The 2010 World Economic Forum In Davos, Switzerland – Is Our Economic Future Being Determined By A Bunch Of Elitists On The Other Side Of The World?

If you went out on the streets and asked average Americans what the “World Economic Forum” is, how many of them do you think would be able to tell you what it is?  Not very many.  But it is one of the most important international economic organizations in the world.  It is a non-profit foundation that holds a meeting for world power brokers and key executives from 1,000 of the world’s most powerful companies every year for five days in Davos, Switzerland.  You can kind of think of it as a much larger and much more public Bilderberg Group.  The meetings this year were held from January 27th to January 31st, and there was such little coverage in the American media that you would think that the meetings were of little importance.

Even though we hear very, very little about the World Economic Forum in the U.S. media, the truth is that key global economic policy decisions are made each year at Davos, and often new global initiatives are launched during the meetings.  For example, the Global Health Initiative was launched by Kofi Annan at the World Economic Forum in 2002.  This year, the Bill and Melinda Gates Foundation decided to announce at the World Economic Forum that the foundation will commit $10 billion over the next 10 years to help research, develop, and deliver vaccines in poor and developing countries.

The theme of this year’s meetings was “Rethink, Redesign, Rebuild”, and most of the attendees seemed to recognize that the state of the world economy is not good.  In fact, Spiegel is reporting that the message coming out of the World Economic Forum was that 2010 was going to be a “terrible” year for the world economy.

But why is there such little coverage of such an important global conference in the media?

After all, past attendees of the World Economic Forum include Ban Ki-moon, Condoleezza Rice, Gordon Brown, Hamid Karzai, Queen Rania of Jordan, Shimon Peres, Al Gore, Bill Clinton, Bill Gates, Bono, Tony Blair, Angela Merkel, Dmitry Medvedev, Henry Kissinger and Nelson Mandela.

Very big names gathering each year to make very big decisions about our economic future – shouldn’t that be newsworthy?

But the truth is that the American press mostly ignores the World Economic Forum for the same reasons why it mostly ignores the Bilderberg Group.

The reality is that the elitist global organizations that make the real decisions don’t want us to realize how important they really are.

We aren’t supposed to understand that global policies that impact us all are made on a global level by unelected global elitists who care very little about you and I.

If you do not know about the World Economic Forum, you need to find out.

After all, they are making decisions that are going to affect your future.

The U.S. Senate Votes To Pile 1.9 Trillion Dollars More Debt On To Our Children And Grandchildren

On Thursday, the U.S. Senate voted to raise the U.S. government debt cap by another 1.9 trillion dollars.  This is another 1.9 trillion dollars that our children and grandchildren will have to pay interest on for the rest of their lives.  The U.S. national debt is rising at a rate that is so reckless and so catastrophic that it threatens to destroy the entire U.S. economy.  It is now becoming apparent that we have created a financial hole that is probably mathematically impossible to get out of under the current system.  Average Americans are becoming increasingly angry at the U.S. government for getting us all into this colossal financial mess.  In fact, one very strongly-worded letter to Barack Obama from a 95 year old World War 2 veteran is causing quite a stir all over the Internet.  More people than ever are waking up and are realizing the the United States is headed in the wrong direction and has been for a long time.

But what else can the politicians do?  If they quit all this reckless spending it would devastate the U.S. economy in the short run.  In turn, the voters would be even more determined to vote them out of office.  So, for their own job safety the politicians in Washington have got to try to stimulate the economy with massive amounts of government money. 

But all of this government spending is only making our long term problems much worse.  Yes, the U.S. government has been able to partially “stabilize” the U.S. economy in the short term by pumping trillions in “bailout” and “stimulus” money into the financial system, but by doing so they are making our long term problems far, far worse.

The U.S. government has piled up the biggest debt in the history of the world and it is increasing at a speed that is absolutely frightening.  What we have done to our children and grandchildren is completely immoral.  We have piled up the biggest credit card bill in all of human history and now we are dumping it on them.

They are going to have to spend the rest of their lives paying interest on the mess that we have made.

What a wonderful gift to future generations, eh?

When Reagan took office, the national debt was already a national crisis, but it was only about one trillion dollars.

Now the U.S. Senate has authorized an increase up to 14.3 trillion.  Just look at what we are doing….

