Inflation and the affordability crisis in goods and services garner all the headlines in today’s news feeds… but the ‘interest cost burden’ borne by U.S. Households and the Government sector, as drivers of inflation, are real and far more significant factors in the present crisis than anyone realizes.

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AI review of the literature

Household Interest Cost Burden

1. The Statistical Loophole: Interest is Excluded from CPI

The standard Consumer Price Index (CPI)—the most common measure of inflation—completely excludes consumer borrowing costs like mortgage interest rates, credit card APRs, and auto loan interest. [1]

• The Reason: Central banks view interest as the cost of money, not the cost of a consumer good or service. [1]
• The Irony: When central banks raise interest rates to cool down inflation, they intentionally increase the household debt burden to reduce consumer spending power. [1, 2]

2. The “True” Inflation Impact: Up to 3–4 Percentage Points Higher

Prominent economic research, including a notable National Bureau of Economic Research (NBER) working paper co-authored by former Treasury Secretary Lawrence Summers and IMF economists, sought to recalculate CPI by re-incorporating the cost of money (as was done in the U.S. pre-1983). [1]

They discovered that when interest burdens are factored back in:

• The Peak Discrepancy: During aggressive rate-hiking cycles, “true” household inflation peaked roughly 3 to 4 percentage points higher than official CPI reported.
• The Sentiment Gap: This statistical gap explains why consumer economic sentiment remains historically low even when official inflation reports show a “return to normal”. To the consumer, a 7% mortgage vs. a 3% mortgage feels exactly like inflation—it is a massive increase in the cost of sustaining their life. [1, 2, 3, 4]

3. Real-World Cost Burdens Placed on Households

While it may not show up in headline CPI, the practical cost burden of elevated interest rates alters household budgets in specific ways:

By the time interest rates peak, nearly 9% of U.S. households find themselves severely strained, spending over 40% of their total income just to service debt repayment. [1]

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Government Interest Cost Burden

The government’s interest cost burden does not directly increase standard consumer inflation metrics, but it creates significant secondary fiscal and financial risks that can fuel long-term price pressures. [1]

In macroeconomic modeling, a structural fiscal shock—such as a permanent primary deficit increase of 1% of GDP (which balloons the government’s interest burden)—is projected to generate inflationary pressures. Over a 5-year horizon, this pressure scales to an indirect household purchasing power loss of $300 to $1,250 per family. [1]

The structural relationship between a rising interest cost burden and inflation operates through distinct channels:

1. The Fiscal Dominance Risk (Monetization)

As net interest payments on the federal debt surge past $1 trillion annually (consuming over 14% to 18.5% of federal revenues), the risk of “fiscal dominance” rises. If the government’s borrowing capacity faces constraints, aggressive measures to suppress bond yields may force the Federal Reserve to intervene. If the central bank is eventually forced to monetize the debt by purchasing government bonds to artificially lower borrowing costs, it expands the money supply and directly drives up inflation. [1, 2, 3, 4]

2. High Rates as a Cost-Push Component

While conventional monetary policy utilizes high interest rates as a contractionary tool to squelch aggregate demand, prolonged high interest burdens create a form of sector-specific cost-push inflation for consumers. For instance, the same 1% GDP fiscal deficit shock pushes up mortgage rates in lockstep with the 10-year Treasury, leading to $600 to $1,240 more in annual mortgage interest payments for average households. [1, 2]

3. Deficit Spills and Demand-Pull Pressures

When a government borrows heavier sums to pay the interest on its existing debt, it injects liquidity back into the hands of private creditors and bondholders. In a supply-constrained economic landscape, this expansionary deficit spending can bid up prices. [1, 2]

Conversely, the relationship also loops backwards: every 1.0 percentage point unexpected increase in the baseline inflation rate eventually forces central banks to raise interest rates, adding roughly $230 billion to $350 billion in annual interest costs back onto the government budget, worsening the overall fiscal trajectory. [1, 2]

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The Leviticus 25 Plan will provide a powerful and comprehensive reset to the debt-driven interest cost burden smothering U.S. Households, Government, and the overall U.S. economy.

The Leviticus 25 Plan will eliminate the vast majority of the interest cost burden for millions of hard-working American families; it will generate federal budget surpluses, $37.303 billion annually, 2027-2031) – and will pay for itself entirely over the succeeding 10-15 years; it will drive rates lower, across the curve, and spur a powerful new economic growth cycle.

