Natixis SA is a large French corporate and investment bank that took a big ‘hit’ in the fall of 2008 when the massive Bernard Madoff $50 billion mega-fraud ponzi scheme blew up on it and a lot of other big ‘players’ in the world of global finance.
Natixis’ exposure in the Madoff fiasco was estimated at 450 million euros ($605 million).
Natixis had also during this time been riding the red-hot subprime bandwagon, and when the mortgage default wave steamrolled through, Natixis’ got walloped again. Their write-downs topped out at $1.75B.
Natixis needed liquidity to survive, and the got it – courtesy of the U.S. Federal Reserve (and U.S. taxpaying citizens). ……………………
Bloomberg Nov 28, 2011 – Excerpts: Natixis SA reported the biggest net losses of any French bank during the financial crisis and kept an outstanding balance of more than $10 billion of loans from the U.S. Federal Reserve for six months. The loans peaked on Dec. 22, 2008, when the Paris-based bank was borrowing $15.5 billion from the Fed’s Commercial Paper Funding Facility and Term Auction Facility.
In February 2009, Natixis‘s main shareholders, Groupe Banque Populaire and Groupe Caisse d’Epargne, announced they would merge to form Groupe BPCE, and the French government bought about 3 billion euros ($4.25 billion) of preferred shares in the combined entity and 4 billion euros of subordinated debt. The deal closed in July 2009. Natixis paid off the last of its Fed loans in January 2010.
Peak amount of debt on 12/22/2008: $15.5B
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And so here we have a large foreign bank getting sucked into some high-risk, speculative financial ventures, losing big…. and getting bailed out by the Fed.
Natixis tapped the Fed’s Commercial Paper Funding Facility, Term Auction Facility and Discount Window for a cool $15.5B.
‘Thank you,’ U.S. taxpayers…
And now it is time for fair play. U.S. citizens deserve nothing less than the same access to liquidity (it’s our money after all) that was so generously extended to Natixis, and many other, during their ‘time of need.’
The mechanism: A Federal Reserve Citizens Credit Facility.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
p.s. For the record, Société Générale’, BNP Paribas, HSBC, and Royal Bank of Scotland (RBS) were among other big banks with large exposure to the Madoff ponzi investments, along with massive exposure to subprime leveraged speculation – and also received Fed emergency loan funds (courtesy of the U.S. taxpayer).
GE Capital, along with several other very large, well-heeled fiduciary entities was charged and convicted in a major municipal bond bid-rigging scandal in 2012. GE Capital had been shaking down municipalities across America, and screwing the pants off hard-working U.S. citizens. On a large scale.
“The state’s first witness, confusingly, was a CDR broker named Doug Goldberg… Right off the bat, in fact, Doug Goldberg explained that while at CDR, he had routinely helped the cream of Wall Street rig bids on municipal bonds by letting them take a peek at other bids:
Q: Who were some of the providers you gave last looks to?
A: There was a whole host of them, but GE Capital, FSA, J.P. Morgan, Bank of America, Société Générale, Lehman Brothers, Bear. There were others. [snip]
Goldberg went on to testify that he repeatedly rigged auctions with the three defendants. Sometimes he gave them “last looks” so they could shave basis points off their winning bids; other times he asked them to intentionally submit losing offers – called cover bids – to allow other firms to win. ,,,,. The broker went on to detail how he had worked with the GE executives to manipulate a number of auctions. _________________________
And several short years earlier, U.S. taxpayers were helping bail GE Capital out of a financial hole, courtesy of generous Federal Reserve emergency lending initiatives.
Excerpts from Bloomberg report: Bloomberg Nov 28, 2011 : General Electric Co.’s GE Capital finance unit was the biggest U.S. issuer of commercial paper in 2008. GE, the world’s largest maker of jet engines and locomotives, turned to the Federal Reserve for emergency liquidity after the market for commercial paper — bonds with maturities of less than 270 days — froze in late 2008.
