The prospect of a new war between, say, Iran and Saudi Arabia — U.S and Russia four powers at each other’s throats at this very moment — can never be ruled out, though neither side is believed to have the capacity or inclination to undertake such a risky move. A Saudi decision to constrain production is somewhat more likely sooner or later, given the precipitous decline in government revenues. However, the Saudis have repeatedly affirmed their determination to avoid such a move, as it would largely benefit the very producers — namely shale operators in the U.S. — they seek to eliminate. [Read more…]
Dr PAUL CRAIG ROBERTS WARNING – Putin Says We Are On The Brink Of WW3 – Economic Collapse and Financial Crisis is Rising any Moment
Dollar Collapse & WW3 Obama vs Putin New Video
OBAMA Puts Sanctions On Russia, Putin Promises to DROP THE DOLLAR and CRASH THE US ECONOMY.
Stock-market crash of 2016: The countdown begins It’s time to start the countdown to the crash of 2016. No, this is not a prediction of a minor correction. Plan on a 50% crash.Most investors don’t want to hear the countdown, will tune out. Basic psychology. They’ll keep charging ahead with a bullish battle cry, about how the Nasdaq will keep climbing relentlessly to a new record above 5,048 … smiling as they remember reading that a whopping 73 companies are now in the Wall Street Journal’s Billion ). Hearts race even faster reading in Bloomberg BusinessWeek that n Yes, technology IPOs are in the lead, and with all that good hear the warnings, countdown to the 2016 crash. [Read more…]
George Soros Is Collapsing the US Dollar Which Will Lead to WW III.
If you want to figure out what is going to happen next in the financial markets, carefully watch what the insiders are doing. Those that are “connected” have access to far better sources of information than the rest of us have, and if they hear that something big is coming up they will often make very significant moves with their money in anticipation of what is about to happen. Right now, Wall Street insiders and central banks all around the globe are making some very unusual moves. In fact, they appear to be rapidly preparing for something really big. So exactly what are they up to? In a previous article entitled “Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?“, I speculated that they may be preparing for a financial meltdown of some sort.
The End Of Money & The End Of Humanity
By Philip Jones
Money, As our world shakes and reels from the shock waves of the current financial crisis; there are still those who believe naively that what is now occurring is part of some cyclical `ebb and flow` in the evolution of the worlds financial markets, which will in time, begin to recover and once again, the good times will return. I have some bad news for those `optimists`! There will be no recovery. What is happening now is as David Icke has written at length, part of a grand strategy to create a New World Order, a `One World State` with a World Government, World Army, World Bank, World Currency, World Religion and a vastly reduced population of micro chipped slaves. [Read more…]
World War 3 –Elite Plan To Depopulate World : Plan To Kill 6 Billion People
“We’ve got people on the other side [the Dark Side] who think we should reduce the population of the earth. That’s Satan’s plan, of course. Jacques Cousteau [you’ve seen his underwater documentaries] said we need to eliminate 350,000 people a day. Ted Turner [you pay for his cable TV networks] said we need a 95% decline in population. Okay, Ted, you first. These guys for the New World Order want to reduce the population of the world [from it’s present 6 billion] to a half billion.” [Read more…]
The USA national debt is getting very close to 100% Problems in Greece are not solved, and still causing trouble. The debt crisis is creeping into Italy. France may have their debt downgraded. Spain is undergoing a change of leadership this week and will finally have to confront their debit situation.
For any survivalist or prepper, an economic melt down is a full-on realistic possibility. Currency devaluations, global depressions, and societal collapse are real things with real possibilities. Aside from major weather events or earthquake, a financial collapse is a highly possible SHTF or TEOTWAWKI.
If You Want To Survive The Economic Collapse-Read This
Nearly two-thirds of all Americans are completely and totally unprepared for the next economic crisis. As you will read about below, a new survey has found that only 38 percent of Americans have enough money on hand to cover “a $500 repair bill or a $1,000 emergency room visit”. That essentially means that 62 percent of the people in this country do not have an emergency fund. Even after the extremely bitter financial lessons that millions of Americans learned during the last recession, most of us are still choosing to live on the edge. That is utter insanity, and when the next major economic downturn strikes most people are going to find themselves totally unprepared.
Global Systemic Economic Collapse In 6 Minutes
Those that watched their stocks steadily increase in value for years are now seeing all of that “wealth” disappear at a staggering pace. The only way you actually make money in the stock market is if you get out in time, and many Americans are discovering that all or most of their gains have already been wiped out. At this point, the Dow Jones Industrial Average has dipped below where it was at the end of the 2013 calendar year. That means that nearly two years of gains have already been obliterated. On Friday, the Dow was down another 272 points, and it is now down more than 2200 points from the peak of the market back in May. For months, I have been detailing how things were setting up for this kind of financial crash in textbook fashion, and now events are playing out just as I warned. But this is just the beginning – what is coming next is going to shock the world.
We have already seen the 8th largest and 10th largest single day stock market crashes in all of U.S. history happen within the past few weeks. In fact, it was actually the very first time that we have ever seen the Dow fall by more than 500 points on consecutive trading days.