It will undergird long-term strength and stability for the U.S. Dollar across global markets, and preserve its purchasing power for 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 – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (72147 downloads )

Bank of America has just been charged with “willfully” violating anti-money laundering and sanctions laws, in failing to report more than $5 billion in “suspicious” transactions… more than $1 billion of that was tied to what Treasury calls “priority” national-security risks, including Chinese money-laundering networks and illicit finance along the southwest border.

This is the same Bank of America that received a $45 billion TARP bailout loan from the U.S. Treasury in January 2009. And, another $91.4 billion from the Fed during the great financial crisis…

Bloomberg: Bank of America was the #3 recipient via the Fed’s ‘Secret Liquidity Lifeline’ infusions with $91.4 billion (peak loan amount –  2/26/2009).

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Bank Of America Fined $1.2 Billion For Failing To Report $5 Billion In Suspicious Transactions, Including Chinese Money-Laundering Networks

ZeeoHedge, Oct 13, 2026 – Excerpts:

…Just after the close on Tuesday, Treasury announced more than $1.21 billion in penalties against BofA for violating anti-money-laundering and sanctions laws. Treasury calls it the third-largest penalty in its history, and the OCC calls its piece the largest it has ever handed out. The bank admitted it willfully violated the Bank Secrecy Act. It did not report more than $5 billion in suspicious transactions on time, and more than $1 billion of that was tied to what Treasury calls “priority” national-security risks, including Chinese money-laundering networks and illicit finance along the southwest border.

Here is how the money breaks down, per Treasury’s press release:

The Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty for the Bank’s failure to mitigate and report priority national security risks, including Chinese Money Laundering Networks and illicit finance along the southwest border.

The OCC assessed a $750 million civil money penalty for the Bank’s deficient and ineffective BSA/AML (anti-money laundering) compliance program.

The Office of Foreign Assets Control (OFAC) announced an $11.6 million settlement agreement with the Bank over apparent violations of numerous sanctions programs, including on Iran, Russia, narcotics, and global terrorism….

“Prioritized Its Revenues”

….As these issues arose, Bank of America prioritized its revenues and minimized the impact on its required compliance resources. The nature and extent of the Bank’s resulting reliance on law enforcement inquiries, requests by other financial institutions, and similar interventions over its own internal, automated controls… meant that the Bank effectively outsourced to third parties a substantial portion of its proactive detection and reporting obligations.

Translation: BofA’s money-laundering detection system often amounted to waiting for a subpoena.

Treasury also says the bank “allowed suspicious activity to accumulate uninvestigated for extended periods.” That meant SARs arrived too late to help law enforcement much. Its customer due diligence also “failed to account for customers’ extensive reliance on payments from unknown third parties,” and the bank didn’t act on red flags that included “potential ties to narcotics trafficking proceeds,” even after its own compliance staff raised concerns about trade-based money laundering and fraud.

The OCC’s language was harsher. Its release says the bank’s transaction monitoring “resulted in the Bank failing to properly monitor trillions of dollars in transactions,” that “the Bank knew for years” it was failing to escalate potentially suspicious activity, and that its BSA Officer and staff “lacked sufficient skills and expertise.” Comptroller Jonathan Gould said:

“The second largest bank’s egregious and continued BSA violations warrant the OCC imposing its largest [civil money penalty] ever assessed against a bank.”

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OFAC, for its part, found 475 apparent sanctions violations. They included payments routed through blocked banks and designated individuals who were allowed to withdraw funds “due to poor sanctions alert calibration.” OFAC called the violations “non-egregious,” which is the regulatory version of “could have been worse.”

About That 2024 Order

None of this came out of nowhere. On December 23, 2024, the OCC issued a cease-and-desist order against BofA for BSA and sanctions deficiencies, “including a failure to timely file suspicious activity reports and failure to correct a previously identified deficiency related to its Customer Due Diligence processes.” The order itself described a “systemic failure” to set proper transaction-monitoring thresholds. That order came with no fine, a point American Banker noted at the time….

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A look back…

Fall 2008: Bank of America – #3 Recipient of Fed’s “Secret Liquidity Lifelines”

Posted on June 4, 2026

Bank of America – the story behind the story (Source:  Bailout Nation)

June 2005:  Bank of America takes a 9 percent stake in China Construction Bank for #3 billion; China’s market tops out in 2007 and then plummets 72 percent.

January 2006:  Bank of America acquires MBNA for $35 billion.  The world’s largest issuer of credit cards [MBNA] 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 month’s 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).