GE Capital, which had $91.8 billion of CP outstanding at the end of September 2008, borrowed from the Fed’s Commercial Paper Funding Facility from October 2008 through February 2009, with a balance as high as $16.1 billion, data show. Initially, a GE spokesman said the company borrowed from the program “to demonstrate our support for what the Fed is doing.” In December, GE Treasurer Kathryn Cassidy said the company was using the CPFF “primarily as a liquidity backstop.”
Peak amount of debt on 11/21/2008: $16.1B
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If the U.S. government and the Federal Reserve can firehose liquidity out to companies like General Electric Co, in its time of need….
…then shouldn’t honest, hard-working U.S. citizens also be granted the same direct access to liquidity to restore financial health, across the board, to America’s working class, tax-paying U.S. citizens?
Answer: Yes they should.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
The Biden administration’s lip service about new IRS enforcement only being targeted toward the country’s wealthiest appears to be just that: lip service.
Instead, while we have been distracted with rhetoric about billionaires paying their fair share, the Biden Administration’s IRS is actually looking to stock its coffers with the tips of waiters and waitresses across the country. This newly planned targeting of middle-class Americans was proposed this week.
Earlier this week the IRS proposed a new procedure to “improve tip reporting compliance”, as they so brilliantly put it. Fox News reported:
As part of the program, which wouldn’t go into effect until after a multi-month public comment period, the IRS could withdraw liability protection related to “rules that define tips as part of an employee’s pay” from employers that don’t cooperate.
The program can’t go into effect until it makes it through a multi-month comment period, Fox News reported.
Rep. Mike Kelly, R-Pa., the chairman of the Ways and Means Subcommittee on Tax, told Fox this week: “Washington has a spending problem, not a revenue problem. Now, the IRS is going after middle-income families and working moms and dads who are just trying to make ends meet and put food on the table.”
“My colleagues and I have warned for months that the IRS would start targeting hardworking Americans in the Biden administration’s quest for more taxpayer dollars. Now, we’re starting to see some of these concerns come to fruition,” he continued….
[Rep. Adrian Smith, R-Neb]: “Bank surveillance efforts, 1099-Ks, 87,000 new IRS agents to target taxpayers, and now a new program to go after service industry workers’ tips are all a direct result of the Biden administration’s desire to tax working families and small businesses as much as possible.”
Smith continued: “Make no mistake: the administration’s many attempts at raising revenue are because they are unwilling to come to the table to address the debt crisis, which would require curbing their spending addiction.”
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While is is admirable that House Republicans have pledged to resist the Biden IRS crusade to tighten the noose on service workers’ tips, Washington Republicans do not have a politically feasible plan to curb Washington’s “spending addiction.”
Washington Republicans, in fact, are fully complicit in our federal government’s ‘spending addiction” – as the Wall Street Journal pointed out recently:
The Back End of an Omnibus – WSJ – Dec 22, 2022 — “Republicans… haven’t shown a whiff of interest in fiscal restraint since the early days of Paul Ryan’s tenure as House speaker. Their majorities broke the bank during the Trump administration, enabling Democrats to point to deficits as reason to resist further tax reform. They held hands with the left to partake in five Covid bailouts in 2020 alone. They joined again to pass Mr. Biden’s infrastructure bill and the semiconductor slush fund. Members of the new, supposedly responsible Republican House majority weeks ago voted to keep the earmark gravy flowing.”
Washington Republicans have a golden opportunity to get on board and support the most powerful economic acceleration plan on the face of the earth – a plan that will obliterate our big government “spending addiction,” generate massive, ongoing budget surpluses, and help lift millions of Americans up out of poverty.
And, I might add, winning over millions of new working class voters.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
WASHINGTON—The ending of the Covid-19 public-health emergency means a reset for the country’s food stamps program, which aids more than 41 million Americans, as lawmakers weigh whether to make more far-reaching changes as part of the next farm bill.
An extra boost in the food assistance for low-income households that Congress authorized at the start of the pandemic will wind down this month, and additional leeway afforded to states around some of the program’s rules will end in May.
“As that temporary help and flexibility now ends, we will return to a new normal,” Stacy Dean, deputy undersecretary for food and nutrition at the Agriculture Department, told lawmakers last week.
