Hoisington – (4) Impediments to growth: Demographics

Global Central Banks have pumped out trillions of dollars in liquidity through balance sheet expansion over the past nine years, purchasing debt, purchasing equities, emergency lending, and bankrolling credit guarantees.

The massive liquidity infusions eliminated debt and restores “financial health” for Wall Street’s financial sector, but how has it worked out for U.S. citizens?  Poorly.

Real personal income growth (Y/Y) is lower now than it has been at any time in the past 60 years.

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Hoisington Quarterly Review and Outlook – 4Q2016

Maudlin Economics, February 2017 – Excerpts:

(4) Impediments to Growth: Eroding Demographics

Weak population growth, a baby bust, an aging population and an unprecedented percentage of 18- to 34-year olds living with parents and/or other family members characterize current U.S. demographics, and all constrain economic growth. Moreover, real disposable income per capita is so weak that these trends are more likely to worsen rather than improve (Chart 3).

In the fiscal year ending July 1, 2016, U.S. population increased by 0.7%, the smallest increase on record since The Great Depression years of 1936-1937 (Census Bureau) (Chart 4). The fertility rate, defined as the number of live births per 1,000 for women ages 15-44, reached all time lows in 2013 and again in 2015 of 62.9 (National Center for Health Statistics). The average age of the U.S. reached an estimated 37.9 years, another record (The CIA World Fact Book). Population experts expect further increases for many years into the future. For the decade ending in 2015, 39.5% of 18-to 34-year olds lived with parents and/or other family members, the highest percentage for a decade since 1900, with the exception of the one when new housing could not be constructed because the materials were needed for World War II.

Over time, birth, immigration and household formation decisions have been heavily influenced by real per capita income growth. Demographics have, in turn, cycled back to influence economic growth. If they are both rising, a virtuous long-term cycle will emerge. Today, however, a negative spiral is in control. In the ten years ending in 2016, real per capita disposable income rose a mere 1%, less than half of the 50-year average and only one-quarter of the growth of the 3.9% peak reached in 1973. In view of the enlarging debt overhang, which is the cause of these mutually linked developments, economic growth should continue to disappoint. There will likely be intermittent spurts in economic activity, but they will not be sustainable.

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It is time to restore financial health to American families – with an economic acceleration plan that pays for itself entirely over a 10-15 year period.

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 (2205)

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

 

Oswald Grübel: Central Banks have “crossed the point of no return,” it will “end in a crash”

Oswald Grübel, former CEO of Switzerland’s two largest banks, UBS and Credit Suisse believes we will be in for a wild ride, sometime over the next 10 years.

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Former CEO of UBS and Credit Suisse: Central Banks are Past the Point of No Return, It Will All End In a Crash”

ZeroHedge, Nov 20, 2016 – Excerpts:

Swiss National Bank’s balance sheet: “the Swiss National Bank’s balance sheet now accounts for 100 percent of GDP. Japan is also 100%, but mainly invested in its own state paper. The ECB and the Fed are 30%. Switzerland is far, far, far ahead. Is that wise?”

[…politicians now control the world almost exclusively through monetary policy, to wit]: “After the financial crisis, politics has taken power in the banking sector: It has bound the banks into a regulatory corset and now they can no longer move. Politicians have told central banks: now you determine what is going on with the economy.”

What are the implications of this power shift? “Previously, the risk was distributed to thousands of banks. They had to pay for their mistakes. The risk lay with the shareholders. Today, more and more the state carries the risk.” Which, of course, is another word for taxpayers. In other words, the next crash will be one where central – not commercial – banks are failing, and the one left with the bill will once again be the ordinary person in the street.

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The door is now wide open to reset the liquidity targeting imbalances and refire global economic engines with dynamic decentralization and free market productivity.

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

The Leviticus 25 Plan 2018 (2202)

 

WSJ: Health Care Plans: Something Must Be Done

The Wall Street Journal (Letters, March 21, 2017) published a letter from a New Jersey physician which included this excerpt on-target excerpt:

“If costs of delivering world-class health care are driven downward, then government mandates, overregulation and new taxes may not be necessary. Those of us who provide medical and surgical services each day know what it takes to stop the bleeding.  All the politicians need to do is ask.

