WSJ: “ObamaCare’s Tax on the Poor” – Time for a Dynamic New Plan.

WSJ: ObamaCare’s Tax on the Poor

By The Editorial Board – Sept. 22, 2017

Democrats claim to have a monopoly on caring for the poor and suffering, and this week the left is portraying a GOP health-care bill as an attack on society’s vulnerable. So check out the data on how ObamaCare is a tax on some low-income families.

IRS data offers insight into who paid the law’s individual mandate penalty in 2015 for not buying health insurance, the latest year for which figures are available. Spoiler alert: The payers aren’t Warren Buffett or any of the other wealthy folks Democrats say they want to tax. More than one in three of taxed households earned less than $25,000, which is roughly the federal poverty line for a family of four.

More than 75% of penalized households made less than $50,000 and nine in 10 earned less than $75,000. Fewer families paid the tax in 2015 than in 2014, yet government revenues increased to more than $3 billion from about $1.7 billion, as the financial punishment for lacking coverage increased.

These Americans are paying a fine to avoid purchasing a product they don’t want or can’t afford but government compels them to buy. Such individuals don’t suddenly have access to less expensive or higher quality medical care, but they do have less money for household expenses, which can consume a high share of income for this class of families.

The unfortunate irony is that ObamaCare destroyed the private market that offered options that in some cases made sense for these people. For example: High-deductible, limited coverage for unexpected events.

Then again, the point of this coercion was to substitute the government’s political preferences for individual judgment, while forcing the young and healthy to pay more to finance the mandated benefits that Democrats think everyone must have….

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It is time to set things back in order…

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 (2543)

Citigroup: #2 Recipient of Fed’s “Secret Liquidity Lifelines.”

“Following the repeal of the Glass-Steagall Act in 1998, Citigroup dove headlong into the derivatives market.  “By 2007 Citi was the largest issuer of CDOs [Credit Default Obligations] … $49 billion worth when the world’s total production was $442 billion.” (Source: Bailout Nation)

Citi later took advantage of Structured Investment Vehicles (SIVs) to move high-risk investments off their balance sheets – into “Enron-like side pockets.”

When the housing market began staggering badly in 2007 under the weight of increasing loan delinquencies and foreclosures, “Citigroup’s SIVs were festooned with $87 billion of toxic assets, mortgage-related CDOs, and other long-term paper…. ”

Short-term financing dried up, and the SIVs worked their way back “in-house.”  And “by December 2007, Citi assumed $58 billion of debt to ‘rescue’ $49 billion in Assets.”  (Bailout Nation)

The Federal Reserve then cranked open the “Secret Loan” fire hose to flood Citi (and scores of others) with massive liquidity injections (or, in the common parlance, ‘free money’).

Citigroup – #2 recipient of Fed Secret Loans (2008-10)

Bloomberg – Nov 28, 2011

Citigroup Inc., the third-largest U.S. bank by assets, received a $45 billion capital injection in 2008 from the U.S. Treasury. The New York-based lender got a bigger bailout from the Federal Reserve: $99.5 billion of emergency loans, about the cost of paying, clothing, housing, arming and transporting the U.S. Army for fiscal 2011. On Jan. 20, 2009, as the bank’s shares fell to $2.80, down almost 90 percent in a year, its Fed loans included $34.1 billion from the Term Securities Lending Facility, $25.1 billion from the Commercial Paper Funding Facility, $25 billion from the Term Auction Facility, $14 billion from the Primary Dealer Credit Facility and $1 billion from single-tranche open market operations.”

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The point of this historical ‘look back’ is to simply restate the case that U.S. citizens deserve nothing less than equal access to credit extensions that was provided to Morgan Stanley, Citi, and the scores of other financial enterprises whose high risk investment profiles led to financial calamity and rescue action by the Federal Reserve.

