The CARES Act, passed in March, will add $2.2 trillion to the national debt. It threw some nice looking $1200-sized, income-limited, crumbs out to the citizenry and offered a nice, bureaucracy-heavy, slow-moving, provision to help small business protect their payroll workers – that is, for those that managed to not slide into bankruptcy.
The FED, meanwhile, has been busy buying hundreds of billions of dollars in Treasuries, ‘across the duration.’ They now ‘own the curve. They have been buying Agency Debt, Mortgage-backed Securities (MBS), Collateralized Loan Obligations (CLOs), ETFs.
The FED also jumped in with both feet to purchase Corporate (‘Junk-rated’) debt to help stabilize the credit markets (i.e. high-yield debt that corporations are forced to issue when they have fine-tuned their mismanagement strategies to the point that no one will lend them funds at reasonable rates. And so, the FED is now the proud balance-sheet displayer of large sums of ‘junk debt.’
You name it, they bought it. And none of this has anything associated with that could be deemed a long-term benefit. It is all a ultra-massive ‘bandaid’ event.
The FED has also fired up some of their previously-used credit facilities, like the Primary Dealer’s Credit Facility (PDCF) to flush some fresh liquidity transfusions out into Wall Street’s financial sector.
And now… here comes another round of $1,200-sized, income-limited, crumbs to the citizenry:
“Round 2 of stimulus checks? House plan would send $1,200 per person – including children”. – Fortune, May 13, 2020 – Excerpt:
Like the CARES Act, the $2.2 trillion coronavirus aid package signed into law in March, the new bill—known as the HEROES Act—calls for direct payments of up to $1,200 for Americans earning up to $75,000 per year and $2,400 for couples earning up to $150,000 annually.
But the HEROES Act would also provide significantly more money to families with children—potentially up to $6,000 in total for a household with three dependents. Whereas the CARES Act allowed parents to claim an additional $500 per child, the HEROES Act would bump that up to $1,200 per dependent (including adult-age dependents) for up to three dependents.
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So where are we headed with these nice-sounding ‘big government solutions?’
1. We will be adding $5-$6 trillion onto the 2020 deficit (the CBO had projected it to come in at around $1 trillion) – punching the national debt up over the $29 trillion mark.
2. U.S. citizens will remain buried in over $14 trillion in household debt – with massive new numbers of people ‘dependent’ on government for life’s basic necessities (food, shelter).
3. The U.S. economy, which had been crawling along … is now barely ‘creeping’ along. And what are the near- and long-term prospects for economic growth – with the massive debt service obligations that are sucking the juice of of our current liquidity streams..? Meager, at best.
The Leviticus 25 Plan offers a fresh, powerful new start for America
1. The Plan treats all U.S citizens the same. Young-old, rich-poor, black-brown-white, free or incarcerated – all U.S. citizens qualify to participate, if they so choose.
2. The Plan does not offer ‘crumbs’ to participants. It offers the type of substantial liquidity transfer that will eliminate massive amounts of debt and restore ‘financial health’ at the family level, and provide the type of upfront funding that will put citizens back in charge of their primary health care needs.
3. The Plan will get the U.S. economic growth engine moving back up at peak-speed – within months of activation.
4. The Plan will not add a dime to the national debt – in the same way that the FED’s liquidity transfusions out to the banking sector through their various credit facilities does not add to the national debt. The Plan will be funded through a new credit facility, called The Citizens Credit Facility (CCF), and the will be paid back, in full, over the next 15 years.
The most powerful plan in America is loaded up and ready to go…
The Leviticus 25 Plan – An Economic Acceleration Plan for America
Leviticus 25 Plan 2021 (3656 downloads)