Goldman Sachs: #7 Recipient of Fed’s “Secret Liquidity Lifelines”

The Federal Reserve’s gargantuan emergency lending programs transfused dozens of global financial heavyweights with hundred of billions of dollars during the great financial crisis 2008-2012.

Next up:  #7 Goldman Sachs.

A look back: Matt Taibbi, Rolling Stone Feb 17, 2010


“At the height of the housing boom, Goldman was selling billions in bundled mortgage-backed securities — often toxic crap of the no-money-down, no-identification-needed variety of home loan — to various institutional suckers like pensions and insurance companies, who frequently thought they were buying investment-grade instruments. At the same time, in a glaring example of the perverse incentives that existed and still exist, Goldman was also betting against those same sorts of securities — a practice that one government investigator compared to “selling a car with faulty brakes and then buying an insurance policy on the buyer of those cars.”

Goldman hedged its massive blind bet by purchasing from AIG a “virtually unregulated form of pseudo-insurance called credit-default swaps”  Goldman did not apparently concern itself with the fact that “AIG wasn’t required to [and didn’t] actually have the capital to pay off the deals.”

AIG had sold $440 billion of this ‘worthless crap’ to various bank (like Goldman)… a large portion of which the “taxpayer ended up having to eat.”

AIG was taken over by the government in September 2008, and instead of the normal course of bankruptcy-arbitration, the government saw to it that “Goldman was paid 100 cents on the dollar on an additional $12.9 billion it was owed by AIG…”

Less than one week after the massive AIG bailout, Goldman Sachs and Morgan Stanley were granted permission to become bank holding companies – will full access to borrowing funds, at very low interest rates, at the Fed Discount Window.

“Borrowing at zero percent interest, banks like Goldman now had virtually infinite ways to make money. In one of the most common maneuvers, they simply took the money they borrowed from the government at zero percent and lent it back to the government by buying Treasury bills that paid interest of three or four percent. It was basically a license to print money — no different than attaching an ATM to the side of the Federal Reserve.”

“You’re borrowing at zero, putting it out there at two or three percent, with hundreds of billions of dollars — man, you can make a lot of money that way,” according to one prominent hedge fund manager.

Goldman then tapped into “a new federal operation called the Temporary Liquidity Guarantee Program [which] let insolvent and near-insolvent banks dispense with their deservedly ruined credit profiles and borrow on a clean slate, with FDIC backing. Goldman borrowed $29 billion on the government’s good name, J.P. Morgan Chase $38 billion, and Bank of America $44 billion. “TLGP,” says Prins, the former Goldman manager, “was a big one.”

Bloomberg  Nov 28, 2011:  “On Sept. 21, 2008, a week after Lehman Brothers Holdings Inc. went bankrupt, Goldman Sachs Group Inc. converted to a bank holding company, gaining access to the Federal Reserve’s last-resort lending program for banks, the discount window. While it took only $50 million from the window, New York-based Goldman Sachs had been borrowing from the central bank for six months from two temporary programs for broker-dealers: the Term Securities Lending Facility and the single-tranche open market operations, or ST OMO. On Dec. 31, 2008, Goldman Sachs had $34.5 billion of loans from ST OMO, some of it at an interest rate of 0.01 percent.”

Peak Amount of debt as of 12-31-2008:  $69 billion

That hardly tells the full story, however.

Epilogue:  Goldman had also received a $10 billion TARP loan, but quickly paid it back, proudly exclaiming that “the firm does not require further capital” and the $10 billion can now be “used by the government to revitalize the economy, a priority in which we all have a common stake.”

“During the three months following Goldman’s re-payment of its $10 billion TARP loan, the Fed purchased $27 billion of MBS from Goldman.”

“In all, the Fed would purchase more than $100 billion of MBS from Goldman during the 12 months that followed Goldman’s TARP re-payment,” according to a Dec 15, 2010 Business Insider report.


It is now time to re-balance the financial equation in America with a new credit facility, The Citizens Credit Facility, which grants U.S. citizens the same direct access to liquidity that was so generously provided to the likes of Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, State Street, UBS, and many other domestic and foreign financial institutions.

