Democrats are out to win votes with plans to expand the Affordable Care Act, extend student loan forbearance, and… funnel $2.6 billion out through the foreign aid pipelines to fund global gender equity programs.

Republicans should have a counter-plan to set America back on track for massive deficit reductions, financial security for American families (independent of government programs), and wean people off entitlement programs — but they don’t.

The U.S. Congress has set America on track for an eventual U.S. Dollar collapse.

Here we go with the latest…

…………………………………………

Foreign Aid – Gender Equity

Biden Wants $2.6 Billion For Gender Equity Worldwide

ZeroHedge, Apr 5, 2022 | Authored by Adam Andrzejewski via RealClear Policy, – Excerpts:

On International Women’s Day, President Joe Biden announced that his FY 2023 budget will include $2.6 billion for foreign assistance programs to promote gender equity, more than double than what he set aside the previous year….

Last summer, our auditors at OpenTheBooks.com released a report showing that U.S. taxpayers already pay approximately $50 billion a year in foreign aid – an amount more than the federal money flowing to 48 out of 50 state governments.

Much of the new worldwide gender funding will likely go to individual missions and embassies in foreign countries, which will have broad discretion in the programs they choose to sponsor.

With few guidelines and little oversight, there’s no telling where these funds will end up.

The budget request will soon be sent to Congress, which ultimately decides what funding to approve, but the Democratic majority in the House of Representatives will likely try to incorporate the president’s priorities into its bill. It’s likely that $2.6 billion for gender equity for foreign assistance programs will make its way into the final bill.  

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com.

………………………………….

ACA Expansion

WSJ: Biden Proposes Change to Affordable Care Act to Extend Subsidies for Families. The change would close a gap that prevents some people with employer-based insurance from getting ACA subsidies

By Stephanie Armour and Andrew Restuccia | Updated Apr. 5, 2022 – Excerpts:

Some people unable to afford health insurance for their families would be able to get Affordable Care Act subsidies under a proposal by the Biden administration aimed at shoring up the Obama-era law.

The proposed change, which President Biden announced on Tuesday, would recalculate what is considered affordable for a family with employer-based health insurance.

…………………………………

Student Loan Extensions

WSJ, Mar 18, 2022 – Here we go again. The March 2020 Cares Act provided a temporary pause on loan payments and interest accrual through September 2020. Presidents Trump and Biden used emergency executive power to extend the forbearance, which has cost taxpayers about $5 billion a month….

WSJ: Biden Administration to Extend Student-Loan Payment Pause Through End of August.

By Gabriel T. Rubin and Andrew Restuccia | Updated Apr. 5, 2022 – Excerpts:

WASHINGTON—The Biden administration is planning to extend until the end of August a pause on federal student-loan payments, according to people familiar with the matter.

Payments and interest accrual have been paused for borrowers with federal student loans since March 13, 2020, at the start of the pandemic. The pause is currently scheduled to expire on May 1, following a 90-day extension that was announced as cases of the Omicron variant of Covid-19 surged last December. Politico and The Hill earlier reported the planned extension. About 40 million people owe around $1.6 trillion in federal student debt, a sum bigger than credit-card or auto debt. The pause on student-loan payments has lasted longer than most other economic relief measures instituted in the early days of the pandemic by Congress and the White House, such as a ban on evictions and enhanced unemployment benefits, both of which expired last year….

__________________________________

Washington Republicans don’t have a plan, or a clue, about how to clean up America’s debt monstrosity, or how to properly reinvigorate the U.S. economy, or how to restore financial security (independent of government programs) for millions of families, or recreate a citizen-centered health care system, or set the U.S. Dollar back on track for long-term stability.

America’s hard-working, tax-paying, God-fearing Republicans, the back-bone of our country, do have a plan.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (4047 downloads)

WSJ: Debt and Inflation Threaten U.S. Security… Servicing costs could soon reach $1 trillion a year, which would crowd out spending on defense.

By Jeb Hensarling

The Wall Street Journal. Feb. 22, 2022 – Excerpts:

The national debt this month reached $30 trillion. Not only is this the largest debt in U.S. history in dollar terms, but the ratio of debt to gross domestic product is 119%—the largest it’s ever been. And things are only getting worse. The Congressional Budget Office predicts that the mammoth debt-to-GDP ratio will double over the next three decades. The Highway Trust Fund will likely become insolvent in 2027. Medicare Part A will run out of money in fiscal year 2026 and Social Security will go bust in fiscal 2033.

