Trillions of dollars in bailouts to citizens of bankrupt foreign nations. It is now time to grant U.S. citizens the same direct access to liquidity. Solution: The Leviticus 25 Plan


U.S. taxpayer dollars have been used to support the IMF bail-out of Greece. The U.S. funded at least $780 million (17.09%) of the July $4.6 billion IMF transfer to Greece (purportedly funding interest payments to hedge funds which had speculated in purchasing the high-risk Greek debt).

U.S. taxpayers also funded approximately $2.9 trillion of a massive 2014 IMF loan to Ukraine to help Kiev pay off creditors including Western banks, Gazprom (the big Russian oil company), and previous IMF loan payment obligations).

The U.S. Treasury Department followed that up by guaranteeing a $1 billion Ukrainian bond issuance.

Trillions of dollars in U.S. taxpayer funds have been used to bail out the citizens of bankrupt foreign nations, and now U.S. citizens deserve the very same access to their own money that foreign citizens have been receiving in foreign assistance payments from the U.S.

It is time to activate America’s powerhouse economic acceleration plan – and to eliminate massive amounts of debt stress and restore financial health at the family level.

………………………………..

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2483)

 

 

Fed QE Liquidity Transfusions (2008 – 2013): Billions in Free Interest to… Foreign Banks

A brief review of the U.S. Federal Reserve free money handouts to foreign banks:

How The Fed Is Handing Over Billions In “Profits” To Foreign Banks Each Year   Zero Hedge 2/11/13 – Excerpts:

Fed QE flows over the past 4 years, dating back to March 2009, show that foreign banks have been the primary recipients of “cash generated by Fed excess reserves.”

Small domestic banks and large domestic bank cash reserves have been flat to modestly higher (a ‘steady’ $800 billion) over the 4-year period, while “Foreign Banks” have nearly doubled their cash reserves during that same time – from the newly created reserves.

This was confirmed by the Fed itself, which in a paper from November 2012, admitted just this when it said that “the recent unprecedented build-up of cash balances by [foreign banks] was almost entirely composed of excess reserves.”

And where does this “foreign bank” cash ‘park itself?’

Answer:  These foreign bank excess cash reserves are parked at “Reserve Banks” – currently about $954 billion, earning 0.25% interest (which the Fed decided to start paying out in December 2008).

The “Fed paid some $6 billion in interest to foreign banks, in the process subsidizing and keeping insolvent European and other foreign banks, in business and explicitly to the detriment of countless US-based banks who have to compete with Fed-funded foreign banks and who have to fire countless workers courtesy of this Fed subsidy to foreign workers.”

“From December 2008 through the last week of January [2013], the Fed has paid out some $6 billion in cash (red line) to European banks simply as interest on excess reserves:”

“But that’s just the beginning. If we are correct in assuming that QE3 will be a replica of QE2 when all the new reserves created ended up as cash on foreign bank balance sheets, it means that we can quite accurately forecast what the total foreign bank cash position will be on December 31, 2013 (as the Fed will certainly not end its open ended monetization of the US deficit before then, or likely, ever). The result: just under $2 trillion in cash held by foreign banks operating in the US, which also means that in calendar 2013, the Fed will fund and subsidize foreign banks a blended interest payment of $3.5 billion! This is entirely separate from the $2 trillion liquidity subsidy that Bernanke will also have handed out to keep these banks afloat, and is $3.5 billion that will flow right through the P&L and end up in the pockets of offshore shareholders who otherwise would very likely be wiped out had it not been for the Fed’s relentless efforts to bailout foreign banks.”

____________________________

U.S. citizens deserve nothing less than the same direct access to liquidity that the Federal Reserve provided to foreign banks during the financial crisis (2008-2013).

It is time for U.S. citizens themselves to step up to the head of the line and receive their own credit extensions direct from the Federal Reserve.

It is our money, and we deserve the same direct access to it – through a Citizens Credit Facility.

___________________________

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2471)

The U.S. Health Care Freedom Plan: “If you like your ObamaCare, you can keep your ObamaCare.” Every other U.S. citizen will receive an ACA exemption and $25,000 in a qualified MSA.