Ron Paul speaks out! Economic Collapse is Happening Now! Protect Yourself!!!
The probability of a major dollar crisis is very high. Things are mirroring the conditions that existed in 2008 except much worse. Russia and China have stopped buying treasuries and are now bypassing the Petrodollar and buying oil directly from the Middle East. China has started their own International Bank to compete with the IMF and World Bank. So far they have signed on 150 + countries as founding members of this new Bank. They plan on backing their currency with gold. They have even convinced most of the US allies to join this new bank, including UK, Germany, France, and many others. The dollar is losing its status as the Worlds reserve currency which is a death blow. Many of the top financial people in the US that predicted the 2008 crisis are getting their money out of the dollar and recommending that others do the same. Even Jamie Diamond the head of JPMorgan Chase (the largest bank in the US) has said he expects a major event to take place with the dollar very soon. Look at this article on JPMorgan:
Flat Broke, Living In A Moldy Basement And Relying On Food Stamps And Medicaid
Could you imagine being a single parent and trying to survive in America today on $10.50 an hour? For a moment, I want you to imagine that you are living in a moldy apartment that is so badly maintained that rain seeps in whenever it rains. You are employed, but you are completely dependent on government programs such as food stamps and Medicaid in order to make ends meet. Sometimes you would really like to take your small child somewhere fun, like a movie theater, but you can’t really afford the gas money. You are working as hard as you can, but you never seem to get anywhere, and you feel trapped because nobody seems to want to hire you for a better job. What I have just described for you is real life for a 22-year-old single mother from Chicago named Adriana Alvarez, but there are tens of millions of other Americans that have similar stories.
The unelected central planners at the Federal Reserve have decided that the time has come to slightly taper the amount of quantitative easing that it has been doing. On Wednesday, the Fed announced that monthly purchases of U.S. Treasury bonds will be reduced from $45 billion to $40 billion, and monthly purchases of mortgage-backed securities will be reduced from $35 billion to $30 billion. When this news came out, it sent shockwaves through financial markets all over the planet. But the truth is that not that much has really changed. The Federal Reserve will still be recklessly creating gigantic mountains of new money out of thin air and massively intervening in the financial marketplace. It will just be slightly less than before. However, this very well could represent a very important psychological turning point for investors. It is a signal that “the party is starting to end” and that the great bull market of the past four years is drawing to a close. So what is all of this going to mean for average Americans? The following are 8 ways that “the taper” is going to affect you and your family…
1. Interest Rates Are Going To Go Up
Following the announcement on Wednesday, the yield on 10 year U.S. Treasuries went up to 2.89% and even CNBC admitted that the taper is a “bad omen for bonds”. Thousands of other interest rates in our economy are directly affected by the 10 year rate, and so if that number climbs above 3 percent and stays there, that is going to be a sign that a significant slowdown of economic activity is ahead.
2. Home Sales Are Likely Going To Go Down
Mortgage rates are heavily influenced by the yield on 10 year U.S. Treasuries. Because the yield on 10 year U.S. Treasuries is now substantially higher than it was earlier this year, mortgage rates have also gone up. That is one of the reasons why the number of mortgage applications just hit a new 13 year low. And now if rates go even higher that is going to tighten things up even more. If your job is related to the housing industry in any way, you should be extremely concerned about what is coming in 2014.
3. Your Stocks Are Going To Go Down
Yes, I know that stocks skyrocketed today. The Dow closed at a new all-time record high, and I can’t really provide any rational explanation for why that happened. When the announcement was originally made, stocks initially sold off. But then they rebounded in a huge way and the Dow ended up close to 300 points.
A few months ago, when Fed Chairman Ben Bernanke just hinted that a taper might be coming soon, stocks fell like a rock. I have a feeling that the Fed orchestrated things this time around to make sure that the stock market would have a positive reaction to their news. But of course I absolutely cannot prove this at all. I hope someday we learn the truth about what actually happened on Wednesday afternoon. I have a feeling that there was some direct intervention in the markets shortly after the announcement was made and then the momentum algorithms took over from there.
In any event, what we do know is that when QE1 ended stocks fell dramatically and the same thing happened when QE2 ended. If you doubt this, just check out this chart.
Of course QE3 is not being ended, but this tapering sends a signal to investors that the days of “easy money” are over and that we have reached the peak of the market.
And if you are at the peak of the market, what is the logical thing to do?
Sell, sell, sell.
But in order to sell, you are going to need to have buyers.
And who is going to want to buy stocks when there is no upside left?
4. The Money In Your Bank Account Is Constantly Being Devalued
When a new dollar is created, the value of each existing dollar that you hold goes down. And thanks to the Federal Reserve, the pace of money creation in this country has gone exponential in recent years. Just check out what has been happening to M1. It has nearly doubled since the financial crisis of 2008…
The Federal Reserve has been behaving like the Weimar Republic, and this tapering does not change that very much. Even with this tapering, the Fed is still going to be creating money out of thin air at an absolutely insane rate.