Lack of price transparency, drug advertising hype, defensive medicine, self-referrals, pre-approved hurdles, insurance billing labyrinths high overhead,  big patient subsidies, discontinuity of care, electronic data keeping, specialty fee disparities, top-down decision-making, emerging hospital cartels, and case work overload are some of the systemic flaws that must be addressed sooner rather than later.”  – Jonathan L. Fox, M.D. Orthopedic Surgery and Sports Medicine, Northfield, N.J.

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And here is how to address those “systemic flaws,” and gain immediate control of skyrocketing premiums, runaway government health care spending, unfriendly and complicated access mechanisms, and the diminishment of freedom:

The U.S. Health Care Freedom Plan offers a powerful new access strategy for patients receiving medical and pharmaceutical services, home medical equipment, and home care services.

It is as simple as renting a movie.

The Plan grants citizens the freedom to pay directly, in person, for their week-to-week health care purchases. It cuts out layers of bureaucracy and middlemen … simplifies access to health care and restores genuine ‘patient-provider’ relationships.

The U.S. Health Care Freedom Plan is the only comprehensive, citizen-centered health care plan in America.  It ‘resets’ the health care industry to present a clean, efficient and responsible system.  Most importantly, this plan restores individual freedom and liberty for all participating Americans.

The Plan:

  1. The U.S. Health Care Freedom Plan is available to each and every U.S. citizen – with no coverage mandates. Each U.S. citizen who wishes to participate will be granted a full and complete exemption from the ACA.
  2. This plan offers freedom of choice and equal justice for all. Those Americans who might wish to stay with the ACA may stay (‘If you like your ObamaCare, you can keep your ObamaCare’).
  3. Each participating U.S. citizen shall receive a credit extension, through a special Federal Reserve Citizens Credit Facility, of $25,000, electronically deposited into a Medical Savings Account (MSA) – for direct allocation toward family health care needs.
  4. Private insurance – Families shall be allowed to enroll in high-deductible ($10,000 – $15,000) major medical plans, to include basic, ‘no frills’ medical plans which best suit their individual needs and desires. These streamlined plans would lower premium costs for employees and employers, encouraging employers to cost-share savings with employees through incentive-based employer MSA contributions.
  5. Policies would not be automatically loaded with expensive government healthcare mandates.
  6. Those with extraordinary medical issues may be included in a high-risk category, with such plans being eligible for a government subsidy (similar to current Medicare Advantage).
  7. Federal / state programs – Individuals enrolled in Medicare / Medicaid / VA / TRICARE / FEHB programs would maintain their covered status, with an annual deductible of $5,000 per year per enrolled family member, for a period of five years for those benefits. The dedicated MSA funds would fully fund the offset for the higher ($5,000) deductible feature for that five-year period. MSA funds could also be used to pay Medicare supplement premiums and other potential co-pay obligations.
  8. Where health care services paid by patients directly with MSA funds, providers would not be bound by federal / state rules pertaining to Electronic Medical Records (EMRs), and other unnecessary administrative burdens.

ContinueThe U.S. Health Care Freedom Plan 2017: America’s clean and affordable alternative to ObamaCare. Ready to Launch.

 

ObamaCare replacement bill fails. Solution: The U.S. Health Care Freedom Plan.

The ObamaCare replacement plan sailed into some stiff headwinds in the U.S. House on Friday over a number of significant concerns:

1. 14 million Americans would lose insurance by 2018, rising up to 24 million losing coverage by 2026.

2. The new ObamaCare replacement plan remained ‘mandate-heavy.’

3. It was too costly and inefficient, with the already high ObamaCare premiums spiking another 15-20% in 2018-19.

Meet the comprehensive health care plan that overcomes these objections: The U.S. Health Care Freedom Plan.

Number of Americans that will lose coverage: 0

If you like your ObamaCare you can keep your ObamaCare.  All others who wish to be granted an exemption, along with a $25,000 HSA deposit per citizen (see plan for further details).

Mandates: 0

Citizens may choose their providers and insurance plans, and allocate their health care resources in the manner that suite fulfills their needs and desires.

Efficiency: 99%

The U.S. Health Care Freedom Plan eliminates government red tape and enormous amounts of ‘middle-man’ cost and interference.