The Affordable Care Act (ACA), or “ObamaCare,” was signed into law on March 23, 2010, with most of its provisions going into effect on January 1, 2014.  Over the past three years, despite billions of dollars in back-end subsidies to the insurance industry, major insurers have been losing money on ACA plans and abandoning state exchanges. Centers for Medicare and Medicaid Services (CMS) reported that for ObamaCare’s second benefit year (2015), it would need to make “$7.8 billion in reinsurance payments to 497 of the 575 participating issuers nationwide,” due to contribution deficits versus payment requests within the industry (Kaiser Foundation Aug 17, 2016).

Insurance companies went on to lose approximately $2 billion on the exchanges in 2016.  United Healthcare, one of the largest insurers in America, anticipated an $850 million loss and announced plans to pull out of 27 of the 34 plans where it had been offering coverage.  Rivals Aetna, Anthem, and Humana each projected $300 million in ACA plan losses, with Aetna bailing out from 11 of 15 states (Bloomberg, Aug 17, 2016).

Cooperative health insurers like CoOportunity Health (Iowa, Nebraska), created with federal dollars under the ACA, began collapsing in 2015, rolling across the country from New York to Oregon. By August 2016, only seven of the original 23 co-ops were still operational (Forbes, Oct 29, 2015).

Healthcare premiums for consumers have been rising at double digit percentages for the past four years.  ObamaCare’s 2017 rate increases, finalized in October 2016, included an average cost increase of 25% nationally (Kaiser Family Foundation). The 10 hardest hit states are seeing premium increases average in at “62% while Arizona is officially the biggest loser with rates in Phoenix soaring 145%.”

Over a million middle class Americans have dropped coverage each of the past two years due to burdensome price increases and skyrocketing deductibles. “ObamaCare, according to the liberal New York Times (Oct 2, 2016), is “too expensive and inaccessible.”

Healthcare providers and institutions are being squeezed hard by ObamaCare penalties and reduced payment rates.  Physicians have been negatively impacted by reimbursement cuts, and ObamaCare’s non-clinical burdens and paperwork have forced many medical professionals into spending more of their precious time responding to the federal bureaucracy and less time with patients (CNN Jan 17, 2017).

A recent analysis by the Kaiser Foundation (Mar 10, 2017) estimated that 79% of hospitals in the U.S. will be hit with ObamaCare penalties totaling over a half billion dollars in fiscal 2017.

Finally, the sheer magnitude of ObamaCare’s administrative costs have been stunning.

Federal government data for establishing and operating the ACA exchanges included “costs to the federal government of operating the federally-run exchanges, federal grants to states to establish their own exchanges or for expenses relating to coordinating with a federally-run exchange, and CMS’ administrative costs related to those grants.”

In the ACA roll-out year, 2014, “The total federal cost for the ACA exchange program was $9.75 billion to enroll 6.34 million people,” a per capita administrative cost of “$1,539 for the federal government, excluding administrative costs to the insurers for enrolling and serving those individuals.” The federal administrative cost for “merely establishing the exchanges to obtain enrollees” was therefore “more than triple the total administrative cost ($414) to insurers of both enrolling and providing coverage for individuals prior to the establishment of ACA exchanges” (American Action Forum Dec 31, 2016).

Obamacare is further expected to add a massive “$273.6 billion in additional insurance overhead… an average of $1,375 per newly insured person, per year, from 2012 through 2022” (Health Affairs Blog, May 27, 2015). This overhead bonanza represents “a whopping 22.5 percent of the total estimated $2.76 trillion in all federal government spending” for the ACA during that period, according to the report’s authors.

ObamaCare is not sustainable. America needs a fresh new start in healthcare.

Congress must develop a ‘citizen-centered’ replacement model which maximizes quality and accessibility for the greatest number of Americans.  This model should redirect the hundreds of billions of dollars wasted in administrative overhang into individual Medical Savings Accounts (MSAs) for citizens to allocate directly for personal healthcare needs, specifically routine primary care and outpatient services.

The hundreds of millions of healthcare transactions each month for primary care, prescriptions, and other services should ‘not’ be run through a big-government, bloat-heavy, labyrinthine system.  Routine expenditures can, and should, appropriate ‘direct-pay’ corridors.

The U.S. Health Care Freedom Plan offers a comprehensive new dynamic to meet those ends.  It improves access and affordability and reestablishes genuine patient-provider relationships.

It comes with an added benefit:  “If you like your ObamaCare, you can keep your ObamaCare.”  Every other U.S. citizen will receive an ACA exemption and $25,000 in a qualified MSA.

