Real (inflation adjusted) 4Q2016 GDP: 1.13%. U.S. economy sputtering along, just above ‘stall speed.’

Headline GDP growth for 4Q2016 was just released: 1.9%.  Anemic.

Real (inflation adjusted) economic growth for the 4th quarter 2016 came in at an even weaker 1.13%. The U.S. economy is sputtering along, just above stall speed.

Stocks are priced to perfection with mutual fund cash ‘all in.’  NYSE Margin Debt is running high and ‘hot.’  NYSE Short interest is down at historical lows. Investors Intelligence market advisors sentiment (bulls / bulls + bears) is running up at a frothy 76%+ level.

What could possibly go wrong?   Plenty.

1. Destabilizing financial events – bank failures in Europe, counterparty failure waves in derivative hedging. Greece, Italy. Yuan swan dive.

2. Geopolitical turmoil – Middle East, China, the Baltics.

3. Inflation signals – Fed rate hikes.

Everything is ‘in place’ for what could be a hard ride down the charts.  And when the markets turn down, as they surely will, the U.S. will experience economic contraction, possibly severe.

Wall Street’s financial  will once again submerge below required capital positions – and need liquidity infusions, courtesy of the Fed.

And U.S. citizens are in no way properly insulated from the next economic storm.

America needs a powerful new economic plan.

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Advisor Perspectives – Real GDP through 2016

“GDP per capita, as we’ve seen, is a weaker series than GDP. What does it suggest about our current recession risk? The next chart shows the YoY change in real GDP per capita since 1960. We’ve again highlighted recessions. The red dots show the YoY real GDP for the quarter before the recession began, and the dotted line gives us a sense of how the current level compares to recession starts since 1960.”

Year-over-Year

“As my friend Bob Bronson of Bronson Capital Markets Research pointed out to us, the current YoY is lower than the 1.32% average value of those eight recession starts in the chart above.”

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Solution:  Eliminate debt at ground level. Re-ignite economic growth. Generate massive government surpluses. Restore financial stability and economic liberty for citizens.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2042)

 

2018: Total U.S. IOUs breach 1,100% of GDP

Total U.S. current debt and unfunded liabilities have now surpassed the $200 trillion level, which currently represents a mind-boggling 1,100% of GDP.  And it’s likely to get worse.

This will all eventually unwind in the form of a major currency crisis.  The clock is ticking.

As the old saying goes:  Once they are on the escalating debt  track, “countries go broke very slowly, and then all at once.”

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America needs to think ‘outside the box’ for a new model – one that generates:     Massive government budget surpluses

Dynamic economic growth acceleration

Positive entitlement reform

Reduced dependence on government

Economic liberty for citizens

And here is the best, and only, ‘outside the box’ economic acceleration plan anywhere:

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 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2040)

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

 

WSJ: Since 2008 Central Bank “unprecedented coordination” has yielded “massive debt, monetary excess, stagnation, deflation.” One dynamic solution: The Leviticus 25 Plan

The world’s largest developed economies are trudging along, barely above stall speed. This, following eight years of intense coordination and massive financial system liquidity infusions by Central Banks.

“G-7 nations got instead was the weakest economic growth, the largest surge in government debt, the riskiest monetary expansion and the gravest deflationary pressures of the postwar era.”

It is time for a new solution, that re-targets liquidity flows.  It all starts at ‘ground level.’

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What 1980 and 2016 Have in Common

Michael Solon / Wall Street Journal – December 12, 2016   

Excerpts:

Since 2008, the largest developed economies, in an effort to build financial stability and economic prosperity, have engaged in unprecedented coordination of financial regulation, monetary policy and business taxation. What the G-7 nations got instead was the weakest economic growth, the largest surge in government debt, the riskiest monetary expansion and the gravest deflationary pressures of the postwar era.

Massive debt and monetary excess have delivered stagnation and deflation. The G-7 guardians have failed by their own metrics of safety and soundness and their stated goals of prosperity and fiscal responsibility. Despite unsuccessful rescue plans and drained emergency measures, they never asked what went wrong.

Meanwhile, America’s punitive 35% corporate tax rate—the highest in the developed world—has discouraged U.S. firms from investing at home and sets a global tax floor to stabilize government revenues and foster government growth. The result is average U.S. GDP growth of only 2.1% since 2010—40% less than the administration’s projected 3.6%. …. that dismal growth rate has taken a $9.5 trillion bite out of U.S. GDP since 2010—$29,400 on average for every American.