Now Americans are beginning to experience inflation, one of the primary costs of rapidly growing levels of national debt… To help finance $5.9 trillion of Covid relief, the Federal Reserve purchased Treasury debt from third parties, typically large banks known as primary dealers, and then with a few keystrokes the Fed simply created a new set of credits on its books for the sellers. Because of the additions of these credits, in two years the Fed’s balance sheet has doubled to almost $9 trillion, creating a risk of significant and sustained inflation.

Some policy makers and economists maintain that sustained harmful inflation can never happen here. They argue that because the dollar is the world’s reserve currency, investors will always want U.S. debt and the Treasury will always be able to roll that debt over as it matures. But “always” is a long time.

[snip]

Those who believe there can never be a debt crisis should look no further than the last financial crisis. For years, policy makers told us that Fannie Mae and Freddie Mac, the largest players in the housing market, would always remain solvent and strong. They were wrong. Fannie and Freddie failed, the housing market crashed, and the economy was brought to its knees. Fannie and Freddie weren’t problems until they were. Just as the national debt may never be a problem until it is.

We’ve had years of denial, delay and neglect in confronting the unsustainable national debt. Today’s high rate of inflation is simply a foreshadowing of what could come if the U.S. is forced to monetize the bulk of its national debt. Reduced economic growth, a diminished national defense, insolvent social safety-net programs and recession loom as well. The 9/11 Commission concluded the national security establishment suffered from a “failure of imagination.” Let’s hope the same doesn’t prove to be true when it comes to fiscal security.

Mr. Hensarling served as a U.S. representative from Texas (2003-19) and chairman of the House Financial Services Committee (2013-19).

__________________________________________

Mr. Hensarling – Meet the most powerful economic acceleration plan on the face of the earth….

The Leviticus 25 Plan will generate $583 billion federal budget surpluses for the initial 5 years of activation (2023-2027), and completely pay for itself over the next 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 2023

Economic Scoring links:

·  The Leviticus 25 Plan 2023 – $583 billion Federal Budget Surpluses (2023-2027), Part 1: Overview, Deficit Projection

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 2: Federal Income Tax and Means-Tested Welfare Recapture Benefits.

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 3: Medicaid/CHIP and Medicare Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 4: VA, TRICARE, FEHB, SSDI Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 5: Subtotals, Interest Expense Savings, Summary

Full Plan: Leviticus 25 Plan 2023 (3958 downloads)  

__________________________________________ 

Preview 1:

The Leviticus 25 Plan provides a $90,000 credit extension, direct from the Federal Reserve, to every participating U.S. citizen:  $60,000 into a Family Account (FA) and $30,000 into a Medical Savings Account (MSA).

Example:  Qualifying family of four would receive $240,000 in their FA, and $120,000 in their MSA.

Primary goals:  Massive debt elimination at family level: mortgage debt, consumer debt, student loan debt.  Federal budget surpluses.

Eligibility:  U.S. Citizen.  Job history, credit history requirement (similar to traditional credit checks for bank loans).  Clean recent drug history.  Clean crime history.

Requirements:  Forego all federal and state tax refunds for 5-year period.

Forego selected means-tested welfare benefits – for minimum 5-year period.

Forego all income security program benefits – for minimum 5-year period.

Forego new federally-subsidized ‘Family Medical Leave’ benefits – for minimum 5-year period.

Forego Child Tax Credit benefits – for minimum 5-year period.

Forego enhanced federal rental forbearance/assistance – for minimum 5-year period.

Forego SSI and SSDI for minimum 5-year period.

New $6,000 deductible on primary care access to: Medicare, Medicaid, VA, TRICARE, FEHB – for minimum 5-year period.

The Plan assumes that the elite-wealthy will not participate, because their refunds are too valuable to give up over the requisite 5-year period.

The Plan also assumes that many who heavily depend on social welfare benefits will also choose not to participate, because the overriding value of those benefits, vs foregoing them, over the 5-year period.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (4000 downloads)

March 22, 2022

U.S. Senate and U.S. House of Representatives, Washington, D.C.

Dear U.S Congress –

I am a life-long Republican – with concerns about the lack of any long-term strategy by Republican — to reverse the growth of government and intrusion into the daily affairs of hard-working, tax-paying U.S. citizens -and get America’s massive deficits back under control.