The U.S. Health Care Freedom Plan honors the counsel of Buckminster Fuller:  “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

……………………………………

The U.S. Health Care Freedom Plan is the only comprehensive, citizen-centered health care plan in America.  It ‘resets’ the health care industry to present a clean, efficient and responsible system.  Most importantly, this plan restores individual freedom and liberty for all participating Americans.

ObamaCare … ‘on the ropes.’ The U.S. Health Care Freedom Plan – Clean, Affordable, and Ready to Launch

ObamaCare … ‘on the ropes.’ The U.S. Health Care Freedom Plan – Clean, Affordable, and Ready to Launch

The Affordable Care Act (ACA), better known as “ObamaCare,” was signed into law on March 23, 2010, with most of its provisions going into effect on January 1, 2014.  Over the past three years, despite billions of dollars in back-end subsidies to the insurance industry, major insurers have been losing money on ACA plans and abandoning state exchanges.

Centers for Medicare and Medicaid Services (CMS) reported that for ObamaCare’s second benefit year (2015), it would need to make “$7.8 billion in reinsurance payments to 497 of the 575 participating issuers nationwide,” due to contribution deficits versus payment requests within the industry (Kaiser Foundation Aug 17, 2016).

Insurance companies went on to lose approximately $2 billion on the exchanges in 2016.  United Healthcare, one of the largest insurers in America, anticipated an $850 million loss and announced plans to pull out of 27 of the 34 plans where it had been offering coverage.  Rivals Aetna, Anthem, and Humana each projected $300 million in ACA plan losses, with Aetna bailing out from 11 of the 15 states where it had been offering coverage (Bloomberg, Aug 17, 2016).

Cooperative health insurers like CoOportunity Health (Iowa, Nebraska), created with federal dollars under the ACA, began collapsing in 2015, rolling across the country from New York to Oregon. By August 2016, only seven of the original 23 co-ops were still operational (Forbes, Oct 29, 2015).

Healthcare premiums for consumers have been rising at double digit percentages for the past four years.  ObamaCare’s 2017 rate increases, finalized in October 2016, included an average cost increase of 25% nationally (Kaiser Family Foundation). The 10 hardest hit states are seeing premium increases average in at “62% while Arizona is officially the biggest loser with rates in Phoenix soaring 145%.”

Over a million middle class Americans have dropped coverage each of the past two years due to burdensome price increases and skyrocketing deductibles. “ObamaCare, according to the liberal New York Times (Oct 2, 2016), is “too expensive and inaccessible.”

Healthcare providers and institutions are being squeezed hard by ObamaCare penalties and reduced payment rates.  Physicians have been negatively impacted by reimbursement cuts, and ObamaCare’s non-clinical burdens and paperwork have forced many medical professionals into spending more of their precious time responding to the federal bureaucracy and less time with patients (CNN Jan 17, 2017).

A recent analysis by the Kaiser Foundation (Mar 10, 2017) estimated that 79% of hospitals in the U.S. will be hit with ObamaCare penalties totaling over a half billion dollars in fiscal 2017.

Finally, the sheer magnitude of ObamaCare’s administrative costs have been stunning.

Federal government data for establishing and operating the ACA exchanges included “costs to the federal government of operating the federally-run exchanges, federal grants to states to establish their own exchanges or for expenses relating to coordinating with a federally-run exchange, and CMS’ administrative costs related to those grants.”

In the ACA roll-out year, 2014, “The total federal cost for the ACA exchange program was $9.75 billion to enroll 6.34 million people,” a per capita administrative cost of “$1,539 for the federal government, excluding administrative costs to the insurers for enrolling and serving those individuals.” The federal administrative cost for “merely establishing the exchanges to obtain enrollees” was therefore “more than triple the total administrative cost ($414) to insurers of both enrolling and providing coverage for individuals prior to the establishment of ACA exchanges” (American Action Forum Dec 31, 2016).

Obamacare is further expected to add a massive “$273.6 billion in additional insurance overhead… an average of $1,375 per newly insured person, per year, from 2012 through 2022” (Health Affairs Blog, May 27, 2015). This overhead bonanza represents “a whopping 22.5 percent of the total estimated $2.76 trillion in all federal government spending” for the ACA during that period, according to the report’s authors.

ObamaCare is not sustainable. America needs a fresh new start in healthcare.