The U.S. Health Care Freedom Plan 2017: America’s clean and affordable alternative to ObamaCare. Ready to Launch.

A part of America’s dynamic, comprehensive economic acceleration plan:

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

The Leviticus 25 Plan 2018 (2192)

ECB firehosing 474 banks with another €233 bn ($251.6 billion) … while the citizens of Europe get (drum roll…): €0

The European Central Bank (ECB) Targeted Long Term Refinancing Operation (TLTRO) is firehosing 464 if their banks with another €233 bn – the equivalent of U.S. $251.6 billion – at a fixed rate of 0% (and a possibility of an even better -.4% interest)

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Banks Scramble For Free ECB Money: €233.5 BIllion Allotted To 464 Banks In Final TLTRO Operation

ZeroHedge – Mar 23, 2017, Excerpts:  

The ECB announced €233 bn of take-up (by 474 banks) in the fourth and final TLTRO-2 auction. TLTRO-2 is a four-year facility, provided on a full allotment and fixed rate (at 0%) basis.

The final TLTRO result can be summarized as follows: The ECB announced €233 bn of take-up (by 474 banks) in the fourth and final TLTRO-2 auction. TLTRO-2 is a four-year facility, provided on a full allotment and fixed rate (at 0%) basis. The rate can fall to -0.4%, assuming loan growth targets are met.

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Here’s a novel idea for the ECB.  Lend a citizen of say… Greece, or Italy, or Belgium, or the U.K. €2 mn.  Let that citizen purchase approximately $2 million in U.S. 10 year T-Notes yielding 2.4%. Put the securities in an ECB-approved lock box.  And then at the end of two years, cash out the Treasuries, pay back the principle (at 0%) to the ECB, and allow the citizen and his family to then pocket a cool $98,000 in interest earnings.

And allow that interest to be earned tax free.

And that, my friends, is the basis behind the world’s best, most powerful economic acceleration plan – granting citizens the same access to liquidity that is being provided to banks.

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

The Leviticus 25 Plan 2018 (2184)

 

The U.S. Health Care Freedom Plan 2017: America’s clean and affordable alternative to ObamaCare. Ready to Launch.

March 24, 2017: ObamaCare is “ready to explode,” and the U.S. House of Representatives alternative plan died today.

It is time for a new strategy – that puts citizens back in charge of their health care resources and decision-making..

_________________________________

The U.S. Health Care Freedom Plan is the only comprehensive, citizen-centered health care plan in America.  It ‘resets’ the health care industry to present a clean, efficient and responsible system.  Most importantly, this plan restores individual freedom and liberty for all participating Americans.

The Plan:

  1. The U.S. Health Care Freedom Plan is available to each and every U.S. citizen – with no coverage mandates. Each U.S. citizen who wishes to participate will be granted a full and complete exemption from the ACA.
  2. This plan offers freedom of choice and equal justice for all. Those Americans who might wish to stay with the ACA may stay (‘If you like your ObamaCare, you can keep your ObamaCare’).
  3. Each participating U.S. citizen shall receive a credit extension, through a special Federal Reserve Citizens Credit Facility, of $25,000, electronically deposited into a Medical Savings Account (MSA) – for direct allocation toward family health care needs.
  4. Private insurance – Families shall be allowed to enroll in high-deductible ($10,000 – $15,000) major medical plans, to include basic, ‘no frills’ medical plans which best suit their individual needs and desires. These streamlined plans would lower premium costs for employees and employers, encouraging employers to cost-share savings with employees through incentive-based employer MSA contributions.
  5. Policies would not be automatically loaded with expensive government healthcare mandates.
  6. Those with extraordinary medical issues may be included in a high-risk category, with such plans being eligible for a government subsidy (similar to current Medicare Advantage).
  7. Federal / state programs – Individuals enrolled in Medicare / Medicaid / VA / TRICARE / FEHB programs would maintain their covered status, with an annual deductible of $5,000 per year per enrolled family member, for a period of five years for those benefits. The dedicated MSA funds would fully fund the offset for the higher ($5,000) deductible feature for that five-year period. MSA funds could also be used to pay Medicare supplement premiums and other potential co-pay obligations.
  8. Where health care services paid by patients directly with MSA funds, providers would not be bound by federal / state rules pertaining to Electronic Medical Records (EMRs), and other unnecessary administrative burdens.