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Note – following the above cited BofA follies, the Treasury Department and the Federal Reserve stepped up to the plate and kindly dished out billions of dollars (at U.S. citizen taxpayer expense) to Bank of America to keep the big boat afloat.

To recap (Source: Bloomberg Nov 28, 2011 ):                                                                Morgan Stanley was the #1 recipient of Fed secret loans at $107 billion (peak loan amount – 9/29/2008).                                                                                                

Citigroup was the #2 recipient of the Fed’s secret lifelines $99.5 billion (peak loan amount – 1/20/2009).                                                                                                  

Bank of America was the #3 recipient with $91.4 billion (peak loan amount –  2/26/2009).

Bloomberg Nov 28, 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.”

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A final question: Is there anyone who still believes that it is OK for major Wall Street banking and financial services institutions to receive massive liquidity injections (at taxpayer expense) when their financial viability evaporates … due to their own failed risk management strategies and reckless, yield-driven investment decision-making….

But it is not OK for U.S. citizens to be accorded the same access to direct liquidity extensions?

It is time now to level the playing field… and activate a Federal Reserve / U.S. Treasury pipeline via a U.S. Citizens Credit Facility.

The Leviticus 25 Plan will generate $37.303 billion federal budget surpluses (2027-2031) and pay for itself entirely over the succeeding 10-15 years.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen –Leviticus 25 Plan 2027 (72068 downloads )

America has a growing ‘Socialist/Marxist’ problem – and Washington Republicans do not currently have a plan to put it down:

84% Of Gen Z Democrats Back Socialism; New Poll Finds
“Embracing socialism is no longer a fringe talking point for Democratic voters…”
OCT 5, 2026

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Why Politicians Win (And Workers Lose) Under Socialism
Authored by Hans-Hermann Hoppe via The Mises Institute,

ZeroHedge, Apr 20, 2017 – Excerpts:

Socialism leads to the politicization of society. Hardly anything can be worse for the production of wealth.

Socialism, at least its Marxist version, says its goal is complete equality. The Marxists observe that once you allow private property in the means of production, you allow differences. If I own resource A, then you do not own it and our relationship toward resource A becomes different and unequal. By abolishing private property in the means of production with one stroke, say the Marxists, everyone becomes co-owner of everything. This reflects everyone’s equal standing as a human being.

The reality is much different. Declaring everyone a co-owner of everything only nominally solves differences in ownership. It does not solve the real underlying problem:  there remain differences in the power to control what is done with resources.

In capitalism, the person who owns a resource can also control what is done with it. In a socialized economy, this isn’t true because there is no longer any owner. Nonetheless the problem of control remains. Who is going to decide what is to be done with what? Under socialism, there is only one way: people settle their disagreements over the control of property by superimposing one will upon another. As long as there are differences, people will settle them through political means.

If people want to improve their income under socialism they have to move toward a more highly valued position in the hierarchy of caretakers. That takes political talent.

Under such a system, people will have to spend less time and effort developing their productive skills and more time and effort improving their political talents.

As people shift out of their roles as producers and users of resources, we find that their personalities change. They no longer cultivate the ability to anticipate situations of scarcity to take up productive opportunities, to be aware of technological possibilities, to anticipate changes in consumer demand, and to develop strategies of marketing. They no longer have to be able to initiate, to work, and to respond to the needs of others.

Instead, people develop the ability to assemble public support for their own position and opinion through means of persuasion, demagoguery, and intrigue, through promises, bribes, and threats. Different people rise to the top under socialism than under capitalism. The higher on the socialist hierarchy you look, the more you will find people who are too incompetent to do the job they are supposed to do. It is no hindrance in a caretaker politician’s career to be dumb, indolent, inefficient, and uncaring. He only needs superior political skills. This too contributes to the impoverishment of society.

The United States is not fully socialized, but already we see the disastrous effects of a politicized society as our own politicians continue to encroach on the rights of private property owners. All the impoverishing effects of socialism are with us in the U.S.: reduced levels of investment and saving, the misallocation of resources, the over-utilization and vandalization of factors of production, and the inferior quality of products and services. And these are only tastes of life under total socialism.

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Quotes:

“The inherent vice of capitalism is the unequal sharing of blessings;  the inherent virtue of socialism is the equal sharing of misery.”  -Winston Churchill

“Socialism means slavery.”  -Lord Acton

“Democracy and socialism have nothing in common, but one word, equality.  But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.”  -Alexis de Tocqueville

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Main Street America Republicans do have a plan.