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Our nation’s “dismal economic growth of only 2.1% since 2010” has taken a “$9.5 trillion bite out of U.S. GDP” – compared to what it would have been with a more normal 3.6%.

America needs a new economic model to recharge our economy with vibrant growth dynamics and economic liberty for our citizens:

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2026)

Reuters: Total Global Debt Tops 325 pct of GDP

The global debt situation is spiraling higher and will inevitably lead into widespread currency crises… and some form of financial chaos.

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Reuters Business News, Wednesday, Jan 4, 2017
By Dion Rabouin /  Excerpts:
Global debt levels rose to more than 325 percent of the world’s gross domestic product last year as government debt rose sharply, a report from the Institute for International Finance showed on Wednesday.

The IIF’s report found that global debt had risen more than $11 trillion in the first nine months of 2016 to more than $217 trillion. The report also found that general government debt accounted for nearly half of the total increase.

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Global bond market snapshot, courtesy of JPM (accessed from: ZeroHedge)

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Global economic growth is being suffocated by enormous debt service obligations world-wide.  There can be no hope of turning this paralyzing situation around without massive debt reduction.

Global finance must take a new track, re-targeting liquidity infusions to eliminate debt at ground level.

There is one plan with the power to reignite economic growth and restore financial stability:

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2013)

$1.02 trillion annual budget surpluses yearly 2017-2021: The Leviticus 25 Plan

The U.S. Government  budget deficit for FY2016 came in at $587 billion. The Congressional Budget Office Updated Budget Projections 2016-2026 has forecast the following annual budget deficits for each of the next five years:

2017: -$550 billion

2018: -$549 billion

2019: -$710 billion

2020: -$798 billion

2021: -$890 billion

According to the CBO, our government is on track to add a minimum of $3.497 trillion to the national debt over the next five years, an average annual deficit or $699.4 billion.

The five year accumulating deficit increases, totaling $3.497 trillion, will be weighed down further with a related interest expense (2.23% per annum) amounting to $200.96 billion, for a total of $4.196 trillion.

The Leviticus 25 Plan generates a total government recapture benefit over the first five years of the program (federal income tax refund recapture plus federal expenditures recapture) of $8.56 trillion, an average of $1.72 trillion per year.

The Leviticus 25 Plan recapture provisions thereby generate an average annual budget surplus over the next five years of $1.02 trillion per year ($1.72 trillion – $699.4 billion) plus additional savings of $200.7 billion in unrealized interest expense.

The annual $1.02 trillion surplus during each year (2017-2021) will be used, in turn, to reduce the Federal Reserve Citizens 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 Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2001)

Leviticus 25 Plan total 5-year ‘recapture’ benefits for U.S. Government: $8.56 trillion

The Leviticus 25 Plan is unquestionably the most powerful economic acceleration plan in America.

The Leviticus 25 Plan would generate a conservative $8.56 trillion in total ‘recapture benefits’ over its opening 5-year run (2017-2021).  It would generate enormous amounts of additional tax revenue from the powerful economic growth dynamics flowing naturally out of the massive household debt reduction and restored financial stability for American families and small businesses across America.

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 111,069,000 refunds, totaling $317.615 billion for 2016 (through December 30, 2016).

Income tax refund recapture:                                  

$317.615 billion X 80% participation = $254.1 billion / year for five years for a total of   $1.270 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. There were approximately 55.8 million enrolled Medicare beneficiaries in 2015, and that number is projected to grow to 64.3 million by 2020. Enrollment is projected to further expand to 73.5 million by 2025 and to 81.5 million by 2030. The Plan’s recapture provision incorporates a $5,000 deductible per participant per year for Medicare eligible expenses, projecting an average annual enrollment over the next five years (2017-2021) of 61.7 million people.
Cost savings over the course of the 5-year ‘recapture’ period: 61.7 million Medicare recipients (projected average/year for the next 5 years) X 80% X 5 years X $5,000 deductible = $1.234 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 otherwise be a direct cost to the VA.
Veteran’s participation noted in Priority Groups (2015):
1, 2, 3, 4, 5, 6, 7A, 7C, 8A, 8B, 8C, 8D, 8E, 8G = 8,442,380 enrollees (assumes no growth)
Cost savings over 5-year ‘recapture’ period: 8,442,380 X 80% X $5,000 X 5 years = $168.85 billion

E. TRICARE – healthcare program for service members, retirees and dependents
Cost savings over projected 5-year ‘recapture’ period: 9.4 million recipients X 80% X $5,000 X 5 years = $188.0 billion

