Note – during the Great Financial Crisis 2007-2010, AAA-rated paper (Mortgage Backed Securities) were getting quietly loaded up with sewage grade mortgages. It was hailed as an advance in ‘financial innovation.’ And the system eventually collapsed when the defaults started ‘rolling in.’

Global Creditworthiness is deteriorating. Defaults will be ‘on a roll’ again. It is just a matter of time.

The Daily Shot, Sep 14, 2020 – Credit: The global corporate debt market credit quality has been deteriorating over the past few decades.

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The world is drowning in DEBT. Economic chaos awaits all who dawdle. Millions of citizens will experience a violent ‘whiplash’ again, when the next crisis ensues. It is time to insulate those millions of people at ‘ground level’ – by granting direct liquidity extensions to citizens – the same direct liquidity extensions that were provided to global banking elites: Morgan Stanley, Citigroup, Bank of America, JP Morgan, Goldman Sachs, Wells Fargo, Merrill Lynch, RBS, State Street, Barclays, UBS, Deutsche Bank, Credit Suisse, PNP Paribas, and numerous others..

The U.S. has a plan – the most powerful economic acceleration plan of modern times.

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 2021 (3796 downloads)

Banks foreclosed on 804,000 homes in 2011…

That works out to a rate of over 2,200 per day.  Every day in 2011.

While foreclosures eased slightly in March 2012 vs March 2011, “RealtyTrac … banks will repossess close to 1 million homes this year.”

For 2012, that would work out to over 2,700 per day. Every day.  For the next 365 days.

The Leviticus 25 Plan, on the other hand, would ‘power up’ liquidity at the family level, providing debt relief and a strong dose of financial security to American citizens.  These benefits have been utterly lacking throughout the government’s orchestrated (‘central planning’) response to the ongoing, 3-year financial crisis.

The debt relief benefits of the Leviticus 25 Plan would provide the equivalent of what is known in the ‘derivatives’ world as direct “support of the underlying assets.”  Namely housing (with additional support for any other form of pledged collateral).

Daily American News – Apr 12, 2012 :  “At the end of last year [2011], some 1.5 million U.S. homes had mortgages that had gone unpaid at least 90 days, according to Mortgage Bankers Association data.

First-time foreclosure notices, such as warnings of initial default, are the first step in the process that can potentially result in a home being foreclosed upon. Homes can exit the process if the overdue payments are paid. Sometimes, a bank will allow that the home be sold for less than what the borrower owes on their mortgage, a so-called short sale.

All told, 101,939 U.S. homes received a first-time notice in March, the biggest monthly increase since October, RealtyTrac said.

Thirty-one states posted a monthly increase in homes with a first-time foreclosure notice. Nevada led the pack with an increase of 153 percent.

Even so, foreclosure activity overall — as measured by the number of properties receiving a notice of default, scheduled for auction or repossessed by lenders — sank in March to the lowest level since July 2007, the firm said.

In all, 198,853 homes received a foreclosure-related notice last month, down 4 percent from February, and down 17 percent from March last year.

Banks took back 55,075 homes in March 2012, down 14 percent from the previous month, and down 25 percent from March 2011.

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The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3792 downloads)

CDC Emergency Powers overreach – Landlords ‘screwed.’

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WSJ: CDC “Housing Seizure”

By WSJ Editorial Board, Sept. 3, 2020 – Excerpts:

The CDC decides it can abrogate rental contracts nationwide.

Governments during the pandemic have arrogated to themselves vast emergency powers, but the rule of law still matters. The Centers for Disease Control and Prevention’s sweeping ban on evictions this week tests the legal limits of emergency powers and sets a bad precedent.

The CDC order that takes effect Friday bans landlords from evicting tenants who claim they can’t afford to pay rent due to the pandemic. Congress in March banned evictions in federally subsidized housing through the end of July. But the CDC order encompasses all housing and extends through the end of this year.

Tenants who expect to earn less than $99,000 ($198,000 for couples) this year must merely sign an attestation that they lost income, have sought all available federal rental assistance, and would be homeless or forced to move in with someone if evicted. Landlords who want to remove nonpaying tenants would have to prove tenants are lying. Good luck.