 

How in the world can we ever justify what we have done to our children and grandchildren?

Honestly, how can we possibly look them in the eyes and tell them what we did?

It has been this generation that has flushed America’s financial future down the toilet.

Is anyone else out there getting upset about this?

What this generation has done to future generations is so cold and so wicked and so immoral that it is hard to find words to even describe it.

We throw around words like “billion” and “trillion” so much these days that it seems like they have almost lost their meaning.  Do we actually realize how much a trillion dollars is?  It is such a massive amount that words do not actually do it justice.  To get a really good idea of what a trillion dollars is, just watch the illustration in the short video below, and then ask yourself how we could possibly do this to future generations…. 

What Is He Up To Now? George Soros Declares That Gold Is Now “The Ultimate Bubble”

What in the world is George Soros up to now?  At the 2010 World Economic Forum in Davos, Switzerland Soros recently made the following statement: “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.”  So is Soros trying to scare people away from gold?  The truth is that the price of gold did rise about 40 percent last year.  In the current economic environment, there has been a flight to safety as nervous investors have flocked to precious metals such as gold, silver and platinum.  But are these bad investments that are overvalued right now?  Not at all.  The truth is that gold and silver are just about the only things that have held their value over the past 100 years.  An ounce of gold could buy you a really nice suit 100 years ago and an ounce of gold can buy you a really nice suit today.  But now that it is starting to come out that there could be massive reserves of gold and oil in Haiti, we should expect the ongoing manipulation of the precious metal markets only to intensify.  The truth is that the big dogs like Soros want everyone else to get out of gold and silver so that they can swoop in and get more for themselves.

If you are looking for a bubble, you don’t have to look any farther than the U.S. stock market.  Remember all of that “bailout” money and “stimulus” money that the U.S. government injected into the economy?  Well, it didn’t help you much, did it?  Nope.  So where did it go?  It went to pumping up Wall Street.  In a recent article, Bob Chapman did a great job of explaining what is happening….

Liquidity is not flowing into the economy it is pouring into Wall Street to aid and abet more speculation, which has sent the Dow from 6600 to 10,700.

That is why some analysts are calling this a “jobless” recovery.  They think that because the stock market has gone up we are having a recovery.  But it is a lie.  The reality is that the stock market is experiencing a “sucker’s rally” and all the insiders are busy selling their holdings off into that rally as Chapman explains further down in his article….

It should be noted that insiders are selling into the never-ending rally, and mutual funds have very little money flow coming into the funds. That, of course, is our government at work manipulating the market. Just last week insiders bought $18 million worth of shares and sold $419 million.

But let’s not just blame Wall Street.

They are not the only ones responsible for the mess that we are in.

The truth is that we have all made bad choices.  We have all bought stuff made in China for years and years just because it was a few cents cheaper.  We knew that it would put some of our neighbors out of work eventually but we didn’t care as long as we could save a buck or two. 

All we cared about was the lowest price.  In fact, for decades the U.S. government made obscenely lopsided trade deals with foreign nations (that were very much not in our favor) just so that we could get cheaper goods for the American consumer.  We were told that anything that was good for the “consumer” was good for the economy.  “Free trade” (or in other words, other countries getting to send us all the cheap stuff they wanted to) was going to be the solution to all of our problems.

But it wasn’t.

Instead, we found out that there was a very high cost to those low prices.

In his excellent article entitled “The Wal-Mart Model of Self-Destruction: Lowest Prices, Always”, Charles Hugh Smith captured the high cost of our obsession with low prices beautifully….

The propaganda of marketing has so hollowed out American culture that most citizens cannot recall a time that “Consumerism” wasn’t the unofficial religion of American society. And what is the First Commandment of “consumerist religion”? The lowest price is all that matters.

Quality doesn’t matter; we’re going to move/throw it away anyway.

Who made it doesn’t matter. The idea that you might pay more to keep your neighbor employed is akin to worshipping the Devil: all that matters is the lowest price.

The sad thing is that many of you who are reading this article will keep running out to bloated globalist retailers like Wal-Mart just to save a few pennies.  It doesn’t matter that their stores are filled with cheap garbage made in virtual sweat shops all over the globe and that Wal-Mart has probably decimated a large percentage of the local businesses in your area since they moved in.  But on the bright side, they do pay slightly over minimum wage and they do provide part-time employment for many of the people in your area.  Perhaps you can get a job with them when your job gets shipped overseas too.