And for those that insist that what the Federal Reserve is doing is “working”, it is important to remember that the crazy money printing that the Weimar Republic did worked for them for a little while toobefore ending in complete and utter disaster.
5. Quantitative Easing Has Been Causing The Cost Of Living To Rise
The Federal Reserve insists that we are in a time of “low inflation”, but anyone that goes to the grocery store or that pays bills on a regular basis knows what a lie that is. The truth is that if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.
Most of the new money created by quantitative easing has ended up in the hands of the very wealthy, and it is in the things that the very wealthy buy that we are seeing the most inflation. As one CNBC article recently stated, we are seeing absolutely rampant inflation in “stocks and bonds and art and Ferraris and farmland”.
6. Quantitative Easing Did Not Reduce Unemployment And Tapering Won’t Either
The Federal Reserve actually first began engaging in quantitative easing back in late 2008. As you can see from the chart below, the percentage of Americans that are actually working is lower today than it was back then…
The mainstream media continues to insist that quantitative easing was all about “stimulating the economy” and that it is now okay to cut back on quantitative easing because “unemployment has gone down”. Hopefully you can see that what the mainstream media has been telling you has been a massive lie. According to the government’s own numbers, the percentage of Americans with a job has stayed at a remarkably depressed level since the end of 2010. Anyone that tries to tell you that we have had an “employment recovery” is either very ignorant or is flat out lying to you.
7. The Rest Of The World Is Going To Continue To Lose Faith In Our Financial System
Everyone else around the world has been watching the Federal Reserve recklessly create hundreds of billions of dollars out of thin air and use itto monetize staggering amounts of government debt. They have been warning us to stop doing this, but the Fed has been slow to listen.
The greatest damage that quantitative easing has been causing to our economy does not involve the short-term effects that most people focus on. Rather, the greatest damage that quantitative easing has been causing to our economy is the fact that it is destroying worldwide faith in the U.S. dollar and in U.S. debt.
Right now, far more U.S. dollars are used outside the country than inside the country. The rest of the world uses U.S. dollars to trade with one another, and major exporting nations stockpile massive amounts of our dollars and our debt.
We desperately need the rest of the world to keep playing our game, because we have become very dependent on getting super cheap exports from them and we have become very dependent on them lending us trillions of our own dollars back to us.
If the rest of the world decides to move away from the U.S. dollar and U.S. debt because of the incredibly reckless behavior of the Federal Reserve, we are going to be in a massive amount of trouble. Our current economic prosperity greatly depends upon everyone else using our dollars as the reserve currency of the world and lending trillions of dollars back to us at ultra-low interest rates.
And there are signs that this is already starting to happen. In fact, China recently announced that they are going to quit stockpiling more U.S. dollars. This is one of the reasons why the Fed felt forced to do something on Wednesday.
But what the Fed did was not nearly enough. It is still going to be creating $75 billion out of thin air every single month, and the rest of the world is going to continue to lose more faith in our system the longer this continues.
8. The Economy As A Whole Is Going To Continue To Get Even Worse
Despite more than four years of unprecedented money printing by the Federal Reserve, the overall U.S. economy has continued to decline. If you doubt this, please see my previous article entitled “37 Reasons Why ‘The Economic Recovery Of 2013’ Is A Giant Lie”.
And no matter what the Fed does now, our decline will continue. The tragic downfall of small cities such as Salisbury, North Carolina are perfect examples of what is happening to our country as a whole…
During the three-year period ending in 2009, Salisbury’s poverty rate of 16% was about 3% higher than the national rate. In the following three-year period between 2010 and 2013, the city’s poverty rate was approaching 30%. Salisbury has traditionally relied heavily on the manufacturing sector, particularly textiles and fabrics. In recent decades, however, manufacturing activity has declined significantly and continues to do so. Between 2010 and 2013, manufacturing jobs in Salisbury — as a percent of the workforce — shrank from 15.5% to 8.3%.
But the truth is that you don’t have to travel far to see evidence of our economic demise for yourself. All you have to do is to go down to the local shopping mall. Sears has experienced sales declines for 27 quarters in a row, and at this point Sears is a dead man walking. The following is from a recent article by Wolf Richter…
The market share of Sears – including K-Mart – has dropped to 2% in 2013 from 2.9% in 2005. Sales have declined for years. The company lost money in fiscal 2012 and 2013. Unless a miracle happens, and they don’t happen very often in retail, it will lose a ton in fiscal 2014, ending in January: for the first three quarters, it’s $1 billion in the hole.
Despite that glorious track record, and no discernible turnaround, the junk-rated company has had no trouble hoodwinking lenders into handing it a $1 billion loan that matures in 2018, to pay off an older loan that would have matured two years earlier.