Meet the most powerful economic acceleration plan in America:

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

The Leviticus 25 Plan 2018 (2582)

U.S. Families 2017: Rising Financial Distress. It is Time to Re-Target Liquidity Infusions and Power Up America’s Economic Engine.

The Federal Reserve’s massive liquidity transfusions into the Wall Street financial sector eliminated debt obligations and pumped new life into global financial institutions.

It did very little, however, to relieve debt/liquidity distress and restore American families to financial health.

Real Median Household Income has slumped hard over the past 17 years…

And now U.S. citizens are getting squeezed hard by stagnant trends in real disposable income and rising trend in cost of living.


Lance Roberts – Real Investment Advice, Nov 17, 2017 Excerpts:

“… the recent surge in consumer debt without a subsequent increase in consumer spending shows the financial distress faced by a vast majority of consumers. The first chart below shows a record gap between the standard cost of living and the debt required to finance that cost of living. Prior to 2000, debt was able to support a rising standard of living, which is no longer the case currently.”

With a current shortfall of $18,176 between the standard of living and real disposable incomes, debt is only able to cover about 2/3rds of the difference with a net shortfall of $6,605. This explains the reason why “control purchases” by individuals (those items individuals buy most often) is running at levels more normally consistent with recessions rather than economic expansions.


It is time to ‘re-target’ liquidity flows – and eliminate massive debt burdens at ground level, relieve debt-service obligations, and restore financial health to U.S. citizens.

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

The Leviticus 25 Plan 2018 (2579)

Economic Wisdom: If You Want Seriously Address the U.S.’ Catastrophic Fiscal Hole, a Carbon Tax is Not the Answer.

Some high-ranking economists, along with some elite-class political heavyweights, are carbon tax true believers (WSJ – Jenkins, 11-15-17).  The list includes the likes of Kevin Haslet, Greg Mankiw, James A Baker, Henry Paulson, George P. Shultz, Martin Feldstein, Mitt Romney.

The narrative goes like this: “The virtues of a carbon tax are not in dispute.  It’s a way to raise money that doesn’t weigh on incentives to work, save and invest.”

In truth, new carbon tax government revenues would simply supply fresh new resources to feed the insatiable appetite of a spend-happy U.S. government.

It would do little, if anything, to restore fiscal sanity within the walls of Congress.  It would do nothing to set America back on course for a sustainable, financially-sound, low-debt future.

America needs less government control, not more.  We need a citizen-driven economy and free markets, not a government-centric economy with shackled markets and central planning imperatives.

A new carbon tax would increase financial stress and further impair the monthly balance sheets of millions of American families.  It would do nothing to seriously strengthen growth in real disposable household income.

It would do nothing to cast off the shackles of government control and free the U.S. marketplace for vigorous, long term economic growth and brighten the future of American families with true economic liberty.


Consider this critical point regarding America’s massive debt burden:  Every month hundreds of billions of dollars are obligated to servicing debt.  This massive, never-ending debt-service obligation, including household debt, credit card debt, corporate debt, and government debt, exerts a suffocating effect on economic growth.  It does nothing to enhance government tax revenue flows. In fact, various forms of debt are even tax deductible – thereby lowering potential tax revenue flows.

Household and Non-financial Corporate Debt has recently reached the $47 trillion mark.

Total Household and Non-financial Corporate Debt ($Trillions)

There is one economic acceleration plan in America with the power to get America back up on its feet again.

The Leviticus 25 Plan would eliminate massive amounts of debt across America and generate tremendous growth in government tax revenue flows (federal, state, local),  producing $1.02 trillion annual budget surpluses at the federal level for each of the next five years.

The Leviticus 25 Plan would provide massive debt elimination for millions of American families. It would relieve financial stress and restore financial health for families all across America.  The social benefits would be incalculable.

It would generate electrifying financial benefits to small businesses all across Main Street America.

The Leviticus 25 Plan would reduce the scope of government control over the daily affairs of U.S. citizens.  It would restore economic liberty for all America.

It is time to move.  There is no other plan in America. Period.

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 (2576) 

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


Bloomberg Nov 2017: U.S. Economy “On the Cusp of a Fresh Downturn”

The Economic Cycle Research Institute (ECRI) is citing vital evidence, based upon a fresh downturn in the Weekly Leading Index (WLI), that the U.S. economy is on the verge of stalling out.

