explains that financial markets have “decoupled” from the economic problems of the world leaving “enormous risk in public markets because that’s the one that central banks have distorted to the greatest extent.”

They’ve been conditioned to believe, over and over again, that central banks can shield them,” he said.

While there’s a chance that economic fundamentals will improve and validate asset prices, a more likely scenario is that valuations will decline and lead to financial instability, he said.

“The probabilities are now starting to tip in the likelihood of a bad outlook.


The looming dangers of Central Bank-induced “financial instability” and a “bad outlook” spell trouble, once again, for millions of American families.  If the next financial crisis is anything close to the 2007-09 crisis, millions of American jobs will be affected, with the potential for several million families suffering through home foreclosures (4.2 million families lost their homes during 2008-12).

It is time to grant U.S. citizens the same access to liquidity to clean up their debt burdens that was provided to major banking institutions during the last financial crisis.

It is time for a citizen-centered solution – to restore financial stability for ground level Americans and insulate them from the next major storm.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1726)

Former Central Banker: “Massive interventions” render the system susceptible to “wild price swings” in which “Investors and investment groups will be wiped out…”

Alex Weber, former head of Germany’s Bundesbank, and now CEO of UBS has recently warned that Central Bank ‘interventions’ in credit markets are setting the stage for what could easily end sparking catastrophic ‘disturbances’ in global financial markets.


Alex Weber: “The Real Danger in Finance”  –  ZeroHedge Oct 17, 2016

“They (central banks) have taken on massive interventions in the market, you could almost say that central banks are now the central counterparties in many markets. They are the ultimate buyer…” 

“So I think the central bankers need to be very careful that they do not continue to produce disturbances in the markets, which they acknowledge – it’s a known side effect – but the perception that the underlying impact of monetary policy outweighs the potential side effect in my view is starting to be wrong…”

“I don’t think a single trader can tell you what the appropriate price of an asset he buys is, if you take out all this central bank intervention…” 

[Investors] now face an unpredictable and unfathomable world….the real danger in finance is … that investors and investment groups will be wiped out by wild price swings from an unexpected political shock… 

This is just one banker’s view. But it comes from a man who has been at the centre of the system for decades and is not a natural alarmist. Investors, in other words, would ignore this three-part list at their peril. So would Weber’s former colleagues — at central banks.   read more here…


This is a critical period in global finance, with market pricing distortions spearheaded by Central Bank interventions in major financial markets.

It is time to reset the dynamics with a citizen-centered economic acceleration plan, a true, power-house economic plan that eliminates debt at ground level and restores economic liberty.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2017 (1721)


The Leviticus 25 Plan: $1.135 trillion federal budget surpluses each year (2016-2020)

The Congressional Budget Office Baseline Budget Projections: 2016 to 2020 forecasts the following annual budget deficits for each of the next five years:                                       2016: -$544 billion;                                                                                                                  2017: -$561 billion;                                                                                                                  2018: -$572 billion;                                                                                                                  2019: -$738 billion;                                                                                                                  2020: -$810 billion.

These deficit projections yield an average annual budget deficit of $645 billion for each of the next five year.

The Leviticus 25 Plan generates a total government recapture benefit over the first five years of the program (federal income tax refund recapture plus spending recapture) of $8.904 trillion, for an average of $1.78 trillion per year.

The Leviticus 25 Plan recapture provisions thereby generate an average annual budget surplus over the next five years of $1.135 trillion per year ($1.78 trillion – $645 trillion), which will then be used, in turn, to reduce the Federal Reserve Citizen Credit Facility balance sheet from the initial expansion event.

The Leviticus 25 Plan is unquestionably the most powerful economic acceleration plan in America.  It is the only economic plan that pays for itself over 10-15 years.


The scoring model assumes that at least 80% of U.S. citizens will participate in The Plan.


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 five years) will provide for a massive revenue recapture. The IRS reported issuing 109,171,000 refunds, totaling $304.001 billion for 2015 (through November 2015).

Income tax refund recapture:                                                                                             $304 billion X 80% participation = $243.2 billion / year for five years for a total of $1.216 trillion.

A proportional amount of this revenue would be transferred back to the Federal Reserve each year to reduce the $18.0 trillion balance sheet expansion of the Fed-based Citizen’s Credit Facility.