But even as the program returns to its prepandemic operations in some ways, Republicans are sounding alarms over its eligibility guidelines and price tag.
The nonpartisan Congressional Budget Office estimated this month that the program will cost $1.2 trillion over 10 years. Officially known as the Supplemental Nutrition Assistance Program, or SNAP, food stamps are funded through the farm bill, typically a five-year bill that yokes together support for farmers with the food stamp program. The current farm bill expires in October….
Democrats generally support the existing work requirements, but said they would resist efforts to further restrict access to food stamps.
Passing a new farm bill will require bipartisan support, since Republicans control the House and Democrats hold the Senate and White House. And with a razor-thin majority in the House, Republicans are unlikely to be successful if they attempt to pass a GOP-crafted farm bill just relying on their own votes. Republicans have splintered over the farm bill in the past, stymieing their efforts to demand more stringent work requirements.
Earlier this month, five House Republicans sent a letter to Mr. Biden pushing for an overhaul to the food stamp program as part of negotiations over raising the federal debt limit.
“All we’re asking is to put SNAP on the table,” and in particular its work requirements, as part of the discussions, Rep. Ralph Norman (R., S.C.), one of the five lawmakers to sign the letter, said in an interview.
Improper payments are not the only problem in SNAP — some retailers and recipients “traffic” their benefits as well. According to the GAO, trafficking is “a practice in which retailers exchange recipients’ benefits for cash instead of food, often taking a fraudulent profit.” A report from September 2021 found that trafficking of SNAP benefits has also increased in recent years. Using a consistent definition of trafficking, the average annual amount trafficked has increased from $241 million in 2002–2005 to $1.2 billion by 2015–2017.
In practice, trafficking happens when a retailer charges an EBT card (a restricted-use debit card carrying SNAP benefits) an amount such as $100, but gives the individual a lesser amount of cash (say, $50) instead. The individual gets unrestricted cash and the retailer charges the federal government for the full $100, making a profit. Sometimes, retailers will also purchase an EBT card from an individual, use it to purchase items from a bulk store, and sell the items in their store for a profit.
Federal law requires the USDA to investigate retailers for trafficking and researchers extrapolate the extent of the problem from their analysis of EBT data. According to the most recent report and using a consistent definition, in 2015–2017, “$1.271 billion in SNAP benefits annually were trafficked and thereby diverted from their intended purpose.” This accounted for between 1.6 and 2 percent of total SNAP benefits in 2015–2017.
Dramatic SNAP expansions throughout the pandemic have prompted an equally significant increase in SNAP purchases at retailers — which jumped by more than $20 billion in FY 2020, according to the USDA. More benefits flowing through retailers will mean more SNAP benefits trafficked.
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Once again, the political ‘cards’ are stacked against them, and Washington Republicans are simply playing out a ‘losing hand.’
Washington Republicans will get ‘tarred and feathered’ on this issue. And rightfully so, since: 1) Not one Washington Republican will lose any meals when their food stamp belt gets tightened; 2) The economy is so royally ‘screwed’ that even members of the U.S. military rely on SNAP benefits to help make ends meet; 3) In the big picture, chiseling away at the Food Stamp program will do nothing meaningful to help bring the massive budget deficits back under control, nor will it do anything to reign in Food Stamp fraud and abuse; and, most importantly, 4) Washington Republicans should have a politically feasible ‘big picture’ plan to help lift Americans up out of poverty and privation, so they won’t need to rely upon government handouts – and they have nothing whatsoever to offer.
It is thoroughly bewildering to watch.
Main Street Republicans do have a dynamic plan, one that will: 1) Raise all boats and lift millions of Americans up out of poverty; 2) Substantially reduce overall dependence on government; 3) Eliminate the need for military personnel to on Food Stamps; 4) Restore citizen-centered health care in America; 5) Generate massive, $619.5 billion. budget surpluses (2024-2028); and 6) Pay for itself entirely 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
Oct 12, 2022 – Over the past year, Credit Suisse’s stock value has plummeted, with the company’s market capitalization dropping over 50%. This has happened due to a series of scandals that began in 2021.
