The Leviticus 25 Plan 2017: Restoring prosperity to America and financial health for American families.

May 2017:  America’s economic engine is sputtering badly.  Over 3,000 retail store closings.  Ford set to lay off 10% of global workforce including 1,400 in North America, Empire Fed signaling ‘contraction.’

America’s economic health is fragile.

Massive government debt, household debt and corporate debt burdens are draining astronomical amounts of liquidity from the U.S. economy.

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Visualizing America’s Retail Apocalypse

So far we’ve seen roughly 3,000 store closings announced in 2017, and Credit Suisse estimates that could hit 8,600 by the end of the year. That would easily surpass 2008’s total, which was 6,200 closings, to be the worst year in recent memory…  ZeroHedge, May 6, 2017

How Is This Not A Recession? Ford To Slash 10% Of Global Workforce

Having admitted in March that “used car prices will drop for years” and amid near-record inventories,  a so-called ‘plateau’ in car sales, and soaring auto-loan losses, WSJ is reporting that Ford is planning substantial cuts to its global workforce amid CEO Mark Fields’s drive to boost profits and address the auto maker’s sliding stock price.   ZeroHedge, May 15, 2017

‘Soft’ Data Slumps – Empire Fed Plunges Into Contraction As New Orders Collapse

Having surged to its highest since Oct 2014 early in the year on the back of Trumptopian exuberance, Empire Fed’s manufacturing survey crashed back to -1.0 in May. This is the worst (and first) contractionary print since October 2016 as New Orders crash from 7-year highs to 7-month lows.  ZeroHedge, May 15, 2017

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To restore prosperity to America and financial health for individual American families, we must grand U.S. citizens the same access to liquidity that was granted to major banks and insurers during the great financial crisis.

The result:

  1. Economic liberty
  2. Massive debt elimination
  3. Decentralized, free-market economics
  4. Reduced dependence on government
  5. Massive, new federal, state, and local government tax revenue flows and a balanced budget at the national level

There is exactly one powerful, dynamic economic plan in America that delivers:

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 (2313)

Federal Reserve, March 2017 release: Mortgage Debt Outstanding, All Holders: $14.291 trillion

Mortgage Debt Outstanding, as of the end of the 4th Quarter of 2016, totals over $14.291 trillion.  This does not include nonhousing debt.

$14.291 trillion in mortgage debt, assuming a 20-year maturity on 30-year notes at a 4% rate of interest, would mean that Americans are paying approximately $68.2 billion in mortgage payments each month.

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Federal Reserve Board of Governors

Release Date: March 2017

Mortgage Debt Outstanding (1.54)

Millions of dollars, end of period

2016Q4 – All Holders            14,291,245

By type of property   

One- to four- family residences 10,265,680

Multifamily residences1                        1,186,655

Nonfarm, nonresidential                2,614,809

Farm                                                 224,400

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The Leviticus 25 Plan would easily accommodate the elimination of 50% of the Mortgage Debt Outstanding in the U.S..

This would result in approximately $34.1 billion in new money flowing into the cities and towns across America … each month… for the next 20 years.

This would ease the financial strain on American families, re-ignite economic growth, reduce dependence on government entitlement programs and social welfarism. This would also strengthen loan portfolio asset quality for banks and improve capitalization structures..

The Leviticus 25 Plan would also generate $1.02 trillion government surpluses annually for each of the next five years.

America’s one and only  ‘powerhouse’ economic acceleration plan:

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

The Leviticus 25 Plan 2018 (2306)

4Q 2016 Household Debt and Credit Report: $12.58 trillion.

Debt is a liquidity vacuum.  Massive debt, and its associated monthly debt service obligations, is an economy killer.

The U.S. economy is barely crawling, and prospects for a meaningful, sustainable turnaround are presently bleak.

Now… imagine the raw economy-boosting power of eliminating 40%, 50%, or possibly 60% of the $8.95 trillion housing debt in the U.S..

At $8.95 trillion, 4.0%, 20 year maturity, housing debt service for U.S. households is running at approximately $54.2 billion per month.

Eliminating 50% of the housing debt balance from U.S. Household Debt would erase approximately $27.1 billion in debt service per month… every month… for the next 20 years.

And that $27.1 billion, ladies and gentlemen, is fresh, new liquidity that would be walking the streets of America every month for the next 20 years.

And that is how you revitalize an economy and generate raw economic power.