The truth is that we all need to quit being “consumers” and we all need to start participating in our communities once again.  Instead of supporting a big global chain that takes all of the profits out of your local community, why don’t you go visit the struggling small business down the street instead?  Instead of pumping your cash into the giant shell game known as the stock market, why don’t you help a family member start a business or put it into something real like gold and silver instead?

We are all supporting the current globalist system by putting money into their banks, by investing in their stocks and by endlessly shopping in their stores. 

Imagine what would happen if we all suddenly decided to stop.

Economic Black Hole: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover

Even though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy.  Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be experiencing another time of economic growth and prosperity very shortly.  But this time around that is not the case.  The reality is that we are being sucked into an economic black hole from which the U.S. economy will never fully recover.

The problem is debt.  Collectively, the U.S. government, the state governments, corporate America and American consumers have accumulated the biggest mountain of debt in the history of the world.  Our massive debt binge has financed our tremendous growth and prosperity over the last couple of decades, but now the day of reckoning is here.

And it is going to be painful.

The following are 20 reasons why the U.S. economy is dying and is simply not going to recover….

#1) Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression?  Well, the “second wave” of mortgage defaults in on the way and there is simply no way that we are going to be able to avoid it.  A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millons of people who simply cannot pay their mortgages.  The chart below reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years….

#2) The Federal Housing Administration has announced plans to increase the amount of up-front cash paid by new borrowers and to require higher down payments from those with the poorest credit.  The Federal Housing Administration currently backs about 30 percent of all new home loans and about 20 percent of all new home refinancing loans.  Tighter standards are going to mean that less people will qualify for loans.  Less qualifiers means that there will be less buyers for homes.  Less buyers means that home prices are going to drop even more.

#3) It is getting really hard to find a job in the United States.  A total of 6,130,000 U.S. workers had been unemployed for 27 weeks or more in December 2009.  That was the most ever since the U.S. government started keeping track of this statistic in 1948.  In fact, it is more than double the 2,612,000 U.S. workers who were unemployed for a similar length of time in December 2008.  The reality is that once Americans lose their jobs they are increasingly finding it difficult to find new ones. 

#4) In December, there were also 929,000 “discouraged” workers who are not counted as part of the labor force because they have “given up” looking for work.  That is the most since the U.S. government first started keeping track of discouraged workers in 1949.  Many Americans have simply given up and are now chronically unemployed.

#5) Some areas of the U.S. are already virtually in a state of depression.  The mayor of Detroit estimates that the real unemployment rate in his city is now somewhere around 50 percent.

#6) For decades, our leaders in Washington pushed us towards “a global economy” and told us it would be so good for us.  But there is a flip side.  Now workers in the U.S. must compete with workers all over the world, and our greedy corporations are free to pursue the cheapest labor available anywhere on the globe.  Millions of jobs have already been shipped out of the United States, and Princeton University economist Alan S. Blinder estimates that 22% to 29% of all current U.S. jobs will be offshorable within two decades.  The days when blue collar workers could live the American Dream are gone and they are not going to come back.   

#7) During the 2001 recession, the U.S. economy lost 2% of its jobs and it took four years to get them back. This time around the U.S. economy has lost more than 5% of its jobs and there is no sign that the bleeding of jobs is going to stop any time soon.

#8) All of this unemployment is putting severe stress on state unemployment funds.  At this point, 25 state unemployment insurance funds have gone broke and the Department of Labor estimates that 15 more state unemployment funds will likely go broke within two years and will need massive loans from the federal government just to keep going.

#9) 37 million Americans now receive food stamps, and the program is expanding at a pace of about 20,000 people a day.  The United States of America is very quickly becoming a socialist welfare state.

#10) The number of Americans who are going broke is staggering.  1.41 million Americans filed for personal bankruptcy in 2009 – a 32 percent increase over 2008.

#11) For decades, the fact that the U.S. dollar was the reserve currency of the world gave the U.S. financial system an unusual degree of stability.  But all of that is changing.  Foreign countries are increasingly turning away from the dollar to other currencies.  For example, Russia’s central bank announced on Wednesday that it had started buying Canadian dollars in a bid to diversify its foreign exchange reserves.

