Aggregate Household Debt – record high: $13.15 trillion. Solution: The Leviticus 25 Plan

America needs a debt overhaul. Soon.

The clock is ticking…

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Household Debt Rises By $572 Billion, Ends 2017 At All Time High

ZeroHedge, Feb 13, 2018 – Excerpts:

Aggregate household debt increased for the 14th straight quarter, rising by $193 billion (1.5%) to a new all time high, and as of December 31, 2017, total household indebtedness was $13.15 trillion, an increase of $572 billion from a year ago – the fifth consecutive year of increases – equivalent to 67% of US GDP, versus a high of around 87% in early 2009. After years of deleveraging in the wake of the 2007-09 recession, household debt has risen more than 18% since the trough hit in the spring of 2013.

https://www.zerohedge.com/sites/default/files/inline-images/household%20debt%20q4%202017.jpg?itok=65M3GemQ

Some more big picture trends:

  • Mortgage balances, the largest component of household debt, increased by $139 billion during the quarter to $8.88 trillion from Q3 2017.
  • Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by another $4 billion and now stand at $444 billion.
  • Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $58 billion increase in the fourth quarter.
  • Auto loans grew by $8 billion to $1.22 trillion
  • Credit card balances increased by $26 billion to $834 billion
  • Student loans saw a $21 billion increase to $1.38 trillion

There were some red flags of caution: confirming recent negative data from Wells Fargo, and suggesting that the housing recovery is stalling, mortgage originations were at $452 billion, down from $479 billion in the third quarter.

Also troubling: There were $137 billion in auto loan originations in the fourth quarter of 2017, a small decline from 2017Q3 but making 2017 auto loan origination volume the highest year observed in our data.

Meanwhile, credit card balances increased by $26 billion. Aggregate credit card limits rose for the 20th consecutive quarter, with a 1.0% increase.

The table below summarizes the key changes in household debt and credit developments as of Q4 2017

https://www.zerohedge.com/sites/default/files/inline-images/household%20debt%20q4%202017%20table.jpg?itok=At4uBOgu

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America’s one and only ‘debt recovery plan will;

  • Restore economic liberty and financial health to U.S. families
  • Re-ignite economic growth
  • Stabilize the banking system
  • Provide $1 trillion budget surpluses at the federal level for each of the next five years

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 – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2668 downloads)

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

 

 

Feb 2018: Federal Receipts / GDP – sluggish. America need a new ‘powerhouse’ plan.

Federal Receipts as a Percent of Gross Domestic Product have been ‘down-hilling’ it since 2013.

The U.S. economy need a powerful new ‘kick start’….

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There is one dynamic economic acceleration plan with the raw power to generate massive new tax revenues sufficient to balance the federal budget:

The Leviticus 25 Plan – An Economic Acceleration Plan for America

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Fed: Household Debt and Credit Developments in 2017Q3 – A Sea of Red Ink

U.S. Households are drowning in in a sea of debt.

It is time for a reset…

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FEDERAL RESERVE BANK OF NEW YORK
RESEARCH AND STATISTICS GROUP
●MICROECONOMIC STUDIES
QUARTERLY REPORT ON HOUSEHOLD DEBT AND CREDIT
FRBNY Analysis Based on FRBNY Consumer Credit Panel / Equifax Data

Household Debt and Credit Developments in 2017Q3

Aggregate household debt balances increased in the third quarter of 2017, for the 13th consecutive quarter, and are now $280 billion higher than the previous (2008Q3) peak of $12.68 trillion.

As of September 30, 2017, total household indebtedness was $12.96 trillion, a $116 billion (0.9%) increase from the second quarter of 2017.  Overall household debt is now 16.2% above the 2013Q2 trough.

Mortgage balances, the largest component of household debt increased again during the third quarter. Mortgage balances shown on consumer credit reports on September 30 stood at $8.74 trillion, an increase of $52 billion from the second quarter of 2017.

Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by $4 billion and now stand at $4.48 billion.

Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $68 billion increase in the third quarter.

Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase.

New extensions of credit increased in the third quarter. Mortgage originations, which we measure as appearances of new mortgage balances on consumer credit reports and which include refinanced mortgages, were at $479 billion, up from $4.21 billion in the second quarter.

There were $150.6 billion in auto loan originations in the third quarter of 2017, a small increase from the high level seen in 2017Q2 and among the highest quarterly volumes seen in our data.

The aggregate credit card limit rose for the 19th consecutive quarter, with a 15% increase.

The distribution of the credit scores of newly originating borrowers shifted up slightly for both auto loans and mortgages. For auto loan originators, the median score increased to 705, as the higher level of auto loan originations in the third quarter was mainly due to growth in originations to prime borrowers; origination volume to borrowers with credit scores under 660 declined.

The median credit score to individuals originating new mortgages ticked up to 760, from 754.

