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Big Corporations Have An OVERWHELMING Amount Of Power Over Our Food Supply

10 Corporations Control What We EatFrom our fields to our forks, huge corporations have an overwhelming amount of power over our food supply every step of the way.  Right now there are more than 313 million people living in the United States, and the job of feeding all of those people is almost entirely in the hands of just a few dozen monolithic companies.  If you do not like how our food is produced or you don’t believe that it is healthy enough, it isn’t very hard to figure out who is to blame.  These mammoth corporations are not in business to look out for the best interests of the American people.  Rather, the purpose of these corporations is to maximize wealth for their shareholders.  So the American people end up eating billions of pounds of extremely unhealthy food that is loaded with chemicals and additives each year, and we just keep getting sicker and sicker as a society.  But these big corporations are raking in big profits, so they don’t really care.

If we did actually have a capitalist system in this country, we would have a high level of competition in the food industry.  But instead, the U.S. food industry has become increasingly concentrated with each passing year.  Just consider the following numbers about the U.S. agricultural sector…

The U.S. agricultural sector suffers from abnormally high levels of concentration. Most economic sectors have concentration ratios around 40%, meaning that the top four firms in the industry control 40% of the market. If the concentration ratio is above 40%, experts believe competition can be threatened and market abuses are more likely to occur: the higher the number, the bigger the threat.

The concentration ratios in the agricultural sector are shocking.

-Four companies own 83.5% of the beef market.
-The top four firms own 66% of the hog industry.
-The top four firms control 58.5% of the broiler chicken industry.
-In the seed industry, four companies control 50% of the proprietary seed market and 43% of the commercial seed market worldwide.
-When it comes to genetically engineered (GE) crops, just one company, Monsanto, boasts control of over 85% of U.S. corn acreage and 91% of U.S. soybean acreage.

When so much power is concentrated in so few hands, it creates some tremendous dangers.

And many of these giant corporations (such as Monsanto) are extremely ruthless.  Small farmers all over America are being wiped out and forced out of the business by the predatory business practices of these huge companies

Because farmers rely on both buyers and sellers for their business, concentrated markets squeeze them at both ends. Sellers with high market power can inflate the prices of machinery, seeds, fertilizers and other goods that farmers need for their farms, while powerful buyers, such as processors, suppress the prices farmers are paid. The razor-thin profit margins on which farmers are forced to operate often push them to “get big or get out”—expanding into mega-operations or exiting the business altogether.

Of course the control that big corporations have over our food supply does not end at the farms.

The distribution of our food is also very highly concentrated.  The graphic shared below was created by Oxfam International, and it shows how just 10 gigantic corporations control almost everything that we buy at the grocery store…

10 Corporations Control What We Eat

And these food distributors are often not very good citizens either.

For example, it was recently reported that Nestle is running a massive bottled water operation on a drought-stricken Indian reservation in California

Among the windmills and creosote bushes of San Gorgonio Pass, a nondescript beige building stands flanked by water tanks. A sign at the entrance displays the logo of Arrowhead 100% Mountain Spring Water, with water flowing from a snowy mountain. Semi-trucks rumble in and out through the gates, carrying load after load of bottled water.

The plant, located on the Morongo Band of Mission Indians’ reservation, has been drawing water from wells alongside a spring in Millard Canyon for more than a decade. But as California’s drought deepens, some people in the area question how much water the plant is bottling and whether it’s right to sell water for profit in a desert region where springs are rare and underground aquifers have been declining.

Nestle doesn’t stop to ask whether it is right or wrong to bottle water in the middle of the worst drought in the recorded history of the state of California.

They have the legal right to do it and they are making large profits doing it, and so they are just going to keep on doing it.

Perhaps you are thinking that you can avoid all of these corporations by eating organic and by shopping at natural food stores.

Well, it isn’t necessarily that easy.

According to author Wenonah Hauter, the “health food industry” is also extremely concentrated

Over the past 20 years, Whole Foods Market has acquired its competition, including Wellspring Grocery, Bread of Life, Bread & Circus, Food for Thought, Fresh Fields, Wild Oats Markets and others. Today the chain dominates the market because it has no national competitor. Over the past five years its gross sales have increased by half (47 percent) to $11.7 billion, and its net profit quadrupled to $465.6 million. One of the ways it has achieved this profitability is by selling conventional foods under the false illusion that they are better than products sold at a regular grocery store. Consumers falsely conclude that these products have been screened and are better, and they are willing to pay a higher price.

The distribution of organic foods is also extremely concentrated. A little-known company, United Natural Foods, Inc. (UNFI) now controls the distribution of organic and natural products. Publically traded, the company has a contract with Whole Foods and it is the major source of these products for the remaining independent natural food stores. This relationship has resulted in increasingly high prices for these foods. Small manufacturers are dependent on contracts with UNFI to get their products to market and conversely, small retailers often have to pay a premium price for products because of their dependence on this major distributor. Over the past five years, UNFI’s net sales increased by more than half (55.6 percent) $5.2. billion. Its net profit margin increased by 88 percent to $91 million.

Everywhere you look, the corporations are in control.

And this is especially true when you look at big food retailers such as Wal-Mart.

Right now, grocery sales account for about half of all business at Wal-Mart, and approximately one out of every three dollars spent on groceries in the United States is spent at Wal-Mart.

That is absolutely astounding, and it obviously gives Wal-Mart an immense amount of power.

In fact, if you can believe it, Wal-Mart actually purchases a billion pounds of beef every single year.

So the next time someone asks you where the beef is, you can tell them that it is at Wal-Mart.

On the restaurant side, the ten largest fast food corporations account for 47 percent of all fast food sales, and the love affair that Americans have with fast food does not appear to be in danger of ending any time soon.

Personally, if you do not like how these corporate giants are behaving, you can always complain.

But you are just one person among 313 million, and most of these big corporations are not going to consider the ramblings of one person to be of any significance whatsoever.