Aside from the ‘recapture revenues,’ the debt reduction benefits would lead to the elimination of major sums of mortgage / HELOC interest-expense deductions and with significant health care deductions, which would generate considerable new federal and state tax revenue.

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

A. Means-tested welfare programs – assumes 80% participation by participants
Total “means-tested welfare spending” (federal, state) reached the $927 billion level in 2011. This is projected to reach the $1.6 trillion level in the year 2022.

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

Note: Medicaid cost savings is a factor of $5,000 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. CBO analysis projects that Medicaid “average monthly enrollment is expected to increase from 58 million in 2013 to 73 million in 2024.”

The cost savings under The Leviticus 25 Plan would be substantial.

B. Medicare savings – assumes 80% participation from Medicare recipients

In 2011 49.4 million Medicare beneficiaries collected approximately $564 billion in benefits “Americans paid $274 billion in Medicare taxes and premiums,” resulting in a deficit of approximately $290 billion. “Looking into the future, even the most optimistic estimate by the program’s trustees puts Medicare’s future unfunded liabilities at more than $38.6 trillion. More realistic projections suggest the shortfall could easily top $90 trillion” (CATO – Aug 24, 2012).

A 2011 GAO report estimated “$60 billion to $90 billion in fraudulent claims paid out each year.”

There are approximately 54 million enrolled Medicare beneficiaries in 2015, and that number is projected to grow to 64.9 million by 2020. Those numbers are expected to expand to 70 million by 2025 and to 77 million by 2030.The Plan’s recapture provision incorporates a $5,000 deductible per participant per year for Medicare eligible expenses.

Cost savings over the course of the 5-year ‘recapture’ period: 59.5 million Medicare recipients (projected average/year for the next 5 years) X 80% X 5 years X $5,000 deductible = $1.19 trillion.

Note: The Plan also assumes that with individual Americans managing the first $5,000 of their Medicare eligible expenses, fraud, overcharges/billing errors would be reduced.

C. Federal Employees Health Benefits Program (FEHB) – assumes 80% participation.
This health care program for civilian government employees (including Congress) and their dependents covers approximately 8.2 million insured at any given time. $5,000 deductible for FEHB eligible expenses that would be a direct cost to the government.
Cost savings over 5-year recapture period: 8.2 million X 80% X $5,000 X 5 years = $164.0 billion

D. VA Healthcare savings – assumes 80% participation from VA Priority Group members.
$5,000 deductible for VA eligible expenses that would be a direct cost to the VA.
Veteran’s participation noted in Priority Groups (2014):
1, 2, 3, 4, 5, 6, 7A, 7C, 8A, 8B, 8C, 8D, 8E, 8G = 5,586 million enrollees plus 305,000 non-veteran recipients
Cost savings over 5-year ‘recapture’ period: 6.16 million X 80% X $5,000 X 5 years = $123.0 billion

E. TRICARE – healthcare program for service members, retirees and dependents
Cost savings over 5 years: 9.5 million recipients X 80% X $5,000 X 5 years = $190.0 billion

F. Supplemental Security Disability Income (SSDI) – participants are ‘off’ SSDI.
The Plan assumes 80% participation of the approximate 12.2 million disabled beneficiaries and non-disabled dependents who received total payments of $132.64 billion during 2014.
Cost savings over 5-year recapture period: $132.64 billion X 80% X 5 years = $530.56 billion

G. Supplemental Security Income (SSI) – participants are ‘off’ SSI. The Plan assumes 80% participation of the current 8,335,457 recipients receiving $54.693 billion (2014).
Cost savings over 5 years: $54.693 billion X 80% X 5 years = $218.8 billion

H. Unemployment benefits – assumes 80% participation / $111.6 billion in payouts per year.

Unemployment benefits ($319 billion 2008-10) – $106 billion / year
Federal government has paid $109 billion of that bill.

Liabilities: 31 states have $41 billion in loans outstanding to cover unemployment
insurance payouts – a figure that is expected to rise further through 2015.
Extended federal unemployment benefits (~$56 billion over 10 years) – $5.6 billion/year
Cost savings over the 5-year ‘recapture’ period: $111.6 billion X 80% X 5 years = $446.4 billion

Miscellaneous savings:
I. Stimulus bill – Additional stimulus bills would not be needed.