A stalling economy will undoubtedly increase financial stress at the family level in America.  It will also pressure margins on small businesses.  And it will increase demands on social welfare resources.

And it will inevitably lead to lower government tax revenue flows and an uptrend in deficit spending.

There is a powerful economic acceleration plan, waiting and ready for implementation – to revitalize the U.S. economy and get America up and moving again…


Don’t Count on Ever-Growing Corporate Profit – Bloomberg

Bloomberg, Oct 6, 2017 – Excerpts:

Vital clues come from ECRI’s leading indexes. One of them is the publicly-available Weekly Leading Index, or WLI, whose growth rate is a reliable leading indicator of GRC downturns. In essence, if WLI growth enters a cyclical downturn, U.S. economic growth is likely to do the same.

Ominously, WLI growth turned down early this year and is now at a 79-week low. Such cyclical downturns have historically telegraphed GRC downturns. That shows very clearly that economic growth is about as good as it gets, and that a fresh growth slowdown may be on the way.

If so, corporate profit growth will also experience a corresponding cyclical downswing. In other words, it will fall further below its late 2016 peak, not ramp up from here.


Over time, we find that stock price corrections — big and small — have historically clustered around GRC downturns. In other words, the risk of corrections rises around economic slowdowns.


It is time for a new plan, with the power and dynamism to reignite economic growth, and put citizens back in control of the financial order of our country.

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 (2573)


U.S. healthcare – there is nothing in the world like a cash-paying customer.… to clean things up. Solution: The U.S. Health Care Freedom Plan

The U.S. Health Care Freedom Plan is a dynamic health care initiative with the power to restore citizen-centered health care for America.

The U.S. Health Care Freedom Plan grants a substantial initial deposit, $25,000 per family member, into a participating family’s Medical Savings Account (MSA). This robustly-funded MSA would make it possible for families to pay cash for their day-to-day, primary care healthcare needs over the course of the initial 5-year plan period.

Cash payments for day-to-day health care needs would give patients the freedom of choice in choosing their providers, taking greater ownership in their healthcare decisions, and avoiding unnecessary red tape and delays in treatment.  It would avoid penalties families might otherwise pay — for not doing things, precisely, according to government mandates.

The U.S. Health Care Freedom Plan would eliminate massive amounts of administrative costs and bureaucratic overhead.  It would allow American families to tailor their spending according to their individual needs, rather than requiring costly coverage in areas that are irrelevant to their needs.

It would provide millions of Americans (those left “uncovered” by the current health law) with access to primary care – without expanding Medicaid.

Cash-paying customers would open the door for countless new efficiencies to be woven back into the system.

It would be a welcome development for nearly all providers.  Instead of turning patients away, due to unacceptable reimbursement rates, they would find ways to appropriately accommodate patients in this newly energized system.


Our current big government program is a massive, inefficient, bureaucracy-driven quagmire…

Columnist Holoman Jenkins, Jr., WSJ  9-25-13:

“Our point is that when Washington legislates on a grand scale, it sets in motion a game whose long-run outcome nobody can predict.  

ObamaCare, to be sure, was not reform—it was a piling on of subsidies that can only throw fuel on the fire of health-care inflation. Not even the usual mouthpieces pretend otherwise anymore.

But a society can’t give a subsidy to everybody for the same reason you can’t give a subsidy to yourself—you end up paying for your own subsidy and aren’t better off.  In fact, you are worse off thanks to the administrative overhead involved in taking money away from you and giving it back to you.      

You are also worse off because of the perverse incentives engendered by diverting yours and everyone’s health-care spending through a common pot. 

These pathologies have undermined U.S. health care for two generations, and nothing has been solved, nothing has been fixed…”


The U.S. Health Care Freedom Plan

It is time for a new strategy – that puts citizens back in charge of their health care resources and decision-making..


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.


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).


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 (2570)



Exemptions:                                                                                         ObamaCare currently offers hardship exemptions for individuals who have a recognizable inability to pay for a plan or pay the penalty. The ACA also currently offers exemptions from certain provisions within the health care law, such as the reinsurance provisions, for various union organizations.