Collectively, however, we have great power.  And the way that we are going to get these big corporations to change is by voting with our wallets.

Unfortunately, the vast majority of Americans seem quite satisfied with the status quo.  So the population as a whole is likely going to continue to get sicker, fatter and less healthy with each passing year, and the big food corporations are going to keep becoming even more powerful.

Hamas Just Attempted To Create A Horrific Nuclear Disaster In The Heart Of Israel

Nuclear Explosion - Public DomainAfter the horrors of the Fukushima nuclear disaster, how insane do you have to be to fire missiles directly at a major nuclear facility?  No matter what side you are on in the conflict between the Israelis and the Palestinians, everyone should be able to agree that it is utter madness for Hamas to fire rockets at the Dimona nuclear installation in the Negev.  The intent, of course, was to destroy the Dimona facility and create a horrific nuclear disaster in the heart of Israel.  Fortunately, the area is heavily protected by the Iron Dome missile defense system and none of the rockets did any damage.  And it is questionable how much damage to the facility that Hamas missiles could actually do.  But that is not the point.  What matters is that Hamas is trying to do it.  With each passing year, Hamas rockets are becoming more advanced, more accurate and more powerful.  And when Hamas fires some of their best rockets at a major nuclear facility, they are committing an act of all-out war.  If Hamas continues to do this, it could spark a major regional war in which countless numbers of people could die.  Is that what they want?

There has been a lot of criticism of Israel in the mainstream media in recent days, but much of it is quite hypocritical.  Just imagine what would happen in the U.S. if another country fired just one missile at New York City or at one of our nuclear reactors.  If that happened, “glass parking lot” would suddenly be on the lips of tens of millions of Americans all over the country, and the U.S. military would rapidly be preparing for an absolutely devastating response.

Well, it isn’t just one missile that has been fired at Israel.

In recent days, dozens of rockets were fired at Israel before there was any response from the Israeli military at all.

And more than 225 rockets have been fired at Israel since Operation Protective Edge started on Monday night.

At one point, an average of about one rocket was being fired into Israel every ten minutes.

And many of these rockets are being shot directly at Israeli population centers with the intention of killing civilians.  It is a miracle that we have not seen many casualties so far.

But where Hamas has really stepped over the line is by firing at the Dimona nuclear facility.  The fact that Hamas is attempting to create a nuclear holocaust is essentially an act of genocide.  The following is how the Jerusalem Post described the attack…

Three rockets were launched at Dimona in southern Israel on Wednesday afternoon. The Iron Dome intercepted one rocket before it could land, while two other rockets landed in open areas.

Dimona is the location of Israel’s nuclear reactor. There was no indication that rockets damaged any part of the reactor.

Hamas claimed responsibility for the rockets, stating that it had been attempting to hit the nuclear reactor.

Militants from Hamas’s Qassam Brigades said they had launched long-range M-75 rockets towards Dimona.

And as Breitbart has pointed out, what Hamas has just done is actually an act of nuclear terrorism as defined by the United Nations…

Article 2 (1) of the International Convention for the Suppression of Acts of Nuclear Terrorism states:

1. Any person commits an offence within the meaning of this Convention if that person unlawfully and intentionally…(b)…uses or damages a nuclear facility in a manner which releases or risks the release of radioactive material: (i) With the intent to cause death or serious bodily injury; or (ii) With the intent to cause substantial damage to property or to the environment; or (iii) With the intent to compel a natural or legal person, an international organization or a State to do or refrain from doing an act.

Let us hope that future Hamas missile strikes will not do any damage to Dimona either.

In the end, it is questionable how much of a threat Hamas rockets actually are to an extremely well defended facility such as Dimona, but let us not completely underestimate their capabilities either.

According to the Christian Science Monitor, Hamas rockets are stronger and more accurate than ever and are now even capable of hitting Tel Aviv and Jerusalem…

Hamas has emerged from a 19-month cease-fire stronger, savvier, and more effective at hitting Israel where it will hurt the most.

Hamas’s arsenal, estimated at 10,000 rockets, is only marginally bigger than it was heading into its last conflict with Israel, in November 2012. But its mid-range rockets are much more accurate, and it has acquired long-range missiles that reach beyond Tel Aviv and Jerusalem, putting as many as 5 million of Israel’s 8 million citizens at risk.

If Hamas wants Israel to stop attacking, they need to stop lobbing missiles into Israel.

If Hamas keeps launching rockets, it could spark a major regional war.  Just consider what Shimon Peres is saying about the conflict

“We didn’t start the war today, they started it already several days ago,” he told CNN. “We asked them to stop it… We waited one day, two days, three days and they continued, and they spread their fire on more areas in Israel.”

He also said that a ground offensive on Gaza “may happen quite soon”. Referring to rockets being fired from Gaza, he added: “If they will stop for example tonight, there won’t be any ground entrance – but if they will continue, sooner or later this will be the response.

And there are news reports today that Israel has already warned 100,000 Gaza residents living in cities near the border with Israel to leave their homes.

That means that a ground invasion could be imminent.

Let us pray for peace because every human life is extremely valuable.

Every Israeli life is extremely valuable, and every Palestinian life is extremely valuable.

Nobody should want to see a major war between the Israelis and the Palestinians, because if one does happen it will be extremely bloody.

The Middle East is a powder keg that could erupt at any moment.

A single wrong move could bring about a nightmarish conflict that results in countless deaths.

Why Is Obama Encouraging Illegal Immigration When We Can’t Take Care Of Millions Of Our Own Citizens?

Barack Obama SmilesFor years, the Obama administration has been making it abundantly clear that it is a friend of illegal immigrants.  Border security is a joke, the federal government refuses to go after “sanctuary cities” even though they are breaking federal law, there is a website that instructs immigrants how to sign up for welfare programs once they arrive in the United States, and the Obama administration has distributed flyers that tell illegal immigrants that their immigration status will not be checked when they apply for food stamps.  And Obama has even instructed officials to use “prosecutorial discretion” in deportation cases involving non-criminals.  In other words, Obama has been flashing a huge green light to illegal immigrants, and so of course our borders were going to be inundated with them.