And J.C. Penney is suffering a similar fate. According to Richter, the company has lost a staggering 1.6 billion dollars over the course of the last year…
Then there’s J.C. Penney. Sales plunged 27% over the last three years. It lost over $1.6 billion over the last four quarters. It installed a revolving door for CEOs. It desperately needed to raise capital; it was bleeding cash, and its suppliers and landlords had already bitten their fingernails to the quick. So the latest new CEO, namely its former old CEO Myron Ullman, set out to extract more money from the system, borrowing $1.75 billion and raising $785 million in a stock sale at the end of September that became infamous the day he pulled it off.
So don’t believe the hype.
The economy is getting worse, not better.
Quantitative easing did not “rescue the economy”, but it sure has made our long-term problems a whole lot worse.
And this “tapering” is not a sign of better things to come. Rather, it is a sign that the bubble of false prosperity that we have been enjoying for the past few years is beginning to end.
Blackout USA (EMP survival and preparedness)
Conquering the coming collapse (Financial advice and preparedness )
Liberty Generator (Build and make your own energy source)
Backyard Liberty (Easy and cheap DIY Aquaponic system to grow your organic and living food bank)
SOURCE : theeconomiccollapseblog.com
The global derivatives bubble is now 20 percent bigger than it was just before the last great financial crisis struck in 2008. It is a financial bubble far larger than anything the world has ever seen, and when it finally bursts it is going to be a complete and utter nightmare for the financial system of the planet. According to the Bank for International Settlements, the total notional value of derivatives contracts around the world has ballooned to an astounding 710 trillion dollars ($710,000,000,000,000). Other estimates put the grand total well over a quadrillion dollars. If that sounds like a lot of money, that is because it is. For example, U.S. GDP is projected to be in the neighborhood of around 17 trillion dollars for 2014. So 710 trillion dollars is an amount of money that is almost incomprehensible. Instead of actually doing something about the insanely reckless behavior of the big banks, our leaders have allowed the derivatives bubble and these banks to get larger than ever. In fact, as I have written about previously, the big Wall Street banks are collectively 37 percent larger than they were just prior to the last recession. “Too big to fail” is a far more massive problem than it was the last time around, and at some point this derivatives bubble is going to burst and start taking those banks down. When that day arrives, we are going to be facing a crisis that is going to make 2008 look like a Sunday picnic.
If you do not know what a derivative is, Mayra Rodríguez Valladares, a managing principal at MRV Associates, provided a pretty good definition in her recent article for the New York Times…
A derivative, put simply, is a contract between two parties whose value is determined by changes in the value of an underlying asset. Those assets could be bonds, equities, commodities or currencies. The majority of contracts are traded over the counter, where details about pricing, risk measurement and collateral, if any, are not available to the public.
In other words, a derivative does not have any intrinsic value. It is essentially a side bet. Most commonly, derivative contracts have to do with the movement of interest rates. But there are many, many other kinds of derivatives as well. People are betting on just about anything and everything that you can imagine, and Wall Street has been transformed into the largest casino in the history of the planet.
After the last financial crisis, our politicians promised us that they would do something to get derivatives trading under control. But instead, the size of the derivatives bubble has reached a new record high. In the New York Times article I mentioned above, Goldman Sachs and Citibank were singled out as two players that have experienced tremendous growth in this area in recent years…
Goldman Sachs has been increasing its derivatives volumes since the crisis, and it had a portfolio of about $48 trillion at the end of 2013. Bloomberg Businessweek recently reported that as part of its growth strategy, Goldman plans to sell more derivatives to clients. Citibank, too, has been increasing its derivatives portfolio, despite the numerous capital and regulatory challenges, In fact, its portfolio has risen by over 65 percent since the crisis — the most of any of the four banks — to $62 trillion.
According to official government numbers, the top 25 banks in the United States now have a grand total of more than 236 trillion dollars of exposure to derivatives. But there are four banks that dwarf everyone else. The following are the latest numbers for those four banks…
Total Assets: $1,945,467,000,000 (nearly 2 trillion dollars)
Total Exposure To Derivatives: $70,088,625,000,000 (more than 70 trillion dollars)
Total Assets: $1,346,747,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $62,247,698,000,000 (more than 62 trillion dollars)
Bank Of America
Total Assets: $1,433,716,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $38,850,900,000,000 (more than 38 trillion dollars)
Total Assets: $105,616,000,000 (just a shade over 105 billion dollars – yes, you read that correctly)
Total Exposure To Derivatives: $48,611,684,000,000 (more than 48 trillion dollars)
If the stock market keeps going up, interest rates stay fairly stable and the global economy does not experience a major downturn, this bubble will probably not burst for a while.
But if there is a major shock to the system, we could easily experience a major derivatives crisis very rapidly and several of those banks could fail simultaneously.
There are many out there that would welcome the collapse of the big banks, but that would also be very bad news for the rest of us.
You see, the truth is that the U.S. economy is like a very sick patient with an extremely advanced case of cancer. You can try to kill the cancer (the banks), but in the process you will inevitably kill the patient as well.
Right now, the five largest banks account for 42 percent of all loans in the entire country, and the six largest banks control 67 percent of all banking assets.
If they go down, we go down too.
That is why the fact that they have been so reckless is so infuriating.
