Tens of millions of American families are about to go through economic hell and most of them don’t even realize it. Most Americans don’t spend a whole lot of time thinking about things like “monetary policy” or “economic cycles”. The vast majority of people just want to be able to get up in the morning, go to work and provide for their families. Most Americans realize that things seem “harder” these days, but most of them also have faith that things will eventually get better. Unfortunately, things aren’t going to get any better. The number of good jobs continues to decline, the number of Americans losing their homes continues to go up, people are having a much more difficult time paying their bills and our federal government is drowning in debt. Sadly, this is only just the beginning.
Since the financial collapse of 2008, the Federal Reserve and the U.S. government have taken unprecedented steps to stimulate the economy. But even with all of those efforts, we are still living in an economic wasteland.
So what is going to happen when the next wave of the economic crisis hits?
If you look at the economic relapse that’s going on right now, look at Friday’s abysmal job numbers, look at the housing numbers, understand that all of this is taking place with record monetary and fiscal stimulus. What happens if we remove those supports?
At the end of June, the Federal Reserve’s quantitative easing program is slated to end. The U.S. Congress and state legislatures from coast to coast are talking about budget cuts. The amount of borrowing and spending that has been going on is clearly unsustainable, but will the U.S. economy start shrinking again once the current “financial sugar high” has worn off?
Already, all sorts of bad economic news has been coming out and all kinds of economic indicators are turning south. The American people are becoming increasingly restless. One new poll has found that 59 percent of the American people disapprove of Barack Obama’s handling of the economy (which is a new high). According to another recent poll, 63% of Americans say that they feel “not good” or “bad” about how the U.S. economy is performing.
If most Americans had good jobs, could afford their mortgages and could pay their bills, the economy would not be such a big issue.
Unfortunately, times are really tough for American families right now and they are about to get a lot tougher.
*Jobs*
The official unemployment rate just went up to 9.1 percent, but that figure only tells part of the picture.
There are some areas of the country where it seems nearly impossible to find a decent job. Millions of Americans have fallen into depression as they find themselves unable to provide for their families.
According to CBS News, 45.1 percent of all unemployed Americans have been out of work for at least six months. That is a higher percentage than at any point during the Great Depression.
Just two years ago, the number of “long-term unemployed” in the United States was only 2.6 million. Today, that number is up to 6.2 million.
Can you imagine being out of work for 6 months or more?
How would you survive?
Just look at the chart below. What we are going through now is really unprecedented. The average duration of unemployment in this country is now close to 40 weeks….
So will things get any better soon? Well, there were only about 3 million job openings in the United States during the month of April. Normally there should be about 4.5 million job openings. The economy is slowing down once again. Good jobs are going to become even more rare.
There are millions of other Americans that are “underemployed”. All over the United States you will find hard working Americans that are flipping burgers or working in retail stores because that is all they can get right now.
Most temp jobs and most part-time jobs don’t pay enough to be able to provide for a family. But there are not nearly enough full-time jobs for everyone.
Sadly, the number of “middle class jobs” is about 10 percent lower than a decade ago. There are simply less tickets to the “good life” than there used to be.
*Homes*
But without good jobs, the American people cannot afford to buy homes.
Without good jobs, the American people cannot even afford the homes that they are in now.
U.S. home prices have fallen 33 percent since the peak of the housing bubble. That is more than they fell during the Great Depression.
This decline in housing prices has caused a lot of problems.
28 percent of all homes with a mortgage in the United States are in negative equity at this point. There are millions of American families that are now paying on mortgages that are for far more than their homes are worth.
Millions of American families literally feel trapped in their homes. They can’t afford to sell their homes, and if they simply walk away nobody will approve them for new home loans for many years to come.
Many Americans are sticking it out and are staying in their homes until they simply can’t pay for them anymore.
As the number of good jobs continues to decline, the number of Americans that are losing their homes continues to rise.
If the economy slows down once again and millions more Americans lose their jobs this problem is going to get a lot worse.
*Bills*
Even if they aren’t losing their homes yet, millions of other Americans families are finding it increasingly difficult to pay the bills.
Wages have been very flat over the past few years and yet the cost of most of the basics just seems to keep going up and up.
According to Brent Meyer, a senior economic analyst at the Federal Reserve Bank of Cleveland, the cost of food and the cost of energy have risen at an annualized rate of 17 percent over the past six months.
Have your wages gone up by 17 percent over the past six months?
As 2009 began, the average price of a gallon of gasoline in the United States was $1.83. Today it is $3.77.
American families are finding that their paychecks are going a lot less farther than they used to, but Ben Bernanke keeps insisting that we have very little inflation in 2011.
Most Americans don’t care much about economic statistics – they just want to be able to do basic things like take their children to the doctor.
According to one recent survey, 26 percent of Americans have put off doctor visits because of the economy.
Sadly, soon a lot more American families will not be able to afford to go to the doctor.