In that regard, I am writing to you today to update you on the ‘Main Street America Republican’ economic acceleration plan that will provide a dynamic ‘recharge’ to the U.S. economy and restore economic liberty in America – and a powerful leverage to reduce America’s debt and protect the long-term viability of the U.S. Dollar.

The Leviticus 25 Plan will generate $583 billion federal budget surpluses for the initial 5 years of activation (2023-2027), and completely pay for itself over the next 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 2023

Economic Scoring links:

·  The Leviticus 25 Plan 2023 – $583 billion Federal Budget Surpluses (2023-2027), Part 1: Overview, Deficit Projection

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 2: Federal Income Tax and Means-Tested Welfare Recapture Benefits.

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 3: Medicaid/CHIP and Medicare Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 4: VA, TRICARE, FEHB, SSDI Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 5: Subtotals, Interest Expense Savings, Summary

Full Plan: Leviticus 25 Plan 2023 (3958 downloads)  

Website:   https://Leviticus25Plan.org

__________________________________________ 

Preview 1:

The Leviticus 25 Plan provides a $90,000 credit extension, direct from the Federal Reserve, to every participating U.S. citizen:  $60,000 into a Family Account (FA) and $30,000 into a Medical Savings Account (MSA).

Example:  Qualifying family of four would receive $240,000 in their FA, and $120,000 in their MSA.

Primary goals:  Massive debt elimination at family level: mortgage debt, consumer debt, student loan debt.  Federal budget surpluses.

Eligibility:  U.S. Citizen.  Job history, credit history requirement (similar to traditional credit checks for bank loans).  Clean recent drug history.  Clean crime history.

Requirements:  Forego all federal and state tax refunds for 5-year period.

Forego selected means-tested welfare benefits – for minimum 5-year period.

Forego all income security program benefits – for minimum 5-year period.

Forego new federally-subsidized ‘Family Medical Leave’ benefits – for minimum 5-year period.

Forego Child Tax Credit benefits – for minimum 5-year period.

Forego enhanced federal rental forbearance/assistance – for minimum 5-year period.

Forego SSI and SSDI for minimum 5-year period.

New $6,000 deductible on primary care access to: Medicare, Medicaid, VA, TRICARE, FEHB – for minimum 5-year period.

The Plan assumes that the elite-wealthy will not participate, because their refunds are too valuable to give up over the requisite 5-year period.

The Plan also assumes that many who heavily depend on social welfare benefits will also choose not to participate, because the overriding value of those benefits, vs foregoing them, over the 5-year period.

Preview 2:

The Leviticus 25 Plan grants the same direct access to liquidity, through a Fed-based Citizens Credit Facility, similar to the credit facilities that were created by the Fed to transfuse trillions of dollars in direct transfers and credit extensions to Wall Street’s major banks, credit agencies and insurers during the great financial crisis. 

The following facilities were created and activated by the Fed for this massive Wall Street bail out operation: Term Auction Facility (TAF), Primary Dealer Credit Facility (PDCF), Term Securities Lending Facility (TSLF), currency swap agreements with several foreign central banks,  Commercial Paper Funding Facility (CPFF), Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), Money Market Investor Funding Facility (MMIFF), and the Term Asset-Backed Securities Loan Facility (TALF), and access to the Fed’s Discount Window.

Additional perspective:  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.

Preview 3:

The Leviticus 25 Plan website has been accessed on one or more occasions by the following financial enterprises/agencies: 

JP Morgan

Goldman Sachs

Morgan Stanley

Bank of America

Citigroup

Wells Fargo

State Street

Merrill Lynch

AIG

Barclays Plc

Royal Bank of Scotland

Deutsche Bank

Société Générale S.A

UBS AG

Credit Suisse

BNP Paribas

The U.S. Department of Treasury

General Accountability Office (GAO)

The European Central Bank (ECB)

Bank of England (BOE)

Swiss National Bank (SNB)

Bank of Canada

Bank of Montreal

Bank for International Settlements (BIS)

………………………………………………………..

The General Accountability Office has stated that America’s ongoing debt crisis is unsustainable.

It is time for America to initiate a bold, new plan.

The Leviticus 25 Plan is loaded up and ready to launch.

Sincerely,

Bernie Hendricks, Brookings, SD | Author, The Leviticus 25 Plan

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.

_____________________________

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.

