Thanks to Washington Democrats in the U.S. Senate, ‘big government’ just got a whole lot bigger and more deeply ‘entrenched.’

Senate Democrats passed a $740 billion budget reconciliation bill, calling it “The Inflation Reduction Act.” 

The Wall Street Journal has a more accurate name for the 725-page bill, calling it “The Business Investment Reduction and Distortion Act.”

Washington Republicans, of course, opposed the bill.  But do they have a legitimate, politically viable economic plan of their own to: 1) Get the federal budget deficits back under control?; 2) Materially improve financial security across the board for all of America’s hard-working, tax-paying U.S. citizens?; 3) Revitalize free market dynamics and economic liberty for all Americans?; 4) Set America back on track for long-term economic growth?; and 5) Safeguard the U.S. Dollar’s status as the world’s reserve currency?

Answer:  5 times, “No.”

Shamefully, Washington Republicans have no countervailing plan – other than to lightly ‘tap the brakes’ on Democrat initiatives to grow government and control the masses.

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WSJ: The Schumer-Manchin Tax and Subsidy Pact

New taxes and price controls to pay for green corporate welfare for the politically favored.

WSJ The Editorial Board, July 28, 2022 – Excerpts:

“Mr. Manchin is selling the deal as deficit reduction and a rescue for fossil fuels. If he believes this, he hasn’t thought through the impact of the 725-page bill. A more accurate name would be the Business Investment Reduction and Distortion Act since that will be the result of its $433 billion in climate and healthcare spending, and $615 billion in new taxes and drug price-control “savings.”

Start with the 15% minimum tax on corporate book income over $1 billion, which Democrats claim will raise $313 billion through 2031. This new alternative minimum tax will slam businesses whose taxable income is lower than the profits on their financial statements owing to the likes of investment expensing, tax credits and business deductions.

…….

Businesses will have more incentive to sink money into green ventures whether or not they are the best uses of corporate capital. This will magnify investment distortions created by the bill’s $369 billion in climate spending, most of which is corporate welfare.

Companies will get tax credits for spending on wind, solar, critical minerals, biofuels, hydrogen, carbon capture, nuclear, “sustainable” aviation fuel, lithium-ion batteries, electric-vehicle charging stations and more. Auto makers will get $20 billion in cheap federal loans for building “clean vehicle” factories.

The Biden Administration is using regulation to essentially mandate that auto makers churn out electric vehicles. Now taxpayers will subsidize that cost, on top of the $7,500 EV tax credits so affluent Americans can buy more Teslas. The bill removes the 200,000 manufacturer cap for the $7,500 EV tax credit, which GM, Tesla and Toyota have hit and Ford soon will.

……

All of this will steer private investment into green energy at the cost of reduced investment in fossil fuels. Wind and solar subsidies are already creating distortions in power markets that make the electric grid less reliable and energy more expensive. The expansion of subsidies will compound these problems.

Most climate spending also comes with prevailing wage and domestic content requirements that will drive up project costs. How will this help reduce inflation?

The Schumer-Manchin deal is also a raid on drug companies. The bill will require the Health and Human Services Secretary to “negotiate” Medicare prices—i.e., impose price controls—for dozens of drugs. But the $288 billion in putative savings are fanciful. Manufacturers will hedge potential future losses by launching drugs at higher prices.

Generic manufacturers say price controls will dampen their incentive to develop copycats, which will result in higher prices for all drugs down the road. The bill will also discourage investment in innovative treatments that could reduce future healthcare spending.

Democrats plan to use the phantom savings to extend sweetened Affordable Care Act subsidies for three years. The subsidies are sure to be extended again in 2025, and their cost will grow as insurers raise premiums to pocket the larger payments.“

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Main Street American Republicans do have a powerful citizen-centered plan that will provide a dynamic ‘recharge’ to the U.S. economy and restore economic liberty in America – and reduce America’s debt and protect the long-term viability of the U.S. Dollar.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (4139 downloads)

“But our society — unlike most in the world — presupposes that freedom and liberty are in a frame of reference that makes the individual, not government, the keeper of his tastes, beliefs, and ideas; that is the philosophy of the First Amendment; and it is this article of faith that sets us apart from most nations in the world.”  -Justice William Douglas, Paris Adult Theatre v. Slaton

“Our whole constitutional heritage rebels at the thought of giving government the power to control men’s minds.”  -Justice Thurgood Marshall, Stanley v. Georgia

“The person who has nothing for which he is willing to fight, nothing which is more important than his own personal safety, is a miserable creature and has no chance of being free unless made and kept so by men better than himself.”   –John Stuart Mill

Rising Interest Rates Will Crush the Federal Budget – The interest costs of Treasury debt are about to soar while revenue from capital-gains taxes will plunge.