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 Federal Reserve Bank of New York

Center for Microeconomic Data

HOUSEHOLD DEBT AND CREDIT REPORT (Q4 2016)

Household Debt Edges Up as Auto, Credit Card, and Student Debt Climb

The CMD’s latest Quarterly Report on Household Debt and Credit reveals that total household debt increased by 1.8% in the fourth quarter of 2016, rising $226 billion to reach $12.58 trillion, only 99 billion shy of its 2008 third quarter peak. Balances increased across all debt products, with a 1.6% increase in mortgage balances, a 1.9% increase in auto loan balances, a 4.3% increase in credit card balances, and a 2.4% increase in student loan balances this quarter.

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America’s raw economic power plan:

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

The Leviticus 25 Plan 2018 (2301)

Headlines: U.S. economy is anemic, loan demand is collapsing, interest on debt breeches the $500 billion level for first time in history…

The American economy is skating along on thin ice, the cracks are forming.

For the first time ever, the interest on the debt breached the $500B mark (annual  basis). GDP growth is anemic.  Retail businesses are failing. Loan demand is collapsing.

Real Median Household Income growth is in a 9-year stall-out. Total Household Debt levels, according to the NY Federal Reserve, are up within an eyelash of the 2008 record.

We are spinning in circles, chasing our tail….

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Here We Go Again: NY Fed Cuts Q2 GDP To 1.8% From 2.3% (Atlanta Fed Still At 4.2%)

It appears that the Atlanta Fed and NY Fed GDP trackers have decided to flip.  May 5, 2017 11:25 AM

 

Just One Week Later, Atlanta Fed’s Q2 GDP Forecast Crumbles From 4.3% to 3.6%

Just one week after its initial forecast, the Atlanta Fed has lobbed off a whopping 17% from its initial GDP estimate of 4.3%, and moments ago revised its Q2 GDP tracker to 3.6% due to declines in real consumer spending growth and real private fixed investment.       ZeroHedge, May 9, 2017

 

Wholesales Sales Growth Stalls In March – Weakest In 8 Months

Final data for wholesale inventories and sales data in March show a modestly better than expected rise in inventories (+0.2% vs -0.1% MoM) and worse than expected sales which showed no growth in March – the weakest print since July 2016.   ZeroHedge, May 9, 2017

Fed Reports Unexpected Collapse In Credit Card, Auto Loan Demand

With both C&I and auto loan demand slowing down again in the quarter, the biggest surprise in the Fed’s latest Senior Loan Officers’ Survey was that demand for credit cards is now running at the lowest level in the past 5 years.  ZeroHedge, May 9, 2017
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America needs a dynamic new plan, one that re-targets liquidity infusions for maximum impact – direct to U.S. citizens.

America needs a citizen-driven, free market economy. We need massive debt elimination at ground level.

We need an economic plan that promotes reduced dependence on government.

We need freedom in healthcare.  “If you like your ObamaCare, you can keep your ObamaCare.”  For all others, will receive direct access to liquidity for personalized allocation of healthcare resources.

American families need economic liberty, and here is America’s powerful, dynamic plan:

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

The Leviticus 25 Plan 2018 (2295)

 

 

2017: Growth in Government Healthcare spiraling skyward

Growth in Government healthcare spending is vastly outpacing GDP growth.

health4.png

We have a healthcare debacle on our hands.  Government allocation of healthcare resources is riddles with inefficiency, heavy-handed bureaucracy, waste, and political pressures.

Tweaking the current system is not a viable option.

America needs a citizen-centered healthcare solution.  That means allowing citizens direct control over the allocation of resources for their month-to-month primary health care needs and desires.

There is one plan that puts Americans back in control.

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 (2289)

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)

Q1 2017 GDP: 0.7%. Fed policies failing Main Street America. Strategic solution: The Leviticus 25 Plan

Economic growth is decelerating in America.. approaching stall speed….

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US GDP Collapses To 0.7%, Lowest In Three Years; Worst Personal Spending Since 2009

The Atlanta Fed was right once again, and slashing its forecast over the past 3 months today the BEA confirmed that in the first quarter US economic growth tumbled to just 0.7%, below the 1.0% expected, and the lowest print in three years going back all the way to Q1 2014.  ZeroHedge – Apr 28, 2017

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Initial Jobless Claims Jump Most In 5 Months; Higher Since Trump’s Election

The last two weeks have seen initial jobless claims rise 23k to 257k. This is the biggest 2-week rise since Thanksgiving last year and is back above the Trump election levels and the start of 2017 levels. ZeroHedge – Apr 27, 2017

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Q1 GDP Takes Another Hit As Wholesale Inventories Slide In March

With non-hope-based GDP forecasts for Q1 at cycle lows, today’s wholesale inventories decline will not help. After dropping in January, and rebounding in Feb, March saw inventories drop 0.1% (against expectations of a 0.2% rise). This is the first quarterly decline in wholesale inventories since Q1 2016 (when the world was feared to be heading into recession).  Apr 27, 2017 8:44 AM

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America’s economic health is failing.