___________________________________

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 2023 (3986 downloads)

A Look Back: Thank you Hank Paulson, Tim Geithner, and Ben Bernanke – from the bottom of Warren Buffett’s heart…

The U.S. government responded to critical liquidity shortages within Wall Street’s financial sector and a crumbling U.S. economy during the 2008-09 financial crisis, by funneling trillions of dollars in direct cash transfers, emergency loans, credit guarantees, and balance-sheet-clearing toxic mortgage debt purchases – to many of America’s premier financial corporations.

Billionaire Warren Buffett lobbied hard for the massive bailouts…. and with good reason. At least eight of these companies receiving billions of dollars of taxpayer bailouts were owned by Mr. Buffett’s Berkshire Hathaway.

Buffett’s Betrayal: Rolfe Winkler | Reuters / Aug 4, 2009 – Excerpts:
A good chunk of his [Warren Buffett’s] fortune is dependent on taxpayer largess. Were it not for government bailouts, for which Buffett lobbied hard, many of his company’s stock holdings would have been wiped out.

Berkshire Hathaway, in which Buffett owns 27 percent, according to a recent proxy filing, has more than $26 billion invested in eight financial companies that have received bailout money. The TARP at one point had nearly $100 billion invested in these companies and, according to new data released by Thomson Reuters, FDIC backs more than $130 billion of their debt.

To put that in perspective, 75 percent of the debt these companies have issued since late November has come with a federal guarantee.

Without FDIC’s debt guarantee program, even impregnable Goldman would have collapsed.And this excludes the emergency, opaque lending facilities from the Federal Reserve that also helped rescue the big banks. Without all these bailouts, the financial system would have been forced to recapitalize itself.

Banks that couldn’t finance their balance sheets would have sold toxic assets at market prices, and the losses would have wiped out their shareholder’s equity. With $7 billion at stake, Buffett is one of the biggest of these shareholders.

…………………………………………………………………………………

Fast-forward to 2015… the country’s second richest man was back, ‘sticking it to’ the very people whose billions of dollars bailed him out seven short years ago – U.S. taxpayers.

Warren Buffett, Slumlord – Predatory Loans, Kickbacks & Preying On The Poor  

ZeroHedge, Apr 6, 2015 – Excerpts:                                                                  

Buffett’s mobile-home empire promises low-income Americans the dream of homeownership. But Clayton [controlled by America’s second richest man, billionaire Warren Buffet], relied on predatory sales practices, exorbitant fees, and interest rates that can exceed 15 percent, trapping many buyers in loans they can’t afford and in homes that are almost impossible to sell or refinance, an investigation by The Seattle Times and Center for Public Integrity has found.

  _____________________________________

America does not need ‘wealth redistribution,’ as many socialist-minded politicians are demanding.

What America does need is equal access by the citizenry to the types of Federal Reserve monetary credit flows that were so generously provided to Mr. Buffett and his well-heeled, well-connected Wall Street cronies received during the stupendous financial sector bailouts.

U.S. citizens deserve nothing less than to be granted that same direct access to liquidity that the U.S. Federal Reserve showered on Wall Street’s wealthy elites over what ended up being a 5-year flow from 2007-2012.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (3986 downloads)

U.S. Health Care – massive costs with under-performing outcomes….

……………………………………………………

Key Drivers of the National Debt – Health Care Costs

Excerpts:

One of the primary drivers of America’s long-term fiscal challenges is our inefficient healthcare system. Combined with the demographic realities of an aging population, America’s healthcare system leaves us with an unsustainable fiscal future. Not only will more Americans qualify for federal healthcare programs like Medicare in the coming years, but older people, on average, need more healthcare. Consequently, without reform, the federal budget will bear the cost of rapidly growing healthcare bills.

In 2020, the United States spent $4.1 trillion — or 20 percent of the national economy — on healthcare. On a per capita basis, our healthcare system is the most expensive among advanced nations. Yet, America’s health outcomes are generally no better than those of our peers, and in some cases are worse, including in areas like life expectancy, infant mortality, asthma, and diabetes.

Put simply, we are paying more than other countries, but we aren’t seeing better results. Healthcare experts have estimated that 25 percent of our total healthcare spending goes to unnecessary and wasteful services. Furthermore, healthcare spending is projected to keep rising — faster than inflation, wages, and the overall economy. Not only does the system result in health outcomes that are generally no better for patients, but its inefficiency also creates enormous challenges for the U.S. economy and federal government.