Apologists for the Obama administration will debate you all day about what Obama “intended” and what he didn’t “intend”, but there is no doubt about what message immigrants from Central America have been receiving.

For example, one young mother recently told the press that she heard that if you “go to America with your child, you won’t be turned away“.

And you can view video of a little boy from Central America telling an investigate reporter that he believes that Barack Obama has “given permission” for him to live in the United States right here.

It isn’t an accident that our southern border is literally being flooded with illegal immigrants right now.  Newspapers in El Salvador and Honduras have been publicizing how easy illegal immigration has become, and even the President of Honduras has said that people are coming to the United States for “Obama’s amnesty”.

When they arrive, thousands upon thousands of these illegal immigrants are using rehearsed answers that border patrol agents are hearing over and over again.  Word has spread that if illegal immigrants claim that they are “fleeing gang violence” that it is more likely that they will be allowed to stay.

What we are witnessing down on the southern border is really unprecedented.  It has been estimated that twelve times as many kids are crossing our borders illegally now compared to just a few years ago.

And they just keep on coming.

This is utter madness.

Now, please don’t think that I am anti-immigrant.  I am all for legal immigration.  This is a nation of immigrants and we will always need immigration.  But everyone should be required to come in through the front door.  Encouraging illegal immigration is simply a recipe for disaster.

If we keep the back door wide open, the truth is that we have absolutely no idea who is coming into our country.  Do we really want countless numbers of criminals, welfare parasites, drug dealers and gang members pouring into our cities?  According to the FBI, there are now approximately 1.4 million gang members living in the United States, and it has been estimated that illegal immigrants make up approximately 30 percent of the total population in federal, state and local prisons.

And why in the world would we not want to control the diseases coming into this country?  Over the past several weeks, it has been documented that some of the illegal immigrants that have been apprehended have scabies and tuberculosis.

But instead of sending them right back out of the country, U.S. officials are setting up camps for this tsunami of illegal immigrants.  In other cases, the federal government is simply putting them on buses and planes and shipping them all over the country.  The illegal immigrants are released into their new communities and are given papers which order them to eventually appear in court, but of course the vast majority of them never show up.  You can see a map that documents areas where the federal government has been shipping illegal immigrants right here.

The rational thing to do would be to secure our borders and to send a very clear message that illegal immigration is not welcome in the United States.

But instead of doing that, the Obama administration is actually bringing in a riot squad to deal with anti-immigration protesters.

During normal times all of this would be crazy enough, but right now we are at a point where we cannot even take care of millions upon millions of our own citizens.

We are told that illegal immigrants do the jobs “that Americans don’t want to do”, but is that really accurate?

In this day and age, there is intense competition for just about any kind of a job.  Despite what the mainstream media says, the truth is that there hasn’t been a significant employment recovery in the United States.  As you can see from the chart posted below, the percentage of the working age population that is actually working is still far, far below where it was just prior to the last recession…

Employment-Population Ratio 2014

Yes, there has been a very slight bump in the numbers in recent months, but it is certainly no reason for celebration.  When the mainstream media declares that unemployment in America has been steadily going down, they are simply being disingenuous.  Right now things are only slightly better than they were during the worst times of the past several years.

And according to shadowstats.com, the broadest measure of unemployment is still well over 20 percent and has been steadily rising since the end of the last recession.

So no, there aren’t nearly enough jobs in the United States.

And thanks to competition from immigrant labor and thanks to the fact that millions of good jobs have been shipped overseas, the quality of our jobs continues to decline as well.  For much more on that trend, please see this article.

Needless to say, now is not the time to open up the floodgates to millions of immigrants that will need jobs to support themselves.  Many of our major cities are already so economically depressed that they look like war zones.  In fact, things have gotten so bad in Detroit that a plan is being considered to bulldoze a fifth of the entire city

In May, a group ominously titled the “Detroit Blight Removal Task Force” released a report claiming that around 22 percent of the city’s properties were “blighted” – vacant, damaged or considered dangerous. They also found that, of the 84,000 properties owned by public entities, just over 5,000 were occupied by squatters, making the city of Detroit, the report’s authors noted, “a very large and inadvertent landlord”.

The task force’s proposed solution is to demolish it all over the next five years and start again. Unfortunately, the plan doesn’t extend to rebuilding the properties – it’ll be down to private companies and developers to buy up the land and rebuild.

For much more on the decay of our major cities, please see my previous article entitled “The Death Of The Rust Belt“.

Considering the fact that we are already having such a severe problem taking care of our current population, what do you think is going to happen to these waves of illegal immigrants as they attempt to settle in to communities all around the nation?

Ultimately, we are going to have to end up financially supporting a very large percentage of them too.

Right now, more than 20 percent of children in this country are already living in poverty, and 49 million Americans are dealing with food insecurity.

If Obama continues to encourage mass illegal immigration, those numbers are going to get much worse.

Government dependence is already at an all-time record high, and about half the country currently receives benefits of some sort from the federal government every month.

How much more weight can we put on the “safety net” before it breaks?  Just check out some more numbers about this crisis from one of my previous articles

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 exceeds the number of women that have jobs.

The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

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.

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.

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.

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.

It sounds crazy, but the number of Americans on food stamps now exceeds the entire population of the nation of Spain.

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.”

According to a report from the Center for Immigration Studies, 43 percent of all immigrants that have been in the United States for at least 20 years are still on welfare.

A lot of people that are trying to immigrate here illegally just want to make a better life for themselves, and I can appreciate that.

But a policy of making it incredibly difficult for honest people to come in through the front door while keeping the back door completely wide open for lawbreakers is a recipe for national suicide.

And right now we don’t have jobs for these immigrants.

We can’t even take care of the people that are already living here.

