‘Teacher pay’ is a critically important goal for attracting and retaining dedicated, top-notch teachers and providing the best resources for high achievement by America’s school children.

At the same time, rejuvenating financial health for all working American families is a vital cause, all across America.

All working Americans – military, law enforcement, medical / healthcare, maintenance workers, construction, fire and rescue, service workers – are deserving of an opportunity, a comprehensive initiative, to strengthen their families’ financial status and relieve the burden of government interference in their daily lives.

Let’s do some math, and make a comparison between two significant economic initiatives.

Plan 1: The Leviticus 25 Plan – $90,000 per U.S. citizen. $60,000 per U.S. citizen is
electronically deposited into a Family Account and $30,000 per citizen is electronically deposited into a Medical Savings Account.

Who benefits?
Answer: All participating U.S. citizens and their families.

Who pays?
Answer: The Federal Reserve creates a funding facility, a Citizens Credit Facility, to channel liquidity to American families, in the same way that they set up various credit facilities to fire-hose liquidity out to Wall Street’s financial sector during the great economic crises years (2008-2010). Many of these U.S. and foreign banks and insurers were the very institutions that had precipitated the financial crisis with their financial innovation schemes and leveraged speculation – which ‘bled out’ in the form of gaping balance sheet ‘capital holes’ when the big mortgage default wave hit.

How does the Federal Reserve then get the money back, in order to reduce its balance sheet back down to ‘normal dimensions,’ over time?
Answer: Through a series of simple recapture provisions.

#1. Participating families would be required to give up their tax refunds each year for a period of five years.

#2. Participating families would also be required give up means-tested welfare benefits, income security program benefits, unemployment insurance, workman’s comp, SSI, SSDI, and various other social welfare benefits.

#3. For participating families, there would be a $6,000 deductible for five years ($30,000 total) for those enrolled in Medicare, Medicaid, VA, TRICARE, FEHB.

The Plan pays for itself over a 10-15 year period.

How much would The Leviticus 25 Plan benefit a typical teacher’s family?
Case 1: Family of four. Mother teaches – salary $50,000 / year.
Father also works. Two school-age children.
$165,000 balance on 30-year fixed mortgage – maturing in 20 years.
Two modest car loans.
Monthly health care premiums – fairly substantial.

Through the Citizens Credit Facility, $240,000 would be electronically deposited into their Family Account, and $120,000 would be electronically deposited into their Medical Savings Account.

These liquidity grants are tax-free. The net benefit of these grants would be reduced slightly over the course of time through the loss of income tax refunds for five years (estimate: $5,000 per year for five years: $25,000).

Mortgage payoff example: Family pays off $165,000 balance remaining on a 30-year fixed $200,000 mortgage at 5.5% interest rate / 20 years remaining to maturity with principle and interest payments of $1,136 per month.

Total savings: $165,000 principle and $101,351 interest. Total: $266,351.

Approximate annual savings: $13,600.

This savings amount dwarfs the anticipated $5,000 loss per year from income tax refunds.

Family retains $75,000 in Family Account for additional installment debt reduction, discretionary purchases and savings.

With $120,000 in Medical Savings Account, family chooses to purchase a high-deductible policy with reduced premium costs.

Total impact on family financial health: significant. Benefits: powerful

And even more importantly, all families in America would benefit in similar ways.

…………………….

Plan 2: Raise teachers’ pay by a healthy 15% – via tax increases.

Who benefits?
Answer: Teachers and their families.

Who pays?
Answer: Everyone whose taxes were raised to cover the additional outlay on behalf of teachers. And that would include teachers themselves, whose taxes would also go up – and would therefore slightly reduce the net benefit of a 15% pay raise.

How much would a 15% pay hike actually benefit a typical teacher’s family?
Case 1: Family of four. Mother teaches – salary $50,000 / year.
Father also works. Two school-age children.
$165,000 balance on 30-year fixed mortgage at 5.5% interest – maturing in 20 years.
Two modest car loans.
Monthly health care premiums – fairly substantial.

A 15% pay raise for the teacher in the family would generate additional gross income of $7,500 per year, or $37,500 over a five-year period – before taxes.

This increased income would provide additional resources for some possible modest reductions in mortgage and installment debt, certain discretionary spending, and it might allow for additional modest savings for their children’s future college education.

Teachers and their families alone would benefit financially. Others would not. Mortgage debt reduction: modest.
Health plan premium reduction: none.
Net cash benefit over five years: $37,500.
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America needs a comprehensive economic acceleration plan that benefits all Americans – through massive debt reduction and the restoration of economic liberty..

The choice is clear.

The Leviticus 25 Plan will also generate $112.6 billion budget surpluses at the federal level during each of its first five years of activation (2025-2029 – compared to trillion dollar deficits each year into the foreseeable future.