Just look at the numbers for Goldman Sachs again. At this point, the total exposure that Goldman Sachs has to derivatives contracts is more than 460 times greater than their total assets.
And this kind of thing is not just happening in the United States. German banking giant Deutsche Bank has more than 75 trillion dollars of exposure to derivatives. That is even more than any single U.S. bank has.
This derivatives bubble is a “sword of Damocles” that is hanging over the global economy by a thread day after day, month after month, year after year.
At some point that thread is going to break, the bubble is going to burst, and then all hell is going to break loose.
You see, the truth is that virtually none of the underlying problems that caused the last financial crisis have been fixed.
Instead, our problems have just gotten even bigger and the financial bubbles have gotten even larger.
Never before in the history of the United States have we been faced with the threat of such a great financial catastrophe.
Sadly, most Americans are totally oblivious to all of this. They just have faith that our leaders know what they are doing, and they have been lulled into complacency by the bubble of false stability that we have been enjoying for the last couple of years.
Unfortunately for them, this bubble of false stability is not going to last much longer.
A financial crisis far greater than what we experienced in 2008 is coming, and it is going to shock the world.
SOURCE : theeconomiccollapseblog.com
Did you know that the number of Americans getting benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million? In other words, the number of people that are taking money out of the system is far greater than the number of people that are putting money into the system. And did you know that nearly 70 percent of all of the money that the federal government spends goes toward entitlement and welfare programs? When it comes to the transfer of wealth, nobody does it on a grander scale than the U.S. government. Most of what the government does involves taking money from some people and giving it to other people. In fact, at this point that is the primary function of the federal government.
Just check out the chart below. It comes from the Heritage Foundation, and it shows that 69 percent of all federal money is spent either on entitlements or on welfare programs…
So when people tell you that the main reason why we are being taxed into oblivion is so that we can “build roads” and provide “public services”, they are lying to you. The main reason why the government taxes you so much is so that they can take your money and give it to someone else.
We have become a nation that is completely and totally addicted to government money. The following are 18 stats that prove that government dependence has reached epidemic levels…
#1 According to an analysis of U.S. government numbers conducted by Terrence P. Jeffrey, there are 86 million full-time private sector workers in the United States paying taxes to support the government, and nearly 148 million Americans that are receiving benefits from the government each month. How long can such a lopsided system possibly continue?
#2 Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin. But now the number of women in the U.S. on food stamps actually exceedsthe number of women that have jobs.
#3 The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.
#4 Today, the federal government runs about 80 different “means-tested welfare programs”, and almost all of those programs have experienced substantial growth in recent years.
#5 Back in 1960, the ratio of social welfare benefits to salaries and wages was approximately 10 percent. In the year 2000, the ratio of social welfare benefits to salaries and wages was approximately 21 percent. Today, the ratio of social welfare benefits to salaries and wages is approximately 35 percent.
#6 While Barack Obama has been in the White House, the total number of Americans on food stamps has gone from 32 million to nearly 47 million.
#7 Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, about one out of every 6.5 Americans is on food stamps.
#8 It sounds crazy, but the number of Americans on food stamps now exceedsthe entire population of the nation of Spain.
#9 According to one calculation, the number of Americans on food stamps is now greater than the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
#10 According to a report from the Center for Immigration Studies, 43 percentof all immigrants that have been in the United States for at least 20 years are still on welfare.
#11 Back in 1965, only one out of every 50 Americans was on Medicaid. Today,more than 70 million Americans are on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#12 The number of Americans on Medicare is projected to grow from a little bit more than 50 million today to 73.2 million in 2025.
#13 Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for each and every household in the United States.
#14 If the number of Americans enrolled in the Social Security disability program were gathered into a single state, it would be the 8th largest state in the entire country.
#15 In 1968, there were 51 full-time workers for every American on disability. Today, there are just 13 full-time workers for every American on disability.
#16 It is being projected that the number of Americans on Social Security will rise from about 62 million today to more than 100 million in 25 years.
#17 Overall, the Social Security system is facing a 134 trillion dollar shortfallover the next 75 years.
#18 According to the most recent numbers from the U.S. Census Bureau, an all-time record 49.2 percent of all Americans are receiving benefits from at least one government program each month. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
Many will read this and will assume that I am against helping the poor. That is completely and totally not true. There will always be people that are impoverished, and this happens for many reasons. In many cases, people simply lack the capacity to take care of themselves. It is a good thing to take care of such people, whether the money comes from public or private sources. In every society, those that are the most vulnerable need to be looked after.
But it is a very troubling sign that the number of people on government assistance is now far, far greater than the number of people with full-time jobs. This is not a sustainable situation. The federal government is already drowning in debt, and yet more people become dependent on the government with each passing day.
The long-term solution is to get more Americans working or starting their own businesses, but the federal government continues to pursue policies that are absolutely killing the creation of jobs and the creation of small businesses in this country. So our epidemic of government dependence is going to continue to get worse.