America’s Dynamic ‘Economic Liberty’ Solution: The Leviticus 25 Plan

There is currently one, and only one, comprehensive economic acceleration plan in America that re-targets liquidity flows away from government agencies and corporate middlemen directly to U.S. citizens – and has the power to lift millions of Americans up out of poverty, revitalize self-reliance in America, and reverse the ‘impoverishing effects of socialism.’

The Leviticus 25 Plan will: 1) Reignite powerful, long-term economic growth; 2) Eliminate trillions of dollars in Household debt and restore financial security for millions of U.S. citizen families; 3) Generate trillions of dollars in new general tax and payroll tax revenue; 4) Generate Federal Budget surpluses (2027-2031) and rebalance state and local government budgets; 5) Rebuild a world class, citizen-centered health care system across America.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (71434 downloads )

The Market Ear
Thursday, Sep 24, 2026 – Excerpt:

Soc Gen’s July maturity profile shows 35% of US government debt due within one year and roughly 60% within four. Each maturity must be refinanced or repaid.

That does not mean 60% will be sold as new 10-year notes: much of the short debt can be rolled into new bills. It does mean changes in funding rates reach the US interest bill relatively quickly.

The average rate on the existing debt stock was about 3.1% in SocGen’s September comparison, against roughly 4.8% for comparable market funding. That gap does not hit the whole stock at once. It passes through as debt rolls over.

On a related note, the US may not have the biggest debt burden, but it has the fastest refinancing schedule.

Source: TME

Source: Soc Gen

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Global debt is a ‘ticking time bomb’… and U.S. government debt is front and center. Right now, there is one plan on the table to defuse this crisis – permanently.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (70824 downloads )

The Big State Monetary And Fiscal System Is Over

ZeroHedge, Sep 22, 2026 – Authored by Daniel Lacalle via dlacalle.com,

Excerpts:

In 2021, The Economist ran an entire number hailing “The Return of Big Government” as the end of the so-called – but inexistent in practice – “austerity” paradigm and the evidence that more spending and a big state was the solution to the post-covid world, delivering economic growth, social spending, and sustainability.

…..

Advocates of ever-larger government frequently argue that fiscal stimulus creates growth. The evidence from developed economies is the opposite.

After years of extraordinary deficits, public spending programs, central-bank asset purchases, and industrial-policy initiatives, most advanced economies face low trend growth, weak private investment, declining productivity, unaffordable housing, high tax burdens, and increasingly poor public finances.

The problem is not just that governments spend too much. It is that governments spend resources in the worst possible way, worse than private actors, and direct capital according to political priorities rather than consumer demand, profitability, or long-term productive value. Governments are exceptionally bad at picking winners and even worse at picking losers.

The problem is also in the economics world. GDP accounting treats public spending as an addition to output. But real prosperity depends on whether resources are used productively. A government can borrow and spend billions while leaving the economy poorer in productive terms as that spending crowds out private investment, raises taxes, sustains unproductive activities, or fuels inflation.

The solution is not to borrow more in hopes the next stimulus will succeed where the last failed. The solution is to remove the obstacles that prevent private-sector growth.

Developed economies need a policy reversal based on four principles.

First, they need sound money. Central banks should shut down. However, since this will not happen, they must return to their mandate: protecting the currency’s purchasing power. Monetary policy should not be used to fund deficits, manipulate sovereign-bond markets, or protect governments from the consequences of fiscal irresponsibility.

Second, governments must balance their budgets through durable spending reductions, not cosmetic measures, tax hikes, or optimistic growth assumptions. Spending cuts should focus on eliminating inefficient subsidies, duplicative administration, corporate welfare, politically directed investment schemes, and entitlement commitments that cannot be financed.

Third, policymakers must cut taxes, particularly those that penalize work, investment, savings, entrepreneurship, and capital formation. A tax-increase strategy is politically convenient because it avoids confronting the expenditure problem. However, it reduces incentives to produce, invest, hire, and innovate precisely when economies need more dynamism.

Fourth, advanced economies need an ambitious deregulation agenda. Lower barriers to business formation, energy production, housing construction, labor-market flexibility, and investment would do more for sustainable growth than another decade of deficit spending.

The big-state monetary and fiscal system is over because it is no longer credible financially, economically, or politically. The bond market is making clear that there is no permanent escape from fiscal arithmetic.

The reader may say that governments will choose more intervention, more debt, more monetary distortion, and more stagnation. However, for the first time, we are seeing citizens all over the world rejecting these promises. Governments and large political parties may have to change their policies because the failure is evident and the voter base simply says enough is enough. That is why the cultural battle is so important. The goal is to make voters understand that the solution is not more government, but less. A lot less.