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 2025 (20778 downloads )

F.A. Hayek is regarded by many as the greatest economist in the history of the Western world.  In his famous work, “The Road to Serfdom,” Hayek warned about the dangers of national centralization.

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F.A. Hayek On “The Great Utopia” | Zero Hedge – Excerpts:

The Great Utopia

There can be no doubt that most of those in the democracies who demand a central direction of all economic activity still believe that socialism and individual freedom can be combined. Yet socialism was early recognized by many thinkers as the gravest threat to freedom.

It is rarely remembered now that socialism in its beginnings was frankly authoritarian. It began quite openly as a reaction against the liberalism of the French Revolution. The French writers who laid its foundation had no doubt that their ideas could be put into practice only by a strong dictatorial government. The first of modern planners, Saint-Simon, predicted that those who did not obey his proposed planning boards would be “treated as cattle.”

Nobody saw more clearly than the great political thinker de Tocqueville that democracy stands in an irreconcilable conflict with socialism: “Democracy extends the sphere of individual freedom,” he said. “Democracy attaches all possible value to each man,” he said in 1848, “while socialism makes each man a mere agent, a mere number. Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.”

To allay these suspicions and to harness to its cart the strongest of all political motives—the craving for freedom — socialists began increasingly to make use of the promise of a “new freedom.” Socialism was to bring “economic freedom,” without which political freedom was “not worth having.”

[snip]

Individual freedom cannot be reconciled with the supremacy of one single purpose to which the whole of society is permanently subordinated. To a limited extent we ourselves experience this fact in wartime, when subordination of almost everything to the immediate and pressing need is the price at which we preserve our freedom in the long run. The fashionable phrases about doing for the purposes of peace what we have learned.to do for the purposes of war are completely misleading, for it is sensible temporarily to sacrifice freedom in order to make it more secure in the future, but it is quite a different thing to sacrifice liberty permanently in the interests of a planned economy.

To those who have watched the transition from socialism to fascism at close quarters, the connection between the two systems is obvious. The realization of the socialist program means the destruction of freedom. Democratic socialism, the great utopia of the last few generations, is simply not achievable.

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There is one economic plan with the raw power to counter the false utopian promises of security and equality.

The Leviticus 25 Plan is the one and only economic dynamic in today’s world with the power to advance the cause of financial security for U.S. citizens and economic liberty for the whole of America.

The Leviticus 25 Plan provides direct liquidity access for participating 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 2025 (20778 downloads )

A look back…

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, indirectly, 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 then 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 banking heavyweights… during their ‘time of need.’

The mechanism: A Federal Reserve Citizens Credit Facility.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (5788 downloads)

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).

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (20774 downloads )

A Look back…

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.

Matt Taibbi, June 21, 2012: The Scam Wall Street Learned from the Mafia | Rolling Stone

“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.
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Several short years prior to this monumental scam, 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.

Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (20767 downloads )

A look back...

Bloomberg excerpts:
“As an insurer, American International Group Inc. didn’t qualify for the Federal Reserve’s crisis-lending programs for banks. So when trading partners squeezed AIG for liquidity in 2008, the Fed gave the New York-based company two credit lines all its own, with a combined borrowing capacity of $122.8 billion.

AIG’s balance under the credit lines reached about $90 billion in October 2008, data show. By then, the U.S. Treasury Department had taken over AIG, making about $70 billion of separate capital injections during the crisis.

In January 2009, the company borrowed $16.2 billion from the Fed’s Commercial Paper Funding Facility. Bloomberg didn’t include the credit lines in its Fed-loan ranking because they weren’t available to a range of institutions and the borrower was never kept secret.

Peak amount of debt on 1/27/2009: $16.2B
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AIG FP (AIG Financial Products) raked in billions of dollars selling credit default swaps (CDS) during the housing boom. And they did not set aside adequate “reserves” to cover the potential of a hard down-turn in the market.

That hard down turn arrived when the housing bubble popped in 2007. And when the storm hit, AIG FP was sitting on $450 billion in CDS contracts. They could not ‘cover’ their counterparty obligations – to major fiduciary institutions like Goldman Sachs, Societe Generale, and many others.  And those counterparties did not adequately verify that AIG had the unwalled reserves necessary to cover their massive exposure.

______________________________

The Fed then stepped right up to the plate… to cover those obligations – 100 cents on the dollar.
Note: The Fed “gave the New York-based company [AIG] two credit lines all its own, with a combined borrowing capacity of $122.8 billion.”

It is now time for the Fed to step up to the plate and provide one new credit line, a Citizens Credit Facility, to American families (who, by the way, did not ‘roll the dice’ with leverage speculation like AIG and other major Wall Street players).

It is time for U.S. citizens to be granted the same direct access to liquidity extensions.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2025 (20765 downloads )