F. Supplemental Security Disability Income (SSDI) – participants would forego SSDI benefits during 5-year period.
The Plan assumes 80% participation of the approximate 14.083 million disabled beneficiaries and non-disabled dependents who received total payments of $197.218 billion during 2016.
Cost savings over 5-year recapture period: $197.218 billion X 80% X 5 years =     $788.873 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 of the 6.5 million recipients receiving $32 billion in payouts per year
Liabilities: 31 states have $41 billion in loans outstanding to cover unemployment
insurance payouts – a figure that is expected to rise further through 2015.
Cost savings over the 5-year ‘recapture’ period: $32 billion X 80% X 5 years = $128 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): $8.56 trillion, for an average of $1.72 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 socioeconomic 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 $8.56 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 citizens.

…………………………………………………………..

“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 most powerful economic acceleration plan in America:

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2001)

 

U.S. Treasury Office of Financial Research: U.S. Banks sitting on $2 trillion exposure to European Debt

The seeds have been planted.  Are they now taking root for the next global financial hurricane?

………………………………………………

Wall Street Quietly Drops Bombshell: U.S. Banks Have $2 Trillion in European Exposure

Wall Street on Parade – By Pam Martens and Russ Martens: Jan 3, 2017  –  Excerpts:                                                      

According to a report quietly released by the U.S. Treasury’s Office of Financial Research less than two weeks before Christmas, another financial implosion on Wall Street can’t be ruled out.

The Office of Financial Research (OFR), a unit of the U.S. Treasury, was created under the Dodd-Frank financial reform legislation of 2010. It says its role is to: “shine a light in the dark corners of the financial system to see where risks are going, assess how much of a threat they might pose, and provide policymakers with financial analysis, information, and evaluation of policy tools to mitigate them.” Its 2016 Financial Stability Report, released on December 13, indicates that Wall Street banks have been allowed by their “regulators” to take on unfathomable risks and that dark corners remain in the U.S. financial system that are impenetrable to even this Federal agency that has been tasked with peering into them.

At a time when international business headlines are filled with reports of a massive banking bailout in Italy and the potential for systemic risks from Germany’s struggling giant, Deutsche Bank, the OFR report delivers this chilling statement:

“U.S. global systemically important banks (G-SIBs) have more than $2 trillion in total exposures to Europe. Roughly half of those exposures are off-balance-sheet…U.S. G-SIBs have sold more than $800 billion notional in credit derivatives referencing entities domiciled in the EU.”

When a Wall Street bank buys a credit derivative, it is buying protection against a default on its debts by the referenced entity like a European bank or European corporation. But when a Wall Street bank sells credit derivative protection, it is on the hook for the losses if the referenced entity defaults. Regulators will not release to the public the specifics on which Wall Street banks are selling protection on which European banks but just the idea that regulators would allow this buildup of systemic risk in banks holding trillions of dollars in insured deposits after the cataclysmic results of similar hubris in 2008 shows just how little has been accomplished in terms of meaningful U.S. financial reform.

Adding to the potential for another epic crash on Wall Street taking down the entire U.S. economy is data within the OFR report showing how interconnected the big Wall Street banks have become to the largest U.S. insurers through derivatives. This has been allowed to happen despite the fact that the giant insurer, AIG, required a government backstop of $182 billion following the 2008 crash because it had sold credit default protection via derivatives to the big Wall Street banks.

At a time when international business headlines are filled with reports of a massive banking bailout in Italy and the potential for systemic risks from Germany’s struggling giant, Deutsche Bank, the OFR report delivers this chilling statement:

“U.S. global systemically important banks (G-SIBs) have more than $2 trillion in total exposures to Europe. Roughly half of those exposures are off-balance-sheet…U.S. G-SIBs have sold more than $800 billion notional in credit derivatives referencing entities domiciled in the EU.”

When a Wall Street bank buys a credit derivative, it is buying protection against a default on its debts by the referenced entity like a European bank or European corporation. But when a Wall Street bank sells credit derivative protection, it is on the hook for the losses if the referenced entity defaults. Regulators will not release to the public the specifics on which Wall Street banks are selling protection on which European banks but just the idea that regulators would allow this buildup of systemic risk in banks holding trillions of dollars in insured deposits after the cataclysmic results of similar hubris in 2008 shows just how little has been accomplished in terms of meaningful U.S. financial reform.

Adding to the potential for another epic crash on Wall Street taking down the entire U.S. economy is data within the OFR report showing how interconnected the big Wall Street banks have become to the largest U.S. insurers through derivatives. This has been allowed to happen despite the fact that the giant insurer, AIG, required a government backstop of $182 billion following the 2008 crash because it had sold credit default protection via derivatives to the big Wall Street banks.