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“That is why the cultural battle is so important. The goal is to make voters understand that the solution is not more government, but less. A lot less.“

The Leviticus 25 Plan delivers on all counts:
$37.303 billion federal budget surpluses each of the first five years of activation (2027-2031); state and local budget rebalancing; massive debt elimination and interest expense charges for tens of millions of U.S. citizens; real (non-debt based) economic growth; citizen-centered health care; and a LOT LESS government control over responsible, hard-working Americans.

U.S. Dollar’s purchasing power – protected;
Durable spending reductions, entitlement spending rollbacks – activated; .
Tax cuts and deregulation policies – ‘in play.’

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (70824 downloads )

“The big-state monetary and fiscal system is over because it is no longer credible financially, economically, or politically. The bond market is making clear that there is no permanent escape from fiscal arithmetic.”

The Big State Monetary And Fiscal System Is Over

ZeroHedge, Sep 22, 2026 – Authored by Daniel Lacalle via dlacalle.com,

Excerpts:

In 2021, The Economist ran an entire number hailing “The Return of Big Government” as the end of the so-called – but inexistent in practice – “austerity” paradigm and the evidence that more spending and a big state was the solution to the post-covid world, delivering economic growth, social spending, and sustainability.

…..

Since 2021, developed economies have gone over their three limits.

The economic limit occurs when each additional unit of government debt produces progressively less growth. Governments can inflate headline GDP through deficit spending, transfers, and public consumption, but the result is not the same as creating wealth. In the developed world, the expansion of government expenditure has coincided with weak productivity growth, anemic private investment, and a rise in living costs.

The fiscal limit is when interest costs and entitlement obligations displace productive investment. Governments may attempt to delay this moment through financial repression, artificially low interest rates, regulatory pressure on domestic financial institutions, and central-bank purchases of sovereign debt. As debt stocks grow and bonds have higher rates, interest expenses consume a larger share of public budgets. Governments borrow more simply to finance existing commitments.

The inflationary limit is reached when repeated monetary financing and persistent fiscal deficits undermine confidence in the purchasing power of fiat currency. Inflation is not only an annual change in a price index. Families suffer its cumulative effect in food, energy, housing, transport, insurance, and essential services. More money creation and debt-financed public spending do not resolve that crisis. They risk prolonging it by weakening the currency, distorting capital allocation, and transferring resources from savers and wage earners to the state.

Government bond yields have risen across the G7. In September, the average ten-year yield of the G7’s largest economies reached 4.285%, its highest level since mid-2008. US ten-year Treasury yields moved above 5%. However, these were not the worst performers. Long-term yields rose faster in Japan, France, and the United Kingdom.

The synchronized nature of this rise is important. Japan faces rising yields despite decades of yield-curve control and massive central-bank intervention. Germany, despite a lower debt burden than many peers, has seen yields rise to their highest levels since 2011. US thirty-year Treasury yields have reached their highest point since 2007.

Markets are repricing fiscal risk, inflation risk, and the declining credibility of monetary institutions at the same time.

Investors no longer assume that high-debt governments can inflate away their liabilities without consequences, nor that central banks can endlessly monetize debt without damaging the purchasing power of money.

The fiscal model of the past fifteen years depended on a false premise, built on the idea that government debt was virtually free. As long as interest rates stayed close to zero, governments could claim that debt ratios did not matter because debt-service costs remained manageable. The “Japan is a model, not a cautionary tale” recommendation given by Stiglitz proved to be very attractive for governments. It also proved to be awfully wrong.

Debt does not become sustainable merely because a central bank suppresses its price.

The International Monetary Fund estimates that global public debt rose to 94% of GDP in 2025 and will reach 100% of GDP by 2029. The world’s major economies are driving the trend, as high deficits, rising interest burdens, and structurally higher spending demands destroy fiscal space.

The interest-cost problem is becoming critical. Global government interest spending is estimated to have risen from about 2% of GDP in 2020 to 2.9% in 2025. It is expected to continue increasing through the end of the decade. This is the deadweight cost of believing that Japan’s Keynesian excess is a model.

Every additional unit of taxpayer revenue devoted to interest payments destroys money in the economy. Governments will inevitably respond by raising taxes, borrowing more, and demanding further monetary accommodation. Each of these responses weakens growth and affordability.

The modern welfare state has been unsustainable for years and has become dependent on low borrowing costs that no longer exist.