According to one recent survey, 30 percent of all U.S. employers will “definitely or probably” quit offering employer-sponsored health coverage once Obamacare is fully implemented in 2014.
As the economic situation has unraveled, an increasing number of people are being forced to turn to the federal government for assistance.
So these days when American families can’t feed themselves what do they do?
They turn to the federal government of course.
At the moment, approximately 44 million Americans are on food stamps.
But our federal government cannot afford to spend money like this forever.
According to a recent USA Today analysis, the U.S. federal government took on $5.3 trillion in new financial obligations during 2010. USA Today says that the U.S. government now has $61.6 trillion in financial obligations that have not been paid for yet.
Wow!
Who is going to end up paying that bill?
So with so much bad news, are our leaders alarmed?
Others are not so sure that everything is going to turn out okay.
Recently, James Carville warned that we could literally see rioting in the streets if the economic situation does not turn around soon. Just check out the last part of the video below….
The truth is that America is in decline. Just like with all of the great empires of the past, our empire is starting to crumble too.
A recent article in the Guardian touched on some of the reasons for America’s decline….
The experience of both Rome and Britain suggests that it is hard to stop the rot once it has set in, so here are the a few of the warning signs of trouble ahead: military overstretch, a widening gulf between rich and poor, a hollowed-out economy, citizens using debt to live beyond their means, and once-effective policies no longer working. The high levels of violent crime, epidemic of obesity, addiction to pornography and excessive use of energy may be telling us something: the US is in an advanced state of cultural decadence.
The economic news is only part of the puzzle. This country has rejected the ancient wisdom that was passed down to us and we have rejected the principles of our founding fathers.
We have piled up the biggest mountain of debt in the history of the world and yet somehow we expected that everything would turn out okay.
Well, everything is not going to turn out okay.
All of this debt is going to come down on us like a ton of bricks and the U.S. economy is going to continue to fall apart. Millions of American families are going to lose their jobs and their homes.
Today, average Americans have less power relative to the monolithic corporate and governmental institutions that dominate our society than at any other point in U.S. history. Sadly, this is not what our founding fathers ever envisioned. Our founding fathers established a government “of the people, by the people, for the people”, but what we have today is very far from that ideal. In America today, wealth and power are very highly concentrated, and if you have neither wealth nor power than most of our politicians really do not have any interest in you. Over the past several decades, those with huge amounts of money and power have been busy rigging the game so that the rest of the money and power slowly but surely funnels into their hands. If current trends continue, the banksters and the corpocracy will eventually own it all. Below you will find 29 statistics about extreme income inequality in America. Sadly, most of these statistics will be out of date in a year or two because wealth and power will be much more concentrated by that time.
If you are a “Kool-Aid drinking Democrat” you are going to be really upset by this article. If you are a “Kool-Aid drinking Republican” you are going to be really upset by this article.
Most Republicans have been brainwashed into believing that “capitalism” means cheerleading while the big corporations hoover up money and power.
Most Democrats have no trouble with big corporations either because most establishment Democrats have been brainwashed into believing that large concentrations of power (whether governmental or corporate) are generally good. Most Democrats just wish that big corporations were a little less greedy and were a little more “socially responsible”.
Today, the big banks, the big corporations and the federal government are all in bed with one another and it is average Americans that always lose out.
Our founding fathers tried to warn us about large concentrations of power. They attempted to establish a very limited central government, they wanted to keep us free from the tyranny of the big banks and they were very suspicious of large corporations.
In a 2010 article, Rick Ungar noted that corporations were very seriously restricted in the early days of America….
After the nation’s founding, corporations were, as they are today, the result of charters granted by the state. However, unlike today, they were limited in how long they were permitted to exist (typically 20 or 30 years), only permitted to deal in one commodity, they could not own shares in other corporations, and their property holdings were expressly limited to what they needed to accomplish their corporate business goals.
My how things have changed.
“Capitalism” is supposed to be about the empowerment of individuals and families and small businesses.
Instead, today “capitalism” has come to mean something completely different. Today, the biggest, meanest concentrations of wealth devour everyone else with a big assist from the government.
At this point, average Americans mean next to nothing in the political process. This point was eloquently made in a recent column by Robert Reich….
The unemployed are politically invisible. They don’t make major campaign donations. They don’t lobby Congress. There’s no National Association of Unemployed People.
Their ranks are filled with women who had been public employees, single mothers, minorities, young people trying to enter the labor force, and middle-aged men who have been out of work for longer than six months. You couldn’t find a collection of people with less political clout.
I would not normally quote Robert Reich, but he made a good point. If you don’t have an army of lobbyists or any money to give to them then most of our politicians don’t really care what you think or how much you are hurting.
Just think about the amount of power and money that Exxon Mobil or Wal-Mart has compared to the amount of power and money that an average American has.
Our society has veered very far from the egalitarian ideal that our founding fathers once hoped for.
The corporate giants are so powerful that it is next to impossible for small businesses to directly compete with them.
Just try it some time.
Many banks and corporations have become so big that the world literally cannot afford for them to fail.