It is time now for the Fed to create one more liquidity-generating facility, a U.S. Citizens Credit Facility, to grant direct liquidity access for American families – the same direct access that fire-hosed hundreds of billions of dollars in liquidity out to Citi, Morgan Stanley, Bank of America, and dozens of other major Wall Street financial institutions.

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 (2535)

Morgan Stanley: #1 Recipient of Fed’s “Secret Liquidity Lifelines”

An important review…

As the banking crisis intensified in the Fall of 2008, with major banking institutions assuming, or on the verge of assuming, the classical ‘snorkel’ position (aka ‘underwater’ status), the Federal Reserve ran quickly to the rescue with ‘secret liquidity lifelines” (Bloomberg Uncovers the Fed’s Secret Liquidity Lifelines … 8-22-11).

The Fed substantially eased some important collateral rules for banks, “meaning that banks that could once borrow only against sound collateral, like Treasury bills or AAA-rated corporate bonds, could now borrow against pretty much anything – including some of the mortgage-backed sewage that got us into this mess in the first place….    ‘All of a sudden, banks were allowed to post absolute [expletive deleted] to the Fed’s balance sheet,’ [according to] the manager of the prominent hedge fund.” (Source: Bailout Hustle, Matt Taibbi).

The Federal Reserve invented various “facilities” to fire-hose liquidity out to the big banks and big brokerage firms, including  these:

Primary Dealer’s Credit Facility

Term Securities Lending Facility

Temporary Liquidity Guarantee Program

Commercial Paper Funding Facility  

Term Auction Facility    

Public/Private Investment Program 

And, here we go – from the top: Bloomberg – November 2011

Top recipient – Morgan Stanley 

Morgan Stanley, facing a crisis of confidence after the fall of Lehman Brothers Holdings Inc., got a $9 billion injection from Japanese bank Mitsubishi UFJ Financial Group Inc. and agreed to take a $10 billion bailout from the U.S. Treasury to shore up capital. As hedge-fund customers pulled funds out of the New York-based firm, it plugged the hole with $107.3 billion of secret loans from the Federal Reserve’s Primary Dealer Credit Facility and Term Securities Lending Facility, set up earlier in the year to supply brokerage firms with emergency financing.”

Peak amount of Debt on 9/29/2008: $107B

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The Leviticus 25 Plan does not seek to ‘interrupt’ or reverse any of the special relationships that have developed in the Fed’s financial sphere.  It only seeks to level the playing field – by providing U.S. citizens the same access to direct liquidity flows that  the big banks enjoyed ‘in their time of need.’The Leviticus 25 Plan proposes one additional upgrade to the Fed’s liquidity lines:  A U.S. Citizens Credit Facility.

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

The Leviticus 25 Plan 2018 (2528)

 

Central Bank “Money Conjuring Collusion”- Big Banks Win. Ordinary Citizens Will Eventually “Pay the Price.” Solution: The Leviticus 25 Plan

Naomi Prins:  “Since late 2007, the Federal Reserve has embarked on grand-scale collusion with other G-7 central banks to manufacture a massive amount of money…” 

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Nomi Prins: A Decade Of G7 Central Bank Collusion… And Counting

ZeroHedge, Aug 30, 2017 – Excerpts:

The Winners and Losers

Since the global financial crisis, the biggest G7 winners have been the Big Six US banks that profited from access to cheap money. They benefited from central bank purchases of their securities that exaggerated the value of the remaining securities on their books. They used “printed” or electronically crafted money to stockpile cash and fund buybacks of their own shares and pay themselves dividends on those shares. By producing and distributing artificial money, central bankers distorted reality in global markets. Multi-national banks were co-conspirators in that maneuver.

After the Big Six banks passed their latest round of stress tests, they began buying even more of their own shares back. The move elevated their stock prices further. The largest U.S. bank, JP Morgan Chase, announced its most ambitious program to buy back its own shares since the 2008 crisis, $19.4 billion worth. Citigroup followed suit with a $15.6 billion buy-bank plan.