The primary reasons why our healthcare system underperforms is because the typical factors that fuel improvement and innovation in other industries are lacking in healthcare:

• Historically, consumers have not been cost sensitive because their employers and health plans often cover a large share of their costs and because they lack the information required to assess quality and cost.
• Employers and insurers often assume a passive role, accepting annual cost increases, and eventually pass those costs on to customers and employees.
• Providers generally operate under a fee-for-service model in which they are compensated based on the volume of their services, rather than the value of the care they provide.
• Improvements in technology often make healthcare more expensive.

Under this system, the demands and rewards for quality, efficiency, and price sensitivity are sharply reduced.

The growth in healthcare costs per person has slowed in the last few years, but it is uncertain how long this welcomed trend will continue. Despite the slowdown, the Centers for Medicare and Medicaid Services projects that total spending for healthcare will climb to 19 percent of GDP in 2025. According to CBO, spending on the major federal healthcare programs will rise from 5.7 percent of GDP in 2022 to 9.4 percent in 2051 — an increase of 64 percent.

___________________________________

It is time to decentralize the U.S. economy – and return to a citizen-centered health care system.

Putting citizens back in control of their access to primary health care services will lead to participating consumers taking a more active, cost sensitive role in their health care decisions. It will re-establish and strengthen patient-provider relationships, and reduce inefficiencies and costs.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (3978 downloads)

Our U.S. Congress has, as a practical matter, completely jettisoned fiscal discipline in their budgeting process.

The Government Accountability Office (GAO) stated in their March 23, 2021 report, The Nation’s Fiscal Health: “The unsustainable fiscal path strains the federal budget and contributes to growing debt. According to CBO, high and rising federal debt increases the likelihood of a fiscal crisis and could lead to a large drop in the value of the dollar or to a loss of confidence in the government’s ability or commitment to repay its debt in full.”

To accommodate the ongoing failure of our U.S. Congress to address this debt crisis, The Federal Reserve has had no choice but to ‘create’ new money, primarily to purchase large amounts of Treasury and Agency debt…..

………………………………………………………..

Felder Report: “Is It ‘Monetization’ Yet, Dr. Bernanke?”

Feb 19, 2022 | Authored by Jesse Felder via The Felder Report, | https://thefelderreport.com/2022/02/16/is-it-monetization-yet-dr-bernanke/

Eleven years ago, shortly after the onset of QE 2, Ben Bernanke gave us his definition for “monetization” of the debt, telling Congress (hat tip, Grant’s):

Monetization would require a permanent increase in the money supply to pay the government’s bills through money creation.

What we’re doing here is a temporary measure which will be reversed, so that at the end of this process, the money supply will be normalized, the Fed’s balance sheet will be normalized and there will be no permanent increase, either in money outstanding or in the Fed’s balance sheet.

At the time, The Fed’s balance sheet was approaching $2.5 trillion.

Today, it stands at nearly $9 trillion, more than triple the figure from a decade ago.

And so it only seems fair to ask, ‘Is it monetization yet, Dr. Ben?’

__________________________________________

The Leviticus 25 Plan is the one and only plan that is ‘primed up’ and ready to launch.

The Leviticus 25 Plan will provide a dynamic ‘recharge’ to the U.S. economy and restore economic liberty in America – and work get America’s budget deficits back under control and protect the long-term viability of the U.S. Dollar.

The Leviticus 25 Plan will generate $583 billion federal budget surpluses for the initial 5 years of activation (2023-2027), and completely pay for itself over the next 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 2023

Economic Scoring links:

·  The Leviticus 25 Plan 2023 – $583 billion Federal Budget Surpluses (2023-2027), Part 1: Overview, Deficit Projection

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 2: Federal Income Tax and Means-Tested Welfare Recapture Benefits.

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 3: Medicaid/CHIP and Medicare Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 4: VA, TRICARE, FEHB, SSDI Recapture Benefits

·  The Leviticus 25 Plan 2023 – $583 Billion Federal Budget Surpluses Annually (2023-2027), Part 5: Subtotals, Interest Expense Savings, Summary

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$90,000 per U.S. citizen – Leviticus 25 Plan 2023 (3972 downloads)

The Fed “Instability” Trap

Authored by Lance Roberts via RealInvestmentAdvice.com,

Jan 28, 2022 – Excerpts:

After more than 12-years of the most unprecedented monetary policy program in U.S. history, the Fed realizes there are significant risks in the financial system. The behavioral biases of individuals remain the most serious risk facing the Fed. 