The order covers millions who aren’t destitute but don’t want to find less expensive housing. Most Americans are honest and won’t exploit the moratorium to live rent-free, not least because the order would require them to make up payments (assuming government doesn’t absolve them). But some will take advantage of the forbearance.

Thousands of landlords around the country have accommodated struggling tenants by reducing or deferring payments….

About half of the 48 million rental units in the U.S. are owned by small businesses, many of which could be foreclosed on if they don’t pay their mortgages. Some might have to raise rents on other tenants to cover costs. There’s no free rent.

The legality of the CDC order is also dubious. It relies on Section 361 of the Public Health Service Act, which allows the agency to take measures to prevent the spread of communicable diseases between states. The agency’s rationale is that people who get evicted will move in with family or friends and spread the disease.

This is by far the biggest emergency-power overreach…  It abrogates private contracts and expropriates private property, which warrants a legal challenge by landlords under the Constitution’s takings clause….

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There is a better way – where everybody wins…

The Leviticus 25 Plan grants U.S. citizens a robust liquidity extension which is fully capable of restoring ‘financial order’ in their personal lives.

It will provide citizens with the wherewithal to honor their rent payment obligations, consumer credit obligations, and keep their mortgage contracts ‘current.’

It will reduce their dependence on government ’emergency powers,’ government entitle programs, and solve the problem of food insecurity.

It will allow Americans to eliminate massive amounts of household debt, and thereby provide a surging boost to the U.S. economy with vigorously rising tax revenues.

The Leviticus 25 Plan will pay for itself entirely over a period of 10-15 years, and it will generate a $237 billion federal budget surplus over the first five years of activation (2021-25).

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 2021 (3791 downloads)

Global Bankruptcies Soar Despite Trillions In Liquidity

ZeroHedge, 8-24-20 – Excerpts:

Authored by Daniel Lacalle,

Misguided lockdowns have destroyed the global economy and the impact is likely to last for years.

One of the most alarming facts about this crisis is the pace at which bankruptcies are rising. Despite an $11 trillion liquidity injection and government aid in 2020, stocks and bonds at all-time highs and sovereign as well as corporate yields at all-time lows, companies are going bust at the fastest pace since the Great Depression. Why? Because a solvency crisis cannot be disguised by liquidity.

Trillions of liquidity are giving investors and governments a false sense of security because yields are low and valuations are high, but it is a mirage driven by central bank purchases that cannot disguise how quickly companies are entering into long-term solvency issues. This is important because soaring bankruptcies and the rise in zombie companies means less employment, less investment and lower growth in the future.

Liquidity only disguises risk, it does not resolve solvency issues driven by collapsing cash flows while costs remain elevated.

According to the FT, large US corporate bankruptcy filings are now running at a record pace and are set to surpass levels reached during the financial crisis in 2009. As of August 17, a record 45 companies each with assets of more than $1bn have filed for Chapter 11 bankruptcy.

In Germany, about 500,000 companies are considered insolvent and have been zombified by a pointless “insolvency law” that simply extends the pain of businesses that are technically bankrupt. In Spain, the Bank Of Spain alerted that 25% of all companies are on the verge of closing due to insolvency. According to Moody’s estimates, more than 10% of businesses in the leading economies are in severe financial stress, many in technical bankruptcy.

How could this happen? Since the 2008 crisis all policy actions have been aimed at keeping sovereign bond yields low, bailing out bloated government spending and deficits and the massive liquidity injections have benefitted the large quoted companies that have used the money to shield their valuations through buy-backs and cheap debt. However, cheap money has also triggered malinvestment, poor capital allocation and higher-than-normal levels of debt. Small businesses did not see the alleged benefits of the massive liquidity and deficit programs, while large companies became too comfortable with elevated levels of dent, poor return on capital employed and solvency ratios that were simply too low in a growing economy.

Cheap money and massive bailouts have planted the seeds of a solvency crisis that was triggered by the irresponsible decision of some governments of shutting down entire economies. If you have an economy that is highly leveraged and with weak productivity and solvency ratios, shutting down the economy for two months is the last nail in the coffin. And the ramifications will last for years.

