The Shutdown Budget – The federal deficit for the fiscal year reaches $1.9 trillion WSJ – 6-8-20 – Excerpt:

There’s nothing like a government-ordered economic shutdown to blow a hole in government finances. That was the bad if entirely expected news on Monday when the Congressional Budget Office released its monthly budget review for May.

Revenues collapsed and spending boomed in response to the pandemic and closing down of much of the U.S. economy. Receipts fell 25% in the month from a year earlier to a meager $175 billion thanks to millions of fewer people working and tax-rule changes that allowed some tax payment deferrals.

Spending in the month was $598 billion, or 36% higher than in 2019, though it would have been 53% higher if not for some timing adjustments between May and June. This reflects all of the programs Congress passed to replace lost income from lost jobs with government payments. Unemployment insurance rose to a remarkable $93 billion for the month from a mere $2 billion a year earlier.

CBO says the federal budget deficit for the fiscal year, from October to May, reached $1.9 trillion, or $1.17 trillion more than in the same period in 2019. These are unknown deficit heights, and they are likely to get much higher as the anti-shutdown spending continues.

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There is precisely one ‘economic acceleration’ plan that can rein in America’s massive federal budget deficit explosion.

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

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3688 downloads)

If ever the United States needed a powerhouse economic ‘reset,’ that time is now…

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A Major Upgrade – June 2020:

The Leviticus 25 Plan activation period is slated for the 5-year period beginning in 2021 and ending in 2025. 

1.  The Leviticus 25 Plan – Each participating U.S. citizen will receive a $60,000 deposit into a Family Account (FA) and a $30,000 deposit into a Medical Savings Account (MSA).

All U.S. citizens are eligible to participate, contingent upon agreement to specified recapture provisions.

These general provisions include:

   – Waiving all federal income tax refunds for a period of 5 years.

   – Waiving all benefits from means-tested welfare programs, income security programs,

      SSI, and SSDI claims for a period of 5 years.

   – Enrollees in the Medicare, VA Healthcare system, Federal Employees Health Benefits  

     (FEHB), and TRICARE will be subject to a $6,000 deductible for primary care and outpatient      services annually for a period of 5 years.  (See full plan for more details)

Primary scoring assumptions:

The Plan assumes an 80% participation rate by U.S. citizens. Wealthier Americans would choose not participate, due to the comparative benefit of income tax refund amounts.  Many individuals of lower socio-economic sector would also choose not to participate, due to the comparatively high benefits profiles that they would not wish to give up.

The Plan assumes that participating families would use significant funds to pay down / eliminate debt, and that these longer-term, lower debt service obligations would enhance the financial security of participating families for several decades beyond the opening activation period.  Federal, state, and local government entities would benefit from longer-term tax revenue growth and reduced citizen dependence on government-based entitlement program benefits.

The Plan assumes that dynamic new efficiencies would emerge in the healthcare system – with more families managing/directing healthcare expenditures through their MSAs.

The Plan assumes that apart from the recapture provisions, there would also be significant tax revenue growth for federal, state and local government entities from free-market economic revitalization, more people working and paying taxes, and from the elimination of various income tax deductions (e.g. mortgage / HELOC interest expense).

The Plan assumes that there would not be a massive full-scale move back into the means-tested welfare programs, income security programs, SSI, and SSDI at the end of the initial 5-year activation period. 

The benefits of a free-market economy and newfound economic liberty for American families would provide positive economic inertia throughout years 5-10, and for several decades beyond.

Recapture provisions would provide an estimated substantial federal budget surpluses for each year of the initial 5-year period. Economic growth over the following 10-15 years would generate sufficient recapture funding and tax revenue growth to offset the entire initial Federal Reserve balance sheet expansion.

Significant inertia from The Plan would also provide on-going, market-based growth benefits over succeeding years that far exceed any prospect for healthy economic growth that may be expected under America’s current big-government, central-planning approach.

Dynamic benefits would be generated from:

     – Massive liquidity gains and debt reduction at the family level.

     – Immediate, sweeping reversal of government “central planning” approach.

     – Major reversal in work disincentives embedded in social welfare program structures.

     – Economic growth, improved productivity and job creation.

     – Stabilization of housing market.

     – Strengthening bank capitalization.

     – Minimizing the role of government in managing, directing, and controlling the affairs of citizens.

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The time is now.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3677 downloads)

SIGTARP, the oversight agency of the Troubled Asset Relief Program (TARP), in its July 2009 report, vetted by Treasury, noted that the U.S. Government’s “Total Potential Support Related to Crisis” (page 138) amounted to $23.7 trillion.  While this figure represents a backstop commitment, not a measure of total potential loss, it is nonetheless an astounding degree of support, in the form of liquidity infusions, credit extensions and guarantees, various other forms of assistance for financial institutions and other business entities affected by the financial crisis.

One example of the mechanics of these backstop commitments involved two of the major investment-banks which were at the forefront of the U.S. financial crisis, Goldman Sachs and  JP Morgan, who, through their high-risk exposure to subprime debt and derivatives, received enormous amounts of direct financial assistance from government and the Federal Reserve.

Goldman Sachs and J.P. Morgan received these direct liquidity infusions during the financial crisis via Fed disbursements through the Primary Dealer Credit Facility and numerous other credit facilities. The two (according to ZeroHedge 4-1-11) “had the temerity to pledge bonds that had defaulted (i.e. had a rating of D)… as in bankrupt, and pretty much worthless. . . that have no value whatsoever. . .”  Goldman Sachs received $24.7 million and JP Morgan $1.4 million on the worthless collateral (September 15, 2008).  Goldman Sachs pledged D-rated securities again September 29, 2008 and received $82.7 million (Citigroup received $102.8 million;  Merrill Lynch – $217.8 million;  Morgan Stanley – $261.0 million;  UBS – $202.2 million).

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U.S. citizens deserve nothing less than the same direct access to liquidity extensions that major banks and global financial institutions received during the 2008-2010 financial crisis.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

Leviticus 25 Plan 2021 (3677 downloads)