The financial news wires report analyses every day which reveal the ‘cracks’ in the current economic track that our government has us on – and why continuing down this road is an exercise in futility.

One recent analysis sums things up well (and shows why we need an economic acceleration driver like The Leviticus 25 Plan’s direct credit extensions for American citizens):

Financial Blogger, Matt Taibbi (TAIBBLOG – May 8, 2012):

 1. Let banks inflate massive asset bubbles with the aid of cheap or even free government cash, and tons of leverage;

2. Before it all explodes, carve out gigantic sums for bonuses and compensation for the companies that inflated those bubbles;

3. After it explodes, get the various governments to bail those companies out;

4. Pay for it all by slashing services to what’s left of the middle class.

This is the model we used in America. We had a monster asset bubble based on phony mortgages, which Wall Street was allowed to inflate to spectacular dimensions with minimal reserve capital, huge amounts of leverage, and tons of fraud for good measure. When that bubble exploded, we first rescued the banks who inflated the thing in the first place…

Source: http://www.rollingstone.com/politics/blogs/taibblog/austerity-cant-be-a-one-way-street-20120508#ixzz1uZKHj700

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Meanwhile, massive debt continues to pile up in Europe.  Bloomberg recently reported on the heavy bond issuance coming next week in Europe – one of 2012’s heaviest:

* Monday May 14

• Spain to sell 12- and 18-mo bills
• Italy to sell up to EU3.5b 2.5% 2015 bonds
• Italy to sell 4.25% 2020 bonds
• Italy to sell 5% 2022 bonds
• Italy to sell 5% 2025 bonds
• Germany to sell EU4b 6-mo bills
• France to sell up to EU4b 92-day bills
• France to sell up to EU1.9b 168-day bills
• France to sell up to EU1.5b 351-day bills

• Tuesday May 15
• Greece to sell bills
• U.K. to sell GBP2.75b 5% 2025 bonds
• EFSF to sell up to EU1b 2% notes due 2017

• Wednesday May 16
• France to sell 0.75% 2014 notes
• France to sell 3.5% 2015 bonds
• France to sell 3.25% 2016 bonds
• France to sell 1.75% 2017 notes
• Germany to sell additional EU5b in 10-yr notes

• Thursday May 17
• Spain to sell bonds
• U.K. to sell GBP 1.5b 5% 2014 bonds

Source: Bloomberg

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The world needs liquidity.

The Leviticus 25 Plan would deliver for America.

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 expects 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, down 14 percent from the previous month, and down 25 percent from March 2011.

RealtyTrac expects banks will repossess close to 1 million homes this year.  Last year, lenders took back 804,000 homes.”

“The International Monetary Fund and Greece’s euro zone partners last week approved a second 130 billion euro ($172.15 billion) rescue to keep the debt-choked country afloat through 2014.”   (Reuters March 20, 2012).

“We received 5.9 billion euros from the euro zone and 1.6 billion euros from the IMF,” a finance ministry official told Reuters.

Note 1:  This equates to $2.12 billion (U.S. Dollars) ‘contribution’ from the IMF. The U.S. funds 17.7% of the IMF budget, so the U.S. Government has just ‘given away’ another $375 million to Greece/Europe.

Note 2: The total funding package for Greece, through 2014, is listed above as $172.15 billion. This means that the U.S. Government will be giving away’ significant additional amounts to “keep the debt-choked country [Greece] afloat through 2014.”  

The U.S. economy is currently on a ‘dead crawl’ pace.  Instead of giving our (future) tax dollars away to foreign interests, the U.S. government should be moving to provide direct credit extensions to American families.

America needs the Leviticus 25 Plan.

Treasury officials like to claim that all of the funds ($245 billion) dispersed under the Capital Purchase Program (CPP) have been repaid with interest – and that U.S. taxpayers have actually reaped a profit of $10 billion.

There is more to this story.  When the Fed highlights their TARP profits, they are only counting the positive payers.  They are not accounting for the those parties who have not repaid their TARP bailout frunds.  And they are allegedly not accounting for the market value of some of the ‘crap’ Mortgage Backed Securities (and other) assets on their books  – which they purchased with trillions of dollars.