Bailing out zombie firms will only make things worse, and new lockdowns could be lethal. The solution is what no government wants to do because it does not grab large headlines or give the impression that politicians are saving the world: Supply-side measures that activate the mechanisms of refinancing, re-structuring and efficiency improvement.

More demand-side policies, pointless stimulus plans driven at building anything at any cost, and more liquidity injections will only make things worse and drive the economy to a stagflation crisis where the next problem will be to enter into a financial crisis as bankruptcies soar and banks’ asset valuations fall as non-performing loans balloon despite massive central bank action..

To end the zombie firm problem and the risk of even more bailouts we need more open market, less red tape, and more flexible re-structuring mechanisms. Anything else will simply deliver stagnation.

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America needs a powerful new plan to reach the goals of “Supply-side measures…more open market… less red tape… restructuring and efficiency improvement,” and that plan must include a dynamic mechanism to effect massive debt elimination for Main Street America.

There is one plan in the world with the raw power to deliver massive debt elimination, and generate substantial government budget surpluses, and reignite economic growth and drive small business success.

America needs an economic acceleration plan that promises to secure economic health for all citizens – and restore economic liberty.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3770 downloads)

The U.S. Congress and the U.S. Federal Reserve have been stringing Americans along with a succession of ‘little fixes’ for millions of financially distressed families to help ‘pay the bills’ for a for ‘the next few months.’ But their stimulus checks, and Payroll Protection Plans, and rent/mortgage forbearance mandates are doing nothing whatsoever to ‘fix’ any of the major complications underlying our current economic crisis.

American families and small businesses are struggling mightily to hang on…

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ZeroHedge headlines – August 2020

Delinquent FHA Mortgages Soar By Record 60% To All Time High, As Homeowner Budgets Implode

If only they had bought the dip…  Aug 17, 2020

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Dramatic Photos: Desperate For Provisions, Thousands Of Cars Line Up At Texas Food Bank

“If it wasn’t for this, we’d probably go hungry. If it wasn’t for church, and food giveaways, the kids would be going hungry.”  Aug 14, 2020

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Food Bank Strains Emerge As Economy Falls Off Fiscal Cliff 

“We’ve definitely already seen food-security needs increase, just in a week, since the extra unemployment has ended.”   Aug 11, 2020 

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“Disastrous Economic Situation” – Small Firm Bust Goes Unnoticed As Economy Flounders  

A combination of firms going bust and depressionary unemployment levels have tremendous spillover effects…   Aug 12, 2020

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‘Little fixes’ will now longer do. Time is running out…

America needs a plan featuring massive debt elimination, starting at ‘ground level’ for Main Street America.

The Federal Reserve, through various ‘credit facilities,’ have provided trillions of dollars to global banks in the form of direct liquidity infusions, credit guarantees, the transfer of illiquid (often low grade) assets from the balance sheets of banks onto the Fed’s balance sheet, and other creative ‘extraordinary’ measures.

The Federal Reserve, through the creation of a new ‘Citizens Credit Facility,’ can now grant U.S. citizens the same direct access to effectual liquidity infusions that will have the power to get America up and running again.

The Leviticus 25 Plan will restore financial security for American families. It will eliminate massive debt burdens and generate enormous amounts of fresh capital flowing into the U.S. economy.

It will generate powerful new tax revenue flows and payroll tax flows for both the federal government and state governments – producing a $237 billion surplus at the federal level over each of the first five years of activation (2021-2025).

It will save the federal government and state governments hundreds of billions of dollars in entitlement outlays.

It will vastly improve the capital reserve ratios across the banking sector.

It will lead to long-term strength for the U.S. Dollar.

II will restore economic liberty in America.

Finally, America needs a plan that will pay for itself entirely over a period of 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

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3763 downloads)

It is time for America to move on eliminating massive amounts of ‘ground level’ debt, and ‘power up’ America’s economic engine, and provide a clear path to financial security for American families.

