America Wins

The Leviticus 25 Plan will rebuild America’s economic foundation. It will return control and responsibility for allocating financial resources back to individual American citizens, rather than allowing government to allocate resources.

Government allocation of resources inevitably leads to loss of freedom (F.A. Hayek).     It replaces individual economic choice with government dictate. It is inefficient, it distorts cost structures, and it creates artificial imbalances in the free market system.

The Leviticus 25 Plan will substantially decrease, and in many cases eliminate, house-hold debt level in America. It will generate meaningful gains in Real Median Household Income. It will provide financial security for American families and restore economic liberty. And it will free millions of Americans from big-government oppression and control over their daily lives.

The Plan will make it possible for Americans at all levels to avoid home loan foreclosures, feed their families, and start small business enterprises on their own – without government involvement.

Small business will not need to depend upon government-directed stimulus programs and tax incentives. They will instead benefit from financially secure customers walking in the front door.

State governments will benefit enormously from decreased costs for on-going social programs (unemployment benefits, food stamp benefits, heating-rental-phone assistance, partial off-sets to monthly Medicaid spending obligations, partial off-sets to penal institution funding, etc). State tax revenues would also grow significantly with the improving economic climate.

The housing market would stabilize, foreclosures should slow dramatically. Distressed properties would be more efficiently ‘moved’ in the market place.

There is a dangerous global “derivatives overhang” – approximately $639 trillion (this, in a $60 trillion world economy). Major exposure exists in Interest Rate Contracts, Foreign Exchange Contracts, and Credit Derivatives. In the U.S., “five banks [J.P. Morgan, Goldman Sachs, Bank of America, Citibank, and HSBC] account for 97% of the $203 trillion in derivatives sitting on US commercial bank balance sheets (that we know of). Let’s put this into perspective: Total equity at these five banks is about $737 billion. So if you assume that only 1% of derivatives are “at risk” (odds are it’s more) and 10% of that “at risk” money is lost, you’ve wiped out nearly 1/3 of the banks’ equity.” (Source: BIS 11-13-2012; Alpha 4-13-2010).

The stabilization of certain asset classes, particularly housing and credit markets, would forestall another (deflationary) derivatives crisis, or certainly minimize the potential damage.

The elimination of debt at the family level, along with stabilization of the housing market, would allow the Federal Reserve to gradually reverse course on their “Zero Interest Rate Policy” (ZIRP) and allow interest rates to assume a more realistic, market-based level. Slightly higher interest rates would also encourage and benefit savings by American families – as well as major business sectors such as investment/pension funds, insurance companies.

The Leviticus 25 Plan will lower healthcare costs for American families by eliminating layers of bureaucracy, oversight, and administrative costs. It will re-incentivize wise decision-making in the allocation of healthcare spending at the family level. Those families with increased healthcare funding needs would continue to have access to support (Medicare and Medicaid) after a monthly off-set from their Medical Savings Account.

Federal Regulators seized 157 banks in 2010 “in the wake of economic distress and soured loans.” 92 banks were taken over in 2011, 51 were seized in 2012, and 24 in 2013. The U.S. economy continues to struggle with financially stressed borrowers and structural problems that continue to adversely impact America’s banks.

The Plan will reignite economic growth, strengthen Main Street America, and strengthen the banking system with increased cash reserves, reduced exposure to at-risk loans, and enhanced collateral quality.

The Leviticus 25 Plan is America’s winning solution.

 

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