2009-2011: Fed QE and big-government central planning primarily benefitted the wealthy. It is time now for a catch-up plan with broad-based benefits for all Americans: The Leviticus 25 Plan.

PEW Research, April 23, 2013:                                                      

A Rise in Wealth for the Wealthy; Declines for the Lower 93%  

[Excerpts]

“During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.”

“From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896.”

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The Leviticus 25 Plan broadens out economic benefits for all Americans.

Key benefits:

1. Provide direct liquidity infusions to all American citizens.

2. Optimize the allocation of health-care services and spending (including Medicare and Medicaid).

3. Improve the economic climate for U.S. small businesses.

4. Improve employment opportunities for all Americans.

5. Generate a long-term, healthy stream of tax revenue for government (federal, state, local).

6. Reduce the cost of government.

7. Stabilize the U.S. housing market.

8. Stabilize the U.S. banking system – and moderate risk dangers from certain derivatives and rehypothication stratagies.

9. Reduce the scope of social programs and their control over U.S. citizens.

The Leviticus 25 Plan will revitalize economic progress and incentives for all Americans.

Big banks, criminal enterprise, and favorable treatments

One of the main underlying presumptions of The Leviticus 25 Plan is that U.S. citizens should be treated with the same deference that many of the ‘too big to fail’ banks have received (and continue to receive).

Take HSBC, for instance.  This major U.K. banking titan (formerly the Hong Kong Shanghai Banking Corp) and current Fed-approved Primary Dealer, had purchased massive levels of credit default swaps from AIG  by the fall of 2008 – evidently without checking on the creditworthiness (and reserve levels) of AIG.

The housing bubble popped that fall, and AIG went ‘toes up’ as their counterparties (HSBC and numerous others) sought to collect.

The U.S. government immediately stepped in to fully fund (100 cents on the dollar) a $90 billion payout (“collateral postings”) to the major AIG counterparties involved.  

HSBC Holdings received a pass-through payment, courtesy of U.S. taxpayers, of $3.5 billion.

And… it was recently revealed that HSBC has been running “the largest drug-and-terrorism money laundering case ever” uncovered by the Justice Department.  The penalty – a slap on the wrist.                                                                                        

The Leviticus 25 Plan proposes that U.S. citizens be accorded the same financial deference that banking conglomerates like HSBC have been receiving.

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REUTERSHSBC among banks that received AIG payouts (03-16 12:59)
American International Group has disclosed that US and European banks such as HSBC have been among the biggest beneficiaries of the up to US$180 billion (HK$1.4 trillion) taxpayer bailout of the insurer.
AIG disclosed that more than US$90 billion has been paid to banks through collateral postings under credit default swaps, payments to CDS counterparties and payments to securities lending counterparties from September 16 to the end of December.Based on data provided by AIG, the largest recipients of funds are:
Goldman Sachs Group US$$12.9 billion
Societe Generale US$11.9 billion
Deutsche Bank US$11.8 billion
Barclays US$8.5 billion
Merrill Lynch US$6.8 billion
Bank of America Corp US$5.2 billion
UBS US$5 billion
BNP Paribas US$4.9 billion
HSBC Holdings US$3.5 billion
Dresdner US$2.6 billion
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(Excerpts from Rolling Stone)
February 14, 2013 8:00 AM ET
The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks’ profit – but they didn’t extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses.   
                    
For at least half a decade, the storied British colonial banking power helped to wash hundreds of millions of dollars for drug mobs, including Mexico’s Sinaloa drug cartel, suspected in tens of thousands of murders just in the past 10 years – people so totally evil, jokes former New York Attorney General Eliot Spitzer, that “they make the guys on Wall Street look good.”  The bank also moved money for organizations linked to Al Qaeda and Hezbollah, and for Russian gangsters; helped countries like Iran, the Sudan and North Korea evade sanctions; and, in between helping murderers and terrorists and rogue states, aided countless common tax cheats in hiding their cash.                     
                                          