Scandal after scandal…
Greensill Capital: British financial services company focused on supply chain and accounts receivable financing. It originated loans, securitized them and sold them to investors. Credit Suisse had $10 billion invested in the company’s products. In March 2021, Greensill Capital failed, causing Credit Suisse’s clients to lose as much as $3 billion on their investments.
Archegos Capital: This private company primarily managed the assets of Bill Hwang, an American trader and investor. Credit Suisse provided brokerage services to Archegos Capital, including lending. Archegos Capital reportedly experienced losses of as much as $20 billion in just a few days. A month after the Greensill losses, Credit Suisse lost $4.7 billion due to its involvement with Archegos Capital, and at least seven Credit Suisse executives were removed from their jobs.
Drug-related money laundering: In February 2022, Credit Suisse was charged with being involved in money laundering by a Bulgarian cocaine trafficking gang. It was the first criminal trial of a major bank to occur in Switzerland. In June, the bank was found guilty, fined 1.7 million euros, and ordered to pay 15 million euros to the Swiss government. Credit Suisse announced plans to appeal.
Information leaks: In the same month, the details of 30,000 customer accounts holding more than 100 billion Swiss francs in accounts at Credit Suisse were leaked to Süddeutsche Zeitung, a major German newspaper. Included in the leak were accounts held by people involved in human trafficking, drug trafficking and torture. One account was also allegedly associated with the Vatican and fraudulently invested in 350 million euros worth of property in London.
Ukraine invasion: Following the Russian invasion of Ukraine, Switzerland placed sanctions on Russia. In response, Credit Suisse requested hedge funds and other investors to destroy documents that linked Russian oligarchs to things like loans. This led to probes into the bank’s compliance with sanction requirements.
Back in late 2022, when Credit Suisse stock cratered to never before seen levels after a series of dismal earnings reports and regulatory “missteps” sparked a staggering bank run, amounting to some $88 billion forcing the bank to seek emergency liquidity from the Fed via SNB swap lines, and which also led to a historic corporate restructuring which included the de facto closure of the bank’s investment bank coupled with mass layoffs and bonus cuts, many thought that would be as bad as it gets as the (rapidly changing) management had finally thrown out the kitchen sink….
The second-largest Swiss bank (although it’s probably far smaller now) posted a fifth-straight quarterly loss of 1.39 billion Swiss francs ($1.5 billion), worse than consensus estimates of a 1.14 billion loss as revenue of 3.06 billion Swiss francs also handily missed expectations of 3.35 billion. But while the operating loss was hardly a shock for a bank which has been in a constant state of chaos and turmoil, what stunned analysts was what KBW analysts called a “quite staggering” level of customer capital outflows which hit a record 110.5 billion francs in the quarter, and although the bank said that some money has been coming back, it also concedes it’s now at a worse starting point for 2023.
Credit Suisse:This is the very same Credit Suisse that the U.S. Federal Reserve so generously infused with massive liquidity injections during the height of the great financial crisis of 2007-2010.
“Credit Suisse Group AG, Switzerland’s second-biggest bank by assets, was the biggest user of the Fed’s single-tranche open market operations, or ST OMO, borrowing $45 billion in August 2008. Under ST OMO, securities firms swapped eligible mortgage bonds for cash.
The Zurich-based bank’s U.S. brokerage also used the Term Securities Lending Facility, which allowed firms to swap certain debt securities for Treasuries that could be loaned out or sold for cash. Credit Suisse took no part in any central bank’s collateralized funding facilities in the crisis, said Steven Vames, a bank spokesman in New York. TSLF doesn’t count because it involved no cash transfers, he said, and the bank borrowed from ST OMO only as a so-called primary dealer. Primary dealers weren’t required to bid in ST OMO.”
Peak Amount of Debt on 8/27/2008: $60.8B
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ST OMO’s were a unique form of liquidity infusions that provided “term funding” to the (big bank) Primary Dealers, primarily benefiting major European (Primary Dealer) banks. – for the purpose of “mitigating heightened stress in funding markets.”
These ST OMO “secretive bailout operation” pumped out $855 billion between “March and December 2008.”