The OFR report includes the following data on life insurers:

“At the end of 2015, U.S. life insurers’ derivatives exposure, as reported in statutory filings, totaled $2 trillion in notional value. This $2 trillion does not include derivative contracts held in affiliated reinsurers, non-insurance affiliates, and parent companies that do not have to file statutory statements. Details on these entities’ derivatives positions are not publicly available.”

Just who is backstopping this $2 trillion in risk? The answer is mind-numbing. The counterparties to the life insurers are the same behemoth Wall Street banks who have their own potential nightmare scenario if there are major European bank defaults. The OFR report indicates the following:

“According to statutory data on insurance company legal entities, nine large U.S. and European banks are counterparties to about 60 percent of U.S. life insurers’ $2 trillion in notional derivatives. These data show that despite central clearing, derivatives interconnectedness between the U.S. life insurance industry and banks remains substantial.”

An accompanying chart shows (in order of magnitude) the following Wall Street banks with the greatest interconnectedness via derivatives to U.S. life insurers: Goldman Sachs, Deutsche Bank, Bank of America, Citigroup, Credit Suisse, Morgan Stanley, Barclays, JPMorgan Chase, and Wells Fargo.

It is impossible to overstate the dangers of this daisy chain of interconnectedness. The Wall Street banks that created the greatest financial collapse since the Great Depression in 2008 have now metastasized their failed derivatives model throughout the life insurance industry of the U.S. – raising the very real specter that in the next crash both massive banks and massive life insurers would require a taxpayer bailout.

Five of the largest U.S. banks that show up on the derivatives counterparty list to the U.S. life insurers, also show up on another list. The OFR report notes:

“The Basel Committee methodology measures banks’ complexity in part by looking at data on notional derivatives positions. These data reflect the nominal value of underlying derivatives contracts. They have been volatile since 2012 but remain highly concentrated among the five largest banks. As with OFR findings on insurance (see Section 2.5), OFR analysis suggests higher derivatives exposures for banks are associated with greater systemic risk.”

The five banks referenced above are: JPMorgan Chase, Citigroup, Goldman Sachs, Bank of America and Morgan Stanley.

The OFR report also indicates that regulators still do not have access to adequate data from the biggest banks and insurers to assess the dangers in real time. The report notes:

“Deficiencies in data and data management remain a critical vulnerability. Data needs remain unfilled, particularly in shadow banking markets. Many of the new data are not ready or available for analysis. Despite progress, the probability remains high that data deficiencies will again prevent risk managers and regulators from assessing risks before it is too late.”

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U.S. Global Systemically Important Banks (G-SIBs) exposure to European debt leaves U.S.  financial markets vulnerable, once again, to significant credit market default waves.

U.S. insurer exposure to derivatives and the interconnectedness between insurers and major U.S. Banks presents additional default wave vulnerabilities.

The U.S. needs a dynamic economic plan to insulate U.S. citizens, and Main Street America, in advance of the next major financial market credit crisis:

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (1997)

 

 

Fed’s Labor Market Conditions Index (LCMI) slipping down to the 2007 danger zone.

The U.S. Federal Reserve defines its Labor Market Conditions Index (LMCI) as a “dynamic factor model that extracts primary variation from 19 labor market indicators…. the LMCI tracks changes in the labor market by finding variations from multiple labor indicators. Indicators range from unemployment rates to wages to layoffs to business surveys. The LMCI plays a critical role in helping the Fed with one of its two mandates: ensuring maximum employment.” (Source: Investopedia)

The LCMI’s current trending pattern reflects a deteriorating labor market, which is undoubtedly a projection of liquidity shortages across Main Street America.

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Fed’s Labor Market Conditions Index Plunges Most in 7 Years                         ZeroHedge Jan 9, 2017 – Excerpts

While mainstream media clung to The White House spin of record monthly streak of jobs gains after Friday’s payrolls, The Fed’s own Labor Market Conditions Index (LMCI) paints a very different picture of the health of the American job market. With a 0.3% drop in December, the LMCI is now down 5.8% year-over-year, the biggest plunge since Jan 2010.

We are sure The Fed wishes it never created this index…

_______________________________

The current LCMI plunge matches the pattern seen going into 2007 as the U.S. was teetering on the brink of severe economic contraction.