“They violated every [sic] law in the book,” says Jack Blum, an attorney and former Senate investigator who headed a major bribery investigation against Lockheed in the 1970s that led to the passage of the Foreign Corrupt Practices Act. “They took every imaginable form of illegal and illicit business.”                                                         
In April 2003, with 9/11 still fresh in the minds of American regulators, the Federal Reserve sent HSBC’s American subsidiary a cease-and-desist­ letter, ordering it to clean up its act and make a better effort to keep criminals and terrorists from opening accounts at its bank. One of the bank’s bigger customers, for instance, was Saudi Arabia’s Al Rajhi bank, which had been linked by the CIA and other government agencies to terrorism.
According to a document cited in a Senate report, one of the bank’s founders, Sulaiman bin Abdul Aziz Al Rajhi, was among 20 early financiers of Al Qaeda, a member of what Osama bin Laden himself apparently called the “Golden Chain.” In 2003, the CIA wrote a confidential report about the bank, describing Al Rajhi as a “conduit for extremist finance.” In the report, details of which leaked to the public by 2007, the agency noted that Sulaiman Al Rajhi consciously worked to help Islamic “charities” hide their true nature, ordering the bank’s board to “explore financial instruments that would allow the bank’s charitable contributions to avoid official Saudi scrutiny.” (The bank has denied any role in financing extremists.)
For more than half a decade, a whopping $19 billion in transactions involving Iran went through the American financial system, with the Iranian connection kept hidden in 75 to 90 percent of those transactions. HSBC has been headquartered in England for more than two decades – it’s Europe’s largest bank, in fact – but it has major subsidiary operations in every corner of the world. What’s come out in this investigation is that the chiefs in the parent company often knew about shady transactions when the regional subsidiary did not. In the case of banned Iranian transactions, for instance, there are multiple e-mails from HSBC’s compliance head, David Bagley, in which he admits that HSBC’s American subsidiary probably has no clue that HSBC Europe has been sending it buttloads of banned Iranian money.
By that time, numerous agencies, including the Department of Homeland Security, had crawled all the way up HSBC’s backside, among other things examining it as part of a major international narcotics investigation. In one four-year period between 2006 and 2009, an astonishing $200 trillion in wire transfers (including from high-risk countries like Mexico) went through without any monitoring at all. The bank also failed to do due diligence on the purchase of an incredible $9 billion in physical U.S. dollars from Mexico and played a key role in the so-called Black Market Peso Exchange, which allowed drug cartels in both Mexico and Colombia to convert U.S. dollars from drug sales into pesos to be used back home. Drug agents discovered that dealers in Mexico were building special cash boxes to fit the precise dimensions of HSBC teller windows.                                                                                               
Former bailout inspector and federal prosecutor Neil Barofsky, who has helped secure numerous foreign money-laundering indictments, points out that the people HSBC was doing business with, like Colombia’s Norte del Valle and Mexico’s Sinaloa cartels, were “the worst trafficking organizations imaginable” – groups that don’t just commit murder on a mass scale but are known for beheadings, torture videos (“the new thing now,” he says) and other atrocities, none of which happens without money launderers. It’s for this reason, Barofsky says, that drug prosecutors are not shy about dropping heavy prison sentences on launderers. “Frankly, our view of money-laundering was that it was on par with, and as significant as, the traffickers themselves,” he says.
Barofsky was involved in the first extradition of a Colombian national (Pablo Trujillo, a member of the same cartel that HSBC moved money for) on money­laundering charges. “That guy got 10 years,” says Barofsky. “HSBC was doing the same thing, only on a much larger scale than my schmuck was doing.”
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American citizens deserve at least as much regard from its own government as major banking conglomerates have been receiving, particularly those engaging in blatant criminal activity.
The Leviticus 25 Plan.

Fed QE flows – primarily going to foreign banks. Along with ‘billions’ in interest.

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

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.”

____________________________

If foreign banks are deserving of Federal Reserve-generated liquidity flows, then U.S. citizens are equally deserving.

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

The Leviticus 25 Plan.

Bloomberg: “$64 billion” in delinquent mortgages for Bank of America

(Bloomberg, Dec 19, 2012 – excerpts) –  “Bank of America Corp. has amassed $64 billion of mortgages that are at least six months delinquent and have yet to enter foreclosure, more than twice the amount held by its four largest competitors combined.”