By Red Jahncke, President of the Connecticut-based Townsend Group International LLC.

June 29, 2022 – Excerpts:

The Federal Reserve’s policies of increasing interest rates and quantitative tightening—reducing its $8.9 trillion balance sheet—will increase the volume and cost of federal government borrowing, slamming the federal budget and exposing the consequences of decades of deficit spending.

Since February 2020, publicly held U.S. Treasury debt has exploded, growing from about $17 trillion to $24 trillion. Almost half of the increase has wound up at the Fed, whose Treasury holdings have ballooned from $2.5 trillion in February 2020 to $5.8 trillion.

Quantitative tightening is a big initiative. In May the Fed announced plans to reduce its Treasury holdings by $330 billion by the end of the year, and by $720 billion annually thereafter until its balance sheet shrinks to a yet-to-be-determined size. The Fed can reduce its balance sheet, but that doesn’t mean the federal government can reduce its balance of outstanding debt.

Given the extraordinarily low interest rates on new federal debt issued during the recent economic shutdown, federal interest costs barely increased despite the $7 trillion increase in Treasury debt. Over the last three federal fiscal years ending on Sept. 30, 2021, total gross interest cost was $573 billion, $523 billion and $562 billion. (Net interest, after accounting for interest income primarily in government trust accounts, is $150 to $250 billion lower.)

That is changing. Short-term rates have risen 1.5% following the Fed’s 75-basis-point rate increase in June and smaller increases in March and May. By the end of 2022, additional rate increases will bring cumulative rate increases to 3%, according to the Fed’s official guidance. The Fed projects short-term rates averaging 3.4% in December and rising thereafter.

As this additional 3% works its way into the refinancing of maturing Treasurys, federal interest costs will skyrocket. There are about $3.7 trillion outstanding Treasury bills, which mature in less than a year. In 12 months the 3% increase in rates will generate roughly $111 billion in additional annual interest expense on these Treasurys.

There are $2.4 trillion of Treasury notes, which are issued with maturities of one to 10 years, maturing within a year, according to the latest Monthly Report of the Public Debt. The weighted average interest rate on these notes is 1.3%, and the weighted average original maturity is 4.7 years. The current yield on five-year Treasury notes is about 3.25%—1.5 points higher than the high end of the fed-funds-rate range. If these maturing Treasury notes roll over at the same spread over the projected year-end fed funds rate of 3.4%, they will bear interest at 4.9% and cost an additional $86 billion.

Total federal gross interest cost over the 12 months ending on May 31 was $666 billion. If we include the impending extra interest on Treasury bills and the maturing notes, that figure rises to $863 billion. This is a staggering cost. National military spending was $746 billion over the past 12 months; Medicare spending was $700 billion.

With the federal government in perpetual deficit, where will the Treasury find money to make extra interest payments? New taxes? Lower spending? Fat chance. In all likelihood, it will have to borrow to pay interest.

Who will buy Treasurys?  Under quantitative tightening, the Fed isn’t planning to reduce its holdings of Treasury bills, only of longer-term notes and bonds. Buyers—especially of long bonds—face an uncertain inflation outlook. The high pace of the Fed’s reduction of its Treasury holdings will require a fast-paced refinancing program. It will be challenging and costly to find buyers to replace the Fed.

The revenue side doesn’t look much better. The sharp selloff in equity markets will severely depress capital-gains tax revenue, which averages more than 10% of federal individual income-tax revenue. Such revenue is now reversing from a historic peak in 2021. The shortfall in 2022 could be as much as $250 billion. Almost inevitably, this revenue loss will have to be made up with more federal borrowing.

Fed policy changes will have other significant effects. In 2021 the Fed generated nearly $108 billion in profit. Big banks make big money. The Fed is required to remit most of its profits to the Treasury. As the Fed shrinks, it will remit less.

Under current Fed policy, the federal government’s annual gross interest expense could reach $1 trillion, causing federal borrowing to continue to grow rapidly. As rates rise and federal borrowing increases, a vicious circle will produce ever more interest expense and ever more borrowing.

