Dan Thornton, retired V.P. of the Federal Reserve Bank of St. Louis, writing in The Wall Street Journal, Jan 26, 2021:

“…the Cares Act did nothing to stimulate economic growth. This isn’t surprising. Economists know that fiscal and monetary policy actions can’t increase an economy’s growth rate.

Economic growth is determined by the growth rates of labor, real capital and productivity. The growth rate of labor is determined by immigration and the labor-force participation rate.

The latter trended up until about 2000 when it began trending down. Investing in plant and equipment happens because investors expect very high rates of return. They won’t invest less because the borrowing rate is 8% rather than 5%, nor will they invest more if the borrowing rate drops from 5% to 2%.

Productivity is driven by technology, which is why there was a decade-long increase in productivity growth that began in the mid-1990s.

The Cares Act wasn’t entirely humanitarian aid and didn’t stimulate growth. Increasing the amount to $2,000 won’t make a difference.”

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The Leviticus 25 Plan, on the other hand, will stimulate long-term, sustainable economic growth.

It is far and away superior to CARES Act-type stimulus programs, in that it will significantly scale back the rewards of non-work, and will thereby increase the labor force participation rate. Through the elimination of massive amounts of debt, it will increase real capital, and it will increase productivity through the restoration of free market dynamics within our economic system.

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 (3934 downloads)

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Central Banks and governments have engaged in quiet collaboration to ‘take care of citizens’ and ‘solve’ economic dilemmas as they come up through their uniquer capacity to ‘print money’ and turn a blind eye to the eventual currency-debauching consequences.

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Klaus Schwab’s “Magic Money Tree” Prediction Is Coming True

ZeroHedge, Jan 25, 2021 – Excerpts:

In his book titled, COVID-19: The Great Reset (Published July 2020), World Economic Forum globalist Klaus Schwab predicted that the effects of the initial stimulus efforts by governments to keep both individuals and business afloat in the aftermath of the unprecedented lockdowns would create a scenario where the public would keep elected officials under “fierce and relentless” pressure to continue the schemes of helicopter money well into the future.

For those unfamiliar with Schwab, he is the founder of the World Economic Forum that is at the forefront of pushing the idea of a “great reset” in the face of the Covid-19 pandemic. Schwab is now best known by the common folk as the guy who said the world will “never” go back to normal because of Covid and as the creep who envisions a technocracy under which people are subjected to sci-fi level police state surveillance.

“The idea is appealing and realizable, but it contains an issue of social expectations and political control,” Schwab says in his book about printing money and giving it to the public.

“Once citizens realize that money can be found on a “magic money tree,” elected politicians will be under fierce and relentless public pressure to create more and more, which is when the issue of inflation kicks in.”

It is now conceivable that, in the future, government will try to wield its influence over central banks to finance major public projects, such as an infrastructure or green investment fund. Similarly, the precept that government can intervene to preserve workers’ jobs or incomes and protect companies from bankruptcy may endure after these policies come to an end. It is likely that public and political pressure to maintain such schemes will persist, even when the situation improves.

With anger, discontent, and the need for more being the visible result – at least in the United States – of politicians failing to feed the public money from the “magic money tree,” Schwab’s thoughts are coming to life.

It certainly wasn’t the hardest thing to predict, that people would have an ‘aha’ moment after getting a taste of the money printer’s money. It was a line that was crossed, and a political decision that will likely be incredibly hard to reverse course on.

As we have written about before, the introduction of stimulus payments since March 2020 has looked a lot like a Universal Basic Income scheme. And with an economic situation so bad due to lockdowns, it is likely to continue well into the future to keep the public content with the status quo.

There is also absolutely no reason to believe that the federal government will stop going into debt and having that debt monetized by the Federal Reserve anytime soon. Just take it from Biden’s likely Treasury Secretary and former central banker, Janet Yellen, who said at her confirmation hearing that congress should “act big” on relief spending and worry about debt LATER.

Federal Reserve Chair Jerome Powell has also stated that the Fed would continue to buy $120 billion in bonds each month until the economy made “substantial further progress” toward the Fed’s goals of maximum employment.

If you’ve been keeping up with the official unemployment numbers, you understand Powell means that the Fed’s economic interventions aren’t going to end for some time.

And as Schwab further notes in his book, COVID-19: The Great Reset, with interest rates at near zero, the Federal Reserve is likely to take on monetizing government debt rather than the classical move of bringing interest rates lower or negative as a means of “stimulating” the economy.