#12) The recent economic downturn has left some localities totally bankrupt.  For instance, Jefferson County, Alabama is on the brink of what would be the largest government bankruptcy in the history of the United States – surpassing the 1994 filing by Southern California’s Orange County.

#13) The U.S. is facing a pension crisis of unprecedented magnitude.  Virtually all pension funds in the United States, both private and public, are massively underfunded.  With millions of Baby Boomers getting ready to retire, there is simply no way on earth that all of these obligations can be met.  Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the collective unfunded pension liability for all 50 U.S. states for Forbes magazine.  So what was the total?  3.2 trillion dollars.

#14) Social Security and Medicare expenses are wildly out of control.  Once again, with millions of Baby Boomers now at retirement age there is simply going to be no way to pay all of these retirees what they are owed.

#15) So will the U.S. government come to the rescue?  The U.S. has allowed the total federal debt to balloon by 50% since 2006 to $12.3 trillion.  The chart below is a bit outdated, but it does show the reckless expansion of U.S. government debt over the past several decades.  To get an idea of where we are now, just add at least 3 trillion dollars on to the top of the chart….

#16) So has the U.S. government learned anything from these mistakes?  No.  In fact, Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $2 trillion to pay its bills, a record increase that would allow the U.S. national debt to reach approximately $14.3 trillion

#17) It is going to become even harder for the U.S. government to pay the bills now that tax receipts are falling through the floor.  U.S. corporate income tax receipts were down 55% in the year that ended on September 30th, 2009.

#18) So where will the U.S. government get the money?  From the Federal Reserve of course.  The Federal Reserve bought approximately 80 percent of all U.S. Treasury securities issued in 2009.  In other words, the U.S. government is now being financed by a massive Ponzi scheme.

#19) The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying the U.S. dollar and the value of the remaining collective net worth of all Americans.  The more dollars there are, the less each individual dollar is worth.  In essence, inflation is like a hidden tax on each dollar that you own.  When they flood the economy with money, the value of the money you have in your bank accounts goes down.  The chart below shows the growth of the U.S. money supply.  Pay particular attention to the very end of the chart which shows what has been happening lately.  What do you think this is going to do to the value of the U.S. dollar?….

#20) When a nation practices evil, there is no way that it is going to be blessed in the long run.  The truth is that we have become a nation that is dripping with corruption and wickedness from the top to the bottom.  Unless this fundamentally changes, not even the most perfect economic policies in the world are going to do us any good.  In the end, you always reap what you sow.  The day of reckoning for the U.S. economy is here and it is not going to be pleasant.

The Other Side Of Christmas

The Other Side Of ChristmasFor some Americans this past Christmas represented the best of times. They drove their imported cars out to the big box stores where they bought cheap plastic imported goods from China to give to their family members as they huddled in the spacious family rooms of their McMansions. But for millions of other Americans this was not a happy Christmas. For those Americans, the holiday season has been filled with frustration and despair as they try to pick up the pieces of their lives after being hit by an economic tsunami. You see, the deep recession of 2008/2009 is not just about numbers and figures – it is about real people with very real problems. Boneheaded policies developed in Washington and in the corporate boardrooms of America have had devastating consequences for millions of people out there. So if you are having a “happy” holiday season, perhaps you could take a few moments to consider what the other side of Christmas is like for the large numbers of Americans who are really hurting out there right now.

In 2009, millions of Americans lost their jobs. It may seem really easy to tell someone to “get a job”, but when there are simply no jobs out there it can literally suck the life out of the unemployed. In fact, some areas of the United States now more closely resemble a war zone than a modern industrialized nation. For example, the city of Detroit is a complete disaster area. The “official” unemployment rate in Detroit is 27 percent, but the mayor of Detroit says that it should really be about 45 percent using a broader definition of unemployment.

Almost half of the people in one of America’s biggest cities out of work?

Can you even imagine?

And yet it is a reality.

People there are desperate.

People there are turning to crime.

Forget about figuring out what to buy for Christmas – people in Detroit are figuring out how to put a roof over their heads and are wondering where their next meal is going to come from.

But it is not just Detroit.

Unemployment is ravaging the entire nation.

For example, 1400 truckers based in Oklahoma who worked for Arrow Trucking suddenly found themselves unemployed and found their paychecks bouncing when their employer suddenly went out of business.  Some of them even found themselves stranded in the middle of their routes when their gas cards simply stopped working.  Just check out the video news report below….