This dire outlook has been long coming. The current debate about inflation and whether the Fed’s monetary moves have been too late or too aggressive misses the point. The U.S. has been on an unsustainable fiscal and financial path for a long time. We are beginning to see the inevitable result.

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Meet America’s Blockbuster Budget Balancing Solution: ‘Main Street America’ has an economic acceleration plan that will provide a dynamic ‘recharge’ to the U.S. economy and restore economic liberty in America – and reduce America’s debt and protect the long-term viability of the U.S. Dollar.

The Leviticus 25 Plan will generate $583 billion federal budget surpluses for the initial 5 years of activation (2023-2027), and completely pay for itself over the next 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 2023

Economic Scoring links:

·  The Leviticus 25 Plan 2023 – $583 billion Federal Budget Surpluses (2023-2027), Part 1: Overview, Deficit Projection

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 2: Federal Income Tax and Means-Tested Welfare Recapture Benefits.

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 3: Medicaid/CHIP and Medicare Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 4: VA, TRICARE, FEHB, SSDI Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 5: Subtotals, Interest Expense Savings, Summary

Website:   https://Leviticus25Plan.org

__________________________________________ 

Preview 1:

The Leviticus 25 Plan provides a $90,000 credit extension, direct from the Federal Reserve, to every participating U.S. citizen:  $60,000 into a Family Account (FA) and $30,000 into a Medical Savings Account (MSA).

Example:  Qualifying family of four would receive $240,000 in their FA, and $120,000 in their MSA.

Primary goals:  Massive debt elimination at family level: mortgage debt, consumer debt, student loan debt.  Federal budget surpluses.

Eligibility:  U.S. Citizen.  Job history, credit history requirement (similar to traditional credit checks for bank loans).  Clean recent drug history.  Clean crime history.

Requirements:  Forego all federal and state tax refunds for 5-year period.

Forego selected means-tested welfare benefits – for minimum 5-year period.

Forego all income security program benefits – for minimum 5-year period.

Forego new federally-subsidized ‘Family Medical Leave’ benefits – for minimum 5-year period.

Forego Child Tax Credit benefits – for minimum 5-year period.

Forego enhanced federal rental forbearance/assistance – for minimum 5-year period.

Forego SSI and SSDI for minimum 5-year period.

New $6,000 deductible on primary care access to: Medicare, Medicaid, VA, TRICARE, FEHB – for minimum 5-year period.

The Plan assumes that the elite-wealthy will not participate, because their refunds are too valuable to give up over the requisite 5-year period.

The Plan also assumes that many who heavily depend on social welfare benefits will also choose not to participate, because the overriding value of those benefits, vs foregoing them, over the 5-year period.

Preview 2:

The Leviticus 25 Plan grants the same direct access to liquidity, through a Fed-based Citizens Credit Facility, similar to the credit facilities that were created by the Fed to transfuse trillions of dollars in direct transfers and credit extensions to Wall Street’s major banks, credit agencies and insurers during the great financial crisis. 

The following facilities were created and activated by the Fed for this massive Wall Street bail out operation: Term Auction Facility (TAF), Primary Dealer Credit Facility (PDCF), Term Securities Lending Facility (TSLF), currency swap agreements with several foreign central banks,  Commercial Paper Funding Facility (CPFF), Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), Money Market Investor Funding Facility (MMIFF), and the Term Asset-Backed Securities Loan Facility (TALF), and access to the Fed’s Discount Window.

Additional perspective:  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.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. cirtizen – Leviticus 25 Plan 2023 (4135 downloads)

America is silently suffocating its economy under a monstrous debt load that the Governmental Accountability Office (GAO) terms, “unsustainable.”

Do our Washington Democrats and Washington Republicans have a strategy to deal with this? Answer: “No.”

Does the Federal Reserve have a plan..? Answer: “No.”

……………………………………………………………………………………

Federal Reserve Bank of New York

HOUSEHOLD DEBT AND CREDIT REPORT (Q1 2022)

Mortgage and Auto Loan Balances Help Push Up Total Household Debt

The Quarterly Report on Household Debt and Credit for the first quarter of 2022 shows a solid increase in total household debt of $266 billion, to $15.84 trillion.