The predictable political response will be to call for another, even larger, round of quantitative easing, larger fiscal transfers, massive public-investment plans, industrial subsidies, and “strategic” spending programs.

This will be a massive mistake… Again.

Quantitative easing only disguises imbalances for a short period of time. It cannot solve a solvency problem.

Central banks can purchase government bonds, but they cannot create real savings nor productive money. They can expand their balance sheets, but they cannot increase productivity, restore competitiveness, or create the capital necessary for a sustainable recovery.

Printing money does not make a nation richer. It is a massive transfer of wealth from savers and wage earners to the state and the first recipients of new money. It distorts the price of capital, encourages malinvestment, and eventually feeds inflationary pressures.

Artificially low interest rates send a false signal to markets. They make unsustainable spending, borrowing, and investment appear viable. Furthermore, the newly created money is used by governments for current spending. The eventual slump is not caused by capitalism or market failure. It is caused by the prior distortion of money and credit.

The same principle applies to public finances. Governments have treated zero-rate policies and QE as a substitute for reform. They have used monetary intervention to preserve spending structures that taxpayers cannot sustainably finance. They have delayed necessary adjustments in pensions, public administration, subsidies, entitlement programs, and regulatory burdens.

The result has not been robust growth. It has been an unstable combination of weak productivity, high debt, elevated inflation risks, financial repression, and social frustration.

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America be a world leader – resolving this global economic crisis with the most powerful economic reset plan in the modern world.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (69999 downloads )

The Big State Monetary And Fiscal System Is Over

ZeroHedge, Sep 22, 2026 – Authored by Daniel Lacalle via dlacalle.com,

Excerpts:

In 2021, The Economist ran an entire number hailing “The Return of Big Government” as the end of the so-called – but inexistent in practice – “austerity” paradigm and the evidence that more spending and a big state was the solution to the post-covid world, delivering economic growth, social spending, and sustainability.

…..

The choice now is not the fake austerity of 2008-2012, which basically perpetuated big government and raised taxes. It is between a return to sound money, fiscal balance, lower taxation, deregulation, and a smaller state. Unless citizens start demanding their governments for more freedom and less intervention, the result will be a larger and prolonged period of stagnation, inflation, debt accumulation, and declining living standards.

…..

The answer to the economic stagnation and affordability crisis is not more socialism. More subsidies, price controls, redistribution, and direct state intervention have always delivered the opposite of what the politicians promise.

Socialism never works because it is a system of control, not progress. It destroys the incentives to generate wealth and creates a dependent and submissive population unable to defend itself. Socialists know that their promises do not work, but by the time citizens find out, they are already hostages of a powerful state machine.

Across Europe, governments that have continually expanded public spending, taxation, transfers, and regulation have not produced prosperity or relief from living costs. They have instead accumulated debt, weakened growth, raised the economy’s cost base, and deepened social discontent. Governments do not reduce prices; they increase them.

…..

Big corporations do not increase prices; governments do.

Socialism has one objective: control. Subsidies leave recipients dependent on political discretion while denying them the opportunities that come from productive employment, rising real wages, investment, and a dynamic private sector. At the same time, taxpayers are asked to finance an ever-larger state with less disposable income and fewer incentives to save, invest, hire, or start businesses.

Politicians then blame “the rich,” corporations, or markets for an affordability crisis that their own policies have created. Furthermore, no government can redistribute wealth from a private sector that is being steadily weakened by higher taxes, punitive regulation, inflation, and rising borrowing costs.

Affordability is not created by government control or by shifting existing income from one group to another. It is created when the private sector thrives, real wages rise alongside productivity, competition lowers prices, investment expands supply, and housing, energy, transport, health care, and essential services can be provided more efficiently and abundantly.

When governments confront structural supply constraints with redistribution, subsidies, price intervention, and debt-financed spending, they also undermine the incentives to invest, build, innovate, and improve productivity. The result is always a more expensive economy, greater dependency, and fewer opportunities.

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America can lead the way out of this burgeoning crisis – with the most powerful economic reset plan in the modern world.

_____________________________

America needs a return to citizen-centered healthcare – where citizens allocate healthcare dollars for primary care services.

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Taxpayers Lost $65 Billion On Obamacare Fraud Last Year

ZeroHedge, Aug 30, 2026

Taxpayers spent $65 billion on health insurance premiums for people who either didn’t exist or didn’t qualify for benefits in two federal programs in 2024, according to an Aug. 26 report from Paragon Health Institute.

Expanded Medicaid and Obamacare, the signature programs of the Affordable Care Act, improperly enrolled a combined 14.3 million people that year, researchers concluded.