The Fed’s all-clear was just another version of quantitative easing (QE) for banks. Instead of buying bonds via QE programs, the Fed greenlighted banks to further speculate in their own stocks, creating more artificiality in the level of the stock market. In all, US banks have disclosed plans to buy back $92.8 billion of their own stock to say thank you to the Fed for the “A.” That was piling on to their existing trend; according to S&P Dow Jones Indices, “Stock repurchases by financial companies in the S&P 500 rose 10.2% in the first quarter [of 2017] and accounted for 22.2% of all buybacks.”

More ominous than that was another clear sign that a decade of money-conjuring collusion helped the same banks that caused the last crisis. Proof came in the form of a letter to the U.S. Senate banking committee from Thomas Hoenig, the vice-chairman of the U.S. Federal Deposit Insurance Corp. (FDIC), the government agency in charge of guaranteeing people’s deposits. He wrote that in 2017, U.S. banks used 99% of their net earnings toward purchases of their own stock and paying dividends to shareholders (including themselves).

They thus legally manipulated markets in plain sight by pushing their own share prices up with cheap money availed to them by the central bank that is supposed to regulate them.

As of this year, global debt levels stood at 325% GDP, or about $217 trillion. The $14 trillion of assets the G-3 central banks held on their books is equivalent to a staggering 17% of all global GDP. The European Central Bank (ECB), Bank of Japan (BOJ) and Bank of England are still buying collectively $200 billion worth of assets per month.

In the wake of that buying, noncash instruments – crypto currencies and hard assets like gold, unrelated to the main G-7 monetary system – have become increasingly attractive on the fear that in another major downturn or crisis, central banks and private banks will retract cash and liquidity from their customers.

In that likely event, banks will protect themselves and turn to governments and central banks again. In the absence of some sort of outside central bank benchmark, like a modern gold standard or use of currency basket benchmarks like the IMF’s Special Drawing Rights (SDR), currency wars will continue to be fought.

With rates hovering between zero and negative in some countries, there would be little to no room to maneuver in the face of another crisis. Thus – another thing has become increasingly clear: Central bankers have demonstrated gross negligence regarding the consequences of their monetarily omnipotent actions.

If rates were to rise higher in the US (and I don’t think we’re in for more than another 25 basis points, this year which is under last year’s Fed forecast) so would the cost of servicing that debt. That would hurt companies domestically and abroad, induce more defaults and a rush by the banks involved in derivatives associated with that debt to concoct more toxic assets. The vicious cycle of central bank bailouts would reverberate again. 

Savers and pensioners are getting close to no interest on their nest eggs. Depositors are paying banks to house their money through fees that offset negligible interest. Small businesses have to jump through hoops to get loans for expansion purposes. Wages are stagnant. Ultimately, big banks had played the system — and us — again, this time with central banks helping to fund them. The threat of an even larger collapse looms as stock markets and global debt have been propelled higher.

As we approach the ninth anniversary of the collapse of one of my former employers, Lehman Brothers, and the 10th anniversary of the beginning of central bank collusion into the financial crisis, there has been – no change – in global G7 central bank monetary policy.

While speaking to the monetary policy glitterati at central bank base-camp [Jackson Hole], Yellen declared any dialing back of regulatory reform measures for banks should be “modest.” She said, “The evidence shows that reforms since the crisis have made the financial system substantially safer.” There was no mention of the unprecedented decade of easy money bolstering the financial system – that makes it appear – solvent.

For all the cheap cash offered up, much at the expense of taxpayers who will bear the burden of the associated debt this enabled, and the bank fraud it plastered over, it will be ordinary citizens who will pay the price – yet again.  In the era of money fabrication and monetary policy collusion, a decade of ongoing “emergency” procedure spells an eventual recipe for disaster.