Balances now stand $1.7 trillion higher than at the end of 2019, before the COVID-19 pandemic. Mortgage and auto loan balances rose by $250 billion and $11 billion, respectively, in the quarter, although originations for both subsided from historically high levels in 2021.

Credit card balances declined by $15 billion, in line with seasonal trends typically seen at the start of the year, but are still $71 billion higher than in 2021:Q1, representing a substantial year-over-year increase.

………………………………………

St. Louis Fed – Federal Reserve Economic Data (FRED)

___________________________________________

Main Street America does have a plan.

The Leviticus 25 Plan has the power to eliminate enormous amounts of mortgage debt, credit card debt, school loan debt, and auto loan debt.

It will generate massive gains in tax revenue flows and outlay reductions for federal, state, and local governments.

The Leviticus 25 Plan will conservatively generate $583 billion surpluses each of the first five years of activation (2023-2027). 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 2023 (4131 downloads)

A recent study by social scientists from Harvard and the University of Exeter examined the potential benefits of ‘free money’ transfer payments in relation to quality of life outcomes. 

The Wall Street Journal, The High Cost of Free Money, July 20, 2022, discussed the results of this study.

Excerpts:

Liberals argue that no-strings-attached handouts encourage better financial decisions and healthier lifestyles. The theory is that low-income folks become more future-oriented if they’re less stressed about making ends meet. The Harvard study put this hypothesis to the test and found the opposite.

During a randomized trial conducted from July 2020 to May 2021, researchers assigned 2,073 low-income participants to receive a one-time unconditional cash transfer of either $500 or $2,000. Another 3,170 people with similar financial, demographic and socioeconomic characteristics served as a control group. The trial was funded by an anonymous nonprofit.

Participants earned an average of about $950 a month and had $530 in unearned income (e.g., food stamps). About 80% had children, and 55% were unemployed. Over 15 weeks they were surveyed about their physical, mental and financial well-being. Forty-three percent also agreed to allow researchers to observe their bank balances and financial transactions.

The top-line result: Handouts increased spending for a few weeks—on average $26 a day in the $500 group and $82 a day in the $2,000 group—but had no observable positive effect on any individual outcome. Bank overdraft fees, late-payment fees and cash advances were as common among cash recipients as in the control group.

Handout recipients fared worse on most survey outcomes. They reported less earned income and liquidity, lower work performance and satisfaction, more financial stress, sleep quality and physical health, and higher levels of loneliness and anxiety than the control group. There was no difference between the two cash groups.

These findings contradicted the predictions of 477 social scientists and policy makers the researchers surveyed. That’s not surprising. Most liberal academics and politicians believe government handouts are the solution to all problems. If transfer payments were a ticket to the middle class, the War on Poverty would have succeeded long ago.

The roots of poverty are complex, but the study isn’t a one-off in documenting a link between transfer payments and worse outcomes. A 2018 study in the Journal of the American Medical Association examined the diet quality of food-stamp beneficiaries from 2003 to 2014, a period in which average benefits increased more than 50%. Similar low-income people who didn’t get food stamps ate more healthily than those who did. The non-food-stamp group consumed significantly fewer sugar-sweetened beverages, and their diets improved more over time.

__________________________________

What exactly are transfer payments?

Answer:  “In macroeconomics and finance, a transfer payment is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return. These payments are considered to be non-exhaustive because they do not directly absorb resources or create output.”

How would The Leviticus 25 Plan differ from traditional government ‘free money’ programs?

Answer:  The Leviticus 25 Plan does not involve redistribution of income and wealth from one group to another, since every U.S. citizen is potentially eligible to participate, pending credit check.

Applicants, applying through registered financial institutions, must pass a job history / credit history / illicit drug history credit check to be eligible to participate. 

The Leviticus 25 Plan is not a ‘free money’ program. There are major ‘strings attached.’ It does require U.S. citizen participants to give up income tax refunds and specified government transfer payments for a period of 5 years.

The Leviticus 25 Plan will generate $583 billion federal budget surpluses for the initial 5 years of activation (2023-2027), and completely pay for itself over the next 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 2023

Economic Scoring links:

·  The Leviticus 25 Plan 2023 – $583 billion Federal Budget Surpluses (2023-2027), Part 1: Overview, Deficit Projection

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 2: Federal Income Tax and Means-Tested Welfare Recapture Benefits.