Congress must develop a ‘citizen-centered’ replacement model which maximizes quality and accessibility for the greatest number of Americans.  This model should redirect the hundreds of billions of dollars wasted in administrative overhang into individual Medical Savings Accounts (MSAs) for citizens to allocate directly for personal healthcare needs, specifically routine primary care and outpatient services.

The hundreds of millions of healthcare transactions each month for primary care, prescriptions, and other services should ‘not’ be run through a big-government, bloat-heavy, labyrinthine system.  Routine expenditures can, and should, appropriate ‘direct-pay’ corridors.

The U.S. Health Care Freedom Plan offers a comprehensive new dynamic to meet those ends.  It improves access and affordability and reestablishes genuine patient-provider relationships.

It comes with an added benefit:  “If you like your ObamaCare, you can keep your ObamaCare.”  Every other U.S. citizen will receive an ACA exemption and $25,000 in a qualified MSA.

The U.S. Health Care Freedom Plan honors the counsel of Buckminster Fuller:  “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

………………………………………..

The U.S. Health Care Freedom Plan 2017: America’s clean and affordable alternative to ObamaCare. Ready to Launch.

 

Fall 2008: The Big Bailout Revisited…

In the Fall of 2008, in response to the banking crisis and housing market collapse, the Federal Reserve and U.S. government undertook extraordinary measures to re-liquify Wall Street’s financial sector (banks and insurers), including foreign financial institutions, automakers, and others.

The broad program categories for the trillions of dollars involved included:

The Troubled Asset Relief Program (TARP)                         

Federal Reserve Rescue Efforts (Fed “secret liquidity lifelines”) 

Federal Stimulus Programs 

American International Group (AIG)                                                 

FDIC Bank Takeovers                                                                

Other Financial Initiatives                                                         

Other Housing Initiatives

SourceCNN’s Bailout Tracker

Note: The Public – Private Investment Program (PPIP) happens to be one of the programs funded under the TARP umbrella.  PIPP is a funneling mechanism for government (tax-payer) money to ‘reach’ Hedge funds –  to ‘encourage’ them to buy some of the non-investment grade (crap) mortgages out there, and get them off the books of the banks.

It was recently reported that the Federal Reserve also offered a special “carry trade” for banks and primary dealers – to generate buying on the front end of the yield curve (2-year and 3-year Treasuries) – using an “overnight repo” everyday at “zero.”  This amounts to another ‘free money’ program for the banks and PDs [Primary Dealers] – courtesy of the U.S. taxpayer.

And these revolving overnight “repos” reportedly do not show up on the Fed Balance sheet.

…………………………………..

The Federal government ‘central planning’ efforts have accomplished very little, despite the trillions of dollars the government has ‘shuttled’ out to the dozens of well-favored domestic and foreign financial oligarchs.

It is now time for American families to be to receive their own round of direct liquidity extensions, via a Citizens Credit Facility, from the Federal Reserve.

The Leviticus 25 Plan is a comprehensive economic acceleration program, delivering direct credit extensions to American families – $75,000 per U.S. citizen.  The debt relief benefits and productivity incentives at the family level would re-ignite economic vitality in America.

Government tax revenues (state, local, and federal) would quickly blossom into an explosive new growth pattern – without raising taxes.

The Leviticus 25 Plan will literally pay for itself over a 10-year window.  It will reverse America’s burgeoning debt load and provide long-term stability for the U.S. Dollar.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2400)

Earned Income Tax Credit (EITC) fraud clean-up time: The Leviticus 25 Plan

U.S. citizens deserve nothing less than to be granted the same access to liquidity that Wall Street’s financial sector received during the great financial crisis (2008-2010) – to help restore them to “financial health.”

The Leviticus 25 Plan provides the mechanism for that liquidity access – a $75,000 credit extension for each U.S. citizen who wishes to participate – to help restore U.S. citizens to a state of “financial health.”

One of the ‘recapture’ provisions for participants in the plan is a required agreement to forego receiving all benefits from ‘Income Security’ social programs.  The Earned Income Tax Credit is (EITC) one of those programs.

And it has a long history of being riddled with fraud.

Excerpts from:  American Thinker — Henry Percy,  April 26, 2013:

“The [Earned Income Tax Credit] program has been plagued with “improper payments” for years — decades actually: “The General Accounting Office (GAO) verified the vast scale of the fraud, reporting that ‘…the IRS estimated [it is] between 27 and 32 percent of EITC dollars claimed.'”  And that was during the terror that was the reign of George W. Bush.