Big US banks are bigger than before the crisis. They float atop a life-raft, among other things, of $4.5 trillion Fed asset book, as part of a total $14 trillion G7 central bank asset book. Yellen’s speech was code for preserving the status quo and central bank elasticity high……

Take the composite of all that and what are you left with? Ongoing G7 central bank monetary policy collusion, zero percent interest rates globally, unlimited QE potential, and major asset bubbles.

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Review:  Major global banks, the very banks that precipitated the 2008 credit meltdown, received massive liquidity transfusions, courtesy of G7 Central Banks, during the great financial crisis to magically make their gambling debts ‘disappear’ and restore them to ‘financial health.’
Ordinary citizens received nothing to stave off the financial burdens and stresses imposed on them from the ensuing financial turmoil.
There is now one clean, powerful way to level the playing field...
Grant citizens the same direct access to liquidity that was provided to major players in the global financial markets.

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

The Leviticus 25 Plan 2018 (2526)

Milton Friedman on “freedom” and “equality”…

Milton Friedman, 1976 Nobel Memorial Prize in Economic Sciences: 

“A society that puts equality — in the sense of equality of outcome — ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests.

On the other hand, a society that puts freedom first will, as a happy by-product, end up with both greater freedom and greater equality.  Though a by-product of freedom, greater equality is not an accident.  A free society releases the energies and abilities of people to pursue their own objectives.

It prevents some people from arbitrarily suppressing others.  It does not prevent some people from achieving position of privilege, but so long as freedom is maintained, it prevents those positions of privilege from becoming institutionalized; they are subject to continued attack from other able, ambitious people.  Freedom means diversity but also mobility.  It preserves the opportunity for today’s disadvantaged to become tomorrow’s privileged and, in the process, enables almost everyone, from top to bottom, to enjoy a fuller and richer life.”

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The Leviticus 25 Plan is inspired by the 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 (2523)

“The U.N.’s Fat Kleptocrats”.. and why we need the Leviticus 25 Plan

Keep Your Eye on the U.N.’s Fat Kleptocats – WSJ

Sep 14, 2017 – Excerpts:

Corruption costs the world $2.6 trillion a year, according to one estimate cited by the Organization for Economic Cooperation and Development. This endemic problem cannot be lost on institutions like the World Bank and International Monetary Fund, yet they continue to hand billions of dollars to nations whose leaders are on the take. Why not put these jokers through an audit?

Brazil has so many crooks—convicted and alleged—that you need a scorecard: … the Inter-American Development Bank lent Brazil at least $11 billion. Since 2000, the World Bank has poured more than $30 billion into the same rabbit hole. Transparency International ranks Brazil 79th out of 176 countries on corruption.

Then there’s Angola, which Transparency International ranks 164th. The World Bank has granted the country more than $1.7 billion since 2000, and the IMF another $1.4 billion. Neither group seems interested in investigating how the daughter of President José Eduardo dos Santos, who has ruled Angola since 1979, became what Forbes calls “Africa’s richest woman” (net worth $3.5 billion)…

When Western institutions drop money into the capitals of developing countries, they think themselves do-gooders. Instead they’re tools in an unprincipled scheme. Here’s how the racket works: German plumbers and New York waitresses pay taxes. Their respective governments contribute some of that money to the IMF, the World Bank and an alphabet soup of other outfits. Those groups funnel money to nations with corrupt politicians…..

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The U.S. pours billions of dollars each year into the World Bank and International Monetary Fund (IMF) – a fair amount of which supports global corruption… and monetary support for America’s enemies.

If the U.S. can take U.S. citizens’ hard-earned tax dollars and ‘firehose’ it out in such a manner, then U.S. citizens absolutely deserve equal access to the same liquidity transfusions.

It is time to grant U.S. citizens that access.

The inspiration for The Leviticus 25 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 (2520)

A look back: Bank of America and the ‘fleecing’ of the American public, Part 1

Bank of America – and the magical money trail

The following is one part … of one story … of one very large U.S. bank – and how the American public got ‘fleeced’ in the bailout process.  Financial oligarchs received some very special treatment at the expense of American taxpayers.