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 3: Medicaid/CHIP and Medicare Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 4: VA, TRICARE, FEHB, SSDI Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 5: Subtotals, Interest Expense Savings, Summary

Full Plan:Leviticus 25 Plan 2023 (4123 downloads)  

Website:   https://Leviticus25Plan.org

__________________________________________ 

Preview 1:

The Leviticus 25 Plan provides a $90,000 credit extension, direct from the Federal Reserve, to every participating U.S. citizen:  $60,000 into a Family Account (FA) and $30,000 into a Medical Savings Account (MSA).

Example:  Qualifying family of four would receive $240,000 in their FA, and $120,000 in their MSA.

Primary goals:  Massive debt elimination at family level: mortgage debt, consumer debt, student loan debt.  Federal budget surpluses.

Eligibility:  U.S. Citizen.  Job history, credit history requirement (similar to traditional credit checks for bank loans).  Clean recent drug history.  Clean crime history.

Requirements:  Forego all federal and state tax refunds for 5-year period.

Forego selected means-tested welfare benefits – for minimum 5-year period.

Forego all income security program benefits – for minimum 5-year period.

Forego new federally-subsidized ‘Family Medical Leave’ benefits – for minimum 5-year period.

Forego Child Tax Credit benefits – for minimum 5-year period.

Forego enhanced federal rental forbearance/assistance – for minimum 5-year period.

Forego SSI and SSDI for minimum 5-year period.

New $6,000 deductible on primary care access to: Medicare, Medicaid, VA, TRICARE, FEHB – for minimum 5-year period.

The Plan assumes that the elite-wealthy will not participate, because their refunds are too valuable to give up over the requisite 5-year period.

The Plan also assumes that many who heavily depend on social welfare benefits will also choose not to participate, because the overriding value of those benefits, vs foregoing them, over the 5-year period.

Preview 2:

The Leviticus 25 Plan grants the same direct access to liquidity, through a Fed-based Citizens Credit Facility, similar to the credit facilities that were created by the Fed to transfuse trillions of dollars in direct transfers and credit extensions to Wall Street’s major banks, credit agencies and insurers during the great financial crisis. 

The following facilities were created and activated by the Fed for this massive Wall Street bail out operation: Term Auction Facility (TAF), Primary Dealer Credit Facility (PDCF), Term Securities Lending Facility (TSLF), currency swap agreements with several foreign central banks,  Commercial Paper Funding Facility (CPFF), Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), Money Market Investor Funding Facility (MMIFF), and the Term Asset-Backed Securities Loan Facility (TALF), and access to the Fed’s Discount Window.

Additional perspective:  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.

Preview 3:

The Leviticus 25 Plan website has been accessed on one or more occasions by the following financial enterprises/agencies: 

JP Morgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, Wells Fargo, State Street, Merrill Lynch, AIG, Barclays Plc, Royal Bank of Scotland, Deutsche Bank, Société Générale S.A, UBS AG, Credit Suisse, BNP Paribas,The U.S. Department of Treasury, General Accountability Office (GAO), The European Central Bank (ECB), Bank of England (BOE), Swiss National Bank (SNB), Bank of Canada, Bank of Montreal, Bank for International Settlements (BIS).

………………………………………………………..

The General Accountability Office has stated that America’s ongoing debt crisis is unsustainable.

It is time for America to initiate a bold, new plan.

The Leviticus 25 Plan is loaded up and ready to launch.

Citigroup Has Made a Sap of the Fed: It’s Borrowing at 0.35 % from the Fed While Charging Struggling Consumers 27.4 % on Credit Cards

By Pam Martens and Russ Martens: July 2, 2020 ~

The first thing you need to know about Citibank and its parent, Citigroup, is that they have an extensive rap sheet. (See here). The second thing you need to know is that Citigroup is a serial predator that perpetually promises its regulators that it’s going to reform, but never does.

The third thing you need to know is that Citigroup has made a sap out of the Federal Reserve – not once, but twice. During the last financial crisis of 2007 to 2010, Citigroup somehow induced the Fed to secretly give it $2.5 trillion cumulatively in below-market rate loans for 2-1/2 years to prop up its sinking carcass. Citi got the cheap loans (often at below one-half of one percent) and then went right on charging its struggling credit card customers high double-digit interest rates.

Citi played a major role in creating the financial crisis, according to the official report from the Financial Crisis Inquiry Commission (FCIC). Three of  Citigroup’s executives were referred by the FCIC to the Justice Department for potential criminal prosecution but zero criminal action was taken against them.