“Bank of America’s stockpile of deteriorating debt is mostly from its 2008 acquisition of Countrywide Financial Corp., once the nation’s largest mortgage provider. Wells Fargo & Co. (WFC), the biggest U.S. servicer, has $15.3 billion of such unpaid loans.”

“Bank of America has about 930,000 loans that are at least 60 days delinquent, down from 1.5 million from the peak in January 2010, Chief Executive Officer Brian Moynihan, 53, said during a Dec. 14 event at the Brookings Institution in Washington.”

“The bank also has a large portion of delinquent Federal Housing Authority mortgages…”  Note:  taxpayers are ‘on the hook’ for these FHA guaranteed loans (and the FHA recently announced that its reserve fund is ‘dry’ and they are on the verge of defaulting).

Note:  Bank of America’s $64 billion in delinquent mortgage represents an amount greater than half of their current market cap.

Full article: Bloomberg 12-19-12

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Nationwide, November 2012: RealtyTrac reports that 1,547,825 homes are under a foreclosure filing in the U.S..

The Leviticus 25 Plan would provide a mechanism for American families to ‘clean up’ delinquent mortgages and engage in successful ‘work out’ plans to regain ownership of their homes.

This would stanch the banks’ balance sheet bleeding and stabilize the housing market.

The Leviticus 25 Plan would pay for itself over a 10-15 year period.

No other plan can make that claim.  And no other plan can deliver the power of economic liberty – and do so much to serve the interests of individual U.S. citizens.

September 2012: U.S. finalizing “international assistance package” for Egypt – will forgive $1 billion in debt.

More from The New York Times:

“In addition to the debt assistance, the administration has thrown its support behind a $4.8 billion loan being negotiated between Egypt and the International Monetary Fund. Last week, it dispatched the first of two delegations to work out details of the proposed debt assistance, as well as $375 million in financing and loan guarantees for American financiers who invest in Egypt and a $60 million investment fund for Egyptian businesses.

The assistance underscores the importance of shoring up Egypt at a time of turmoil and change across the Middle East, including the relatively peaceful uprisings in Egypt and Tunisia, the still-unfinished transition in Libya, the showdown over Iran’s nuclear program and the war in Syria.

Given Egypt’s influence in the Arab world, the officials said, its economic recovery and political stability could have a profound influence on other nations in transition and ease wariness in Israel about the tumultuous political changes under way.”

Note:  The U.S. government is a 17% stakeholder in the International Monetary Fund.  What does that mean?

WSJ Sep 5, 2012:  “The IMF is akin to a global credit union. Members kick in money. The institution’s board lends it out.

Each member has a “quota”—that is, a financial stake in the IMF, expressed as a percentage—and contributes accordingly. The U.S. quota is 17.09%, followed by Japan at 6.12%, Germany at 5.98% and France and Britain at 4.94% each.

Does that mean that the U.S. is responsible for 17% of the IMF’s portion of the Greek package? Not exactly.

First, though all countries are theoretically responsible for investing in the IMF’s lending pool, not all of them have currencies that potential borrowers can use. (Think of Zimbabwean dollars or Venezuelan pesos.)

The IMF doesn’t say that outright. Instead, it uses the concept of “usable resources,” meaning it uses money from countries that are considered financially sound. About 21% of the quota contributions to the IMF were “non-usable,” according to the IMF, as of January 2010.

Because the U.S., Japan and big European countries are in the “usable” camp, they finance a larger percentage of IMF funding than their quota would suggest.”

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The U.S. taxpayer is ‘standing behind’ a large share of the $4.8 billion IMF loan package to Egypt – well over $800 million.  Egypt also receives $1.3 billion per year as a military assistance package from the U.S..  And they just received a $1 billion loan write-off from the U.S. Government.

………………………….

There is no legitimate reason why, if the U.S. Government can extend funds to foreign countries (no collateral involved) and forgive loans to those same countries (with no collateral obligation required), that U.S. citizens should not also be granted the same equal access to direct credit extensions.