The money trail outlined below should provide all the justification anyone might ever need for why American citizens deserve the same direct access to ‘liquidity’ that many of the major (domestic and foreign) ‘commercials’ received.

And here is “The big fleecing, Part 1:”

From the book, Bailout Nation [Excerpts] –         

Bank of America – the money trail

June 2005:  Bank of America takes a 9 percent stake in China Construction Bank for $3 billion; china’s market tops out in 2008 and then plummets 72 percent.

January 2006: Bank of America acquires MBNA for $35 billion. The world’s largest issuer of issuer of credit cards is taken over right before the world’s largest credit crunch occurs, and (whoops) just before the worst postwar recession begins.

August 2007:  Bank of America invests $2 billion in Countrywide Financial, the nation’s biggest mortgage lender and loan servicer.  It is a jumbo loser, dropping 57 percent in a few months’ time.

January 2008: Bank of America doubles down and announces a $4.1 billion acquisition of Countrywide.  The timing is flawless, and the purchase is announced as the worst housing collapse in modern history is accelerating.

September 2008:  Bank of America pays $50 billion for Merrill Lynch, including Merrill’s portfolio of toxic assets (along with some previously unannounced trading desk errors).

Note:  On February 20, 2009, Bank of America’s stock hit a low of $2.53.  Before the Countrywide acquisition went bust, Bank of America’s stock was at $52 (October 2007).

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August 2011                                                                                

“The Fed’s Secret Liquidity Lifelines”

Bloomberg – August 22, 2011

“Bank of America Corp., which got two rounds of U.S. Treasury Department capital injections totaling $45 billion to stay afloat during the credit crisis, borrowed twice that amount in secret from the Federal Reserve. On Feb. 26, 2009, the Charlotte, North Carolina-based bank held $78 billion of loans from the Fed’s Term Auction Facility, $8.65 billion from the Primary Dealer Credit Facility, $4.75 billion from the Term Securities Lending Facility. The financing helped bolster the largest U.S. bank by assets as investors worried its 2008 acquisitions of Merrill Lynch & Co. and Countrywide Financial Corp. might lead to nationalization.”

Bank of America Corp.  

Peak Amount of Debt on 2/26/2009:  $91.04B   

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August 2011: “Bank of America’s back-door TARP”  

CNN Money –  August 20, 2011 by Abigail Field, contributor

[Excerpts]:

FORTUNE — Taxpayers may not realize it, but they just bailed out Bank of America again, this time to the tune of more than a half billion dollars.

The Charlotte, NC-based bank was one of the biggest recipients of bailout funds during the financial crisis. But Bank of America (BAC) continues to face deep problems related to its troubled mortgage portfolio and investors have battered the stock, which has plunged over 40% so far this year…. the federal government is determined to resurrect BofA: the Wall Street Journal reports the feds have just used Fannie Mae, which is controlled by the U.S. government, to infuse BofA with $500 million and ease one of the bank’s biggest headaches.

According to the WSJ, Fannie Mae spent $500 million to buy the servicing rights to a big chunk of the “seven million loans still causing the most problems.”  Although the $500 million is a paper loss to BofA, in that the rights were “originally worth more,” it looks like BofA is still getting a good deal because the portfolio’s “value is expected to deteriorate further.”

In fact, the deal is worth much more than $500 million to BofA, because getting rid of those servicing rights lifts a huge cost burden off BofA’s shoulders. And if securitized loans are involved, which they most likely are, the sale also limits the BofA’s potential liability to investors for its current servicing violations. Finally, the $500 million is surely more than the servicing rights are worth in an arms-length transaction. How do we know? Beyond the comment that the loans are expected to “deteriorate further,” the goal of the intervention can only be to fix Bank of America’s capital structure, which is easier for the government to do if it overpays for the rights.