And many of these programs are absolutely riddled with fraud and corruption. Just check out the following excerpt from a recent Natural News article…
To understand the extent of this fraudulent waste, go no further than Dr. Salomon Melgen, a Florida ophthalmologist who raked in $20.8 million from Medicare in 2012 alone. Dr. Melgen isn’t the only one bathing in the fraud of this crony government program. Medicare dished out over $1 million to almost 4,000 doctors in 2012, according to the new data release analyzed by The Washington Post.
Jonathan Blum, principal deputy administrator for the Centers for Medicare and Medicaid Services, is calling on the public for help in identifying fraud. He says, “The program is funded by and large by taxpayer dollars. The public has a right to know what it is paying for. We know there is fraud in the system. We are asking for the public’s help to check, to find waste, and to find potential fraud.”
Instead of fixing their own problems, they want us to help them do it.
And of course they always want more of our money to help fund these programs. In fact, according to Americans for Tax Reform, Barack Obama has proposed 442 tax increases since entering the White House…
-79 tax increases for FY 2010
-52 tax increases for FY 2011
-47 tax increases for FY 2012
-34 tax increases for FY 2013
-137 tax increases for FY 2014
-93 tax increases for FY 2015
Perhaps not coincidentally, the Obama budget with the lowest number of proposed tax increases was released during an election year: In February 2012, Obama released his FY 2013 budget, with “only” 34 proposed tax increases. Once safely re-elected, Obama came back with a vengeance, proposing 137 tax increases, a personal record high for the 44th President.
The more we feed the monster, the larger and larger it grows.
And yet poverty is not decreasing. In fact, the poverty rate has been at 15 percent or greater for three years in a row. That is the first time that has happened in decades.
Barack Obama promised to “transform” America, and yet poverty and government dependence have just continued to grow during his presidency.
Not that anyone really believes anything that he has to say at this point. In fact, one recent survey found that only 15 percent of Americans believe that Barack Obama always tells the truth and 37 percent believe that he lies “most of the time”…
A Fox News poll released Wednesday shows that six out of every ten Americans believes that President Barack Obama lies to the American people, at least some of the time. A plurality – 37% – say that he lies “most of the time,” while another 24% say he lies “some of the time.” Another 20% say he lies once in awhile, while only 15% say that he never lies.
So what do you think?
SOURCE : endoftheamericandream.com
You might not want to read this article if you have a weak stomach. Most Americans have absolutely no idea what is going on in the dark corners of America, and when people find out the truth it can come as quite a shock. Many of you will not believe some of the things Americans are doing just to survive. Some families are living in sewers and drain tunnels, some families are living in tents, some families are living in their cars, some families will make ketchup soup for dinner tonight and some families are even eating rats. Some homeless shelters in America are so overloaded that they are actually sending people out to live in the woods. As you read this, there are close to 50 million Americans that are living below the poverty line, and that number rises a little bit more every single day. America was once known as the greatest nation on earth, but now there is decay and economic despair almost everywhere you look. Yes, money certainly cannot buy happiness, but the lack of it sure can bring a lot of pain. As the economy continues to decline, the suffering that we see all around us is going to get a lot worse, and that is a very frightening thing to think about.
The following is a half hour documentary produced by the BBC entitled “Poor America”. Trust me, this is a must watch. Your heart will break as you hear some American children talk about what they have to do for food….
Wasn’t that video absolutely mind blowing?
Those of us that still live comfortably are often completely unaware of what life is like out on the streets of America at this point.
There are millions upon millions of Americans that have lost all hope and that are living on the very edge of life and death.
And more join the ranks of the hopeless with each passing day. This upcoming weekend approximately 80,000 people in the state of Michigan will lose their unemployment benefits.
So what are those people going to do after that?
They have already been unable to find work month after month. Their savings are most certainly gone. Now the only money they had coming in is going to be eliminated.
Yes, I have written many times about how the U.S. government is absolutely drowning in debt and cannot afford to be giving out so much money. My point here is to show the other side of the equation. There are millions upon millions of Americans that are barely hanging on and there are no jobs for them. The suffering that those families are going through is very real.
Millions of other families are trying to get by on the incomes they pull in from part-time jobs. According to Gallup, the percentage of Americans that are working part-time jobs but that would like full-time jobs is now higher than it has been at any other time in the last two years. The number of the “working poor” just continues to increase, but most Americans don’t have much sympathy for them because they “have jobs”.
Well, when you are making 8 bucks an hour it can be incredibly tough to make it from month to month.
Just look at how much it costs to buy the basic things that we need.
Without gasoline, most of us would not even be able to get to our jobs. The price of gasoline has increased 83 percent since Barack Obama first took office, and it is poised to soar even higher. Right now, the average price of a gallon of gasoline in the United States is $3.51. Never before has the average price of gas gone above $3.50 so early in the year. Many believe that we could set a new all-time record this summer.
But last year was bad enough. In 2011, the average American family spent over $4,000 on gasoline.
So when you are making just a few hundred dollars per week, it can be a massive struggle just to put gas in your car and food on the table.
The article that I wrote the other day about the decline of Detroitreally struck a nerve. All over America, people can see similar things happening to their own neighborhoods. People are scared and they want some answers.