Furthermore, according to the calculations of one group called Ethisphere, the TARP payback shortfall stands at a tall $148 billion.  This averages out to a debt of over $1200 for every American.  (Source:  Taibblog 9-1-09)

Capital Purchase Program (CPP) is a leg of the TARP bailout, whereby “Treasury bought preferred shares in the nation’s banks” to rescue many of the banks from failure.

Here are some of the big ones:

And here is the full list of the Bank recipients:   http://money.cnn.com/news/specials/storysupplement/bankbailout/

Remember that many of the ‘big players’ like Goldman Sachs, JP Morgan and others received sizeable credit extensions from the Federal Reserve at (near) zero percent interest, and were able to use those funds to purchase Treasury securities paying 3% interest – thereby gaining access to ‘free money’ to rebuild their solvency.  And pay back TARP disbursements to the Fed.

So, yes, many of the major players did repay the TARP disbursements – but they did it with the benefit of the ‘free money’ they had access to from other programs.  And that ‘free money’ giveaway by the Fed – does dilute the value of the U.S. Dollar.

And that ‘hits’ American families with higher prices for such things as food and energy.

Furthermore, some of the smaller banks actually paid back TARP bailout funds with other funds borrowed from the Small Business Lending Fund.  These included (July 14, 2011):

• Eagle Bancorp of Bethesda, MD: $23.235 million
• First California Financial, Westlake Village, CA: $25 million
• Cache Valley Bank, Logan, UT: $4.77 million, plus $263,000 to buy back preferred shares granted to Treasury in lieu of warrants
• Security Business Bancorp, San Diego, CA: $5.8 million, plus $290,000 to buy back preferred shares granted to Treasury in lieu of warrants
• BOH Holdings of Houston, Houston, TX: $10 million, plus $500,000 to buy back preferred shares granted to Treasury in lieu of warrants
• BancIndependent, Sheffield, AL: $21.1 million, plus $1.055 million to buy back preferred shares granted to Treasury in lieu of warrants
• York Traditions Bank, York, PA: $4.871 million, plus $244,000 to buy back preferred shares granted to Treasury in lieu of warrants
• Centric Financial, Harrisburg, PA: $6.056 million, plus $182

The shell games being played by our government on behalf of the banks is a disservice to U.S. citizens.

The Leviticus 25 Plan recapture provisions, on the other hand, provide an honest, straightforward mechanism for recapturing the funds extended, while providing direct benefits to American families..

The Primary Dealers Credit Facility (PDCF) was created by the Federal Reserve in the Fall of 2008 to help restore order and maintain liquidity in the credit markets – as the banking crisis began gaining ‘traction.’

Primary Dealer’s ‘mission’ was to bid (take up the slack) at the monthly Treasury auctions whenever demand was light.  It was not unusual for them to ‘take down’  the lion’s share of a given offering when foreign central banks (indirect bidders) and domestic (direct) bidders had cold feet.  This week, for instance, Primary dealers  ‘took down’ 54.66% of the $32 billion auction of 2 year bonds (which, by the way, inched the U.S. national debt up the the $15.413 trillion level).

In the past whenever the Dealers couldn’t ‘move’ (any or all of) the bonds they took down at an auction, they were allowed to ‘flip’ them back to the Federal Reserve, sometimes within days.  They were still allowed to pocket the commissions (millions of dollars worth) for the bonds they could not successfully market (a no-lose deal for themselves – at the expense of U.S. taxpayers).

This monetizing (money printing) mechanism thus expanded the Fed’s balance sheet, and the longer term consequences will not be favorable.

The longer term risk for the U.S. Dollar (vs hard assets) is growing.  And when the Dollar eventually begins its ‘hard slide,’ U.S. citizens are going to get economically hammered.

The Leviticus 25 Plan offers a viable economic recovery plan for America.  And a real chance to avert economic calamity.

“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 – An Economic Acceleration Plan for America

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May 2025 quote:  “Democracy extends the sphere of individual freedom, socialism restricts it. Democracy attaches all possible value to each man; 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.”   ― Alexis de Tocqueville