“These operations were conducted by the Federal Reserve Bank of New York with primary dealers as counterparties through an auction process under the standard legal authority for conducting temporary open market operations. In these transactions, primary dealers could deliver any of the types of securities–Treasuries, agency debt, or agency MBS–that are accepted in regular open market operations. By providing term funding to primary dealers, this program helped to address liquidity pressures evident across a number of financing markets and supported the flow of credit to U.S. households and business.”
“Well, not really. As the chart below shows the banks, pardon, primary dealers, that benefited the most from this secret iteration of Fed generosity were once again foreign banks, with the Top 5 borrowers being Credit Suisse, Deutsche Bank, BNP Paribas, RBS and Barclays. Together these five accounted for $593 billion of total borrowings, or 70% of the total.”
Below is a summary of who borrowed how much in total from the Fed’s ST-OMO program.
Update: The U.S. Federal Reserve provided a cool $6.3 billion to ‘rescue’ Credit Suisse via SNB swap lines, as recently as last October.
Instead of continuing to prop up inept and corrupt global banks, it is time for the Fed to re-target their liquidity flows.
U.S. citizens deserve the same access to liquidity and credit guarantees that the Fed pumped out to rescue the banking system during the crisis period (2007 – 2010) when high-risk sub-prime debt took on ‘junk’ status, and fairly well ‘froze’ the system.
Certain Fed operations, like single-tranche open market operations, heavily favored major European banks – designed to mitigate “heightened stress.”
It is now time for the Fed to activate a U.S. Citizens Credit Facility to grant direct liquidity access to U.S. citizens – to eliminate debt and help relieve “heightened stress” at the family level in America.
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
“A society that puts equality — in the sense of equality of outcome — ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests.
On the other hand, a society that puts freedom first will, as a happy by-product, end up with both greater freedom and greater equality. Though a by-product of freedom, greater equality is not an accident. A free society releases the energies and abilities of people to pursue their own objectives.
It prevents some people from arbitrarily suppressing others. It does not prevent some people from achieving position of privilege, but so long as freedom is maintained, it prevents those positions of privilege from becoming institutionalized; they are subject to continued attack from other able, ambitious people. Freedom means diversity but also mobility. It preserves the opportunity for today’s disadvantaged to become tomorrow’s privileged and, in the process, enables almost everyone, from top to bottom, to enjoy a fuller and richer life.”
Milton Friedman (1912 – 2006), American economist, Nobel Prize in Economic Sciences 1976
The Leviticus 25 Plan has undergone its annual economic scoring update. For each of the first five years of activation (2024-2028), The Plan will generate a per annum budget surplus of $619.5 billion.
Part 1: Overview, CBO Deficit Forecast 2024-2028
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:
– Federal income tax refunds waived for a period of 5 years.
– Waive Economic Security Program benefits, select means-tested welfare program benefits, and SSI / SSDI benefits for a period of 5 years.
– Participants enrolled in Medicare, Medicaid, VA Healthcare system, Federal Employees Health Benefits (FEHB), and TRICARE subject to a $6,000 deductible for primary care and outpatient services annually for a period of 5 years.
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2. Federal Budget Deficit Projections – Congressional Budget Office
The Budget and Economic Outlook: 2022-2033 projects budget deficits ranging from $984 billion in 2023, up to $1.725 trillion in 2028, and on up to $2.253 trillion by 2032.
Actual deficits for the out years are likely to be higher than CBO projections, based upon history (“actual” versus “projected”).
Note 1: Projected budget surpluses for 2024-2028 do not factor in the additional government tax revenue gains that would accrue from the massive shift in capital away from debt service and into productive economic activity.
Note 2: Projected budget surpluses for 2024-2028 do not factor in the additional government tax revenue gains that would accrue from significantly lower levels of debt deductibility on individual income tax filings.
Note 3: Projected budget surpluses from the Medicaid / CHIP recapture do not take into account the likelihood of fewer citizens actually qualifying for Medicaid / CHIP benefits.