Have things gotten better under President Obama?  According to an inspector general’s report, at least, 21% of EITC payments in 2012 were “improper” ($11.6 billion), by far the highest fraud rate in any government entitlement program.

But in 2010 President Obama signed the Improper Payments Elimination Act, which “requires federal agencies to reduce erroneous payments to a rate of less than 10 percent.”  Ten percent fraud is surely a modest goal; what private business would be content with such a rate?  And how’s the IRS doing? In the two years since Obama signed the law, improper EITC payments have increased by 22%.

Oh, but the IRS wants to comply: “The reduction of improper payments is a top priority for the IRS, and we are making progress in this area.” Yes, a “top priority.” So a 22% increase in improper payments is “making progress.” One wonders what the IRS would deem a fail.

The IRS cannot possibly reduce its fraud rate below $11.6 billion, yet a cut of $669 million to the FAA’s budget forces the agency to furlough air traffic controllers in order to create 3 to 4 hour lines at airports. Talk about a rigid, inflexible, sclerotic bureaucracy.”

………………………….

The Leviticus 25 Plan sets America on course for ‘cleaning up’ the massive, fraud-riddled misallocation of capital by big-government.

It re-incentivizes work and industriousness by citizens.  And the plan pays for itself over a 10-15 year period.

There is no plan in place right now in America that takes even one positive step in that direction.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2398)

Summer 2017: Federal and State budgets in crisis, drowning in red ink. America’s powerful new economic acceleration plan – to the rescue…

The national debt, at $19.97 trillion and climbing, does not tell the real story behind America’s true national debt, which is properly identified as the “fiscal gap.”

………………………………..

The Fiscal Gap Jumped 30% – and Nobody Noticed

Investors Business Daily, March 10, 2017 – Excerpts:

Given the tumultuous news cycle of the past month I’d understand if you haven’t had a chance to read the Treasury Department’s latest 266-page Financial Report of the United States Government (FRUSG)….

The fiscal gap is a key snapshot of the government’s financial health that estimates the tax increases and spending cuts required to maintain the current ratio of national debt to GDP. That’s a more meaningful number than the national debt alone because it also takes into account money coming into the government’s coffers, and the implications on future public policy. If the government were an individual, that would be akin to comparing a person’s credit card bill with their pay stub.

The two chief culprits responsible for the rising fiscal gap are Social Security and Medicare. For years, politicians have promised these politically popular benefits without increasing the taxes necessary to fund them. Not increasing taxes correspondingly has led to massive underfunding.

Social Security and Medicare expenses continue to rise year after year at the same time that less money is flowing into the system, which increases the fiscal gap. Entitlement programs represent the federal government’s largest expense (far exceeding defense spending), but for political expediency their costs are not accounted for in the national debt.

If entitlement obligations were counted, the true national debt figure would actually be around $100 trillion, as opposed to the government’s current $20 trillion figure. The more holistic $100 trillion number breaks down to a $308,000 burden for every American taxpayer. These bills are real, and they’ll come due one day.

…………………………………….

And how are individual states faring on the fiscal front…?

“From Horrific To Catastrophic”: Court Ruling Sends Illinois Into Financial Abyss

“Friday’s ruling by the U.S. District Court takes the state’s finances from horrific to catastrophic,” Comptroller Susana Mendoza, a Democrat, said in an emailed statement after the ruling. “Payments to the state’s pension funds; state payroll including legislator pay; General State Aid to schools and payments to local governments will likely have to be cut.”  ZeroHedge – July 1, 2017

……………………………

Chris Christie Announces New Jersey Government Shutdown, Orders State Of Emergency

Illinois, Maine, Connecticut: the end of the old fiscal year and the failure of numerous states to enter the new one with a budget, means that some of America’s most populous states have seen their local governments grind to a halt overnight until some spending agreement is reached. Now we can also add New Jersey to this list.               ZeroHedge – July 1, 2017

…………………………..

Connecticut Gov. Signs Exec. Order Taking Over Spending After State Fails To Pass Budget

Connecticut’s General Assembly failed to pass a version of the state budget on Friday, forcing Democratic Gov. Daniel P. Malloy to sign an executive order to take control of state spending.  ZeroHedge – June 30, 2017

…………………………..