With the Fed now reversing monetary accommodation, the question is how long before something breaks.

In the short term, the economy and the markets (due to the current momentum) can DEFY the laws of financial gravity as interest rates rise. However, as interest rates increase, they act as a “brake” on economic activity. Such is because higher rates NEGATIVELY impact a highly levered economy:

• Rates increases debt servicing requirements reducing future productive investment.
• Housing slows. People buy payments, not houses.
• Higher borrowing costs lead to lower profit margins.
• The massive derivatives and credit markets get negatively impacted.
• Variable rate interest payments on credit cards and home equity lines of credit increase, reducing consumption.
• Rising defaults on debt service will negatively impact banks which are still not as well capitalized as most believe.
• Many corporate share buyback plans and dividend payments are done through the use of cheap debt.
• Corporate capital expenditures are dependent on low borrowing costs.
• The deficit/GDP ratio will soar as borrowing costs rise sharply.

The debt problem exposes the Fed’s risk and why they continue to look for excuses NOT to hike rates. (Like “full employment” even though jobless claims are at record lows.) However, given economic stability was not achieved in the last decade, it is doubtful the withdrawal of monetary accommodation will be “risk-free.”

The evidence is quite clear that surging debt and deficits inhibit organic growth, and the massive debt levels are sensitive to increases in interest rates.

With exceptionally high market valuations, Fed rate hikes historically led to events that devastated investors. Those events created the Fed’s repetitive cycle of monetary policy.

1. Monetary policy drags forward future consumption leaving a void in the future.
2. Since monetary policy does not create self-sustaining economic growth, ever-larger amounts of liquidity are needed to maintain the same level of activity.
3. The filling of the “gap” between fundamentals and reality leads to economic contraction.
4. Job losses rise, wealth effect diminishes, and real wealth reduces. 
5. The middle class shrinks further.
6. Central banks act to provide more liquidity to offset recessionary drag and restart economic growth by dragging forward future consumption. 
7. Wash, Rinse, Repeat.

Conclusion

“Financial markets’ sensitivity to monetary policy has never been higher. The Fed’s balance sheet doubled since the end of the last financial crisis and is now 40% of gross domestic product. By buying massive amounts of bonds, the Fed lowered rates and used asset prices, like stocks, as the primary tool for monetary policy. That’s through the so-called wealth effect, or the tendency for consumers (two-thirds of GDP) to spend more as their assets grow.” – Joe LaVorgna

Therein lies the problem…. If the Fed tightens, the existing debt pile becomes more expensive to service, and stocks fall, hampering consumer confidence and economic growth.

On the other hand, if the Fed doesn’t tighten, debt across households, companies, and the government will continue to grow, making it more challenging for the Fed to act in the future

___________________________________

Exactly. The Fed cannot raise rates, in any meaningful way, with the U.S. economy surrounded by mountains of debt. According to the NY Fed, Household Debt climbed over the $15 trillion mark in Q3 2021. Corporate debt in 2020 rose to $11 trillion, according to Federal Reserve data.

The National Debt just hit $30 trillion. State and Local debt stands at $3.2 trillion.

The solution: America needs a dynamic new ‘debt elimination plan.’

There is just such a plan – loaded up and ready to launch. It will eliminate massive amounts of ‘ground level’ debt in America, usher in a long-term economic growth cycle, strengthen free market dynamics, and restore economic liberty.

It will generate $583 billion Federal budget surpluses during each of its first five years of activation – and pay for itself over a 10-15 year period.

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 2022 (3941 downloads)

America needs a qualitatively new economic strategy – one that will elevate large segments of our population up the scales of financial security, so they do not need so many of these social programs to survive…

…………………………………………………

The GAO Shows That Data Matching Can Reduce Waste, Fraud, and Abuse

Source: https://www.cdiaonline.org/data-delivered-for-good/2021/12/20/the-gao-shows-that-data-matching-can-reduce-waste-fraud-and-abuse/

Excerpts:

In 2021, the GAO conducted a review of several programs that assist low-income individuals and concluded, among other things, that better data matching can prevent fraud, waste, and abuse, and can better direct funds to people that really need it. 