Well, the truth is that we should have never allowed tens of thousands of businesses, millions of jobs and trillions of dollars of our national wealthto be shipped out of the country.
Just check out this stunning photo which compares the decline of Detroit to the rise of Shanghai, China.
Do you think that it is just a coincidence that Detroit is falling apart and that cities in China look sparkly and new?
No, the truth is that it is a natural consequence of our foolish economic policies.
There are hundreds of communities all over the country where third world conditions are setting in. For example, the following is how one blogger describes what life is like in a decaying suburb of Phoenix called Maryvale….
Crime and gangs are widespread. Most houses have either fallen into disrepair, or been remade with outside walls sporting spikes and ironwork. Many of the front lawns are now just dirt (or worse, gravel), the pools green and lethal.
Now we stand on the precipice of another major global financial crisis. Economic conditions in America are going to become significantly worse. The politicians in Washington D.C. may make sure that the boys and girls on Wall Street are always taken care of, but there will be no bailouts for the large numbers of Americans that are about to lose their jobs and their homes.
If you want an idea of what is coming, just look at what is happening in Greece. 25 percent of the businesses have shut down, one-third of all money has been pulled out of Greek bank accounts and unemployment and poverty are absolutely rampant.
For years, a lot of prominent voices out there were screaming and yelling about the dangers posed by our soaring trade deficits and our soaring budget deficits.
But the American people did not listen. They just kept sending the same politicians back to Washington D.C. over and over.
As a result, soon millions of those same Americans will find themselves doing things that they never dreamed that they would do just to survive.
SOURCE : theeconomiccollapseblog.com
Money managers have valid concerns, but those should be measured against changes in the national and global economies.
Since the financial crisis, the Federal Reserve has pumped $3 trillion into banks and bond markets, pushing down interest rates and making stocks attractive.
If you permanently avoid stocks, it’s not only unpatriotic but downright dumb.
As the Fed winds down this policy, interest rates may not rise nearly as much as predicted, further sustaining stocks. For one thing, U.S. banks have consolidated, reducing competition for savers, and CD rates are not likely to return to pre-crisis level. And foreign investors fleeing turmoil abroad are seeking safe haven in U.S. bonds and real estate.
Individual investors took flight from stocks during the financial crisis, and continued pulling money out through 2012. Most folks can’t finance retirements on permanently lower CD and bond rates, and will move back into stocks, giving prices a further boost.
The average price of the Standard & Poor’s 500 stocks, which account for about four-fifths of publically traded companies, is about 16 times last year’s earnings — that’s a bit frothy. And corporate profits have been juiced by cost cutting and wider profit margins, as opposed to strong revenue growth in a slowly expanding U.S. economy.
It’s hard to see how profits on domestic sales can be pushed up a lot with nominal GDP growing at 5 percent a year.
However, U.S. companies earn about half their profits abroad, and while Asian growth is slowing, Europe is on the rebound. Overall, global growth should pick up in 2014.
In emerging markets, which still account for the lion’s share of global growth, profits share of net sales are larger, and engaged U.S. companies should be able to sustain, and even expand profit margins. Those will support a higher price earnings ratio.
Investors focus too much on the recent bubble and financial crisis. Problems in housing and lending practices have been fixed, but stock prices have not kept up with the economy since the turn of the century.
Since 2000, the S&P 500 has gained only about 23 percent, not much considering inflation, nominal GDP and corporate profits are up 43, 70 and 440 percent, respectively.
So what should you do with your money given these facts? Here are three suggestions:
1. If you are saving for a down payment for a house, buy as soon as you can. A home priced within your means remains your best, first investment—it pays dividends every night you sleep in it.
2. If you’re nearing retirement, keep about half your money in cash and low-risk bonds with short maturities, and the rest in a diversified portfolio of stocks. For example, an S&P 500 index fund such as the one offered by USAA or a similar low-cost alternative.
3. If you’re younger, set aside a reasonable amount each month to put into a similar basket of equities, stick to that discipline through thick and thin, and you’ll make out just fine over the long run.
History is replete with fools who bet against the United States of America.
If you permanently avoid stocks, it’s not only unpatriotic but downright dumb.
SOURCE : www.foxnews.com
Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. He is the five time winner of the MarketWatch best forecaster award. Follow him on Twitter @PMorici1.
How long can America continue to burn up wealth? How long can this nation continue to consume far more wealth than it produces? The trade deficit is one of the biggest reasons for the steady decline of the U.S. economy, but many Americans don’t even understand what it is. Basically, we are buying far more stuff from the rest of the world than they are buying from us. That means that far more money is constantly leaving the country than is coming into the country. In order to keep the game going, we have to go to the people that we bought all of that stuff from and ask them to lend our money back to us. Or lately, we just have the Federal Reserve create new money out of thin air. This is called “quantitative easing”. Our current debt-fueled lifestyle is dependent on this cycle continuing. In order to live like we do, we must consume far more wealth than we produce. If someday we are forced to only live on the wealth that we create, it will require a massive adjustment in our standard of living. We have become great at consuming wealth but not so great at creating it. But as a result of running gigantic trade deficits year after year, we have lost tens of thousands of businesses, millions upon millions of jobs, and America is being deindustrialized at a staggering pace.