Note 4: The Plan’s funding of individual Medical Savings Accounts (MSAs) with the $6,000 deductible provision per year would result in an enormous drop in the number of claims each year for Medicare reimbursement. Medicare payroll taxes would generate a growing revenue stream, due to stronger economic growth, while outlays would drop significantly from the reduced claims numbers – thereby providing the Fed with a powerful tool to recapitalize the Medicare Trust Fund, vis the Citizen’s Credit Facility.
The Leviticus 25 Plan 2022 will generate $619.5 billion budget surpluses during each of its first five years of activation.
3. Federal Income Tax Recapture
The scoring model assumes that 80% of U.S. citizens will participate in The Leviticus 25 Plan.
Participants must give up their tax refunds through the Plan’s recapture provisions for the 5-year target period (2024-2028).
According to 2022 IRS Filing season statistics, through Dec 30, 2022: 110,567,000 total refunds were paid out for a total of $359.534 billion.
Refund totals have increased by ~$44 billion over the past five years, from $303.761 billion (2018) to a current (estimated) $359.534 billion (2022), representing an average increase of $11.152 billion per year.
A conservative estimated average of $10 billion per year (2024-2028) will be used for this recapture calculation.
2022: $359.5 billion
2023: $369.5 billion
2024: $379.5 billion
2025: $389.5 billion
2026: $399.5 billion
2027: $409.5 billion
2028: $419.5 billion
Total: $1.998 trillion
Total recapture X 80%: $1.990 trillion X .8 = $1.598 trillion
Total recapture per annum (2024-2028): $1.598 / 5 = $319.6 billion
Participants in the Plan will forego Economic Security Program benefits and select means-tested welfare benefits for the period 2024-2028.
Economic security programs: About 11 percent (or $665 billion) of the federal budget in 2022 supports programs that provide aid (other than health insurance or Social Security benefits) to individuals and families facing hardship. Economic security programs include: the refundable portions of the Earned Income Tax Credit and Child Tax Credit, which assist low- and moderate-income working families; programs that provide cash payments to eligible individuals or households, including unemployment insurance and Supplemental Security Income for low-income people who are elderly or disabled; various forms of in-kind assistance for low-income people, including the Supplemental Nutrition Assistance Program (formerly known as food stamps), school meals, low-income housing assistance, child care assistance, and help meeting home energy bills; and other programs such as those that aid abused or neglected children.1
$619.5 Billion Federal Budget Surpluses Annually (2024-2028) – Medicaid, Medicare, VA, TRICARE, FEHB, SSDI Recapture.
5. Medicaid/CHIP Recapture
Each U.S. citizen participating in The Plan will receive a $30,000 deposit, funded through a Federal Reserve-based Citizens Credit Facility, into a personal Medical Savings Account (MSA).
The Leviticus 25 Plan assumes 80% participation by Medicaid / CHIP enrollees.
Within this comprehensive economic plan, The U.S. Health Care Freedom Plan provides
Medical Savings Account (MSA) funding of $30,000 to cover the $6,000 deductible for Medicaid and CHIP eligible primary care events and select out-patient care services – primarily related to routine medical appointments, Medicaid prescription events, disease state monitoring clinics, and other desired primary care services.
September 2022 Medicaid & CHIP Enrollment – 90,933,769 individuals were enrolled in Medicaid and CHIP in the 50 states and the District of Columbia that reported enrollment data for September 2022. 83,901,601 individuals were enrolled in Medicaid. 7,032,168 individuals were enrolled in CHIP.
The 90,933,769 enrollment level represents an increase of 7,318,992 (8.85%) from the July 2021 enrollment of 83,614,777 individuals.
Using a conservative estimate of 90.5 million for 2023, with a projected annual growth rate of 2%:
2023: 90.5 million
2024: 92.3 million
2025: 94.1 million
2026: 96.0 million
2027: 97.9 million
2028: 99.8 million
Total: 480.1 million receiving benefits 2024-2028
Average annual enrollment (2024-2028): 96.0 million
96.0 million X .8 = 76.8 million X $6,000/year X 5 years = $2.304 trillion
Total Medicaid/CHIP recapture during the 5-year target period (2024-2028): $2.304 trillion
Note: The potential savings of $2.304 trillion do not take into account the likelihood of additional savings from individuals no longer being eligible, due to their improving financial status.
