America needs a new, outside-the-box plan to deal with this ticking time bomb..

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One Bank Spoils The Party, Reminds Traders We Are This Close To The “Breaking Point”

ZeroHedge, Apr 5, 2021 – Excerpt:

“… the only question is how much longer with this yield stability persist. Because if Deutsche Bank rates strategist Steven Zeng is correct, the next move higher in yields is on its way.

In a note that could sober up some of the stock market Kool-aid drinkers, Zeng reminds us that the amount of outstanding Treasury coupon debt is increasing at a record pace, and “every quarter, the Treasury is adding more than $650bn of new debt to replace the T-bills issued last year and to support new stimulus spending.”

The math is, to put it mildly, startling: even with the Fed buying substantial amounts, the amount of coupon supply left to private investors is staggering, and it will only go up more once the Fed begins to taper its purchases.

“All of that begs the question: who will buy all these Treasuries”, Zeng asks rhetorically (especially since the Fed’s next move is not more QE but an eventual tapering of QE)…..

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America’s powerful ‘outside-the-box plan”:

The Leviticus 25 Plan will massively reduce the ‘cost of government’ by trillions of dollars each year. It will reduce the U.S. Treasury Department’s income tax refunds amounts by $261 billion per year during each of its first five years of activation.

It will generate $383 billion budget surpluses during each of those first five years, also, and it will completely pay for itself over a 10-15 year period.

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 2022 (3751 downloads)

Massive debt… and headed higher. The Fed is ‘boxed in’ on ever returning to free market rate normalization… unless they are willing to ‘think outside the box.’……

Moody’s Credit Market Review and Outlook, Apr 15, 2021:

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And here is that ‘Outside the Box’ plan with the raw power to reign in the debt, restore economic liberty for all Americans… rescue the economy, and return the United States of America to it’s position as leader of the free 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

$90,000 per U.S. citizen – Leviticus 25 Plan 2022 (3743 downloads)

Congressional Democrats have a new plan – to create more dependence on government, spend the U.S. deeper into the means-tested social oblivion debt hole, leading to an eventual, inevitable full-scale debauching of the currency and economic chaos.

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Rep. Ritchie Torres’ Big Idea: Create permanent monthly child allowance payments to parents

NY Democrat wants to make the expanded child tax credit permanent

By Marisa Schultz | Fox News, Apr 16, 2021

Rep. Ritchie Torres, D-N.Y., wants to make the expanded child tax credit passed in President Biden’s COVID relief bill a permanent benefit for American families as a way to fight child poverty.

The Big Idea is a series that asks top lawmakers and figures to discuss their moonshot — what’s the one proposal, if politics and polls and even price tag were not an issue, they’d implement to change the country for the better?  

Rep. Ritchie Torres, D-N.Y., wants to lift children out of poverty by providing parents a monthly child allowance on a permanent basis. 

Much like how Social Security and Medicare provide a safety net for American seniors, Torres wants parents to receive regular payments for each child up until age 18. The money would come in the form of an expanded child tax credit that would establish a basic, reoccurring income for families with children in America.

“My highest priority is a permanent child tax credit, which is the most powerful tool we have for radically reducing child poverty in America,” Torres told Fox News in an interview. 

Until this year, families could claim up to $2,000 a child as a tax credit, but millions of very low-income households missed out on the full benefit because their earnings were too low to qualify. 

But the benefits drastically increased under President Biden’s $1.9 trillion coronavirus relief bill that Democrats passed in March and extended the full credit to the poorest of families. Torres successfully fought to increase the amount of tax credit, make it fully refundable and to authorize advanced payouts of the benefit. 

But the new benefit only lasts a year, and Torres says it would be cruel to take away a vehicle to lift millions of children out of poverty.  

“We have the tools to radically reduce child poverty in America,” Torres said. “The question is do we have the political will? We owe it to our children to do right by them. We as a society are ultimately judged by how we treat the least among us.”

Torres proposes making monthly child payments permanent, which is estimated to cost more than $100 billion per year, according to the congressional Joint Committee on Taxation. The amount of money received would phase out for individuals making more than $75,000 and for married couples making $150,000.

“The child tax credit demonstrates that the Democratic Party has returned to the roots of FDR, that we are re-establishing ourselves as the party of families and children,” Torres said.

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The Republican plan, on the other hand, reduces dependence on government. It is not ‘means-tested’ – in other words every U.S. citizen in America may participate. It will lift families up out of poverty, rather than continuing to make them more comfortable ‘in poverty.’

It will reduce massive amounts of ‘ground level’ debt in America, redirecting trillions of dollars annually from ‘debt service’ into direct economic augmentation.

It will generate $383 billion government surpluses during each of the first five years of activation and pay for itself entirely over the next 10-15 years.