Something desperately needs to be done about this, but I wouldn’t hold your breath waiting for Obama to make a bold move to stop illegal immigrants from pouring over the border.

ISIS Is Taking Over Iraq Using Captured American Weapons

The Caliphate On The March - ISIS Media HubISIS is marching through city after city in Iraq, and they are doing it with American weapons.  Thanks to a series of stunning victories in recent months, ISIS has captured a vast array of U.S. military equipment including trucks, Humvees, rockets, artillery pieces and Stinger missiles.  When the U.S. was pulling out of Iraq, we were extremely generous to the new Iraqi army.  We basically armed them to the teeth with equipment that U.S. taxpayers paid for.  But now that the new Iraqi army is folding like a 20 dollar suit in the face of ISIS jihadists, vast quantities of that military equipment are falling into the hands of some of the most radical jihadists the world has ever seen.  And considering the fact that ISIS also recently seized the equivalent of nearly $500 million in cash from a bank in Mosul, the leadership of ISIS won’t be having much problem buying anything else that they might need either.  ISIS is getting stronger with each passing day, and they are not going to be satisfied until the Iraqi government has been toppled.  It is a geopolitical mess of epic proportions, and there don’t seem to be any easy solutions on the horizon.

To say that the new Iraqi army has been incompetent would be a massive understatement.  Not only have they run away like scared kittens from these jihadists, they have also left behind staggering amounts of weaponry for them.  According to the Los Angeles Times, ISIS has captured “the weapons stores of the 2nd and 3rd [Iraqi army] divisions in Mosul, the 4th division in Salah al Din, the 12th division in the areas near Kirkuk, and another division in Diyala”.  And we aren’t just talking about rifles and ammunition.  We are talking about some pretty impressive hardware

Government forces retreated en masse from the onslaught, leaving behind a military hardware bonanza, including the U.S.-made armored Humvees as well as trucks, rockets, artillery pieces, rifles, ammunition, even a helicopter. Some of the seized materiel was old or otherwise non-functioning; but a lot was promptly put to use on the battlefield.

Pictures of grinning Islamist warriors cruising in U.S. Humvees bedecked with white-on-black militant flags flooded the Internet and became the signature image of the ISIS rampage.

ISIS social-media enthusiasts even mocked the global #BringBackOurGirls Twitter campaign, referring to girls kidnapped by an Al Qaeda offshoot in Nigeria. ISIS sympathizers began tweeting #BringBackOurHumvee.

One of the most popular photos mocking the Obamas and the U.S. military under the #BringBackOurHumvee hashtag is posted below…

BringBackOurHumvee

We have become a laughingstock to ISIS.  They know that we are not going to invade Iraq again.  So they are laughing at us as they use our own equipment to take over the country.

It is estimated that the military equipment that ISIS has captured so far could equip an army of 200,000 soldiers.  No wonder ISIS is recruiting more fighters so vigorously.

But wait, there’s more.

As WND has documented, members of ISIS were actually trained by U.S. personnel at a secret base in Jordan back in 2012…

Members of the Islamic State of Iraq and the Levant, or ISIS, were trained in 2012 by U.S. instructors working at a secret base in Jordan, according to informed Jordanian officials.

The officials said dozens of ISIS members were trained at the time as part of covert aid to the insurgents targeting the regime of Syrian President Bashar al-Assad in Syria. The officials said the training was not meant to be used for any future campaign in Iraq.

The Jordanian officials said all ISIS members who received U.S. training to fight in Syria were first vetted for any links to extremist groups like al-Qaida.

So U.S. taxpayers have not just paid for their weapons.

We have also paid for their training.

Not only that, but ISIS has also captured the Al Muthanna chemical weapons facility.

According to WND, some officials are concerned that ISIS may be able to use that sarin gas production facility to start churning out poison gas…

And they also may be working with a man who’s known for his expertise in making sarin, a manmade toxin that was developed in Germany and can, according to the Centers for Disease Control, produce loss of consciousness, convulsions, paralysis and death in victims who are exposed.

The revelations comes as the State Department acknowledged that ISIS has captured a stockpile of old chemical weapons at the Al Muthanna chemical weapons production complex as its fighters sweep through Iraq’s Sunni- controlled region.

The access to a sarin poison gas production facility, and the man with the expertise to operate it, is the result of a new alliance between the brutal jihadist fighters and Izzat Ibrahim al-Douri, who was a top military commander and vice president to the deposed Saddam Hussein.

And the folks running ISIS are crazy enough to do just about anything.  They are stone cold killers that will go to extreme lengths to advance their cause.  If you are not very familiar with ISIS yet, the YouTube documentary posted below contains some footage from some of their recent triumphs…

Iraq is literally being torn to pieces by this conflict, and even young boys are getting swept up into the fighting.

For example, check out this excerpt from a recent Daily Beast article

It was a surprising sight. The customers standing in Haj Hamdoun’s store in central Mosul watched as a masked child came into the shop, bought what he wanted without saying a word and then left again, carrying a bag containing candies and milk in one hand and a heavy machine gun, which was just about as big as him, in the other.

This was Abdullah, who appears to be the city’s youngest volunteer with the Sunni extremist group, the Islamic State of Iraq and al-Sham, or ISIS, that took control of Mosul over two weeks ago.

Abdullah is not yet 11 years old. But his older brother and his father, who was a senior member of ISIS, were killed in fighting between the group and Iraqi security forces in 2013. That’s why Abdullah joined ISIS, although he is far from the only child in its ranks.

And the photo of a 13-year-old ISIS fighter below comes from the ISIS Media Hub on Twitter

13 Year Old Jihadist - ISIS Media Hub

So where does all of this end?

For ISIS, the conquest of Iraq and Syria would just be the beginning.  Ultimately, ISIS intends to establish a caliphate that will rule the entire Middle East (and eventually the entire world).

And who is going to stop them from taking over Iraq?  These radicals are more than willing to die for what they believe in, and the Iraqi army has been pretty pathetic so far.

