Zambia Reaches Watershed Deal on China Debt – WSJ

June 22, 2023 – Excerpts:

PARIS—Zambia has reached a deal with China and Western creditors to extend repayment of $6.3 billion in loans, according to people familiar with the matter, the result of drawn-out negotiations that are seen as a test case for developing nations contending with massive debts accumulated under China’s Belt and Road initiative.

Ghana, Sri Lanka and Ethiopia are already negotiating debt relief with Beijing on billions of dollars of loans, and officials at the IMF and the World Bank have previously said they hoped that a debt deal for Zambia would encourage other developing countries to follow suit.…

China is responsible for $5.94 billion of Zambia’s overall external debt, which is around $16.76 billion, according to the IMF.

In Ghana, with an economy more than three times the size of Zambia’s, China is responsible for a much smaller slice of the country’s external debt—$1.9 billion out of an overall foreign-currency debt pile of $28.87 billion, according to the IMF. Sri Lanka owes $7.38 billion to Chinese creditors out of overall external debt of around $41.47 billion, according to the IMF. Sri Lanka’s central bank also has $2.04 billion in foreign-currency swaps with other central banks, with most of that amount coming from the People’s Bank of China.

The deal with China and Zambia’s other government creditors… It will allow the IMF to pay out a $188 million installment of Zambia’s $1.3 billion bailout that has been held up since April.

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And here we go again. Tax dollars from America’s hardworking, tax-paying U.S. citizens are now going, via the IMF, to bail out Zambia, so they can pay off their debts to … China (and other western creditors).

The People’s Bank of China (PBOC) makes loans, through their “Belt and Road Initiative,” to the likes of Zambia, Sri Lanka, Ghana, and others that end up ‘going sour.’

The International Monetary Fund (IMF) then steps in to, essentially, bail out China for their ‘risk management’ errors.

The U.S. contributes 17.46% to the IMF quota – which means that U.S. taxpayers will be, through the IMF pipeline, paying creditors, one of the big ones being China, 17.46% of Zambia’s $1.3 billion IMF bailout – a ‘cool’ $227 million.

The $3 billion IMF bailout to Sri Lanka, to also assist them on paying down their China “Belt and Road” debts, means that U.S. taxpayers are sending an additional $525 million to China (and certain other creditors) – again, for their risk management errors.

Washington Republicans and Democrats are evidently clueless to this ongoing fiscal fiasco.

It is time for America to launch an economic acceleration plan that provides liquidity to its hard-working, tax-paying U.S. citizens – a plan that will restore financial security for millions of American families, generate massive new tax revenue gains and outlay reductions for federal, state, and local government entities, and get America back on track for long-term fiscal stability and economic prosperity.

America’s Main Street Republicans have that plan – loaded up and ready to launch.

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 – Leviticus 25 Plan 2023 (6475 downloads)

Global Debt Soars Again

ZeroHedge, May 30 2023 – Excerpts:

Authored by Daniel Lacalle,

Global debt levels soared by $8.3 trillion in the first quarter of 2023, climbing to $305 trillion, nearly the record high set in the first quarter of 2022, according to the Institute of International Finance. This means almost 335% of GDP.

Rising debt is a burden on growth, and soaring public debt means higher taxes, weaker productivity and declining real wages as governments push inflationary policies to try to dissolve part of their enormous indebtedness.

Public debt is not a reserve asset for the public sector, it is a negative factor that crowds out investment and credit and erodes purchasing power from families and earnings from businesses as taxes rise.

There is no such thing as public debt. We pay it, always. With higher taxes, higher inflation, or larger budget cuts, maybe all at the same time.…

Rising debt means gold remains the only de-correlated and safe asset in an environment where currency destruction is likely to continue.Bitcoin and crypto assets are different things, in fact they are highly correlated with non-profitable tech.Governments are not going to reduce deficit spending, and this means that public fixed income may be the riskiest asset for investors in an era of inflationism...