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6. Medicare Recapture
Each U.S. citizen participating in The Plan will receive a $30,000 deposit, funded through a Federal Reserve-based Citizens Credit Facility, into a personal Medical Savings Account (MSA).
The Leviticus 25 Plan assumes 80% participation by Medicare enrollees.
Within this comprehensive economic plan, The U.S. Health Care Freedom Plan provides
Medical Savings Account (MSA) funding of $30,000 to cover the $6,000 deductible for Medicare-eligible primary care events and select out-patient services – primarily related to routine medical appointments, Medicare Part D prescription events, disease state monitoring clinics, and other desired primary care services.
There were 63.964 million Americans enrolled in Medicare as of Oct 2021. Conservative growth projected at 4.0% annually through 2030.
For the 5-year target period (2024 – 2028)
2022: 63.96 X .8 X $6,000 = $307,088,000
2023: 66.51 X .8 X $6,000 = $319,248,000
2024: 69.17 X .8 X $6,000 = $332,016,000
2025: 71.94 X .8 X $6,000 = $353,312,000
2026: 74.81 X .8 X $6,000 = $359,088,000
2027: 77.80 X .8 X $6,000 = $373,440,000
2028: 80.91 X .8 X $6,000 = $388,368,000
Total Medicare recapture during the 5-year target period (2024-2028): $1.806 trillion
Medicare – As of October 2021, the total Medicare enrollment is 63,964,675. Original Medicare enrollment is 36,045,321, and Medicare Advantage and Other Health Plan enrollment is 27,919,354. This includes enrollment in Medicare Advantage plans with and without prescription drug coverage. Medicare Part D enrollment is 49,141,158, which includes enrollment in stand-alone prescription drug plans as well as Medicare Advantage plans that offer prescription drug coverage. This enrollment information is updated monthly and can be viewed here: https://data.cms.gov/summary-statistics-on-beneficiary-enrollment/medicare-and-medicaid-reports/medicare-monthly-enrollment.
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7. VA Healthcare
The Leviticus 25 Plan assumes 80% participation by Veterans Administration healthcare enrollees. Within this comprehensive structure, The U.S. Health Care Freedom Plan provides Medical Savings Account (MSA) funding of $30,000, through a Federal Reserve-based Citizens Credit Facility, to cover annual $6,000 deductibles over the course of the 5-year target period (2023-2027). The plan assumes no growth in enrollment.
For the year 2022 there were 9.2 million enrollees in the VA health care system.
Approximately 9.2 million X 0.8 X $6,000 = $44.160 billion annual recapture
The Leviticus 25 Plan assumes 80% participation by TRICARE enrollees.
Through The U.S. Health Care Freedom Plan, participating members will receive a Medical Savings Account (MSA) funding injection of $30,000, through a Federal Reserve-based Citizens Credit Facility, to cover annual $6,000 deductibles for desired primary care and out-patient services over the course of the 5-year target period (2024-2028).
There are currently 9.6 million U.S. citizen beneficiaries in various locations worldwide.
Recapture – total (2024-2028): 9.6 million X 0.8 X $6,000 X 5 years: $230.4 billion
The Leviticus 25 Plan assumes 80% participation by FEHB enrollees.
Participating members will receive a Medical Savings Account (MSA) funding injection of $30,000, through a Federal Reserve-based Citizens Credit Facility, to cover annual $6,000 deductibles for desired primary care and out-patient services over the course of the 5-year target period (2024-2028).
There are currently 9.0 million U.S. citizen FEHB beneficiaries. Note – the Federal government also pays approximately 72% of premium costs per enrollee.
Recapture – total (2024-2028): 9.0 million X 0.8 X $6,000 X 5 = $216.0 billion
The FEHB Program is the largest employer-sponsored group health insurance program in the world, covering almost 9 million people including employees, annuitants …
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9. Social Security Disability Income (SSDI)
The Leviticus 25 Plan specifies that participants will not be eligible for SSDI benefits.
The Plan assumes 80% participation.