Ben Franklin had a quote that everyone should keep in the back of their head …

“When the people find that they can vote themselves money that will herald the end of the republic.”

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There is another way.

Instead of ‘dribbling’ small, measures amounts of ‘free money’ out to the citizenry, which keeps them ever-dependent upon government and forever ‘controlled’ by government, and never actually serving to strengthen America’s prospects for long-term growth and prosperity, eliminating massive amounts of debt (public and private), and setting the U. S. Dollar on track for long-term strength and stability, America needs…..

The Leviticus 25 Plan, will grant U.S. citizens the same access to direct liquidity extensions that the Fed provided to the major banks/insurers during the great financial crisis (2007-2010): Morgan Stanley, JP Morgan, Citigroup, Bank of America, Goldman Sachs, State Street, Merrill Lynch, Wells Fargo, AIG, Barclays, BNP, UBS, Deutsche Bank, RBS, and numerous others…

The Leviticus 25 Plan will offers sufficient liquidity transfers to make a major debt-elimination and financial security benefit to all participating U.S. citizens, while also substantially reducing / eliminating annual budget deficits.

The Leviticus 25 Plan also pays for itself entirely over a period of 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 – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3933 downloads)

America needs less Fed control and less big government control over the daily affairs of our citizens and our financial markets. America needs a citizen-directed economy and a citizen-centered health care system: The Leviticus 25 Plan.

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Peter Schiff: The Bond Market Is Rigged!

ZeroHedge, Jan 12, 2021 – Excerpts:

The Fed is trying to affect policy. It’s trying to influence the economy, stimulate the economy, prop up the stock market. That is the purpose of the Fed buying Treasury bonds. So, the Fed is not looking at Treasury bonds yielding under 1% and thinking, ‘Wow, this is a lousy buy. Why do I want to buy these bonds at less than 1% and hold them for 10 years? We’re going to take a big loss.’ The Fed doesn’t care about losses. The Fed doesn’t have to work for its money. It creates it out of thin air. What do the guys at the Fed give a damn how much they lose by buying these low-yielding bonds? And so when you have the Fed in the market, the whole thing is distorted.”

And the Fed has become a major player in the bond market. As we reported recently, the Fed now owns a record 16.5% of US debt. In just one year, the Fed doubled its holdings of Treasuries, adding a staggering $2.4 trillion in US government bonds to its balance sheet – most of that since March. The Fed’s total share of US debt has spiked from 9.3% in Q1 to 16.5%.

It isn’t just the Fed itself that distorts the bond market. The central bank’s presence creates an environment ripe for speculators who are just in it for the short-run.

Whenever there is a sell-off in the bond market and you see a backup in interest rates, what happens? Speculators who can borrow money real cheap, also thanks to the Fed, come into the market and buy the dip. Why do they do that? Because they know they can sell to the Fed. They can flip the bonds back to the Fed because the Federal Reserve is trying to keep a lid on long-term interest rates because the economy is so loaded up with debt – and again thanks to the Fed. The Fed has to keep interest rates at rock bottom so people can afford to pay. Also, the Fed is trying to maintain these excess stock market valuations. And the key to the overvalued stock market is the overvalued bond market because we keep comparing stocks to bonds, and so to make that comparison favorable, the Fed has to keep the bond market propped up and keep interest rates down.”

Speculators don’t buy bonds because they think they’re a great long-term investment. They have no intention of holding them until maturity. They’re buying to flip to the Fed.

On the other side of the equation, the Fed has to keep bond prices high (and therefore yields low) in order to create enough demand on the open market for the US Treasury to sell enough bonds to finance the massive budget deficits. With the Democrats controlling both houses of Congress and the White House, it seems likely the borrowing and spending will increase in the coming months – certainly not slow down.

So that’s what’s going on in the bond market. You have speculators who are front-running the Fed. They have no intention of holding the bonds to maturity. And then you have the Fed that will hold to maturity and isn’t concerned about how much money it loses to inflation.

In a nutshell, the bond market is completely rigged.

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Note again: “… the borrowing and spending will increase in the coming months – certainly not slow down.”

We are well on our way to a full-scale debauching of our currency.

“Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” ― John Maynard Keynes, The Economic Consequences of the Peace

All is not lost, however. The most powerful economic acceleration in the world is all loaded up and ready to go – to slam the door on America’s massive debt overhang, and the need to keep rolling over, and adding to, our national and state-level debt loads.

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 (3918 downloads)