Investors can bet on one thing.The inflationist policies that have been modestly implemented since 2009 are going to be accelerated. This will not be pretty if it leads to a prolonged period of stagflation. Stagflation does not create multiple expansion and equity booms. It is bad for fixed income and equity markets…

This is the consequence. Record debt, weaker growth, and inflation.

___________________________________

Neither the Federal Reserve, nor Washington Republicans and Democrats have a credible plan to reverse America’s part in this debt spiral.

Main Street America Republicans do have a plan – one that will produce $619 billion budget surpluses, and set America back on course for a powerful, long-term economic growth cycle.

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 (6465 downloads)

Global Debt Soars Again – ZeroHedge – May 30, 2023 – Excerpts:

Authored by Daniel Lacalle,

Global debt levels soared by $8.3 trillion in the first quarter of 2023, climbing to $305 trillion, nearly the record high set in the first quarter of 2022, according to the Institute of International Finance. This means almost 335% of GDP.

Rising debt is a burden on growth, and soaring public debt means higher taxes, weaker productivity and declining real wages as governments push inflationary policies to try to dissolve part of their enormous indebtedness.

Public debt is not a reserve asset for the public sector, it is a negative factor that crowds out investment and credit and erodes purchasing power from families and earnings from businesses as taxes rise. To make public debt a reserve asset it would have to generate real economic return, just as is the debt of private businesses used for solid investments. However, governments use increasing debt for current spending with no real economic return, and this leads to lower growth trends and loss of purchasing power of its issued currency.

Private debt is paid by families and businesses, but public debt is also paid by the private productive sector. Therefore, the impact on the pattern of growth, job creation and investment are significantly more negative when public debt rises.

There is no such thing as public debt. We pay it, always. With higher taxes, higher inflation, or larger budget cuts, maybe all at the same time.

Global markets have entered a perverse incentive mechanism where consensus investors favour rising public imbalances expecting central banks to implement quantitative easing afterward….

Rising debt means gold remains the only de-correlated and safe asset in an environment where currency destruction is likely to continue.…

Governments are not going to reduce deficit spending, and this means that public fixed income may be the riskiest asset for investors in an era of inflationism...

The inflationist policies that have been modestly implemented since 2009 are going to be accelerated. This will not be pretty if it leads to a prolonged period of stagflation. Stagflation does not create multiple expansion and equity booms. It is bad for fixed income and equity markets.

This is the consequence. Record debt, weaker growth, and inflation.

_______________________________

Solution: The Leviticus 25 Plan

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (6333 downloads)

The Debt Ceiling “Crisis” Is Over And Now US Debt Will Rise From $31 Trillion To $50 Trillion By 2030

ZeroHedge, Jun 04, 2023 – Excerpts:

By Eric Peters, CIO of One River Asset Management

“No one got everything they wanted, but the American people got what they needed,” said Biden in his twelve-minute address to the nation.

“We averted an economic crisis and an economic collapse,” continued the President, seated behind the Resolute Desk. “Nothing – nothing would have been more irresponsible. Nothing would have been more catastrophic”….

[And thus we have] the inexorable expansion of our extraordinary debt, which is set to rise from $31.4trln today to $50trln by 2030 and then really take off (assuming rather benign economic and market conditions which we know rarely persist uninterrupted).

And we in the private sector are commissioned to somehow, in some way, chart a miraculous path out, through ingenuity and innovation. Sparking a historic productivity boom.

___________________________________

Our Washington Republicans and Democrats are wagging their tongues and patting themselves on the back – as we head toward what the GAO terms, “the fiscal cliff.”

And this will put America on track for instability in the currency markets… and an eventual transition into a conversion to a Central Bank Digital Currency (CBDC) system.

Main Street America Republicans have an economic plan that will avert this debt crisis.

The Leviticus 25 Plan will immediately generated massive $619 billion budget surpluses during each of the first five years of activation. It will stabilize the U.S. Dollar, restore financial security for millions of American families, create a powerful, long-term economic growth cycle.

It will avert any need to convert to a digital currency system – and set America on track for economic liberty and freedom from government intrusion into the private lives of U.S. citizens.

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 (6332 downloads)