The United States seems to have very little interest in another Iraq war, and other nations would probably be extremely hesitant to intervene as well.

So who is going to stop ISIS?

And is there a larger geopolitical agenda at work here?

Please feel free to share what you think by posting a comment below…

Stone Cold Proof That Government Economic Numbers Are Being Highly Manipulated

Detective - Public DomainHow in the world does the government expect us to trust the economic numbers that they give us anymore?  For a long time, many have suspected that they were being manipulated, and as you will see below we now have stone cold proof that this is indeed the case.  But first, let’s talk about the revised GDP number for the first quarter of 2014 that was just released.  Initially, they told us that the U.S. economy only shrank by 0.1 percent in Q1.  Then that was revised down to a 1.0 percent contraction, and now we are being informed that the economy actually contracted by a whopping 2.9 percent during the first quarter.  So what are we actually supposed to believe?  Sometimes I almost get the feeling that government bureaucrats are just throwing darts at a dartboard in order to get these numbers.  Of course that is not actually true, but how do we know that we can actually trust the numbers that they give to us?

Over at shadowstats.com, John Williams publishes alternative economic statistics that he believes are much more realistic than the government numbers.  According to his figures, the U.S. economy has actually been continually contracting since 2005.  That would mean that we have been in a recession for the last nine years.

Could it be possible that he is right and the bureaucrats in Washington D.C. are wrong?

Before you answer that question, read the rest of this article.

It just might change your thinking a bit.

Another number that many have accused of being highly manipulated is the inflation rate.

But we don’t have to sit around and wonder if that figure is being manipulated.  The truth is that even those that work inside the Federal Reserve admit that it is being manipulated.

As Robert Wenzel recently pointed out, Mike Bryan, a vice president and senior economist in the Atlanta Fed’s research department, has been very open about the fact that the way inflation is calculated has been changed almost every month at times…

The Economist retells a conversation with Stephen Roach, who in the 1970s worked for the Federal Reserve under Chairman Arthur Burns. Roach remembers that when oil prices surged around 1973, Burns asked Federal Reserve Board economists to strip those prices out of the CPI “to get a less distorted measure. When food prices then rose sharply, they stripped those out too—followed by used cars, children’s toys, jewellery, housing and so on, until around half of the CPI basket was excluded because it was supposedly ‘distorted'” by forces outside the control of the central bank. The story goes on to say that, at least in part because of these actions, the Fed failed to spot the breadth of the inflationary threat of the 1970s.

I have a similar story. I remember a morning in 1991 at a meeting of the Federal Reserve Bank of Cleveland’s board of directors. I was welcomed to the lectern with, “Now it’s time to see what Mike is going to throw out of the CPI this month.” It was an uncomfortable moment for me that had a lasting influence. It was my motivation for constructing the Cleveland Fed’s median CPI.

I am a reasonably skilled reader of a monthly CPI release. And since I approached each monthly report with a pretty clear idea of what the actual rate of inflation was, it was always pretty easy for me to look across the items in the CPI market basket and identify any offending—or “distorted”—price change. Stripping these items from the price statistic revealed the truth—and confirmed that I was right all along about the actual rate of inflation.

Right now, the Federal Reserve tells us that the inflation rate is sitting at about 2 percent.

But according to John Williams, if the inflation rate was calculated the same way that it was in 1990 it would be nearly 6 percent.

And if the inflation rate was calculated the same way that it was in 1980 it would be nearly 10 percent.

So which number are we supposed to believe?

The one that makes us feel the best?

And without a doubt, “2 percent inflation” sounds a whole lot better than “10 percent inflation” does.

But anyone that does any grocery shopping knows that we are definitely not in a low inflation environment.  For much more on this, please see my previous article entitled “Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else“.

Of course the unemployment rate is being manipulated as well.  Just consider the following excerpt from a recent New York Post article

In case you are just joining this ongoing drama, the Labor Department pays Census to conduct the monthly Household Survey that produces the national unemployment rate, which despite numerous failings is — inexplicably — still very important to the Federal Reserve and others.

One of the problems with the report is that Census field representatives — the folks who knock on doors to conduct the surveys — and their supervisors have, according to my sources, been shortcutting the interview process.

Rather than collect fresh data each month as they are supposed to do, Census workers have been filling in the blanks with past months’ data. This helps them meet the strict quota of successful interviews set by Labor.

That’s just one of the ways the surveys are falsified.

The Federal Reserve would have us believe that the unemployment rate in the U.S. has fallen from a peak of 10.0 percent during the recession all the way down to 6.3 percent now.

But according to shadowstats.com, the broadest measure of unemployment is well over 20 percent and has kept rising since the end of the last recession.

And according to the Federal Reserve’s own numbers, the percentage of working age Americans with a job has barely increased over the past four years…

Employment Population Ratio 2014

The chart above looks like a long-term employment decline to me.

But that is not the story that the government bureaucrats are selling to us.

So where does the truth lie?

What numbers are we actually supposed to believe?

Please feel free to share your thoughts by posting a comment below…

 

If The Clintons Are Worth 50 Million, Why Do They Get Nearly A Million A Year From The Taxpayers?

Obama Bush Clinton CarterSince leaving the White House, the Clintons have earned at least 100 million dollars and currently have a net worth of up to 50 million dollars.  So why in the world do the taxpayers need to give Bill Clinton $944,000 to fund his extravagant lifestyle in 2014?  If ordinary Americans truly understood how much money many former politicians are being handed every year they would go bananas.  According to a Congressional Research Service report that was published earlier this year, the federal government has given a total of nearly 16 million dollars to Bill Clinton since 2001.  Each one of those dollars is a dollar that some U.S. taxpayer worked really hard for or that we had to borrow.  Yes, we don’t want our former presidents to go broke for a whole bunch of reasons, but it is absolutely absurd that we are showering them with millions upon millions of dollars.

Yesterday, I wrote about the trouble that Hillary has caused for herself by claiming that the Clintons were “dead broke” when they left the White House.