In short, purchasing these servicing rights was another Troubled Asset Relief Program.

Servicing defaulted loans can be good business if cheaply produced foreclosure paperwork isn’t questioned, and if the foreclosures have equity and can be resold easily with lots of junk fees. But the mortgage servicing rights Fannie Mae bought are stinkers: they have a 13% delinquency rate, which means lots of foreclosures and loan modifications.

But the loans Fannie Mae now has to deal with are even worse than 13% delinquency rate suggests. According to the WSJ, “more than half of the loans are in troubled U.S. real-estate markets.” This likely means markets where a high percentage of the houses are underwater and there’s a huge oversupply, driving prices down further and making defaults more likely.

Fannie Mae is purchasing “the servicing rights in order to transfer the day-to-day management of those loans to a different company.” That’s another huge sign that Fannie Mae is overpaying. If the rights were really worth $500 million, wouldn’t a private company pay that for them? Instead, it sounds like Fannie Mae is doing a bailout two-step, one to BofA and one to whomever takes these rights off Fannie Mae’s hands.

Another thing needs to become clear: where did Fannie Mae get the money to do BofA the favor of buying these rights? Fannie Mae just asked for another bailout of its own, seeking a new $5.1 billion infusion last week.

Think about how good this deal is for BofA: it gets to stop the bleeding, or at least cauterize much of the wound in its balance sheet that lousy mortgage servicing rights and mortgage securities liabilities are creating. And it gets half a billion dollars to boot.

And taxpayers? Well, we get to own yet another good chunk of BofA’s mess.

Full article:  http://finance.fortune.cnn.com/2011/08/10/bank-of-americas-back-door-tarp/

February 2012  Bank of America Fined $1 Billion for Mortgage Fraud

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The Leviticus 25 Plan offers a U.S. “Citizens Credit Facility” – to provide for direct credit extensions to American families.

American citizens deserve precisely the same access to direct liquidity extensions that dozens of major banks, such as Bank of America, received.  And nothing less.

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 (2516)

 

 

Wage Growth, Labor Participation Rates – Stagnant. America Needs ‘Liquidity’ at Ground Level…

U.S. Real Wage Growth is stagnant and the Labor Participation Rate is in a major slump.  Coupled with our nation’s debt problems, we have a fragile situation on our hands.

We need liquidity.  At ground level.

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If You Like Your Stagnant Wages, You Can Keep Your Stagnant Wages

ZeroHedge, Sep 19, 2017 – Excerpts:

“Ever since the great recession of 2008/2009, economists have grown increasingly perplexed by the lack of real wage growth in the U.S. economy despite improving unemployment trends. Even with a 4.4% unemployment rate, real wage growth has been elusive and hovered between negative 1% and positive 1% for years now.”

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America needs a powerhouse economic acceleration plan that grants direct liquidity extensions to U.S. citizens – the same way that The Federal Reserve Bank and U.S. Treasury provided direct liquidity transfusions to Wall Street Financial institutions during the great financial crisis.

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 (2514)

 

 

Central Banks ‘printing,’ nationalizing economies. Danger ahead. America’s ‘powerhouse’ rescue strategy: The Leviticus 25 Plan

Central Bank debt-based monetary measures are leading global economies toward an eventual fiat currency grand cliff-dive..

We are getting ‘set up’ for a catastrophic collapse… but there is a powerful corrective action to change everything…

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Are Central Banks Nationalising the Economy?

Mises Institute – 08/24/2017 – Daniel Lacalle

The FT recently ran an article that states that “leading central banks now own a fifth of their governments’ total debt.”

The figures are staggering.