Maine To Begin Shutdown After Gov. LePage Says He Won’t Sign Budget Bill

The first U.S. state to shut down heading into the new fiscal year may not be Illinois, not Connecticut, but… Maine.  ZeroHedge – June 30, 2017
……………………………

Add to this growing list of states with growing budget shortfalls: Massachusetts, Kansas…

____________________________

Does our Federal Government have any credible plan to deal with our massive debt overhang?  Answer:  No

Do any of our problem states have any type of credible plan to restore fiscal health?  Answer: No

Is there a credible solution for this gargantuan debt dilemma?  Answer:  Yes.

$1.02 trillion annual budget surpluses yearly 2017-2021: The Leviticus 25 Plan

And massive tax revenue gains and reduced entitlement costs for state governments.

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 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2390)

Paul Bodsky, QB Asset Management, July 2012: Global debt load – “staggering.” When creditors fail, banks lose.

A LOOK BACK – July 2012:

Globally, there is approximately “$100 trillion in bank assets” (bank assets are primarily comprised of their loan base).  And for the U.S. those bank assets (loans)are about “$20 trillion held in the U.S. and abroad.”

The “Base Money” (which is “currency in circulation plus bank reserves held at Central banks”) behind those massive loan levels amounts to a mere “$8.5 to $9 trillion dollars.”  This degree of leverage in the global banking system means that currently, “We are in a baseless monetary system,” according to Brodsky.

More from Brodsky:  “The marketplace forces deleveraging, and there are two ways to deleverage. One is to let credit deteriorate on its own in the marketplace. And the other is to manufacture new currency or bank reserves. Those are the only two ways to deleverage a balance sheet.

What policy makers do not want to see is bank asset deterioration. That would lead to all sorts of bad things. You would see banks fail. You would see bank systems fail. You would see debtors fail and it would just feed on itself in an accelerating fashion. And so monetary policy makers have no choice but to deleverage in the other way, which is to colloquially print money; to manufacture electronic credits and call them bank reserves.

And to the degree that that extends into the private sector where debtors begin to fail en masse, that would increase failures of the bank assets in turn. And it would end the mortgage bond securities market, for example, and the leveraged loan markets, and end the private sector shadow banking system. So it does not work for anybody to have credit deteriorate. The only way to deleverage an economy is as we are saying: to create new base money with which to do it.”

Brodsky Summary:  “What policy makers do not want to see is bank asset deterioration. That would lead to all sorts of bad things. You would see banks fail. You would see bank systems fail. You would see debtors fail and it would just feed on itself in an accelerating fashion. And so monetary policy makers have no choice but to deleverage in the other way, which is to colloquially print money; to manufacture electronic credits and call them bank reserves.

And to the degree that that extends into the private sector where debtors begin to fail en masse, that would increase failures of the bank assets in turn. And it would end the mortgage bond securities market, for example, and the leveraged loan markets, and end the private sector shadow banking system. So it does not work for anybody to have credit deteriorate. The only way to deleverage an economy is as we are saying: to create new base money with which to do it.

The point here is you can either monetize debt or you can monetize (sell) assets. Or you revalue an asset on the balance sheet already of the Treasury or the Fed. And obviously that asset, we think, is gold. And that is the monetary asset that they have always reverted in the past. And that is the one we think that currencies, currently baseless currencies will be devalued against.

And so that we think is the mechanism that is ultimately going to play out whether in the marketplace or through some policy administered devaluation. Currencies are going to be devalued and that is where we sit right now. Timing this is impossible. We think the amount it would have to be devalued by, getting back to your original question, has got to be the amount of or something close to the amount of the gap (tens of US$ trillions) between bank assets and bank reserves. So it is a significant number.”

Full article / podcast from Peak Prosperity:  http://www.peakprosperity.com/podcast/79208/paul-brodsky-central-banks-are-nearing-inflate-or-die-stage?utm_campaign=weekly_newsletter_3&utm_source=newsletter_2012-07-07&utm_medium=email_newsletter&utm_content=node_title_79208

__________________

Meet America’s great debt neutralizer, offering massive debt reduction in both public and private sectors.