Benefits:                                                                                 

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

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

The potential cost savings from the $5,000 deductible provision for the approximate 150 million people currently enrolled in Medicare (55 million), Medicaid (72 million), VA (6.16 million), TRICARE (9.5 million), and FEHB (8.2 million) would amount to just  under $3.75 trillion over the first 5 years (or, one-half the $7.5 trillion initial roll out cost).

Summary:

This plan would generate trillions of dollars in cost savings from streamlining, vastly improved efficiency, and reductions in waste and fraud.

This plan would improve quality and ease of access to health care for all participating Americans.

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

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

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

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

The Leviticus 25 Plan 2018 (2179)

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Notes:

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

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

Administrative costs – bureaucracy:               

The Federal government has spent hundreds of billions of dollars to construct the monstrous ACA ‘machine.’

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

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

_________________________________  

News headlines from the past two years:                                  

$2.1 billion cost for ACA federal exchange

Obamacare Adds 3,322 Pages of Regs to $234 Billion Tax Complexity Burden…

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

TAX DOLLARS FOR NFL TEAM TO PROMOTE OBAMACARE…

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

Administration spends $17 million a month on paid advertising…

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

Feds Spend Another $20M on Healthcare.gov…

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

 

Hoisington: (3) Impediments to Growth: Weak Global Growth

Global Central Banks have pumped out trillions of dollars in liquidity through balance sheet expansion over the past nine years, purchasing debt, purchasing equities, emergency lending, and bankrolling credit guarantees.

How has that worked out for global economic growth?  Poorly.

“Based on figures from the World Bank and the IMF through 2016, growth in a 60-country composite was just 1.1%, a fraction of the 7.2% average since 1961. Even with the small gain for 2016, the three-year average growth was -0.8%.”
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Hoisington Quarterly Review and Outlook – 4Q2016

Maudlin Economics, February 2017 – Excerpts:

(3) Impediments to Growth: Weak Global Growth      

Based on figures from the World Bank and the IMF through 2016, growth in a 60-country composite was just 1.1%, a fraction of the 7.2% average since 1961. Even with the small gain for 2016, the three-year average growth was -0.8%. As such, the last three years have provided more evidence that the benefits of a massive debt surge are elusive.

World trade volume also confirms the fragile state of economic conditions. Trade peaked at 115.4 in February 2016, with September 2016 1.7% below that peak, according to the Netherlands Bureau of Economic Policy Analysis. Over the last 12 months, world trade volume fell 0.7%, compared to the 5.1% average growth since 1992. When world trade and economic growth are stagnant, and one group of currencies loses value relative to another group, market share will shift to the depreciating currencies. However, this shift does not constitute a net gain in global economic activity, merely redistribution. Thus, gains in economic performance of those parts of the world provide little or no information about the status of global economic conditions.

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The world has been struggling along with anemic growth over the past eight years. Massive Central Bank balance sheet expansion and financial market liquidity flow targeting have done nothing to shrink global debt and re-ignite the economic growth.

It is time to re-target liquidity flows to eliminate debt at ground level.

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

The Leviticus 25 Plan 2018 (2167)

 

 

Intractable: U.S. national debt; Listless economic growth, Family financial stress; Entitlement dependency. America’s dynamic solution: The Leviticus 25 Plan

America’s economic ‘thinkers’ and decision-makers are stuck. They are muddling along… with no plan whatsoever to get America moving again.

Massive debt loads. Moribund economy. Family financial instability. Out of control entitlement spending. Massive insolvency issues for major pension funds.

We’ve got to turn things around – fast…

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US Ends 2016 With $19.98 Trillion In Federal Debt; Up $1,054,647,941,626.91

ZeroHedge, Jan 4, 2017 – Excerpts:

“On the last day of calendar 2016, total US public debt jumped by $98 billion, mostly as a result of end of quarter Social Security debt allocation, which accounted for $70.4 billion of the daily increase. As a result, total US government debt on December 30, 2016 was $19,976,826,951,047.80.