America’s dynamic growth solution:  The Leviticus 25 Plan

  • $1.02 trillion annual budget surpluses
  • Powerful, sustainable economic growth
  • Reduced dependency on government
  • Medicare, Medicaid stability
  • Economic liberty for all Americans

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

The Leviticus 25 Plan 2018 (2280)

Eyeball deep in the global debt ‘slop hole, Part 2: Corporate debt

Record debt levels are choking corporations in America.

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Corporate Debt To EBITDA Hits All Time High

“When using the aggregated data, both gross and net corporate debt/EBITDA are at or near record leverage levels, well above prior cycle peaks.” – Morgan Stanley  Apr 21, 2017

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America is drowning in debt.  We need re-targeted liquidity, and here is the solution:

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

The Leviticus 25 Plan 2018 (2279)

 

 

Eyeball deep in the global debt ‘slop hole,’ Part 3: Total Non-financial Debt

Debt is surging in the U.S.

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Hoisington Quarterly Review and Outlook, Q1 2017

By Lacy Hunt and Van Hoisington

Excerpts:

Debt. Total domestic nonfinancial debt, excluding off balance sheet liabilities such as leases and unfunded pension liabilities, surged to a record 254.8% of GDP in 2016, 5.6% greater than in 2009 when Lehman Brothers failed (Chart 2). Total debt, which includes domestic nonfinancial, foreign and bank debt, amounted to 372.5% of GDP in 2016, compared with 251.9% of GDP in 2006, the final year of previous tightening cycle, which, in turn, was greater than in any earlier time from 1870 through 2006.

First, in the initial quarter of 2017, the year-over-year change in the monetary base was -4.8%. This comes after sharp contractions in each of the previous four quarters, the largest such decreases since the end of World War II (Chart 3). Some argue that this unprecedented weakness in the monetary base is not relevant since the depository institutions still hold $2.1 trillion of excess reserves (defined as the difference between total reserves and required reserves). The textbook writers emphasize that excess reserves are the key to money and credit expansion. But, the multiple expansion of bank reserves so diligently explained in the textbooks was written for a regulatory environment that no longer exists, which is the second different condition.

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America is drowning in debt.

There is one dynamic solution:  Grant U.S. citizens the same access to liquidity that was provided to Wall Street’s financial sector during 2008-2010 – to help them unwind their debt profiles and return to ‘financial stability.’

It is time to unwind debt at ground level – and pump up America’s Monetary Base.

It is time to restore economic liberty for American families and set them on course for long-term ‘financial health.’

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

The Leviticus 25 Plan 2018 (2276)

Default wave tsunami on the horizon: Housing, autos, student loans

America is beset by a severe liquidity drought, primarily do to debt service obligations. Massive capital flows are dedicated to debt service.

Debt bubbles are in full bloom.  And we are on a glide path for massive default waves, disorder in credit markets and financial turmoil.

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Dangerous bubbles: “The Warning Signs Are There

  • Eric Rosengren, the president of the Federal Reserve Bank of Boston, recently made a startling tacit admission. We may be in the midst of yet another real estate bubble. Major financial institutions in this country are in possession of over $14 trillion worth of residential real estate loans. That’s well over $40,000 for every man woman and child in America.
  • Low interest rates have fueled a bubble in subprime auto loans, and that bubble appears to be reaching its limits. There are now over 1 million ordinary and subprime auto loans that are delinquent, a number that hasn’t been this high since 2009.
  • There is now well over a trillion dollars worth of student loan debt in this country; much of it owned by low income families. And there’s little hope that these students will ever see a return on their investment. That’s why at least 27% of student loans are in default. While more than one in four students are in default now, that number was one in nine a decade ago. And if current trends continue, there could be $3.3 trillion of student loan debt by the end of the next decade. Clearly, this isn’t going to go on for much longer.
  • And who could forget the stock market? Despite experiencing low GDP growth every year since the last recession, the stock market continues to break new records. Many of the companies on the stock market (especially tech companies), have a market cap that is between 20 and 100 times their sales or earnings numbers. Some are much higher, despite experiencing slow growth, or even no profits at all.

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America needs robust liquidity at ground level:

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

The Leviticus 25 Plan 2018 (2275)