  • Without any recession or crisis, major central banks are purchasing more than $200 billion a month in government and private debt, led by the ECB and the Bank of Japan.
  • The Federal Reserve owns more than 14% of the US total public debt.
  • The ECB and BOJ balance sheets exceed 35% and 70% of their GDP.
  • The Bank of Japan is now a top 10 shareholder in 90% of the Nikkei.
  • The ECB owns 9.2% of the European corporate bond market and more than 10% of the main European countries’ total sovereign debt.
  • The Bank of England owns between 25% and 30% of the UK’s sovereign debt.

A recent report by Nick Smith, an analyst at CLSA, warns of what he calls ”the nationalization of the secondary market.”

The Bank of Japan, with its ultra-expansionary policy, which only expands its balance sheet, is on course to become the largest shareholder of the Nikkei 225’s largest companies. In fact, the Japanese central bank already accounts for 60% of the ETFs market (Exchange traded funds) in Japan.

What can go wrong? Overall, the central bank not only generates greater imbalances and a poor result in a “zombified” economy as the extremely loose policies perpetuate imbalances, weaken money velocity, and incentivize debt and malinvestment.

Believing that this policy is harmless because “there is no inflation” and unemployment is low is dangerous. The government issues massive amounts of debt and cheap money promotes overcapacity and poor capital allocation. As such, productivity growth collapses, real wages fall and purchasing power of currencies fall, driving the real cost of living up and debt to grow more than real GDP. That is why, as we have shown in previous articles, total debt has soared to 325% of GDP while zombie companies reach crisis-high levels, according to the Bank of International Settlements.

Government-issued liabilities monetized by the central bank are not high-quality assets, they are an IOU that is transferred to the next generations, and it will be repaid in three ways: with massive inflation, with a series of financial crises, or with large unemployment. Currency purchasing power destruction is not a growth policy, it is stealing from future generations. The “placebo” effect of spending today the Net Present Value of those IOUs means that, as GDP, productivity and real disposable income do not improve, at least as much as the debt issued, we are creating a time bomb of economic imbalances that only grows and will explode sometime in the future. The fact that the evident ball of risk is delayed another year does not mean that it does not exist.

The government is not issuing “productive money” just a promise of higher revenues from higher taxes, higher prices or confiscation of wealth in the future. Money supply growth is a loan that government borrows but we, citizens, pay. The payment comes with the destruction of purchasing power and confiscation of wealth via devaluation and inflation. The “wealth effect” of stocks and bonds rising is in-existent for the vast majority of citizens, as more than 90% of average household wealth is in deposits.

In fact, massive monetization of debt is just a way of perpetuating and strengthening the crowding-out effect of the public sector over the private sector. It is a de facto nationalization. Because the central bank does not go “bankrupt,” it just transfers its financial imbalances to private banks, businesses, and families.

[snip]

No wonder that government spending to GDP is now almost 40% in the OECD and rising, the tax burden is at all-time highs and public debt soars.

Monetization is a perfect system to nationalize the economy passing all the risks of excess spending and imbalances to taxpayers. And it always ends badly. Because two plus two does not equal twenty-two. As we tax the productive to perpetuate and subsidize the unproductive, the impact on purchasing power and wealth destruction is exponential.

To believe that this time will be different and governments will spend all that massive “very expensive free money” wisely is simply delusional. The government has all the incentives to overspend as its goal is to maximize budget and increase bureaucracy as means of power. It also has all the incentives to blame its mistakes on an external enemy. Governments always blame someone else for their mistakes. Who lowers rates from 10% to 1%? Governments and central banks. Who is blamed for taking “excessive risk” when it explodes? You and me. Who increases money supply, demands “credit flow,” and imposes financial repression because “savings are too high”? Governments and central banks. Who is blamed when it explodes? Banks for “reckless lending” and “de-regulation”.

Originally published at DLacalle.com

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It is time to end this big government central-planning madness, and put U.S. citizens back in charge of personally allocating their own  financial resources.