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2355)

The answer to America’s liquidity problems: Grant U.S. citizens the same access to direct liquidity extensions that was provided to Wall Street’s financial sector 2008-2012. The Leviticus 25 Plan

Let’s do a brief review…
 
     During the peak of the housing boom, mortgage tranches were packaged and securitized as Mortgage Backed Securities (MBS)  –  and peddled as income-producing investments by major investment houses.  Participating parties like Goldman Sachs and others also purchased ‘insurance’ to hedge their risk profiles in the event of a housing market ‘swan dive’ – and a potential collapse of the underlying payment streams supporting the value of these MBS investments vehicles.
 
 The ‘insurance’ was purchased (primarily from AIG) in the form of Credit Default Swaps (CDS).  And, thanks to some nifty deregulation orchestrated by Robert Rubin (Treasury Chief under Clinton), AIG was not required to carry any meaningful level of reserves to back the Credit Default Swaps – to pay their counterparties if the Mortgage Backed Securities market… ‘went south.’ 
 
It did just that, and the rest is history.  Housing tanked.  MBS’ tanked.  And AIG had no reserves  with which to pay Goldman and others.  Had normal bankruptcy proceedings prevailed, Goldman Sachs would likely have received just pennies on the dollar in settlement – for placing a huge ‘blind bet’ on an investment that had no reserves backing it up.
 
But – the U.S. Government stepped in, and through an arbitration process, brokered a settlement of 100 cents on the dollar, amounting to a direct cash transfusion of a cool $12.9 trillion – from the U.S. taxpayer – to Goldman Sachs.  
 
And then the real ‘fun’ began.  The investment banking heavyweights, Goldman Sachs and J.P. Morgan, were ‘fast-tracked’ for “federal bank charters.’  Their newly acquired status as commercial banks allowed them to joined in with “Bank of America, Citigroup, J.P. Morgan Chase and other banking titans who could go to the Fed and borrow massive amounts of money” at near-zero percent interest. 
 
“The ability to go to the Fed and borrow big at next to no interest was what saved Goldman, Morgan Stanley and other banks from death in the fall of 2008.  “They had no other way to raise capital at that moment, meaning they were on the brink of insolvency,” says Nomi Prins, a former managing director at Goldman Sachs. “The Fed was the only shot.”
 
“In fact, the Fed became not just a source of emergency borrowing that enabled Goldman and Morgan Stanley to stave off disaster — it became a source of long-term guaranteed income. 
 
Borrowing at zero percent interest, banks like Goldman now had virtually infinite ways to make money. In one of the most common maneuvers, they simply took the money they borrowed from the government at zero percent and lent it back to the government by buying Treasury bills that paid interest of three or four percent. It was basically a license to print money — no different than attaching an ATM to the side of the Federal Reserve.”
 
“You’re borrowing at zero, putting it out there at two or three percent, with hundreds of billions of dollars — man, you can make a lot of money that way,” says the manager of one prominent hedge fund. “It’s free money.” 
(Source:  Wall Street’s Bail out Hustle – Matt Taibbi,  2-17-10)
 
And that is one of the primary justifications for the Leviticus 25 Plan  – granting U.S. citizens the same direct access to the Federal Reserve discount window – that was bestowed upon Goldman Sachs, J.P. Morgan, and certain other banking titans. 
 
After all, it is ‘our money.’  And granting U.S. citizens direct access to liquidity extensions from a Federal Reserve special “U.S. Citizens Credit Facility,”  would clean up liquidity issues at the family level: $75,000 per U.S. citizen at zero percent interest – with a specified  ‘recapture provision.’
 
The Leviticus 25 Plan pays for itself over a 10-15 year period.  It would generate $1.02 trillion budget surpluses each of the first five years.  It would reignite economic growth, providing family income earning jobs, eliminating massive tracts of debt at ground level, and restoring economic liberty in America.
 
America, currently, has no other viable option.

 

“He who will not apply new remedies must expect new evils.” – Sir Francis Bacon

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 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2341) 

     It would “strenghten the base” in America.

……………………………………..

 

Eyeball deep in the global debt ‘slop hole, Part 2: Corporate debt

Record debt levels are choking corporations in America.

…………………………………………..

Corporate Debt To EBITDA Hits All Time High

“When using the aggregated data, both gross and net corporate debt/EBITDA are at or near record leverage levels, well above prior cycle peaks.” – Morgan Stanley  Apr 21, 2017

__________________________

America is drowning in debt.  We need re-targeted liquidity, and here is the solution:

The Leviticus 25 Plan 2018 –  $75,000 per U.S. citizen

The Leviticus 25 Plan 2018 (2279)