Expanded Medicaid allows states to enroll people making up to 138 percent of the federal poverty level, versus up to 100 percent for traditional Medicaid. That limit was about $35,600 for a family of three in 2024.

Obamacare was open to people earning up to 400 percent of the federal poverty level at that time, about $103,000 for a family of three.

Both programs are administered through the Affordable Care Act Marketplace, with coverage provided by commercial insurance companies.

As Lawrence Wilson details below, via The Epoch Times, researchers estimate that about 34 percent of all Marketplace enrollees in 2024 were either fraudulent, duplicates, or simply didn’t meet the benefit criteria.

And the number went up the next year, researchers said.

“Improper exchange enrollment increased by more than 26 percent from 2024 to 2025 – up to an estimated 6.5 million enrollees,” the report stated.

Enrollment Problems

Researchers studied federal data from surveys, program enrollment, and spending and concluded that more than 9 million Medicaid expansion enrollees in 2024 probably didn’t qualify for the benefit.

Those were likely people whose income was over the limit, did not meet citizenship, immigration, or residency requirements, or should have been enrolled in traditional Medicaid.

With Obamacare, the $0 premium policies made possible during the post-COVID years became a target for fraud, according to Paragon President Brian Blase.

Testifying before Congress in December, Blase said many people were enrolled in the program without their knowledge by unscrupulous insurance brokers, prompting the federal government to send a commission check to them – and premium payments to an insurance company.

These phantom enrollees are detected in part by their lack of activity once enrolled, Blase said.

Also, 28 states had more people enrolled in Obamacare than there were people in the state who met the income requirements.

Skepticism

Paragon had previously reported its enrollment analysis, though the cost calculation is new.

Based on previous reports, some observers have questioned the assertion that improper enrollment, particularly in Obamacare, is as widespread as the think tank concluded.

“There is no evidence of systemic fraud, waste, or abuse in [state-based marketplaces],” according to Covered California, the state’s health insurance marketplace.

As for the lack of activity by some enrollees, America’s Health Insurance Plans released a statement in 2025 saying, “A ‘no-claims’ year is evidence that a consumer stayed healthy or only had a few months of coverage – not that taxpayer money was misdirected or that their policy was illegitimate.”

Others observers say Paragon’s research method doesn’t factor in all the variables. “There are a number of reasons why people who report incomes somewhat above 138 percent of the poverty line in a survey may be eligible for the Medicaid expansion,” the Center on Budget and Policy Priorities said about a previous Paragon report.

Yet in December 2025, the Government Accountability Office reported that investigators were able to enroll 20 nonexistent identities in Obamacare in 2024 by using Social Security numbers that had never been issued to any person and other easily created counterfeit documents.

Of the 20 false enrollments, 18 were still active in September 2025, costing taxpayers more than $10,000 per month.

Investigators also found 26,000 accounts that received subsidies in 2023 based on Social Security numbers that matched records in the Social Security Administration’s death file.

Taxpayers paid more than $94 million in subsidies for one year based on false enrollments uncovered by the investigators.

Savings and Recovery

The federal government has taken aggressive action to root out improper enrollment over the last two years.

That includes suspending agents and brokers from the program for suspected fraud, reinstating data matching between federal programs to prevent duplicate enrollment, canceling phantom enrollments, and requiring Medicaid eligibility recertification every six months.

The Centers for Medicare and Medicaid Services reported in January it had removed more than 1 million enrollees who were concurrently enrolled in Obamacare and Medicaid or the Children’s Health Insurance Program, or who had failed to file and reconcile previously received subsidies.

Another 250,000 were removed who’d been enrolled without their consent.

Those actions produced $10 billion in annual savings, according to a government statement.

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The Endgame Has Begun

The Market Ear, Sunday, Sep 13, 2026

Excerpts:

The price of keeping the endgame going

Everyone knows the story. Governments have too much debt, deficits are too large and none of it can continue forever. What is new, or at least increasingly difficult to ignore, is the price of keeping the game going.

The debt accumulated during the cheap-money era is steadily being refinanced at much higher rates. Interest expense is exploding, deficits remain enormous and the bond market is beginning to demand a higher price for absorbing it all.

Herbert Stein famously observed that “if something cannot go on forever, it will stop.”

Nobody knows when. Nobody knows exactly how. But right now, the arithmetic matters more than ever.

Unbalanced

In the first 11 months of fiscal 2026, the US government collected $4.8 trillion — and spent $6.8 trillion. A $2 trillion hole, and we’re not even talking about a recession…..