And certain U.S. Territories are exempt from specific ACA measures: The Hill, 7-17-14:  “Insurance companies in Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands are no longer required to implement a number of ObamaCare measures such as the community rating system, a single-risk pool, the medical loss ratio or guaranteed benefits.”

Administrative costs – bureaucracy:               

The Federal government has spent hundreds of billions of dollars to construct the monstrous ACA ‘machine.’

Billions of dollars have been spent on the roll out costs, insurer subsidies, management, monitoring, advertising, technical ‘fixes,’

There will be hundreds of billions of dollars yet to come with legal costs/prosecution, audits, regulatory costs/burdens, and much, much more.


Stockman – Part 2: “The Black Swan in Plain Sight” – Massive Household Debt

Part 2: U.S. Household Debt...

There is a way out…


Stockman Exposes “The Black Swan In Plain Sight” – Debt Out The Wazoo

ZeroHedge, Nov 7, 2017 – Excerpts:

…The 100 months of so-called recovery have been wasted from a deleveraging point of view. In the case of the US household sector, for example, the 20-year surge in debt obligations prior to the 2008 crisis caused total liabilities outstanding to soar by 5.2X, and to rise from 57% of GDP when Greenspan launched the era of bubble finance in Q3 1987 to nearly 100% of GDP on the eve of the crisis.

Nevertheless, after a small net reduction in debt immediately after the crisis, total household liabilities have continued to rise, and now exceed $15.1 trillion. Accordingly, just 250 basis points of interest normalization will cause the carry cost of household debt to rise by upwards of $400 billion per year or nearly triple the amounts of the ballyhooed tax cut.

Needless to say, US households will be far from alone—and also far from the most vulnerable balance sheets—-in the coming global reset of debt costs. At present, the Red Ponzi is staggering under $40 trillion of state and private debt or more than 3.5X its nominal GDP—-as vastly overstated and unsustainable as its official GDP figures actually are.


It is time to move…

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 (2566)


Stockman – Part 1: “The Black Swan in Plain Sight” – Massive U.S. Debt Burdens

The U.S. is gorging itself on debt.  There will come a time of reckoning…

There is a way out, however…


Stockman Exposes “The Black Swan In Plain Sight” – Debt Out The Wazoo

ZeroHedge, Nov 7, 2017 – Excerpts:

The black swan in plain sight…..

That is, monumental towers of rapidly rising debt loom  everywhere on the planet. For the moment, the artificial cash flow from this unsustainable borrowing spree is keeping a simulacrum of growth and prosperity alive. Yet this whole outbreak of debt madness—-represented by $225 trillion outstanding on a global basis—-is careening toward a financial and economic dead end that will soon crush today’s fiscally profligate politicians and heedless  financial punters, alike, in a devastating reset of bond yields.

For our first case in point, the always excellent Wolf Richter published a great chart over the weekend on the exploding US public debt. To say the least, it constitutes a clanging wake-up call amidst the absolute fantasy world that prevails on both ends of the Acela Corridor. That’s because during the mere 8 weeks since the public debt ceiling was suspended … in September, the national debt has spiked by $640 billion.

That’s about $16 billion per Federal business day, and they are not done yet. The US Treasury will continue to borrow heavily until the current debt ceiling “suspension” expires on December 8—-at which time it will repair to the old game of divesting trusting funds and employing other gimmicks which circumvent the ceiling, while waiting for Congress to blink and raise the ceiling or authorize a new “temporary” suspension.

As Wolf pointed out, this pattern played out during the debt showdowns of 2013 and 2015, as well, when the resulting “temporary” suspension resulted in borrowing spikes of $464 billion and $650 billion, respectively.

Indeed, when viewed in cyclical context the latest spike screams out a severe warning. To wit, in the 12 months since the election shock of November 8, 2016, the net public debt— after giving effect to the fluctuations in the cash balance—-has risen by $870 billion to the current total of nearly $20.28 trillion.

And there is no respite in sight as far as the eye can see owing to the surging numbers of baby boomers retiring and their impact on social security payments and the medical entitlements.