Give each American family the right to choose:

1) The Democrat Plan – expanded social welfare, sponsored by the “party of families and children” dependent on government, offering continued comfort in poverty, and continued obeisance to Democrat party ‘minders.’

or…

2) The Republican Plan – expanded opportunities apart from government social welfare programs, a helping hand ‘up out of poverty,’ citizen-centered health care, and freedom: 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 2022 (3741 downloads)

The Fed ‘pumps.’ Wall Street’s big bank ‘fat cats’ get fatter. And America sinks deeper and deeper into the quicksand debt hole.

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Peak Liquidity

Authored by Sven Henrich via NorthmanTrader.com,

ZeroHedge, Apr 21, 2021 – Excerpt:

Recognize that the amount money pumped into markets is simply unfathomable:

In the US alone 55% of GDP, $12.3 trillion in just 13 months. There is no precedence for this. None. And consider the context: By the end of this year US debt will stand at $30 trillion up from $10 trillion in 2008. 66% of the US’s entire historical debt load will have been added in just 13 years. $20 trillion or 90% of GDP of debt expansion in just 13 years.
Keep dreaming it’s all consequence free.

To full grasp the enormity of the cumulative size of the most recent intervention amounts: Did you enjoy your $1,400 stimulus check? Yea? What happened to the other $36,100? You didn’t get those? No? Cause for $12.3 trillion the total actually comes to $37,500 for every man, woman and child in the US (population 328M).

[snip]

Another way of looking  at this chart above: Since just before the financial crisis the top 1% have added $20 trillion to their assets while the bottom 50% have added a mere $1.5 trillion between them.

With an asset appreciation of $21.5T between the 2 groups the top 1% took 93% of the gain. This is the result of a monetary system that is entirely focused on managing the economy with asset prices, the very assets that are owned predominately but the top 1%.

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Note: A major share of the $20 trillion that went to the ‘top 1%’ was undoubtedly raked in by the Wall Street financial titans controlling the Fed’s Primary Dealers, including: JP Morgan, Goldman, Citigroup, Morgan Stanley, Bank of America, and other major shareholders of those institutions like Warren Buffett.

Here is the Fed’s current Primary Dealer list:

Amherst Pierpont Securities LLC

Bank of Nova Scotia, New York Agency

BMO Capital Markets Corp.

BNP Paribas Securities Corp.

Barclays Capital Inc.

BofA Securities, Inc.

Cantor Fitzgerald & Co.

Citigroup Global Markets Inc.

Credit Suisse AG, New York Branch

Daiwa Capital Markets America Inc.

Deutsche Bank Securities Inc.

Goldman Sachs & Co. LLC

HSBC Securities (USA) Inc.

Jefferies LLC

J.P. Morgan Securities LLC

Mizuho Securities USA LLC

Morgan Stanley & Co. LLC

NatWest Markets Securities Inc.

Nomura Securities International, Inc.

RBC Capital Markets, LLC

Societe Generale, New York Branch

TD Securities (USA) LLC

UBS Securities LLC.

Wells Fargo Securities, LLC

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The Primary Dealer institutions, along with other Wall Street darlings like AIG, Merrill Lynch, Bear Stearns, GE Capital and others all received, through various Fed funding facilities dating back to 2008, direct liquidity transfusions from the Fed, to help repair the gaping holes in their balance sheets and return them to ‘financial health.’

And now, just in the last 12 months, the Fed created $12.3 trillion of imaginary money and pumped it out into the economy… and we have solve absolutely nothing.

It is time now to level the playing field – and grant direct liquidity extensions to U.S. citizens, for the purpose of eliminating vast amounts of ‘ground level’ debt in America, reigniting the U.S. economic growth machine, and setting America back on course for long-term financial properity.

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 2022 (3740 downloads)

The Stimulus Package Won’t Cut Poverty, It Will Accelerate It

Authored by Anthony Pompliano,

ZeroHedge, March 20, 2021 – Excerpts:

….What people forget is how bad the wealth inequality gap in America is. According to the St. Louis Fed, the bottom 50% of Americans own only 1% of the wealth, including 13.4 million families that have a negative net worth. It doesn’t matter how many stimulus checks you send to those 13 million families, it won’t pull them out of the dire situation that they currently are in. The checks help, but let’s not kid ourselves — they do not cut poverty.

So why exactly do I believe this stimulus package is a net negative for the bottom 50% of Americans?

Simply, the benefit of a stimulus check and unemployment insurance is drastically outweighed by the negative impact of inflation, both in consumer goods and asset prices.

All the academics, millionaire bloggers, and wealthy hedge fund managers get real mad when you start to disprove their narrative that the government is cutting poverty and showering money on people. Here is a generalized view of the problem:

1. Each socioeconomic class experiences different levels of inflation. The richest hold investable assets and are less likely to purchase consumer goods most affected by inflation. The lowest socioeconomic classes hold no investable assets and are more likely to purchase inflationary goods.
2. The official inflation numbers are widely inaccurate. The official data says less than 1.5% inflation, but the Chapwood Index claims 7-12% depending on the city and Shadow Stats claims over 6% inflation as well.
3. These large stimulus packages flood the system with liquidity, which drives asset prices much, much higher. (Zero interest rates help significantly here too).
4. Those holding investable assets get wealthier and those not holding investable assets become poorer.