J. Corporate welfare – current $250-$300 billion / year.
Cutting 125 programs (Cato) would save taxpayers $85 billion per year.
Cost savings over 5 years: $85 billion/year X 5 years = $425 billion


Total from Recapture Provisions:

The Leviticus 25 Plan total recapture benefits over the first five years of the program (Income tax refund recapture plus A thru J above): $8.904 trillion, for an average of $1.78 trillion per year.


The Leviticus 25 Plan – primary scoring assumptions

The Plan assumes an 80% participation rate by U.S. citizens. Wealthier Americans would likely not participate, due to the size of their refunds. Certain individuals in the lower socio-economic sector would not participate, due to high benefits profiles that they would not want to give up.

The Plan assumes that participating families would use significant funds to pay down / eliminate debt and that the ongoing benefits of this debt reduction would flow to families and to federal, state, and local government entities (as tax revenue) for several decades beyond the event.

The Plan assumes that dynamic new efficiencies would emerge in the healthcare system – with more families managing/directing healthcare expenditures through their MSAs.

The Plan assumes that apart from the recapture provisions, there would be significant new general tax revenues growth for federal, state and local government entities. This would develop from free-market economic revitalization, more people working and paying taxes, and from the elimination of various income tax deductions (e.g. mortgage / HELOC interest expense).

The Plan assumes that there would not be a massive full-scale move back into the means-tested welfare programs, income security programs, SSDI, unemployment insurance at the end of the initial 5-year recapture period.

The benefits of a free market economy and newfound economic liberty for American families would provide positive economic inertia throughout years 5-10, and for many years beyond.

Recapture provisions would provide an estimated $8.904 trillion return over the initial 5-year period. Economic growth over the following 10 years would generate significant additional tax revenues for both federal and state governments.

Significant inertia from The Plan would also provide on-going, market-based growth benefits over succeeding years that far exceed any prospect for healthy economic growth that may be expected under America’s current big-government, central-planning approach.

These additional benefits would be generated from:

Massive liquidity gains and debt reduction at the family level.

Immediate, sweeping reversal of government “central planning” approach.

Major reversal in work disincentives embedded in social welfare program structures.

Economic growth, improved productivity and job creation.

Stabilization of housing market.

Strengthening bank capitalization.

Minimizing the role of government in managing, directing, and controlling the affairs of


“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 (1714)

The Leviticus 25 Plan: Paving the way for balanced budgets, tax cuts, and financial freedom for all Americans

America is taxing and spending itself into the poor house.

There is a way out…


The 10th Man –  Jared Dillon, Oct 13, 2016                                                          Excerpts:

“Who has the highest tax rates in the world?  The US is close to the top.                     The top marginal income tax rate at the federal level is 39.6%……

But you have to take into account state income taxes, too. California is the highest, at 13.3%. Some municipalities and counties also have income taxes. When you take into account New York state and city income taxes, it’s also about 13.3%…..

We now pay a 3.8% surtax on investment income, which was intended to fund Obamacare…..

We also pay payroll taxes of 6.2% for the employee and 6.2% for the employer on the first $118,500 of income, plus Medicare taxes of 2.9%, 1.45% for the employee and 1.45% for the employer. Economically speaking, the employee pays both.

In some localities (like New York), there is something called an “unincorporated business tax,” or UBT, so if you have an LLC or sole proprietorship, you pay another 4% on your net business income.

[Property taxes] In high-tax jurisdictions like New York, New Jersey, Connecticut, or Illinois, you can easily have a tax burden of $20,000 annually on a middle-class home. I have heard that property tax bills of $50,000 to $70,000 are pretty common. Nobody takes this into account in the global comparisons.


Here’s more:  A List of 97 Taxes that Americans Pay Every Year


Big government bean-counters and economic apparatchiks undoubtedly lay awake at night, dreaming of new ways to raise existing taxes and develop creative, stealthy new taxes to extract more money from hard-working Americans.

Americans have had enough. We are spinning our wheels and spiraling ourselves ever deeper into a cavernous debt hole.

There is one economic acceleration plan in America with the power to generate massive revenue growth for Federal, State, and Local governments and pave the way for meaningful tax cuts at all levels of government.

It restores economic liberty and reduces dependence on government.