Indeed, we estimate that in the next four years, the US alone will add $5 trillion to the Treasury float—even as the Fed disgorges upwards of $2 trillion of existing debt securities. At the same time, the other central banks—led by the ECB and the People’s Bank of China—will be forced to exit the bond buying business as well or experience economically devastating declines in their exchange rate against the dollar.

That means, in turn, that the safety valve of the bond supply being sequestered in foreign central banks will also disappear from the global fixed income markets, thereby adding to the yield crunch coming down the pike.

Needless to say, the entire world economy will reel under the impact of rising yields because current asset valuations and the cash management practices of business and households alike are predicated upon ultra- low yields.


The U.S. needs some fresh, new ‘outside the box’ thinking.

We need a plan that is powerful enough to generate robust federal and state government budget surpluses, eliminate vast proportions of household debt, reignite healthy, sustainable economic growth, and restore economic liberty for citizens.

There is only one plan with that kind of power.

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

The Leviticus 25 Plan 2018 (2566)

State Street Corp: #5 Recipient of Fed’s “Secret Liquidity Lifelines”

State Street Corp, a Boston-based financial services holding company, is one of the oldest financial institutions in the U.S..  This multi-national corporation became the largest security services firm in the world in 2003 – even larger than JP Morgan and The Bank of New York Mellon.

Excerpts from:  Bloomberg  Nov 28, 2011      

“Unlike banks that drew liquidity from the Federal Reserve in 2008 out of desperation, Boston-based State Street Corp. initially did so for profit. State Street, the third-largest U.S. custody bank, collected $75.6 million as a middleman for the Fed’s Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF. Under the program, it borrowed from the Fed to buy securities from money-market funds, helping them meet customer redemptions while being indemnified against losses on the securities.

By October 2008, State Street had joined peers in tapping the Term Auction Facility and Commercial Paper Funding Facility, emergency-liquidity programs. On March 31, 2009, its total borrowings from the TAF and CPFF reached $18.5 billion, about the amount its excess liquidity fell that year.”

Peak amount of debt on 10/1/2008 :   $77.8 billion


U.S. citizens deserve nothing less than to be granted the same access to liquidity that was provided by the Federal Reserve to major domestic and foreign banking interests during the credit crisis of 2007 – 2010.

The Fed transfused major banks like State Street with hundreds of billions of dollars in liquidity through various credit facilities like the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Term Auction Facility (TAF) and the Commercial Paper Funding Facility to restore them to ‘financial health.’

U.S. citizens also deserve to be restored to ‘financial health’ through a new credit facility, the U.S. Citizens Credit Facility

U.S. citizens deserve the same chance to eliminate debt and regain financial stability.

The Leviticus 25 Plan is a comprehensive, dynamic economic acceleration plan that establishes equal access for citizens. 

It is the most powerful economic growth generator in the world, and it pays for itself over a 15-year period.

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

The Leviticus 25 Plan 2018 (2564)

Royal Bank of Scotland (RBS): #4 Recipient of Fed’s “Secret Liquidity Lifelines”

A look back…


Bloomberg Nov 11, 2011:

Royal Bank of Scotland Group Plc, whose 45.5 billion-pound ($74 billion) emergency capital injection from U.K. taxpayers was the world’s biggest announced bank bailout, also got more secret loans from the U.S. Federal Reserve than any other foreign bank. On Oct. 10, 2008, as the bank’s stock price plunged 21 percent in a single day, the Edinburgh-based RBS was borrowing $62.5 billion from the Fed through its U.S. broker-dealer, $11.5 billion through its New York branch, $10 billion through its RBS Citizens NA bank and $500 million through Citizens Bank of Pennsylvania. The Fed aid exceeded even the 36.6 billion pounds of emergency liquidity the Bank of England supplied in secret to RBS in October 2008. The BOE disclosed the aid package in November 2009, more than a year before the Fed aid was revealed.”

RBS’ secret liquidity line from the Fed served up a “peak amount of debt” totaling $84.5 billion on 10/10/2008.


Part 2:

 RBS Busted On Libor Manipulation: “its just amazing how libor fixing can make you that much money”

ZeroHedge Feb 6, 2013 – Excerpts:

RBS also happened to be one of a suspected dozen or so major banking interests involved in the big Libor ‘interest rate fixing” scandal – which bilked “U.S. states, counties, and local governments” to the tune of “at least $6 billion in fraudulent interest payments, above [and beyond the] $4 billion that state and local governments have already had to spend to unwind their positions exposed to rate manipulation,” according to Bloomberg (10 Oct 2012).