The way things have been set up, there is no way in the world that any former president is going to be “dead broke” ever again unless the law is changed.

According to the Washington Post, Bill Clinton has been receiving about a million dollars a year “for office space, staff, and a pension” since he left office…

According to an April report from the Congressional Research Service, Bill Clinton has received nearly $16 million in pensions and benefits from the federal government since leaving office. That includes $944,000 in fiscal year 2014 for office space, staff, and a pension.

That is insanely wasteful.

But wait, there’s more.

George W. Bush is actually receiving more money from the taxpayers than Clinton is each year

Bush the younger is costing taxpayers $1.28 million this year, and averages 4 per cent more annual than Clinton.

The government’s General Services Administration inexplicably budgeted $102,000 for Bush’s telephone expenses in 2014, and planned to spend $135,000 more on furniture, computers, office supplies and other miscellany.

How in the world is George W. Bush racking up $102,000 in phone expenses a year?

Does he have the world’s worst calling plan?

And of course what we spend on our former presidents is peanuts compared to what we spend on our current president.

According to author Robert Keith Gray, approximately 1.4 billion dollars is spent on the Obamas every year.  Here are just a few nuggets from his book

-The Obamas have the “biggest staff in history at the highest wages ever“.

-Obama has 469 senior staff working directly under him, and 226 of them make more than $100,000 a year.

-There is always at least one projectionist at the White House 24 hours a day just in case there is someone that wants to watch a movie.

-The “dog handler” for the family dog Bo reportedly makes $102,000 per year and sometimes he is even flown to where the family is vacationing so that he can care for the dog.

Yes, the White House needs a large staff.

But at this point we spend more on our presidents than any nation on the planet does on their entire royal families.

Over the years, the political elite have tilted the rules of the game dramatically in their favor.  Neither political party objects because they both benefit from riding on the endless gravy train.

If you can believe it, there are close to 15,000 retired federal employees that are currently collecting federal pensions for life worth at least $100,000 annually.  This list includes names such as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.

And most people are astounded to hear that more than 4 million dollars a year is spent on the “personal” and “office” expenses of each U.S. Senator.

Not that they need the money.  As I wrote about recently, more than half of the members of Congress are millionaires at this point, and nearly 200 of them are multimillionaires.

Politics in America has become a game that is played by the elite for the benefit of the elite.  If it seems like they are “out of touch” with ordinary Americans that is because they are.

Meanwhile, things just continue to get even tougher for the middle class.  Even though money is flowing like wine in Washington D.C. for the moment, a brand new Gallup survey discovered that 58 percent of Americans believe that the economy is getting worse.

It is shameful that our politicians are living like rock stars while tens of millions of American families are suffering so deeply.  For example, consider the case of Andrew and Kristen Cummins

Andrew and Kristen Cummins and their 8-year-old son Colton have been in and out of homelessness for the past four years.

It all started when Andrew moved to Indiana for a temporary warehouse job that was supposed to turn into a full-time job. But instead he said he was let go as soon as the company would have had to start providing him with full-time benefits.

Since then, he has worked at several other temporary jobs that haven’t turned into full-time work either.

Kristen has been in the same position: She has also had temporary jobs, but nothing has stuck.

So for now, the three stay at a local homeless shelter called the Haven House. Since women and men are required to sleep in separate areas, Andrew doesn’t get to see his wife or son after 9 p.m. each night.

There are millions of other families just like them that are scratching and clawing their way through life the best that they can.

Perhaps our politicians should actually do something to help them instead of sitting back and living the high life at our expense.

Hillary Clinton Has Got To Be Joking – This Is What ‘Dead Broke’ Actually Looks Like…

Hillary Clinton Smiling - Photo by ZammermanDuring a recent interview with Diane Sawyer, Hillary Clinton claimed that Bill and her were “dead broke” when they left the White House.  And then on Sunday, Hillary told the Guardian that they are not “truly well off” despite having earned about a hundred million dollars since leaving the White House and owning a couple of luxury homes.  This is yet another shocking example of how disconnected our political elite have become to the rest of the American people.  Perhaps Hillary Clinton is not “truly well off” when compared to some of the ultra-wealthy individuals that she rubs shoulders with at Democratic fundraisers, but according to numbers provided by the Social Security Administration, the Clintons would easily be in the top 0.01% of all income earners in America since leaving the White House.  So was Hillary Clinton joking, or is she really this out of touch with ordinary Americans?

Perhaps she thought that she could just tell a little white lie about how wealthy Bill and her truly are.  After all, 66 percent of Americans believe that when it says “natural” on a food label that it actually means something.  It seems like people will fall for almost anything these days.

Unfortunately for Clinton, people are not letting this one go.  In fact, CNN anchor Alison Kosik recently burst out laughing on air in response to Clinton’s claim that she is not “truly well off”…

If Hillary Clinton really does want to see what “dead broke” actually looks like, she should travel to some of the deeply impoverished communities in the heartland of America.

For instance, just consider what the BBC found when they interviewed two young kids being raised by a single mother in Iowa.

10-year-old Kaylie Haywood and her brother spend much of their time desperately hungry and thinking about food…

And of course Kaylie and Tyler are far from alone.  In fact, there are 49 million people that are dealing with food insecurity in America right now, and that number is growing.  For more sobering examples of crushing poverty in rural communities all over the United States, please see my previous article entitled “Vast Stretches Of Impoverished Appalachia Look Like They Have Been Through A War“.

But Hillary Clinton and politicians like her usually only interact with those kinds of people when it is time to win another election.

And that goes for most politicians from both political parties.

For the moment, life is good for the elite.  In places such as New York City, Washington D.C. and San Francisco, unemployment is relatively low and home prices are soaring.

But for the bottom half of the country, things just continue to get even worse.  Just consider the following numbers…

-According to one recent survey, 26 percent of all Americans have absolutely no emergency savings whatsoever.