Now many of those truckers are wondering how they are going to feed their families.

That was their Christmas.

So how was yours?

If you do not understand how explosive the growth of unemployment has been the past two years, then please go take a look at this startling animated map which graphically shows the mind blowing growth of unemployment in the United States.  It will simply take your breath away.

Millions of other Americans have lost their homes in 2009.

How would you feel if you lost your home and had to move into a motel or move in with your relatives or even move into a tent city?

Tent cities?

Yes, tent cities are popping up all over the United States.  People who once lived in beautiful homes and who celebrated Christmas with their families around the ole Christmas tree are now relegated to trying to survive in tent cities….

Millions of other Americans who may still have jobs and who may even still have their homes cannot sleep at night because they are up to their eyeballs in debt.  Credit card debt has become a national nightmare as Americans have indulged in the greatest consumer debt binge of all time over the past decade.

Now those chickens are coming home to roost.  Just check out the following video….

The truth is that the average American household is drowning in debt.  In 1980, the average U.S. household held $670 in credit card debt.  That number today is up to $7,800.

As the economy crumbles, many people would love to get out of debt but they simply can’t.  In fact, millions of Americans find themselves unable to make ends meet at the end of the month.

More Americans than ever are allowing frustration to slowly become despair.  People know things are bad and they are not optimistic that things will get any better any time soon.

In fact, one new poll has revealed that eight in ten Americans say that the economy is in poor shape.

The American middle class is simply tapped out.  Millions of people are going broke.  The total number of bankruptcies filed in the third quarter in the United States surged 33%.

So how are you doing?

If you had a wonderful Christmas without any financial worries consider yourself fortunate.

But as the U.S. economic collapse continues it may come and claim you as a victim as well.

You better get ready.

ecb125e

Is The World About To Experience A Devastating Economic Collapse?

Is the world about to experience an absolutely crippling economic collapse?  That is the conclusion that we have come to after years of research.  The truth is that the world economic system is essentially a mountain of debt based on paper money that is backed up by nothing.  History has shown that any economy based on debt and paper money will always fall apart in the end – especially when greed and corruption are huge factors in the equation as they are today.

In particular, the United States finds itself in a massive economic mess.  It was once the greatest creditor nation on earth, but now it is the biggest debtor in the history of the world.  It blows the mind to think that the “richest nation in the world” has become the nation with the most debt in the history of the planet in just one short generation.

But rather than learning the lessons of the past, this current administration is making the long-term economic problems far worse by spending American taxpayer dollars as if they were monopoly money.  In an effort to “stimulate the economy” and “bail out” troubled financial institutions, the current administration has put future generations in so much debt that it is basically mathematically impossible for them to ever get out of it.

Not that U.S. corporations and financial institutions are doing any better.  They have created a financial black hole known as “derivatives” that threatens to destroy the entire financial system at any moment.  Most large U.S. corporations are either so highly leveraged or have so much exposure to derivatives (or both) that even a slight shift in the economic winds can capsize many of them.

Of course we all know about how much of a mess American consumers find themselves in.  Credit card debt has absolutely exploded this decade and the majority of Americans now find themselves living month to month.  Personal bankruptcies and mortgage defaults continue to set all-time record after all-time record.  Millions of Americans are losing their jobs and millions of Americans are losing their homes as the economy continues to implode.

So is there hope for the future?

No.

The U.S. government continues to go into debt so fast that it is absolutely mind blowing.  Pension funds from coast to coast are broke.  Banks are failing at a frightening rate.  Millions of good jobs have been shipped overseas for decades and they simply are not coming back.  Without good jobs, the American middle class cannot support the bizarre debt spiral that has kept the U.S. economy going for so long.

What is ultimately going to happen is that the financial authorities will flood the money supply with tons of cash in an effort to “print” our way out of the economic crisis.  But all that will do is cause hyperinflation and will absolutely destroy the value of the dollar.  All of the accumulated wealth of the American people will disintegrate before their eyes as their dollars quickly become worthless.

So, no, the future is not pretty.

And that is what we will be documenting on this website.

A global economic collapse is coming and it is going to rip the world apart.

You better get ready.

 

Do NOT follow this link or you will be banned from the site!