Today, the Fed has quietly reimbursed Citibank $3.077 billion under its  Paycheck Protection Program Liquidity Facility, a program that reimburses banks for the loans they made under the CARES Act PPP program, which are guaranteed by the Small Business Administration. The Fed accepts the PPP loan as collateral and charges the bank a paltry interest on the loan of 0.35 percent.

Continue reading: https://wallstreetonparade.com/2020/07/citigroup-has-made-a-sap-of-the-fed-its-borrowing-at-0-35-from-the-fed-while-charging-struggling-consumers-27-4-on-credit-cards/

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The Leviticus 25 Plan will re-balance these types of liquidity distribution injustices.

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 2023 (4122 downloads)

____________________________________________________

July 2022 quote: “The safety and prosperity of nations ultimately and essentially depend on the protection and blessing of Almighty God; and the national acknowledgement of this truth is not only an indispensable duty, which the people owe to him, but a duty whose natural influence is favorable to the promotion of that morality and piety, without which social happiness cannot exist, nor the blessings of a free government be enjoyed.”  -John Adams, “Proclamation for a National Fast” 1798

Do these Fed ‘give-aways’ to anything to strengthen the financial health of America’s hard-working, tax-paying, God-fearing U.S. citizens…? Or set America on course for reducing the out-of-control, snowballing federal debt..? Or bolster long-term stability of the U.S. Dollar..? Or restore the powerful dynamics of a free market economy…?

Answer: No. No. No. No.

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The Fed Is Quietly Handing Out $250 Million To A Handful Of Happy Recipients Every Single Day

by Tyler Durden – ZeroHedge

Thursday, Jun 30, 2022 – Excerpts:

The Fed’s QE may be over, and QT may be just starting (it won’t last long), but don’t think the Fed free money giveaway is ending any time soon. In fact, for a handful of happy, mostly anonymous counterparties, the real free-money bonanza has just begun!

Case in point: the Fed’s reverse repo facility. While one can debate for hours why there is a record $2.330 trillion in cash parked at the Fed’s overnight facility and what it means for systemic plumbing problems, the fact is that there is a record $2.33 trillion in cash parked at the Fed’s overnight facility, doing nothing.

Well not nothing: it was nothing when rates were zero, but at 1.55% which is the current reverse repo rate, that $2.33 trillion is a golden goose for the 108 counterparties that are parking cash at the facility, a mixture of money market funds, banks, GSEs and various other financial intermediaries.

How big is this particular Golden Goose? The chart below shows the payment in interest that the Fed makes day on this record $2.33 trillion in funds: as of today it amounts to just over $100 million every single day! That’s right, more than $100 million in interest payments on funds parked with the Fed, which is by definition the world’s only risk-free counterparty!

But wait, there’s more!

Remember excess reserves? Well, technically excess reserves ended in March 2020 when the Fed reduced reserve requirement ratios to zero, thus converting the trillions in reserves held at the Fed from “excess reserves: to plain old “reserves” and which as of today amount to $3.13 trillion.

Whatever they are called now, however, reserves parked at the Fed (which is technically an incorrect phrase since the reserves are created by the Fed) also collect interest, and as of today, the Fed’s Interest on (Excess) Reserves rate, or IOER, is 1.65%. This translates into $141 million in daily interest payments every single day to the various banks (mostly foreign) whose reserves are parked at the Fed!

Combining the two we get nearly a quarter billion, or to be precise $242 million and rising, in interest payments by the Fed – this is money which is printed into existence – every single day.

All of the above is with the Fed Funds rate at 1.75%. As a reminder, the Fed hopes to keep hiking at least another 175bps (or more) in the next 6 months, which will push the rate to 3.50% and will mean that the Fed will be paying half a billion in interest every single day to a handful of mostly unknown counterparties every day, money which for said counterparties is also known as (riskless) profit and which is only the result of the Fed’s previous money printing.

______________________________________

It is time to ‘balance out the Fed’s books.’

It is time for U.S. citizens to be granted the same direct access to liquidity that the Fed has been giving away to “the various banks (mostly foreign) whose reserves are parked at the Fed” … and “money market funds, GSEs and various other financial intermediaries.”

It is time to get America back on track as the economic 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 2023 (4114 downloads)