The Leviticus 25 Plan is a budget-balancing powerhouse with dynamic financial benefits for each and every American family.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                              The Leviticus 25 Plan 2017 (1711)

Fall 2016: U.S. central planning and the slide into economic despair

For the majority of U.S. citizens, the economic recovery has been a full-fledged counterfeit recovery.


7 in 10 Americans have less than $1,000 in their savings account.

ZeroHedge –  Oct 10, 2016 – Submitted by Joseph Jankowski via PlanetFreeWill.com, Excerpts:

From USA Today:

Last year, GoBankingRates surveyed more than 5,000 Americans only to uncover that 62% of them had less than $1,000 in savings. Last month GoBankingRates again posed the question to Americans of how much they had in their savings account, only this time it asked 7,052 people. The result? Nearly seven in 10 Americans (69%) had less than $1,000 in their savings account.


Breaking the survey data down a bit further, we find that 34% of Americans don’t have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.


Here are some more shocking statistics that prove the U.S. is NOT in a recovery and average Americans are struggling to make ends meet.

Courtesy of Michael Snyder of the Economic Collapse Blog:

Other numbers from the U.S. Census Bureau are also very disturbing.  For example, in 2007 about one out of every eight children in America was on food stamps.  Today, that number is one out of every five.


– 46 million Americans use food banks each year, and lines start forming at some U.S. food banks as early as 6:30 in the morning because people want to get something before the food supplies run out.


The number of homeless children in the U.S. has increased by 60 percent over the past six years.


According to Poverty USA, 1.6 million American children slept in a homeless shelter or some other form of emergency housing last year.


Police in New York City have identified 80 separate homeless encampments in the city, and the homeless crisis there has gotten so bad that it is being described as an “epidemic”.


If you can believe it, more than half of all students in our public schools are poor enough to qualify for school lunch subsidies.


According to a Census Bureau report that was released a while back, 65 percent of all children in the U.S. are living in a home that receives some form of aid from the federal government.


An astounding 45 percent of all African-American children in the United States live in areas of “concentrated poverty”.


– 40.9 percent of all children in the United States that are being raised by a single parent are living in poverty.
There are simply not enough good jobs to go around anymore.  It may be hard to believe, but 51 percent of all American workers make less than $30,000 a year.


There are 7.9 million working age Americans that are “officially unemployed” right now and another 94.7 million working age Americans that are considered to be “not in the labor force”.  When you add those two numbers together, you get a grand total of 102.6 million working age Americans that do not have a job right now.


Owning a home has traditionally been a signal that you belong to the middle class.  That is why it is so alarming that the rate of homeownership in the United States has been falling for eight years in a row.


At this point, 25 percent of all Americans have a negative net worth.  That means that the value of what they owe is greater than the value of everything that they own.



The economic strategies advanced by the U.S. government and the Federal Reserve over the past 10 years have failed miserably for main street America and working class citizens and their families.

U.S. economic growth is anemic, all-sectors debt is mushrooming, incentives for ‘work’ and economic gain have been undermined, economic liberty has been subverted, and the U.S. health care system is slipping rapidly into a state of chaotic dysfunction.

America needs a new economic plan, one that reignites the fires of citizen-directed, free market economics.

The Leviticus 25 Plan 2017 –  $75,000 per U.S. citizen                                             The Leviticus 25 Plan 2017 (1706)

Adjusted Net Pension Liabilities (ANPL) exploding at state level – pension cuts loom

Massive pension underfunding is reaching critical levels in the states of Illinois, Connecticut, Alaska, Kentucky, and New Jersey.  The underfunding problem is a growing concern in all but two of the remaining states.


ZeroHedge 10-10-2016 –  “State Pensions … Likely to Enforce Benefit Cuts”

A new research note from Moody’s…:

 Total US state aggregate adjusted net pension liabilities (ANPL) totaled $1.25 trillion, or 119% of revenue in fiscal 2015, Moody’s Investors Service says in a new report. The results, based on compliance with new GASB 68 accounting rules, set a new ANPL baseline and are poised to rise for the next two fiscal years as market returns fall below annual targets.
The median return for public pension plans in FY 2016 was 0.52% compared to an average assumed investment return of 7.5%,” Moody’s Vice President — Senior Credit Officer Marcia Van Wagner says. “We project that aggregate state ANPL will grow to $1.75 trillion in FY 2017 audits.
The states with the highest pension burdens — measured as the largest three-year average ANPL as a percent of state governmental revenue — were consistent with previous years. Illinois topped the list with pension liabilities at 280% of total governmental revenue, followed by Connecticut (Aa3 negative) at 209%, Alaska (Aa2 negative) at 179%, Kentucky at 162%, and New Jersey at 157%.
The costs of government pension and retirement health benefits are expected to rise rapidly in coming years.  Governments have promised their  workers generous retirement benefits, but most states have not put enough money aside to pay for them.  As a consequence, state and local governments will either have to cut benefits in coming years or impose higher taxes.