All of this leads naturally to the question:  How can the Federal Reserve and the U.S. Treasury justify the transfusion of massive liquidity streams into the veins of major banks like Morgan Stanley, Citigroup, Bank of America, and subsidiaries of major foreign banks like RBS….and at the same time deny equal access to credit by American families?

How can the Federal Reserve deny access to liquidity by American families who have not broken any laws, while continuing to support the likes of RBS – who blatantly manipulated Libor rates, to the detriment of states, counties, and local governments…?

It’s time to level the playing field with the most powerful debt-eliminating economic acceleration plan in the world.

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

The Leviticus 25 Plan 2018 (2559)

2012: Massive Mortgage Fraud Swept Under the ‘Fed Rug’ – Big Banks Win, U.S. Citizens Lose

September 2012: “QE3 – Pay Attention If You Are in the Real Estate Market” by Catherine Austin Fitts


[Note:  The Mortgage Electronic Registration System (MERS) is a private company that electronically tracks and records ownership and servicing rights of mortgages across the country.]

“The Fed is now where mortgages go to die. Thousands of mortgages on homes that do not exist or on homes that have more than one “first” mortgage are now going to the Fed to disappear. Thousands of multifamily and commercial mortgages will be bought up as well. As this happens, trillions of dollars that have been amassed offshore will be free to come back into the US to buy up and reposition land, farmland, residential and commercial real estate and other tangibles.”

With documents shredded, criminal liabilities extinguished and financial institutions made whole, funds can return without fear of seizure.

QE3 proves beyond any shadow of a doubt that the extent of the fraud was as bad as I said it was. You can count up the bailouts and QE1, QE2, QE3 the numbers speak for themselves. The fraud was indeed in the many trillions of dollars. It was intentional. It was a plan.

Now, the $64,000 question for those whose house is underwater or whose mortgage is in default is whether or not you still owe on your mortgage.  Certainly, you still do as a legal matter.  If the bank has been paid off, arguably in some cases several times, why not you? Let’s see if Fannie, Freddie and the big banks are under orders to quietly pass through a portion of their largesse to troubled homeowners in amounts sufficient to unfreeze the market. If you are in a workout situation, you need to take notice. If enough mortgage write-offs flow through, the Democrats will quickly amass a lock on the elections in November.

If you are in the market to buy a home or other real estate, you also need to pay attention – a major turn is now underway. Watch to see how much the banks pass through to homeowners and property owners to see how fast and big the turn may be. Watch to see the inflow of funds from offshore. This is not only funds returning but investors around the world looking to exchange their dollars for tangible assets to protect themselves from debasement of the dollar denominated deposits and securities they hold. Watch to see what the renegotiation of federal tax policy and the reengineering of the federal budget in response to the “fiscal cliff” do to reposition housing and real estate prices and cost of financing for an inflow looking for large accumulations.

Finally, the way the Fed has engineered the Slow Burn to date is to continually offset monetary inflation with labor deflation. It is worth contemplating how much labor deflation will be required to offset QE3 and how sufficient additional labor deflation might be engineered. Ben Bernanke was quite clever to tie QE3 to unemployment. The problem has become the solution, which is the basis for QE-Infinity.”

About the Author
Catherine Austin Fitts began her career on Wall Street and eventually rose to managing director and member of the board of the firm Dillon, Read & Co. Inc. In 1989, she was appointed Assistant Secretary of Housing – Federal Housing Commissioner in the first Bush administration. Following this appointment, Catherine became president of The Hamilton Securities Group.


Again… “With documents shredded, criminal liabilities extinguished and financial institutions made whole, funds can return without fear of seizure…. The fraud was indeed in the many trillions of dollars. It was intentional. It was a plan.

The Fed buried trillions of dollars in fraudulent real estate loans on its own books, and in the process ‘relieved’ major banks and insurers of massive financial liabilities and erased the trail of criminal enterprise.

It is now time to “retarget” liquidity infusions to upgrade the financial health of U.S. citizens.

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 (2559)