America needs a powerful new plan to re-target liquidity infusions, eliminate debt at ground level, and recharge our economic growth engine.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen                                                  The Leviticus 25 Plan 2018 (1991)

 

 

Secret Fed Loans for Banks 2008. The Leviticus 25 Plan for American Families.

The Federal Reserve, along with the world’s other major Central Banks, employed ‘extraordinary measures’ to stabilize the banking system during the Great Financial Crisis (2007-2010).  They did what they had to do to keep credit markets from freezing up and to prevent global economies from spiraling into financial depression.

The Fed’s liquidity infusions led to a healthy Wall Street’s financial sector recovery from the wicked throes of debt overhang.

And it is now time to grant citizens the same access to liquidity to eliminate debt at ground level and strengthen the financial health of American families.

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2008: Secret Fed Loans – Largest Bailout in U.S. History                                             Nov. 28 (Bloomberg) — Bloomberg Markets magazine’s January issue examines how the Federal Reserve and big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. And how bankers failed to mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. (Source: Bloomberg)

Nov. 28 (Bloomberg) — The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. No one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.  Betty Liu reports on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

Kenneth D. Lewis Former CEO of Bank of America Corp.                                            On Nov. 26, 2008, then-Bank of America Corp. Chief Executive Officer Kenneth D. Lewis wrote to shareholders that he headed “one of the strongest and most stable major banks in the world.” He didn’t say that his firm owed the central bank $86 billion that day. Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse.

A fresh narrative of the financial crisis of 2007 to 2009 emerges from 29,000 pages of Fed documents obtained under the Freedom of Information Act and central bank records of more than 21,000 transactions. While Fed officials say that almost all of the loans were repaid and there have been no losses, details suggest taxpayers paid a price beyond dollars as the secret funding helped preserve a broken status quo and enabled the biggest banks to grow even bigger.

The size of the bailout came to light after Bloomberg LP, the parent of Bloomberg News, won a court case against the Fed and a group of the biggest U.S. banks called Clearing House Association LLC to force lending details into the open.

The Fed, headed by Chairman Ben S. Bernanke, argued that revealing borrower details would create a stigma — investors and counterparties would shun firms that used the central bank as lender of last resort — and that needy institutions would be reluctant to borrow in the next crisis. Clearing House Association fought Bloomberg’s lawsuit up to the U.S. Supreme Court, which declined to hear the banks’ appeal in March 2011.

$7.77 Trillion                                                                                                                                The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.”  It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP.  Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.

“TARP at least had some strings attached,” says Brad Miller, a North Carolina Democrat on the House Financial Services Committee, referring to the program’s executive-pay ceiling. “With the Fed programs, there was nothing.”

Bloomberg.com:  http://164.67.163.139/Documents/areas/adm/loeb/12_177.pdf

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2017: Retargeting liquidity flows. It is now time for the Federal Reserve to grant U.S. citizens the same access to liquidity that was provided to global financial markets nine years ago.

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

The Leviticus 25 Plan 2018 (1978)

 

 

The socialist’s economic plan for America vs. The Leviticus 25 Plan

The socialist plan for America seeks to provide equality and security for the underclass through enhanced (intensified) government control over the daily affairs of citizens.  The end result is greater centralization of power (central-planning) and an ever-growing allocation of resources by government.

This control extends to health care, representing 16% of the U.S. economy.  The socialist plan advocates ‘medicare for all,’ with the accompanying layers upon layers of bureaucracy, red-tape, cost distortions, regulations, legal penalties and restricted access.

The socialist plan for financial equality in America involves wealth confiscation and redistribution to the masses.   It invents endless new tax burdens and penalties for the middle class. It penalizes risk-taking, hard work, entrepreneurship, industriousness and skillful planning, while conversely rewarding low motivation for self-reliance and non-work,

…………………………………………….

The Leviticus 25 Plan reduces the scope of government control over the daily affairs of citizens. It promotes decentralization and economic liberty.  It grants power over the allocation of resources to the people.

The Leviticus 25 Plan puts U.S. citizens in control, individually, of their health care needs and choices.  It grants citizens direct access to health care – without layers of red tape and bureaucratic directives.

The Leviticus 25 Plan rewards hard work, entrepreneurship, industriousness … and it does not penalize success.

It does not confiscate wealth and invent redistribution schemes.

It simply grants U.S. citizens the same access to direct liquidity extensions that the Fed provided for major banks (domestic and foreign) and insurers during the great financial crisis.

The Leviticus 25 Plan is America’s plan for the future, restoring economic liberty and re-establishing free market dynamics.

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

The Leviticus 25 Plan 2018 (1971)