Per the following chart, many states have racked up over $20,000 of liabilities per capita, a level from which it will be very difficult to recover absent benefit cuts, massive tax hikes and/or a federal bailout.

Debt, Pension, OPEB

But, as the CATO Institute points out, the pension crisis is likely much worse than what most auditor reports would suggest because discount rates of 7.4% are unreasonably high.  CATO estimates that reducing the discount rate from 7.4% to 2.7% would increase state pension underfunded liabilities from $1.2 trillion to $3.4 trillion.

 Pension shortfalls are actually larger than these figures indicate.  Those are the officially reported figures, but financial experts think that the discount rates used to report pension liabilities are too high.  Higher discount rates reduce reported liabilities and create an overly optimistic picture of pension plan health.
In his study, Rauh recalculated pension plan funding using a 2.7 percent discount rate, rather than the official average rate of 7.4 percent.  His    recalculated  unfunded  liability jumps from $1.2 trillion to $3.4 trillion.  Similarly, Munnell and Aubry found that their unfunded pension liabilities  jumped to $4.1 trillion if plans are estimated using a 4 percent discount rate.  Under that assumption, the funding level of state and local pension plans averages just 45 percent.


Unfortunately, the pension ponzi becomes more and more unsustainable each year with funds simply borrowing from future benefit payments, which are almost certainly impaired in many states, while paying current benefit recipients in full.  While these types of “kick the can down the road” games can be played for a long time, eventually the massive underfundings will have to be addressed…and that will not be a pretty day.


America needs an economic acceleration plan that will provide for massive public and private debt elimination and generate dynamic, free market economic growth.

America’s one and only plan for growth and economic liberty:

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

The Leviticus 25 Plan 2017 (1703)


Fall 2016: Danger ahead for the global banking system: rehypothication and derivatives clearing

Central Banks and various global government powers coordinated a massive banking system bailout in the early days of the 2007-10 global financial crisis. Trillions of dollars in direct liquidity infusions, loan guarantees, and toxic debt relief were provided to major financial institutions, including: Deutsche Bank, Barclays, Bank of America, Citigroup, Royal Bank of Scotland, Morgan Stanley, Goldman Sachs, JP Morgan Chase & Co, Credit Suisse, BNP Paribas, UBS AG and numerous others.

Six short years later, the global banking system is once again ‘teetering.’  And there is a distinct potential for things to deteriorate badly.


Raoul Pal:  Business Cycle Tinder for a Global Banking System Fire                    ZeroHedge Sep 18, 2016

Excerpt:                                                                                                                                    “I spent a long time looking into the clearing and custody system; the DTCC in America and Euroclear in Europe. Those government bonds that are at the heart of the derivatives industry, they’re the collateral for everything in the entire loan industry, those things are re-lent out something like 30 times in the system to allow for this leverage.

The problem is nobody actually has full claim on the bonds within the custody system. So, if one of the countries in Europe defaults, or something happens where Santander goes bust and Spain goes bust on the same day, the systemic problems within the custody system and the derivative industry, all the collateral and settlements is beyond anybody’s imagination.

The system cannot allow for there to be sovereign risk because if there is sovereign risk then there is no risk-free collateral, and that is a real issue and would break the entire global banking system in one day. Which is one of the reasons they were so careful back in 2012 not to let anyone technically default because had they done that, basically it takes down everything we know of as a banking system. We would have to reprice what we understand to be the risk-free rate, we wouldn’t have a risk-free rate.”


It is time for  a clean economic reset – featuring economic liberty, massive all sectors debt reduction, balanced budgets, and revitalized global economic growth.

There is one dynamic economic acceleration plan to restart the engines:

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 (1688)