This compares to $18,922,179,009,420.89 on the last day of 2015 and means that the increase in US federal debt in 2016 was just over $1 trillion, or $1,054,647,941,626.91 to be specific.”

Note – The “fiscal gap,” which is the real measure of the U.S. Government’s net present Value (NPV) of unfunded liabilities is well over $200 trillion. And this, according to the GAO, is multiple times greater than the headline cash debt number of $19.98 trillion.  America’s debt is “beyond containment.”  We need a new plan.

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Atlanta Fed Slashes Q1 GDP Forecast To Just 0.9% Hours Before Fed Rate Hike

The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 0.9 percent on March 15, down from 1.2 percent on March 8.  ZeroHedge,  Mar 15, 2017

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Facts and Figures – Heritage.org / Solutions 2017


  • Today, the U.S. spends 16 times as much on welfare as it spent in the 1960s—about four times the amount needed to pull every poor family out of poverty—yet the federal poverty rate remains nearly unchanged.
  • Total spending at all levels of government on the roughly 80 federal means-tested welfare programs, which provide cash, food, housing, medical care, and social services to poor and lower-income Americans, is over $1 trillion annually.
  • Welfare is the fastest growing part of government spending. Between 1989 and fiscal year 2008, means-tested welfare spending increased by 292 percent.
  • In 1964, only 7 percent of births in America were outside marriage. Today, this number has climbed to more than 40 percent. Children in single-parent homes are more than five times as likely to be poor compared to their peers in married-parent homes.

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There is one plan in America that can deliver:                                                             1. Trillion dollar budget surpluses for each of the next five years.                                     2. Powerful, sustainable economic growth.                                                                       3. Debt elimination and financial stability for American families.                                        4. A dynamic road up out of poverty and dependency for America’s poor.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen                                              The Leviticus 25 Plan 2018 (2161)

Hoisington – (2) Impediments to Growth: Record Global Debt

Debt levels are surging in the U.S., China, the U.K., Eurozone, and Japan.

Be assured, there will come an inevitable, hair-raising fiat currency reset… and it could end up leading to chaos and destabilization.

The world right now needs a dynamic, outside-the-box, debt extermination plan…

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Hoisington Quarterly Review and Outlook – 4Q2016

Maudlin Economics, February 2017 – Excerpts:

(2) Impediments to Growth: Record Global Debt

The IMF calculated that the gross debt in the global non-financial sector was $217 trillion, or 325% of GDP, at the end of the third quarter of 2016. Total debt at the end of the third quarter 2016 was more than triple its level at the end of 1999. In addition to the U.S., global debt surged dramatically in China, the United Kingdom, the Eurozone and Japan. Debt in China surged by $3 trillion in just the first three quarters of 2016. This is staggering considering that the largest rise in nonfinancial U.S. debt over any three quarters is $2.3 trillion, and China accounts for 12.3% of world GDP compared with 22.3% for the U.S. (2016 World Bank estimates). Thus, the $3 trillion jump in Chinese debt is equivalent to an increase of $5.4 trillion of debt in the U.S. economy. Extrapolating this calculation, Chinese debt at the end of the third quarter soared to 390% of GDP, an estimated 20% higher than U.S. debt-to-GDP. This debt surge explains the shortfall in the Chinese growth target for 2016, a major capital flight, a precipitous fall of the Yuan against the dollar and a large hike in their overnight lending rate.

William R. White (as previously cited) describes the debt risks causally, fully and yet succinctly. By pursuing the monetary and fiscal policies in which debts are accumulated worldwide, spending from the future is brought forward to today. “As time passes, and the future becomes the present, the weight of these claims grows ever greater.” Accordingly, such policies lose their effectiveness over time. He quotes Nobel laureate F. A. Hayek (1933): “To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about.” White reinforces this view later when he says, “Credit ‘booms’ are commonly followed by an economic ‘bust’ and this has indeed been the case for a number of countries.”

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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 (2158)

Hoisington: (1) Impediments to Growth – “Unproductive Debt”

Debt service is a relentless whirlpool that drains resources and impairs economic growth, and America is eyeball deep in debt.

With no end in sight.