If ‘bankrupt companies’ can ‘unfile’ to get more bailout money … and Chinese-owned companies can get PPP loans…

And if major banks, including foreign banks can get massive amounts of direct liquidity transfusions from the Fed’s ‘lending facilities’…

Then U.S. citizens deserve nothing less than to be granted the same direct access to liquidity extensions that have been provided to the likes of Goldman Sachs, Bank of America, Citigroup, JP Morgan, Morgan Stanley, UBS, RBS, Barclays, and others.

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The Circle Of Death: Bankrupt Companies “Unfile” To Receive Government Bailouts, Then Immediately File Again

Some companies “unfile” for bankruptcy, arrange a PPP bailout loan, and then almost immediately refile for bankruptcy.   Aug 4, 2020 

Millions Worth of PPP Loans Went to Chinese-Owned Companies, Report Finds

“Loans went to affiliates of three Chinese companies that featured on a Pentagon list of 20 firms that are owned or controlled by the Chinese military.”  Aug 5, 2020

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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 2021 (3757 downloads)

Mailed 7.27.20 to: The White House, 1600 Pennsylvania Ave. NW, Washington, DC 20500

July 27, 2020

Dear President Trump –              

I am writing to you today to update you on an ‘election-winning’ economic plan for America: The Leviticus 25 Plan (https://leviticus25plan.org/ )

Several months ago, the Wall Street Journal analyzed “Big-Government Contagion” (Mar 27, 2020), which highlighted many of the pitfalls and longer-term dangers involved with governmental entities appropriating large sums of money, either as a matter of ongoing operations or in response to crises, on behalf of citizens – rather than allowing citizens to allocate funds directly, in ways that best meet their individual needs and interests, and more fully support free market dynamics.

The Wall Street Journal also proposed a type of blue print for citizen-driven economics in health care three years ago:  “Give Medicaid Dollars Directly to Patients” (Apr 12, 2017).

To that end, The Leviticus 25 Plan provides for America a dynamic, comprehensive economic acceleration plan which will breathe new efficiencies into our U.S. health care system and revive free market dynamics and economic liberty for individual U.S. citizens and main street America.

The American people are the foundation of our Republic, and we must have a healthy and financially sound foundation to set America on course for a bright and promising future.

There is an economic acceleration plan that will deliver on that promise, one that yields massive ‘ground level’ debt elimination, citizen-centered health care, fundamentally sound economic growth trends, and extraordinary budget benefits for Federal, State, and Local governments – with $237 billion Federal budget surpluses in each of the first five years of activation (2021-2025):  The Leviticus 25 Plan.

This powerhouse economic plan for America is a “winning plan” for U.S. citizens.

Respectfully,

Bernie Hendricks, Brookings, SD

The socialist plan for America seeks to provide equality and security for the underclass through enhanced (intensified) government control over the daily affairs of citizens.  The end result is greater centralization of power (central-planning) and an ever-growing allocation of resources by government.

This control extends to health care, representing 16% of the U.S. economy.  The socialist plan advocates ‘medicare for all,’ with the accompanying layers upon layers of bureaucracy, red-tape, cost distortions, regulations, legal penalties and restricted access.

The socialist plan for financial equality in America involves wealth confiscation and redistribution to the masses.   It invents endless new tax burdens and penalties for the middle class. It penalizes risk-taking, hard work, entrepreneurship, industriousness and skillful planning, while conversely rewarding low motivation for self-reliance and non-work,

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The Leviticus 25 Plan reduces the scope of government control over the daily affairs of citizens. It promotes decentralization and economic liberty.  It grants power over the allocation of resources to the people.

The Leviticus 25 Plan puts U.S. citizens in control, individually, of their health care needs and choices.  It grants citizens direct access to health care – without layers of red tape and bureaucratic directives.

The Leviticus 25 Plan rewards hard work, entrepreneurship, industriousness … and it does not penalize success.

It does not confiscate wealth and invent redistribution schemes.

It simply grants U.S. citizens the same access to direct liquidity extensions that the Fed provided for major banks (domestic and foreign) and insurers during the great financial crisis.