Approximately two-thirds of all Americans do not have enough money saved up to cover six months of expenses if an emergency arose.

-Close to half of those living in Detroit cannot pay their water bills.  It is being reported that the United Nations may step in to help.

-One report discovered that 60 percent of all children in the city of Detroit are living in poverty.

-One out of every three grocery store workers in the state of California is currently receiving public assistance.

-According to the U.S. Census Bureau, about one out of every six Americans is now living in poverty.  The number of Americans living in poverty is now at a level that has not been seen since the 1960s.

-Even if you do have a job that does not mean that you are able to escape poverty in the United States today.  In fact, about one out of every four part-time workers in America is now living below the poverty line.

-According to numbers provided by Wal-Mart, more than half of their hourly workers make less than $25,000 a year.

-At this point, one out of every four American workers overall has a job that pays $10 an hour or less.

-It is a number that does not seem right, but it is actually true that half the country makes $27,520 a year or less from their jobs.

-Right now, one out of every six men in America in their prime working years (25 to 54) do not have a job.

-Half of all college graduates are still financially dependent on their parents even when they are two years out of school.

-One study discovered that nearly half of all public students in the United States come from low income homes.

-It is being projected that approximately 50 percent of all U.S. children will be on food stamps at some point in their lives before they reach the age of 18.

-It is hard to believe, but right now 1.2 million students that attend public schools in America are homeless.  That number has risen by an astounding 72 percent since the start of the last recession.

-According to a Feeding America hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.

-Numbers from the U.S. Census Bureau reveal that 49.2 percent of all Americans are now receiving benefits from at least one government program.

But if you still feel sorry for Hillary Clinton after reading all of this, there is a way that you can help.

For just pennies a day, you can contribute to “The Hillary Clinton Fund For Broke Politicians”.  In the video posted below, you can see how ordinary Americans respond when they are asked to donate to the fund…

So what do you think about all of this?

Are we being too harsh on Hillary Clinton or does she deserve the flak that she has been getting?

Please feel free to share what you think by posting a comment below…

Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else

Wheelbarrow of MoneyHave you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.  In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about…

And it is really hard to get too upset with Janet Yellen.

After all, she reminds many people of a sweet little grandmother.

But the reality of the matter is that she is simply not telling us the truth.  Everywhere we look, prices are aggressively moving higher.

Just the other day, the Bureau of Labor Statistics announced that the price index for meat, poultry, fish, and eggs has just soared to a new all-time high.

This is something that I have repeatedly warned would happen.  Just check out this article and this article.

And it isn’t just meat prices that are going up.  One of the largest coffee producers in the entire world just announced that it is going to be raising coffee prices by 9 percent

It took the Fed long enough but finally even it succumbed to the reality of surging food prices when, as we reported previously, it hiked cafeteria prices at ground zero: the cafeteria of the Chicago Fed, stating that “prices continue to rise between 3% and 33%.” So with input costs rising across the board not just for the Fed, but certainly for food manufacturers everywhere, it was only a matter of time before the latter also threw in the towel and followed in the Fed’s footsteps. Which is what happened earlier today when J.M. Smucker Co. said it raised the prices on most of its coffee products by an average of 9% to reflect higher green-coffee costs.

Not that coffee isn’t expensive enough already.  It absolutely stuns me that some people are willing to pay 3 dollars for a cup of coffee.

I still remember the days when you could get a cup of coffee for 25 cents.

Also, I can’t get over how expensive groceries are becoming these days.  Earlier this month I took my wife over to the grocery store to do some shopping.  We are really ramping up our food storage this summer, and so we grabbed as much stuff on sale as we could find.  When we got our cart to the register, I was expecting the bill to be large, but I didn’t expect it to be over 300 dollars.

And remember, this was just for a single shopping cart and we had consciously tried to grab things that were significantly reduced from regular price.

I almost felt like asking the cashier which organ I should donate to pay the bill.

Sadly, this is just the beginning.  Food prices are eventually going to go much, much higher than this.

Also, you should get ready to pay substantially more for water as well.

According to CNBC, one recent report warned that “your water bill will likely increase” in the coming months…

U.S. water utilities face a critical economic squeeze, according to a new report—and that will likely mean higher prices at the water tap for consumers.

A survey by water-engineering firm Black & Veatch of 368 water utility companies across the country shows that 66 percent of them are not generating enough revenue to cover their costs.

To make up for the financial shortfall, prices for water are heading upward, said Michael Orth, one of the co-authors of the report and senior vice president at Black & Veatch.

“People will have to pay more for water to make up the falling revenues,” he said. “And that’s likely to be more than the rate of inflation.”

Of even greater concern is what is happening to gas prices.

According to Bloomberg, the price of gasoline hasn’t been this high at this time of the year for six years…

Gasoline in the U.S. climbed this week, boosted by a surge in oil, and is expected to reach the highest level for this time of year since 2008.

The pump price averaged $3.686 a gallon yesterday, up 1.2 cents from a week earlier, data posted on the Energy Information Administration’s website late yesterday show. Oil, which accounts for two-thirds of the retail price of gasoline, gained $2.49 a barrel on the New York Mercantile Exchange in the same period and $4.88 in the month ended yesterday.

The jump in crude, driven by concern that the crisis in Iraq will disrupt supplies, may boost pump prices by 10 cents a gallon at a time when they normally drop, according to forecasts including one from the EIA.

And the conflicts in Iraq, Ukraine and elsewhere could potentially send gas prices screaming far higher.

In fact, T. Boone Pickens recently told CNBC that if Baghdad falls to ISIS that the price of a barrel of oil could potentially hit $200.

Of course the big oil companies are not exactly complaining about this.  This week energy stocks are hitting record highs, and further escalation of the conflict in Iraq will probably send them even higher.

Meanwhile, a “bipartisan Senate proposal” (that means both Democrats and Republicans) would raise the gas tax by 12 cents a gallon over the next two years.

Our politicians have such good timing, don’t they?