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Hoisington Quarterly Review and Outlook – 4Q2016

Maudlin Economics, February 2017 – Excerpts:

(1) Impediments to Growth: Unproductive Debt

At the end of the third quarter, domestic nonfinancial debt and total debt reached $47.0 and $69.4 trillion, respectively. Neither of these figures include a sizeable volume of vehicle and other leases that will come due in the next few years nor unfunded pension liabilities that will eventually be due. The total figure is much larger as it includes debt of financial institutions as well as foreign debt owed. The broader series points to the complexity of the debt overhang. Netting out the financial institutions and foreign debt is certainly appropriate for closed economies, but it is not appropriate for the current economy. Much of the foreign debt resides in countries that are more indebted than the U.S. with even weaker economic fundamentals and financial institutions that remain thinly capitalized.

A surge in both of the debt aggregates in the latest four quarters indicates the drain on future economic growth. Domestic nonfinancial debt rose by $2.6 trillion in the past four quarters, or $5.00 for each $1.00 dollar of GDP generated. For comparison, from 1952 to 1999, $1.70 of domestic nonfinancial debt generated $1.00 of GDP, and from 2000 to 2015, the figure was $3.30. Total debt gained $3.1 trillion in the past four quarters, or $5.70 dollars for each $1.00 of GDP growth. From 1870 to 2015, $1.90 of total debt generated $1.00 dollar of GDP.

We estimate that approximately $20 trillion of debt in the U.S. will reset within the next two years. Interest rates across the curve are up approximately 100 basis points from the lows of last year. Unless rates reverse, the annual interest costs will jump $200 billion within two years and move steadily higher thereafter as more debt obligations mature. This sum is equivalent to almost two-fifths of the $533 billion in nominal GDP in the past four quarters. This situation is the same problem that has constantly dogged highly indebted economies like the U.S., Japan and the Eurozone. Numerous short-term growth spurts result in simultaneous increases in interest rates that boost interest costs for the heavily indebted economy that, in turn, serves to short circuit incipient gains in economic activity.

_______________________________________

America needs an economic “power surge,” and there is exactly one comprehensive plan currently available that can recharge our economic power engine

And here are the highlights of The Leviticus 25 Plan.

1.  All U.S. citizens are treated exactly the same. Participation is voluntary, no one is forced into The Plan There is no means-testing for participants.  There is no wealth redistribution.

2. The Plan grants U.S. citizens the same access to liquidity that was generously provided through massive liquidity transfusions to global financial institutions, including: Morgan Stanley, Citigroup, JP Morgan Chase & Co., Royal Bank of Scotland (RBS), State Street, Bank of America, Merrill Lynch, Goldman Sachs, Deutsche Bank, Barclays, UBS AG, Wachovia, Lehman, Wells Fargo, Bear Stearns, BNP Paribas, Dexia, and many others.

3. The Leviticus 25 Plan will provide substantive economic and social benefits to individual American families by granting U.S. citizens direct access to liquidity through a Citizens Credit Facility to be established by the Federal Reserve.
This Citizens Credit Facility will grant American families the same privileged access to liquidity that was extended to scores of the aforementioned major U.S. and foreign banking institutions and insurers during the critical years of the financial crisis (2007–2010), the very
institutions whose leveraged risk profiles with concentrated positions in Mortgage Backed Securities (MBS), Credit Default Swaps (CDS), Collateralized Debt Obligations (CDOs), and other related derivative products triggered the U.S. financial crisis.
American citizens deserve nothing less than the same direct access to liquidity that was granted to these financial institutions through the Federal Reserve Discount Window, and numerous funding facilities created by the Federal reserve, including the Term Auction Facility (TAF), Commercial Paper Funding Facility (CPFF), Primary Dealer Credit Facility (PDCF), the Term Securities Lending Facility (TSLF), Single Tranche Open Market  Operations (ST OMO), the Asset-Backed Commercial Paper Money Market Mutual Funding Liquidity Facility (AMLF),and several other credit facilities.
4.  The Leviticus 25 Plan would generate, on average,  $1.02 trillion budget surpluses each year for the next five years.
5. The Leviticus 25 Plan restores financial stability for American families and the freedom for citizens to directly allocate resources in managing their daily affairs – rather than requiring submission to central planning and government allocation of resources.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen                                              The Leviticus 25 Plan 2018 (2153)