Aggregate delinquency rates ticked up slightly in the third quarter of 2017.  As of September 30, 49% of outstanding debt was in some stage of delinquency. Of the $630 billion of debt that is delinquent, $408 billion is seriously delinquent (at least 90 days late or “severely derogatory”).

Flows into delinquency deteriorated for some types of debt. The flow into 90+ delinquent for credit card balances has been increasing notably for one year, and that measure for auto loans has increased, and the flow into 90+ delinquency for auto loan balances has been slowly increasing since 2012.

About 208,000 consumers had a bankruptcy notation added to their credit reports in 2017Q3, a slight improvement over the same quarter last year.

Housing Debt.

  • There was $479 billion in newly originated mortgage debt this quarter.
  • Mortgage delinquencies continued to improve, with 1.4% of mortgage balances 90 or more days delinquent in 2017Q3.
  • Delinquency transition rates for current mortgage balances were unchanged, with 10% of current balances transitioning to delinquency.

There was a deterioration in the transition rate of mortgages in early delinquency, of which 16.2% transitioned to 90+ days delinquent, compared to 12.8% in the previous quarter.

  • About 70,000 individuals had a new foreclosure notation added to their credit reports between July 1 and September 30, a new historical low.

Student Loans, Credit Cards, and Auto Loans

  • Outstanding student loan debt grew, and stood at $136 trillion as of September 30, 2017.
  • 11.2% of aggregate student loan debt was 90+ days delinquent or in default in 2017Q3, unchanged since the previous quarter.
  • Auto loan balances increased by $23 billion, continuing their 6-year trend. Auto loan delinquency rates increased slightly, with 4.0% of auto loan balances 90 or more days delinquent on September 30.
  • Credit card balances increased by $24 billion.

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America’s needs a powerful, outside-the-box ‘reset’ solution:

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 – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2655 downloads)

 

Consumer Debt, Credit Card Delinquencies Surging. America Needs an Invigorating New Round of Debt Elimination: The Leviticus 25 Plan

Consumer debt is a major drag on disposable income.  It is difficult to imagine a robust recovery in real disposable income growth without a healthy draw-down in consumer and household debt.

Credit card debt and delinquencies are surging.  Disposable income is stagnating…

America needs a powerful new economic strategy…

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Credit Card Delinquencies Surging

Summary

Credit card delinquencies rose to 2.53% across all commercial banks.

Credit card delinquencies soared to 5.34% across small banks, the highest since the financial crisis.

The major four U.S. banks saw credit card losses surge 20% in 2017 compared to 2016.

The trend in credit card delinquency rates has inflected positively across all major banks, although still low on a nominal level. The trend in credit card delinquencies is soaring, however, at smaller banks to levels not seen since the financial crisis.

The data shows that over the past 5 years, real personal disposable income growth per capita has grown at a sluggish pace of only 0.76%.

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There is one economic acceleration plan in America with the raw power to re-instill positive work incentives and boost productivity across labor markets, improve credit quality within the banking system, and restore financial health and economic liberty to U.S. citizens and their families.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

The Leviticus 25 Plan pdf (2654 downloads)

 

 

U.S. taxpayer dollars – ‘to Russia with love’….. (a look back in time)

2014 – Money flows to … Russia.

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Ukraine reached a preliminary deal with the International Monetary Fund to unlock $27 billion in international aid as U.S. lawmakers passed bills imposing more sanctions on Russians linked to Crimea’s annexation.”  Source:  Bloomberg, Mar 27, 2014

$18 billion of that aid package is being anted up by the International Monetary Fund (IMF).

Note 1: The U.S. finances 17.7% of the IMF budget, so U.S. taxpayers are kicking in a cool $3.2 billion in the deal – to ‘bail out’ Ukraine.

It was also announced (NY Times, March 27, 2014): Congress Approves $1 Billion of Aid for Ukraine

WASHINGTON — The House and the Senate voted overwhelmingly on Thursday to approve a $1 billion aid package for Ukraine….

Total from the U.S. – approximately $4.2 billion

Note 2:  A significant $2.2 billion from these bailout packages will actually go to pay off some Ukrainian debt to……. Russian natural gas giant, Gazprom.

Gazprom has been playing some ‘hard-ball’ lately when it nearly “doubled the gas price for Ukraine to $485 per 1,000 cubic metres, compared to the $370-$380 it charges Europe on average. Ukraine says the new price is unacceptable and is politically motivated.”  Source:  Ukraine fails to pay for gas on time, debt stands at $2.2-billion: Russia’s Gazprom

U.S. taxpayers to the rescue.  Money to Ukraine. Money to Russia.

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This raises an important question: How is it that our government could see fit in 2014 to authorize billions of dollars in bailouts to Ukraine… to help relieve their Russian debt, while at the same time our government would not consider granting equal access to credit extensions to our own U.S. citizens, to advance the cause of debt relief for American families?

It is time for some powerful new economics in America.

The Leviticus 25 Plan – the equal opportunity plan for American families.

The Leviticus 25 Plan pdf (2650 downloads)