Credit card debt swamp vs Fed’s special financing flows for banks

Americans are drowning in debt..

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45% Of Americans Spend Up To Half Their Income Repaying Credit Card Debts

 “…More than 4 in 10 Americans with debt (45%) spend up to half of their monthly income on debt repayment…”   ZeroHedge 5-1-2017

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US Consumers Tap Out: Credit Card Defaults Surge To 4 Year High And It’s Getting Worse

According to the latest data from the S&P/Experian Bankcard Default Index, as of March 2017, the default rate on US credit cards had jumped to 3.31%, an increase of 13% from a year ago, and the highest default rate since June 2013.   ZeroHedge,  Apr 26, 2017

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Meanwhile, how are the banks faring…?

Conversely, the banks have never had it so good.  They borrow from the Fed at less than 1 percent interest.  Then they buy U.S. Treasury notes – currently the 10-Year note is yielding 2.24 percent.  After that they issue credit to consumers at 16 percent APR while paying 0.01 percent yield on savings deposits. Has there ever been a more questionable business that’s given every advantage under the sun?  Accessed from: Economic Prism’s MN Gordon, via Acting-Man.com,

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It is time for the Fed to grant U.S. citizens the same access to liquidity that they are so generously transfusing on a weekly basis to Wall Street’s financial sector.

As an example, what’s good for Goldman Sachs should be good for John Q. Citizen: Lend John Q. $2 million at 1%  interest.  John Q then purchases $2 million in 10-Year T-bonds yielding 2.24%.  T-bonds are secured in Fed lock-box.

At the end of five years, T-Bonds are cashed in for a net 1.24% per annum over five years.  John Q. receives electronic deposit of $124,000.

John Q. receives the same access to liquidity that is so generously supplied to Goldman Sachs, Bank of America, Citigroup, UBS, Deutsche Bank, and many, many others.

 It is time to level the playing field.

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

The Leviticus 25 Plan 2018 (2285)

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