Source: Bilello

……………………

Paying the interest

The problem with borrowing $2 trillion a year is, surprise surprise, that you have to pay interest on it.

US net interest expense has now overtaken both defense and Medicare as a share of GDP.

Source: US Treasury

…………………

Double

US net interest costs are expected to double from ~$1trn today to $2.1trn by 2035, nearly 5% of GDP.

Source: JPM

………………..

The refinancing machine

Much of America’s debt still carries coupons from the cheap-money era.

As that debt matures, it is steadily being refinanced at today’s much higher rates. The fiscal pain arrives with a lag.

Source: BofA Global Research

………..

Entitled – Cutting a few government programs won’t solve this.

Roughly 70% of US federal spending is driven by entitlements. Meaningful fiscal consolidation ultimately requires entitlement reform, higher taxes — or another way out.

Source: BofA

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No Secretary Bessent, We Aren’t Magically Growing Our Way Out Of Debt

ZeroHedge, Sep 12, 2026 – Authored by Vincent Cook via The Mises Institute,

Excerpts:

The most basic objection to Bessent’s argument (and indeed to the older versions of “supply-side” voodoo as well) is that it doesn’t make any fundamental difference in the physical quantity of capital goods if private savings are consumed by higher deficits instead of being consumed by higher taxes….Giving a tax break to encourage greater investment without corresponding decreases in government spending is self-defeating, since increased deficits divert the additional savings away from private businesses towards the government and its clients and minions.

………….

Figure 1 shows these amounts as fractions of net national product (NNP, a measure of what was actually earned by Americans at home and abroad) over the past seventy-five years, with the green line representing net saving and the red line representing federal surpluses and deficits.

Figure 1: Net saving, federal surpluses/deficits as fractions of net national product, 1950-2025

Source: BEA and OMB via FRED®

During the first twenty-four years, net saving varied between ten percent to fifteen percent of NNP, while the federal budget was close to being balanced. However, net saving peaked in 1965, and has since declined to very nearly zero percent in the 2020s. This sixty-year decline in net saving coincides with the emergence of steadily worsening federal deficits, which started becoming particularly acute in the 1980s and early 1990s at around 5 percent of NNP (roughly comparable to the New Deal deficits of the 1930s).

…………..

So what are we to make of Bessent’s contention that everything is fine because GDP is growing faster than deficits are? The deficit/GDP ratio referenced by Bessent (figure 2) did decrease from 6.2 percent in 2024 to 5.8 percent in 2025, but such a tiny improvement is barely noticeable when viewed over a seventy-five year perspective.

Figure 2: Federal surpluses/deficits as a fraction of GDP, 1950-2025

Source: BEA via FRED®

The deficit-GDP ratio in figure 2 looks very similar to the red line of figure 1, the main difference being that GDP is somewhat larger than NNP because it includes capital depreciation expenses (which makes “gross” metrics bigger than “net” metrics), offset slightly by the overseas earnings of Americans (which makes “national” metrics smaller than “domestic” metrics). GDP has grown slightly faster than NNP over this period, but it is NNP that is the better proxy of the income tax base, since depreciation expenses are not taxable while overseas income is taxable.

……………

The accelerating creation of fiat dollars out of thin air by the Federal Reserve and the creation of fractional reserve dollar deposits and other dollar-denominated substitutes out of thin air by the banking system – that is, accelerating inflation and faster inflation-caused price increases – are what temporarily boost GDP, what permanently increase trust fund obligations via statutory cost-of-living adjustments, and what fuel wasteful boom-bust cycles characterized during the bust phase by burgeoning deficits, severe declines of net saving due to intensified government interventions, and the writing off of massive quantities of malinvested capital.

This sort of monetary hocus-pocus never makes tax revenues catch up with soaring expenditures over the long run; inflation can “solve” the federal liabilities problem only by utterly destroying the purchasing power of the dollar and thereby making all dollar-denominated obligations worthless. Whatever one may think about the efficacy of the central bank’s monetary wizardry and the Treasury’s fiscal sorcery, none of their spell-casting, witchery’s brews, or prestidigitations are equivalent to private restraint of present consumption by Americans making more labor and natural resource inputs available for growing the physical quantities of sustainably-productive factories, equipment, and farm structures in America. The green line in figure 1 demonstrates that such growth has virtually halted; over the decades Republicans and Democrats alike have put a bipartisan hex on growth.

_______________________________

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* Enhanced savings, restored financial security for millions of American families.

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.

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