Most Americans won’t even notice, but the latest monthly trade deficit increased to 42.3 billion dollars…
The U.S. trade deficit climbed to the highest level in five months in February as demand for American exports fell while imports increased slightly.
The deficit increased to $42.3 billion, which was 7.7% above the January imbalance of $39.3 billion, the Commerce Department reported Thursday.
When the trade deficit increases, it means that even more wealth, even more jobs and even more businesses have left the United States.
In essence, we have gotten poorer as a nation.
Have you ever wondered how China has gotten so wealthy?
Just a few decades ago, they were basically a joke economically.
So how in the world did they get so powerful?
Well, one of the primary ways that they did it was by selling us far more stuff than we sold to them. If we had refused to do business with communist China, they never would have become what they have become today. It was our decisions that allowed China to become an economic powerhouse.
Last year, we sold 122 billion dollars of stuff to China.
That sounds like a lot until you learn that China sold 440 billion dollarsof stuff to us.
We fill up our shopping carts with lots of cheap plastic trinkets that are “made in China”, and they pile up gigantic mountains of our money which we beg them to lend back to us so that we can pay our bills.
Who is winning that game and who is losing that game?
Below, I have posted our yearly trade deficits with China since 1990. Let’s see if you can spot the trend…
1990: 10 billion dollars
1991: 12 billion dollars
1992: 18 billion dollars
1993: 22 billion dollars
1994: 29 billion dollars
1995: 33 billion dollars
1996: 39 billion dollars
1997: 49 billion dollars
1998: 56 billion dollars
1999: 68 billion dollars
2000: 83 billion dollars
2001: 83 billion dollars
2002: 103 billion dollars
2003: 124 billion dollars
2004: 162 billion dollars
2005: 202 billion dollars
2006: 234 billion dollars
2007: 258 billion dollars
2008: 268 billion dollars
2009: 226 billion dollars
2010: 273 billion dollars
2011: 295 billion dollars
2012: 315 billion dollars
2013: 318 billion dollars
It has been estimated that the U.S. economy loses approximately 9,000 jobs for every 1 billion dollars of goods that are imported from overseas, and according to the Economic Policy Institute, America is losing about half a million jobs to China every single year.
Considering the high level of unemployment that we now have in this country, can we really afford to be doing that?
Overall, the United States has accumulated a total trade deficit with the rest of the world of more than 8 trillion dollars since 1975.
As a result, we have lost tens of thousands of businesses, millions of jobs and our economic infrastructure has been absolutely gutted.
Just look at what has happened to manufacturing jobs in America. Back in the 1980s, more than 20 percent of the jobs in the United States were manufacturing jobs. Today, only about 9 percent of the jobs in the United States are manufacturing jobs.
And we have fewer Americans working in manufacturing today than we did in 1950 even though our population has more than doubled since then…
Many people find this statistic hard to believe, but the United States has lost a total of more than 56,000 manufacturing facilities since 2001.
Millions of good paying jobs have been lost.
As a result, the middle class is shriveling up, and at this point 9 out of the top 10 occupations in America pay less than $35,000 a year.
For a long time, U.S. consumers attempted to keep up their middle class lifestyles by going into constantly increasing amounts of debt, but now it is becoming increasingly apparent that middle class consumers are tapped out.
In response, major retailers are closing thousands of stores in poor and middle class neighborhoods all over the country. You can see some amazing photos of America’s abandoned shopping malls .
If we could start reducing the size of our trade deficit, that would go a long way toward getting the United States back on the right economic path.
Unfortunately, Barack Obama has been negotiating a treaty in secret which is going to send the deindustrialization of America into overdrive. The Trans-Pacific Partnership is being called the “NAFTA of the Pacific”, and it is going to result in millions more good jobs being sent to the other side of the planet where it is legal to pay slave labor wages.
According to Professor Alan Blinder of Princeton University, 40 millionmore U.S. jobs could be sent offshore over the next two decades if current trends continue.
So what will this country look like when we lose tens of millions more jobs than we already have?
U.S. workers are being merged into a giant global labor pool where they must compete directly for jobs with people making less than a dollar an hour with no benefits.
Obama tells us that globalization is good for us and that Americans need to be ready to adjust to a “level playing field”.
The quality of our jobs has already been declining for decades, and if we continue down this path the quality of our jobs is going to get a whole lot worse and our economic infrastructure will continue to be absolutely gutted.
At one time, the city of Detroit was the greatest manufacturing city on the entire planet and it had the highest per capita income in the United States. But today, it is a rotting, decaying hellhole that the rest of the world laughs at.
In the end, the rest of the nation is going to suffer the same fate as Detroit unless Americans are willing to stand up and fight for their economy while they still can.
SOURCE : theeconomiccollapseblog.com