Number, average, and total monthly benefits, December 2020: 9,907,536
Total annual SSDI payments, December 2022: ~$142.248 billion. SSDI will receive an 8.7% Cost of Living Adjustment (COLA) for 2023. This projection assumes a conservative 2% growth per year for 2024-2028.
2022: $142.248 billion
2023: $154.623 billion (includes 2023 8.7% COLA)
2024: $159.715 billion
2025: $162.909 billion
2026: $166.169 billion
2027: $169.492 billion
2028: $172.881 billion
Total: $831.166 billion / Average per year: $166.233 billion
Total for 5-year target period 2024-2028:
Plan assumes 80% participation – recapture: $831.166 billion X 0.8 = $664.933 billion
Source(s): Social Security Benefits Dec 2022 – Disability Insurance https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/
Recipients: 8,741 | Total monthly benefits (millions of dollars) $11.854 billion; Total annual benefits: $142.248 billion
The Leviticus 25 Plan – the most powerful economic acceleration plan in the world: economic scoring summary.
10. Interest expense on projected deficits 2024-2028
Federal debt held by the public increased from $22.1 trillion in 2020 to $31.38 trillion as of Jan 19, 2023. The government also reported approximately $6.9 trillion of intra-governmental debt outstanding, which arises when one part of the government borrows from another. This intra-governmental debt interest expense will be omitted from this calculation, since those dollars are not expensed directly.
Interest expense on the public debt during FY 2023 is projected to come in at $576 billion on approximately $31.38 trillion in debt, which calculates out as an effective 1.84% interest rate on Debt Held by the Public.
This projection does not take into account the Fed’s 2022 interest rate increases and the consequent higher interest financing costs for new debt issuance and maturing debt rollover. This projection also assumes a relatively stable interest rate structure and further assumes that annual federal budget deficits will be funded through Treasury Issuance as a conservative 78.0% Debt Held by the Public.
YearAnnual Deficit/2
2023: $964 billion/2 X .78 X .0184 = $6.918 billion
2024: $1.056 trillion/2 X .78 X .0184 = $7.578 billion
2025: $1.318 trillion/2 X .78 X .0184 = $9.458 billion
2026: $1.364 trillion/2 X .78 X .0184 = $9.788 billion
2027: $1.409 trillion/2 X .78 X .0184 = $10.110 billion
2028: $1.725 trillion/2 X .78 X .0184 = $12.378 billion
Recapture: Total interest expense eliminated by projected operating surpluses: $49.312 billion
National Debt, as of Jan 19, 2023 – $31.38 trillion. In the first quarter of this 2023 fiscal year, “gross interest on the national debt hit $210 billion—or $144 billion in net interest, excluding interest on Treasury securities held in government trust accounts. That’s $840 billion gross and $576 billion net on an annualized basis, up dramatically from $580 billion gross and $383 billion net in the 12 months before the economic shutdown in March 2020. This escalation doesn’t even reflect the full-year impact of the Fed’s 2022 interest-rate increases. Effective interest rate: 1.836% net; 2.677% gross.
Average annual budget surplus (projected) 2024-2028:
$3.097 trillion / 5 years: $619.5 billion per year
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Note 1: Projected budget surpluses for 2024-2028 do not factor in the additional government tax revenue gains that would accrue from the massive shift in capital away from debt service and into productive economic activity.
Note 2: Projected budget surpluses for 2024-2028 do not factor in the additional government tax revenue gains that would accrue from significantly lower levels of debt deductibility on individual income tax filings.
Note 3: Projected budget surpluses from the Medicaid / CHIP recapture do not take into account the likelihood of fewer citizens actually qualifying for Medicaid / CHIP benefits.
Note 4: The Plan’s funding of individual Medical Savings Accounts (MSAs) with the $6,000 deductible provision per year would result in an enormous drop in the number of claims each year for Medicare reimbursement. Medicare payroll taxes would generate a growing revenue stream, due to stronger economic growth, while outlays would drop significantly from the reduced claims numbers – thereby providing the Fed with a powerful tool to recapitalize the Medicare Trust Fund, vis the Citizen’s Credit Facility.