The Leviticus 25 Plan will restore economic liberty, eliminate massive amounts of debt burdening citizens, generate $1.02 trillion federal budget surpluses, solve the entitlement crisis and permanently downscale dependence on government, re-ignite powerful economic growth… and engender financial stability and social blessings all across America.

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

The Leviticus 25 Plan 2018 (2508)

Stockman: Federal Budget “a Doomsday Machine”… (Not so fast… there is a powerful plan to ‘blow off’ the debt shackles and turn everything around – fast: The Leviticus 25 Plan)

Massive future fiscal deficits are ‘baked” into the cake, and they will ‘inevitably’ lead to severe credit disorder and economic chaos at some point in America’s future.

…. Unless we come up with an ‘inspired’ plan, a dynamic economic acceleration plan to blow off the shackles of debt on U.S. citizens…

…………………………………..

Stockman Exposes America’s Fiscal Doomsday Machine

ZeroHedge, Sep 12, 2017 – Excerpts:

The Federal budget is a Fiscal Doomsday Machine. The depository of American wars and entitlements have run rampant. Under the pile drivers of a global empire and the retiring baby boom, it is rapidly propelling the nation toward fiscal catastrophe. That grim outcome is virtually guaranteed if the only remaining safety brake — the debt ceiling — is summarily abolished.

Due to entitlements, debt service and the slow pipeline of appropriated spending there is no such thing as an annual Federal budget or accountability for how much Uncle Sam spends and borrows. Instead, the $4.1 trillion that Congressional Budget Office (CBO) projects the Federal government will spend in FY 2018, and the $563 billion it will borrow, reflects the dead hand of the past.

Entitlements and other mandatory spending alone is projected to reach $2.566 trillion or 63% of total FY 2018 outlays.

Another $307 billion will be required for interest on the nation’s $20 trillion public debt, while upwards of half the $1.22 trillion for so-called “discretionary” or appropriated programs also reflects funds appropriated years ago.

Altogether, $3.5 trillion, or 85% of outlays, will be essentially baked into the cake before a single Congressional vote is taken on anything regarding the FY 2018 budget.

The Federal spending machine is almost entirely on autopilot and heading for disaster owing to ballooning populations and debt. Ten years from now the combined cost of mandatory programs and debt service will reach $5.12 trillion compared to just $2.87 trillion during FY 2018.

Entitlement spending will be nearly double — even if Congress took a 10-year recess!

As shown below, that means the Federal spending share of GDP is now inexorably climbing toward 30% owing to baby boom retirements, even as revenue under current law is stuck at about 18% of GDP. The CBO’s latest projection of the widening fiscal gap — soon more than 10% of GDP annually — leaves nothing to the imagination.

America really does have in place a Fiscal Doomsday Machine.

The Fiscal Doomsday Gap Is Uncloseable — The Crisis Is Permanent

1 Federal Spending and Revenues Fiscal Doomsday

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And now.. on to the solution:

$1.02 trillion annual budget surpluses yearly 2017-2021: The Leviticus 25 Plan

The U.S. Government  budget deficit for FY2016 came in at $587 billion. The Congressional Budget Office Updated Budget Projections 2016-2026 has forecast the following annual budget deficits for each of the next five years:

2017: -$550 billion

2018: -$549 billion

2019: -$710 billion

2020: -$798 billion

2021: -$890 billion

According to the CBO, our government is on track to add a minimum of $3.497 trillion to the national debt over the next five years, an average annual deficit or $699.4 billion.

The five year accumulating deficit increases, totaling $3.497 trillion, will be weighed down further with a related interest expense (2.23% per annum) amounting to $200.96 billion, for a total of $4.196 trillion.

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 annual $1.02 trillion surplus during each year (2017-2021) will be used, in turn, to reduce the Federal Reserve Citizens Credit Facility balance sheet from the initial expansion event.

The Leviticus 25 Plan is unquestionably the most powerful economic acceleration plan in America.  It is the only economic plan that pays for itself over 10-15 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 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2506)