It is that simple. The purchasing power of the U.S. dollar is being eroded away based on historical trends, but these massive stimulus bills (which now total almost $6 trillion in a year) accelerate the problem. As I said, the second the Senate voted positively for this bill, the government is further enriching the wealthiest people in America, while simultaneously pushing the bottom 40% of Americans into a worse financial situation.

I don’t want to present problems without solutions. That feels unfair and intellectually dishonest. So how do we solve the problem?

First, we have to help small businesses, the unemployed, and those who are struggling financially due to the economic crisis. We don’t do that by creating new money to inject into the system, but rather by reallocating the government budget from bad investments to good investments……

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Some of the prime examples of “bad investments” involve the government allocation of resources to fund the massive social welfare state.

It disincentivizes work, invites fraud and corruption on a scale which is beyond containment, keeps people dependent on government, promotes vagrancy, crime, and societal decay.

Massive social welfare programs accomplish almost nothing in the way of lifting people up out of poverty, and do nothing to help restore financial health and long term security for American families.

They require enormous funding outlays and are a primary driver of America’s deficit spending time-bomb – all with an inevitable ‘feeding-effect’ for future run-away inflation and economic instability..

The Leviticus 25 Plan is a prime example of a “good investment” by government – targeting massive debt elimination at ‘ground level’ and restoring a citizen-driven economy and citizen-centered health care system.

It will reduce dependence on government on a broad scale and provides a powerful ‘helping hand’ to lift millions of people up out of poverty. It will re-incentivize work and generate incredible long-term productivity gains.

The Leviticus 25 Plan generates $383 billion budget surpluses each of its first five years of activation – and pays for itself entirely over a 10-15 year period. It will provide long-term strength and stability for the U.S. Dollar and provide a clear counter-force against inflation.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2022 (3727 downloads)

Government payment systems are riddled with fraud, in everything from Medicare fraud, Medicaid fraud, Earned Income Tax fraud, food stamp fraud, Social Security fraud…

And most recently, ‘unemployment insurance fraud,’ and ‘income tax refund fraud’…

The good news is that there is a highly efficient way to reign in these ongoing, wide-spread fraud schemes, by massively shrinking the zones of opportunity.

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The Taxman Cometh for ID Theft Victims

January 29, 2021 / https://krebsonsecurity.com/category/tax-refund-fraud/

The unprecedented volume of unemployment insurance fraud witnessed in 2020 hasn’t abated, although news coverage of the issue has largely been pushed off the front pages by other events. But the ID theft problem is coming to the fore once again: Countless Americans will soon be receiving notices from state regulators saying they owe thousands of dollars in taxes on benefits they never received last year.

One state’s experience offers a window into the potential scope of the problem. Hackers, identity thieves and overseas criminal rings stole over $11 billion in unemployment benefits from California last year, or roughly 10 percent of all such claims the state paid out in 2020, the state’s labor secretary told reporters this week. Another 17 percent of claims — nearly $20 billion more – are suspected fraud.

California’s experience is tracked at a somewhat smaller scale in dozens of other states, where chronically underfunded and technologically outdated unemployment insurance systems were caught flat-footed by an avalanche of fraudulent claims. The scammers typically use stolen identity data to claim benefits, and then have the funds credited to an online account that they control.

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Government payment systems seem to be an open invitation for criminal fraud…:

IRS Reports $2.3 Billion in Tax Fraud in 2020

Courthouse News, Nov 16, 2020

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And now… even government IT specialists are ‘feeding’ personal data into the tax refund fraud market place:

FEMA IT Specialist Charged in ID Theft, Tax Refund Fraud Conspiracy

June 18, 2020 / krebsonsecurity.com

An information technology specialist at the Federal Emergency Management Agency (FEMA) was arrested this week on suspicion of hacking into the human resource databases of University of Pittsburgh Medical Center (UPMC) in 2014, stealing personal data on more than 65,000 UPMC employees, and selling the data on the dark web.

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The Leviticus 25 Plan participants, in receiving $90,000 (Family Account; $60,000; Medical Savings Account: $30,0000), forego unemployment insurance benefits for a period of five years (unless they wish to purchase their own private unemployment insurance plan), thereby eliminating massive amounts of fraud, and billions of dollars in cost to state and federal government agencies.

Participants also agree, as part of the plan, to forego income tax refunds for five years, thereby eliminating between 80-100 million refunds. And that will eliminate the large majority of refund fraud.

The Leviticus 25 Plan solves a lot of America’s problems.

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 2022 (3725 downloads)