After all, it is our money.

The Leviticus 25 Plan would pay for itself – over a 10-year period.  And it is fully collateralized.

The Leviticus 25 Plan.

Government-directed solutions? “… as an aside, because debt has been swapped, rather than reduced, aggregate debt in many economies is now higher (relative to GDP) than in 2008.” – Morgan Stanley

(In other words, government-based ‘Central Planning’ is not working.  And will not work in the future…)

The Morgan Stanley report goes on to conclude, “In short, it is impossible for governments to grow their way back to solvency.”  All they can do is shuffle debt around, ostensibly for the benefit of powerful, politically connected  constituencies.

And (brace yourselves…) the IMF advises that “Tightening” is the solution – even though “Tightening Hurts.”

The U.S. Government has provided trillions of dollars of funding (TARP, stimulus programs, bailouts) to major credit institutions and politically-connected constituency groups.

In addition, the Federal Reserve has purchased European debt – of all things.  They have provided trillions of dollars in credit extensions to many of the very domestic and foreign banks that triggered the banking crisis in the Fall of 2008.

One of the more ‘visible’ bailouts came courtesy of the  U.S. Government  on behalf of Goldman Sachs.  Goldman had purchased credit default swaps (CDS’) from AIG and didn’t happen to verify that AIG had adequate reserves to cover the CDS’ (derivatives).  They didn’t.  When the ‘you-know-what’ hit the fan, AIG turned their pockets inside out (no money).  And the U.S. Government (that is to say, ‘taxpayers’) stepped in to ‘cover’ the massive Goldman bet that went sour:

“…according to the terms of the bailout deal struck when AIG was taken over by the state in September 2008, Goldman was paid 100 cents on the dollar on an additional $12.9 billion it was owed by AIG”

Read more: http://www.rollingstone.com/politics/news/wall-streets-bailout-hustle-20100217#ixzz21kDwPRyY

And on to the Federal Reserve ‘rescue’ initiatives…

Federal Reserve – credit extensions – allowing two major investment banks (Goldman Sachs and Morgan Stanley) to quickly receive commercial bank charters, allowing them to qualify for near-zero interest rate loans, with which to purchase Treasuries – and earn ‘free money.’  Lots of it.

Federal Reserve – Primary Dealer Credit Facility (PDCF) allowing major banks to pledge sub-investment grade collateral to qualify for additional near-zero interest rate loans – with which to purchase Treasuries and earn more ‘free money.’

Federal Reserve – Temporary Liquidity Guarantee Program (TLGP) for the big money center banks… ‘worth trillions.’

Federal Reserve – Public Private Investment Program (PPIP) – allowing banks to ‘off-load’ worthless assets onto the Fed balance sheet.

Again – government-based ‘Central Planning’ is not working.  And will not work in the future…  America is sinking deeper into the debt hole.  Economic growth is stagnant.  And for all of the trillions of dollars the government has ‘thrown’ at the problem, the average American family has benefited very little, if at all.  In fact you could make a strong case that things are getting worse.

America doesn’t need the type of “Tightening” the IMF and Morgan Stanley are talking about.  America needs liquidity and debt relief at the Family level.

It is time now for a new initiative.

The Leviticus 25 Plan will provide American families with the same access to liquidity (credit extensions) that the Federal Reserve has been granting to the banks.

And The Leviticus 25 Plan will pay for itself over a 10-year period with the ‘recapture provisions.’  And the ‘ripple out’ effect will yield efficient benefits for government tax revenues, small business revenues, the labor market, housing… and even banks – in the long run.

No other plan will deliver such benefits and set America back on course for financial stability and economic liberty for American families.

Confirmation: “We are trying to rescue the creditors and restart the world that is dominated by the creditors. We have to rescue the debtors instead before we are going to see the end of this process.” — Steve Keen, Australian economics and finance professor – University of Western Sydney

Precisely.

And The Leviticus 25 Plan is the practical application of that concept.  It delivers direct credit extensions to the citizens of a given nation, thereby strengthening the base –   rather than continuing to extend credit to major financial centers, faltering from poor asset (loan portfolio) performance.