Ugh.

And our electricity rates are going up too.  The electricity price index just set a brand new record high and there are no signs of relief on the horizon…

The electricity price index and the average price for a kilowatthour (KWH) of electricity both hit records for May, according to data released today by the Bureau of Labor Statistics.

The average price for a KWH hit 13.6 cents during the month, up about 3.8 percent from 13.1 cents in May 2013.

The seasonally adjusted electricity price index rose from 201.431 in May 2013 to 208.655 in May 2014—an increase of about 3.6 percent.

If our paychecks were increasing at the same rate as inflation, perhaps most families would be able to weather all of this.

Unfortunately, that is not the case at all.

As I wrote about recently, median household income in the U.S. is now about 7 percent lower than it was in the year 2000 after adjusting for inflation.

And if realistic inflation numbers were used instead of the government-manipulated ones, it would look a lot worse than that.

Inflation is a hidden tax that all of us pay, and it is systematically eviscerating the middle class.

So what are prices like in your neck of the woods?

Is your family feeling the pain of inflation?

Please feel free to share your thoughts by posting a comment below…

25 Shocking Facts About The Earth’s Dwindling Water Resources

Drought - No Swimming Sign - Photo by PeripitusWar, famine, mass extinctions and devastating plagues – all of these are coming unless some kind of miraculous solution is found to the world’s rapidly growing water crisis.  By the year 2030, the global demand for water will exceed the global supply of water by an astounding 40 percent according to one very disturbing U.S. government report.  As you read this article, lakes, rivers, streams and aquifers are steadily drying up all over the planet.  The lack of global water could potentially be enough to bring about a worldwide economic collapse all by itself if nothing is done because no society can function without water.  Just try to live a single day without using any water some time.  You will quickly realize how difficult it is.  Fresh water is the single most important natural resource on the planet, and we are very rapidly running out of it.  The following are 25 shocking facts about the Earth’s dwindling water resources that everyone should know…

#1 Right now, 1.6 billion people live in areas of the world that are facing “absolute water scarcity“.

#2 Global water use has quadrupled over the past 100 years and continues to rise rapidly.

#3 One recent study found that a third of all global corn crops are facing “water stress“.

#4 A child dies from a water-related disease every 15 seconds.

#5 By 2025, two-thirds of the population of Earth will “be living under water stressed conditions“.

#6 Due to a lack of water, Chinese food imports now require more land than the entire state of California.

#7 At this point, the amount of water that China imports is already greater than the amount of oil that the United States imports.

#8 Approximately 80 percent of the major rivers in China have become so polluted that they no longer support any aquatic life at all.

#9 The Great Lakes hold about 21 percent of the total supply of fresh water in the entire world, but Barack Obama is allowing water from those lakes “to be drained, bottled and shipped to China” at a frightening pace.

#10 It is being projected that India will essentially “run out of water” by the year 2050.

#11 It has been estimated that 75 percent of all surface water in India has been heavily contaminated by human or agricultural waste.

#12 In the Middle East, the flow of water in the Jordan River is down to only 2 percent of its historic rate.

#13 Due to a lack of water, Saudi Arabia has essentially given up on trying to grow wheat and will be 100 percent dependent on wheat imports by the year 2016.

#14 Of the 60 million people added to the major cities of the world every year, the vast majority of them live in deeply impoverished areas that have no sanitation facilities whatsoever.

#15 Nearly the entire southwestern United States is experiencing drought conditions as you read this article.  It has been this way for most of the past several years.

#16 Thanks in part to the seemingly endless drought, the price index for meat, poultry, fish, and eggs in the U.S. just hit a new all-time high.

#17 As underground aquifers are relentlessly drained in California, some areas of the San Joaquin Valley are sinking by 11 inches a year.

#18 It is being projected that Lake Mead has a 50 percent chance of running dry by the year 2025.

#19 Most Americans don’t realize this, but the once mighty Colorado River has become so depleted that it no longer runs all the way to the ocean.

#20 According to the U.S. Geological Survey, “a volume equivalent to two-thirds of the water in Lake Erie” has been permanently drained from the Ogallala Aquifer since 1940, and it is currently being drained at a rate of approximately 800 gallons per minute.

#21 Once upon a time, the Ogallala Aquifer had an average depth of approximately 240 feet, but today the average depth is just 80 feet. In some areas of Texas, the water is already completely gone.

#22 Approximately 40 percent of all rivers and approximately 46 percent of all lakes in the United States have become so polluted that they are are no longer fit for human use.

#23 Because of the high cost and the inefficient use of energy, desalination is not considered to be a widely feasible solution to our water problems at this time…

The largest desalination plant in the Western Hemisphere is currently under construction in Carlsbad in San Diego County at great expense. The price tag: $1 billion.

Right now, San Diego is almost totally dependent on imported water from Sierra snowmelt and the Colorado River. When the desalination plant comes online in 2016, it will produce 50 million gallons per day, enough to offset just 7 percent of the county’s water usage. That’s a huge bill for not very much additional water.

#24 We have filled the North Pacific Ocean with 100 million tons of plastic, and this is starting to have a very serious affect on the marine food chain.  Ultimately, this could mean a lot less food available from the Pacific Ocean for humans.

#25 One very shocking U.S. government report concluded that the global demand for water will exceed the global supply of water by 40 percent by the year 2030.

Sadly, most Americans are not going to take this report seriously because they can still turn on their taps and get as much fresh water as they want.

For generations, we have been able to take our seemingly endless supplies of fresh water completely for granted, but things have now changed.

We are heading into a horrendous water crisis unlike anything that the world has ever experienced before, and right now there do not seem to be any large scale solutions capable of addressing this crisis.

Hundreds of millions of people living in North Africa, the Middle East, India and parts of China already deal with severe water shortages as part of their daily lives.

But this is just the beginning.

If nothing is done, the lack of fresh water will eventually be deeply felt by nearly everyone on the entire planet.

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