In a report, the GAO looked at Earned Income Tax Credit (EITC), Housing Choice Vouchers, Low Income Home Energy Assistance Program (LIHEAP), Medicaid (Modified Adjusted Gross Income (MAGI) eligible), Supplemental Nutrition Assistance Program (SNAP), and Supplemental Security Income (SSI).  All of these programs have income eligibility requirements.

The amount of improper payments made for a number of federal assistance programs is staggering.  In 2019, improper payments for four programs was around $90b: Medicaid ($57.4b), the Earned Income Tax Credit (EITC) ($17.4b), Supplemental Security Income (SSI) ($5.5b), and SNAP ($4b).

For energy assistance programs, the GAO added that “[b]ased on [its] review of state plans, 13 agencies administering LIHEAP reported using no electronic data to verify beneficiaries’ income, verifying income in other ways, such as checking beneficiaries’ documents.”  The report added that while the U.S. “Department of Health and Human Services (HHS) has encouraged LIHEAP agencies to use electronic data to improve program integrity, [it] has not taken recent steps to share information that could facilitate its use. HHS officials said that doing so could help state agencies’ verification efforts.

___________________________________________

The Leviticus 25 Plan will eliminate massive amounts of personal and household debt for working, tax-paying Americans – and grant millions of American families liquidity benefits that will allow them to directly allocate resources that best suit their needs – particularly in the realm of health care.

The Plan will help lift people up economically to a level where they will not need, and subsequently will not qualify for, many of these social programs.

Reducing the raw numbers of people enrolled in these programs will also serve to reduce the scope of fraud, waste, and abuse.

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 2022 (3934 downloads)

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

Navient is a Government-Sponsored Enterprise (GSE), formerly known as Sallie Mae, which effectively took over the student loan market in 2010. It is now losing a ‘boat-load’ of money, and taxpayers are ‘on the hook’ for billions.

………………………………………………………….

WSJ: Navient, the Student Loan Punching Bag

The Wall Street Journal Editorial Board, Jan 14, 2022 – Excerpts:

The Democrats’ government student loan takeover in 2010 is one of the great policy fiascoes of the age. But politicians can never admit it, so instead they’re kicking Navient, the student loan servicer.

Navient, formerly Sallie Mae, on Thursday agreed to settle 39 state Attorneys General lawsuits by cancelling $1.7 billion in defaulted debt. It will also make $260 payments to 350,000 federal student loan borrowers who were allegedly wrongly placed in long-term forbearance.

The State AGs accused Navient of “predatory lending” for making private loans to lower-income borrowers who attended for-profit schools, and for charging higher interest rates due to their higher credit risk. Heaven forbid a private lender, unlike the feds, try to avoid losing money.

Lower-income students couldn’t pay tuition with federal aid alone, so Navient filled the gap. For-profits also must derive at least 10% of their revenues from sources other than federal aid. So Navient indirectly helped those schools stay in business—and compete with community colleges. That’s another Navient political sin.

…..

The AGs accused Navient of wrongly placing borrowers in forbearance, which lets them defer payments while continuing to accrue interest. Borrowers enrolled in loan forgiveness plans also accrue interest because they often don’t pay enough to reduce their balance. This is a big reason the federal student loan balance sheet has doubled over the last decade to $1.6 trillion.

Navient denies wrongdoing and continues to fight similar legal charges filed by Obama Consumer Financial Protection Bureau Director Richard Cordray in early 2017. But it says settling the AG lawsuits was less expensive than continuing to fight. In September it also sought to end its government servicing contract because it was more hassle than it is worth.

But get this—Mr. Cordray, now chief operating officer of the Education Department’s Federal Student Aid office, requested that Navient renew the contract through 2023. Democrats need to keep around a punching bag as the government student loan debacle grows.

_______________________________

Note – “The average student loan debt for recent college graduates is nearly $30,000,” according to U.S News data, Sept. 14, 2021.

The Leviticus 25 Plan grants U.S. citizens the same direct access to liquidity that was provided to major banks and insurers during the great financial crisis. Each participating/qualifying citizen would receive a deposit of $60,000 into a Family Account (FA) and $30,000 into a Medical Savings Account (MSA).

The Plan would put students back in control of their college financing – and allow the government to dramatically shrink its student loan footprint.

It would facilitate a free market environment for higher education financing and provide It would provide direct liquidity extensions to reduce/eliminate loan balances.

It would provide liquidity for loan recipients of non-government financing – and help them also reduce/eliminate debt.

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 2022 (3926 downloads)