The Leviticus 25 Plan is America’s plan for the future, restoring economic liberty and re-establishing free market dynamics.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3727 downloads)

If ever the United States needed a powerhouse economic ‘reset,’ that time is now…

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A Major Upgrade – June 2020:

The Leviticus 25 Plan activation period is slated for the 5-year period beginning in 2021 and ending in 2025. 

1.  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:

   – Waiving all federal income tax refunds for a period of 5 years.

   – Waiving all benefits from means-tested welfare programs, income security programs,

      SSI, and SSDI claims for a period of 5 years.

   – Enrollees in the Medicare, VA Healthcare system, Federal Employees Health Benefits  

     (FEHB), and TRICARE will be subject to a $6,000 deductible for primary care and outpatient      services annually for a period of 5 years.  (See full plan for more details)

Primary scoring assumptions:

The Plan assumes an 80% participation rate by U.S. citizens. Wealthier Americans would choose not participate, due to the comparative benefit of income tax refund amounts.  Many individuals of lower socio-economic sector would also choose not to participate, due to the comparatively high benefits profiles that they would not wish to give up.

The Plan assumes that participating families would use significant funds to pay down / eliminate debt, and that these longer-term, lower debt service obligations would enhance the financial security of participating families for several decades beyond the opening activation period.  Federal, state, and local government entities would benefit from longer-term tax revenue growth and reduced citizen dependence on government-based entitlement program benefits.

The Plan assumes that dynamic new efficiencies would emerge in the healthcare system – with more families managing/directing healthcare expenditures through their MSAs.

The Plan assumes that apart from the recapture provisions, there would also be significant tax revenue growth for federal, state and local government entities from free-market economic revitalization, more people working and paying taxes, and from the elimination of various income tax deductions (e.g. mortgage / HELOC interest expense).

The Plan assumes that there would not be a massive full-scale move back into the means-tested welfare programs, income security programs, SSI, and SSDI at the end of the initial 5-year activation period. 

The benefits of a free-market economy and newfound economic liberty for American families would provide positive economic inertia throughout years 5-10, and for several decades beyond.

Recapture provisions would provide an estimated substantial federal budget surpluses for each year of the initial 5-year period. Economic growth over the following 10-15 years would generate sufficient recapture funding and tax revenue growth to offset the entire initial Federal Reserve balance sheet expansion.

Significant inertia from The Plan would also provide on-going, market-based growth benefits over succeeding years that far exceed any prospect for healthy economic growth that may be expected under America’s current big-government, central-planning approach.

Dynamic benefits would be generated from:

     – Massive liquidity gains and debt reduction at the family level.

     – Immediate, sweeping reversal of government “central planning” approach.

     – Major reversal in work disincentives embedded in social welfare program structures.

     – Economic growth, improved productivity and job creation.

     – Stabilization of housing market.

     – Strengthening bank capitalization.

     – Minimizing the role of government in managing, directing, and controlling the affairs of citizens.

______________________________________

The time is now.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2021 (3677 downloads)

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.

One example of the mechanics of these backstop commitments involved two of the major investment-banks which were at the forefront of the U.S. financial crisis, Goldman Sachs and  JP Morgan, who, through their high-risk exposure to subprime debt and derivatives, received enormous amounts of direct financial assistance from government and the Federal Reserve.

Goldman Sachs and J.P. Morgan received these direct liquidity infusions during the financial crisis via Fed disbursements through the Primary Dealer Credit Facility and numerous other credit facilities. The two (according to ZeroHedge 4-1-11) “had the temerity to pledge bonds that had defaulted (i.e. had a rating of D)… as in bankrupt, and pretty much worthless. . . that have no value whatsoever. . .”  Goldman Sachs received $24.7 million and JP Morgan $1.4 million on the worthless collateral (September 15, 2008).  Goldman Sachs pledged D-rated securities again September 29, 2008 and received $82.7 million (Citigroup received $102.8 million;  Merrill Lynch – $217.8 million;  Morgan Stanley – $261.0 million;  UBS – $202.2 million).

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U.S. citizens deserve nothing less than the same direct access to liquidity extensions that major banks and global financial institutions received during the 2008-2010 financial crisis.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

Leviticus 25 Plan 2021 (3677 downloads)