America’s looming “Debt Interest Bomb” and the powerhouse economic acceleration plan to solve the fiscal crisis

Obama’s Debt Interest Bomb –  WSJ 4-11-17 – Excerpts:

Friday’s Congressional Budget Office budget review for March: Rising net interest payments on the national debt.

CBO reported that the federal budget deficit rose $63 billion in the first half of fiscal 2017 (October-March) to $522 billion from a year earlier. But here’s the especially bad omen: Net interest payments rose $7 billion, or 30%, in March from a year earlier.


If that seems small, consider that interest payments rose $28 billion for the six months of fiscal 2017 to $152 billion. That’s a 22.2% increase, among the biggest in any single spending item highlighted by CBO. The increases reflect the growing debt but in particular the Federal Reserve’s decision to raise interest rates after years of near-zero rates.


America appears now to be re-entering the zone of “exploding deficits.”  The first half of the 2017 fiscal year (Oct – Mar) rolled through with a hefty $522 billion deficit.  If the second half of the fiscal year (Apr – Sep) follows up with a similar red ink bonanza, we will tip the $1 trillion deficit mark once again.

The Wall Street Journal further notes, “While Mr. Obama was doubling the national debt over eight years, the Fed’s monetary policies spared him from the fiscal consequences. The Fed’s near-zero policy kept interest rates at historic lows that reduced net interest payments even as the overall debt increased. The Fed’s bond-buying programs also earned money that the Fed turned over to Treasury each year, reducing the size of the federal budget deficit by tens of billions of dollars.”

That “not-so-free Fed lunch” is now winding down. “As interest rates rise, the Fed will also have to pay banks more to keep excess reserves parked at the central bank. After its latest rate increase in March, the Fed now pays banks 1% on reserve balances or about $20 billion a year, and that will go up.”
Also note (ZeroHedge Jul 13, 2017):

If the U.S. Federal Reserve can pay out billions of dollars each year through “interest on excess reserves” to  “foreign banks,” then it can most certainly grant U.S. citizens direct access to liquidity through a “Citizens Credit Facility.”


America needs a powerhouse federal budget SURPLUS plan, and it needs it NOW.

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

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 Leviticus 25 Plan pays for itself over a 10-15 year period, and generates massive budget surpluses.

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

The Leviticus 25 Plan 2018 (2414)

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