The Leviticus 25 Plan will provide for massive debt relief at the family level.  Economic acceleration.  Government cost savings and robust tax revenue growth – all with-out raising taxes.  This Plan will reincentivize work, industriousness, wise decision-making and productivity.

It will relight the fires of economic liberty for citizens.

…………………………………………

Keen continues: “I think the mistake [central banks] are going to make is to continue honoring debts that should never have been created in the first place. We really know that that the subprime lending was totally irresponsible lending.

When it comes to saying “who is responsible for bad debt?” you have to really blame the lender rather than the borrower, because lenders have far greater resources to work out whether or not the borrower can actually afford the debt they are putting out there.”

“They were creating debt just because it was a way of getting fees, short-term profit, and they then sold the debt onto unsuspecting members of the public as well and securitized their way out of trouble. They ended up giving the hot potato to the public. So, you should not be honoring that debt, you should be abolishing it. But of course they have actually packaged a lot of that debt and sold it to the public as well, you cannot just abolish it, because you then would penalize people who actually thought they were being responsible in saving and buying assets.”

“Therefore, I am talking in favor of what I call a modern debt jubilee or quantitative easing for the public, where the central banks would create ‘central bank money’ (we cannot destroy or abolish the debt, which would also destroy the incomes of the people who own the bonds the banks have sold). We have to create the state money and give it to the public, but on condition that if you have any debt you have to pay your debt down — no choice. Therefore, if you have debt, you can reduce the debt level, but if you do not have debt, you get a cash injection.”

Spiraling global debt and economic deceleration …

“Europe is imploding under its own volition and I think the Euro is probably going to collapse at some stage or contract to being a Northern Euro rather than the whole of Euro. We will probably see every government of Europe be overthrown and quite possibly have a return to fascist governments. It came very close to that in Greece with fascists getting five percent of the vote up from zero. So political turmoil in Europe and that seems to be Europe’s fate.”

“I can see England going into a credit crunch year, because if you think America’s debt is scary, you have not seen England’s level of debt. America has a maximum ratio of private debt to GDP adjusted over 300%; England’s is 450%. America’s financial sector debt was 120% of GDP, England’s is 250%. It is the hot money capital of the western world.”

“And now that we are finally seeing decelerating debt over there plus the government running on an austerity program at the same time, which means there are two factors pulling on demand out of that economy at once. I think there will be a credit crunch in England, so that is going to take place as well.”

America is still caught in the deleveraging process. It tried to get out, it seemed to be working for a short while, and the government stimulus seemed to certainly help. Now, that they are going back to reducing that stimulus, they are pulling up the one thing that was keeping the demand up in the American economy and it is heading back down again. We are now seeing the assets market crashing once more. That should cause a return to decelerating debt — for a while you were accelerating very rapidly and that’s what gave you a boost in employment — so you are falling back down again.”

Australia is running out of steam because it got through the financial crisis by literally kicking the can down the road by restarting the housing bubble with a policy I call the first-time vendors boost. Where they gave first time buyers a larger amount of money from the government and they handed over times five or ten to the people they bought the house off from the leverage they got from the banking sector. Therefore, that finally ran out for them.”

China got through the crisis with an enormous stimulus package. I think in that case it is increasing the money supply by 28% in one year. That is setting off a huge property bubble, which from what I have heard from colleagues of mine is also ending.”

“Therefore, it is a particularly ugly year for the global economy and as you say, we are still trying to get business back to usual. We are trying to rescue the creditors and restart the world that is dominated by the creditors. We have to rescue the debtors instead before we are going to see the end of this process.”

Full report submitted by Chris Martenson – accessed from ZeroHedge: http://www.zerohedge.com/news/steve-keen-why-2012-shaping-be-particularly-ugly-year

Government ‘misadventures’ and the current economic track…

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.

Banks foreclosed on 804,000 homes in 2011…

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

While foreclosures eased slightly in March 2012 vs March 2011, “RealtyTrac 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.”

$375 million… Here we go again. U.S. taxpayers on the hook for another round of ‘coordinated’ bailouts for Greece.

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.