So what happens if those three corporations collapse?
That is something to think about.
But of course average Americans are never “too big to fail”. The big banks begged and begged for bailouts, but if you are late on your debt payments they will chuck you into prison.
Also, when wealth and power are so highly concentrated, economic rewards flow only to a few. Corporatism (as opposed to true capitalism) produces a handful of winners and a whole lot of losers.
As I have written about previously, the middle class is being destroyed. If current trends are allowed to continue long enough we eventually won’t have much of a middle class left at all.
The following are 29 statistics about extreme income inequality in America that will blow your mind….
#2 The wealthiest 1% of all Americans now own more than a third of all the wealth in the United States.
#3 The wealthiest 1% of all Americans own over 50% of all the stocks and bonds.
#4 The poorest 50% of all Americans collectively own just 2.5% of all the wealth in the United States.
#5 According to a joint House and Senate report entitled “Income Inequality and the Great Recession“, the top one percent of income earners in the United States brought in a total of 10.0 percent of all income income in 1980, but by the time 2008 had rolled around that figure had skyrocketed to 21.0 percent.
#6 Between 1979 and and 2007, the average household income of the top 1% of all Americans soared from $346,600 to $1.3 million. During that same time period the average household income for middle class Americans increased only slightly.
#7According to Harvard Magazine, 66% of the income growth between 2001 and 2007 went to the top 1% of all Americans.
#9 According to a new report from the AFL-CIO, the average CEO made 343 times more money than the average American did last year.
#10 The number of “low income jobs” in the U.S. has risen steadily over the past 30 years and they now account for 41 percent of all jobs in the United States.
#11 Since 1979, real median weekly earnings for high school dropouts has declined by 22 percent.
#12 During this economic downturn, employee compensation in the United States has been the lowest that it has been relative to gross domestic product in over 50 years.
#13 Half of all American workers now earn $505 or less per week.
#14 Since the year 2000, we have lost 10% of our middle class jobs. In the year 2000 there were about 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs. Meanwhile, our population has gotten significantly larger.
#15 Ten years ago, the United States was ranked number one in average wealth per adult. In 2010, the United States fell to seventh.
#16 According to one recent study, approximately 21 percent of all children in the United States were living below the poverty line in 2010. In the UK and in France that figure is well under 10 percent.
#18 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.
#19 According to Moody’s Analytics, the wealthiest 5% of households in the United States now account for approximately 37% of all consumer spending.
#20 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.
#21 The U.S. poverty rate is now the third worst among the developed nations tracked by the Organization for Economic Cooperation and Development.
#24 It is estimated that over 80 percent of the world’s population lives in countries where the income gap between the rich and the poor is widening.
#25 One year after the recent financial collapse the top 25 hedge fund managers earned a total of approximately $25 billion. That breaks down to an average of $1 billion each.
#26 Bill Gates has a net worth of somewhere in the neighborhood of 50 billion dollars. That means that there are approximately 140 different nations that have a yearly GDP which is smaller than the amount of money Bill Gates has.
#27 It is estimated that the entire continent of Africa owns approximately 1 percent of the total wealth of the world.
#28 The top 0.01% of Americans make an average of $27,342,212. The bottom 90% make an average of $31,244.
#2958 percent of the members of Congress are millionaires while only about 1 percent of the general population is made up of millionaires.
So what is the solution?
Well, our liberal friends insist that the solution to all of this inequality is to tax the rich and to distribute the wealth to the poor.
Well, there are three major problems with that.
Number one, when you raise taxes too high you eliminate the incentive to work hard.
Number two, when you make it too easy to depend on government handouts you create an underclass of economic parasites.
Number three, the big corporations and the ultra-wealthy have become masters at avoiding taxation no matter what the rates are.
Before you tax the rich too much, you might want to consider the consequences of doing so.
Why should someone bust his or her rear end to run a business and make a lot of money if the government is just going to come along and take over half of all the money that is made?
Personally, if I ever get into a tax bracket where over half the money I make goes to the government then I simply will not work nearly as hard at that point.
But if that starts happening on a large scale, then you have a significant loss of economic activity which hurts the economy overall.
Already, the top 20 percent of all income earners in the United States pay approximately 86 percent of all federal income taxes.
When the government “steals from the rich” and “gives to the poor”, that also tends to create a large group of people that decides that it is easier to take from the government than it is to work for a living.
In 1980, government transfer payments accounted for just 11.7% of all income. Today, government transfer payments account for 18.4% of all income.
That is not even close to sustainable, but nobody wants to give up their “government benefits”.
Today, 59 percent of all Americans receive money from the federal government in one form or another.
Yes, there will always be those that cannot help themselves and we should always have a “safety net”.
But when you look around it doesn’t take a genius to figure out that things have gotten completely and totally out of control.
Right now, an all-time record 44 million Americans are on food stamps.
Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid.
The U.S. government is even handing out billions of dollars to homeowners that are delinquent on their mortgages.
This is not a formula for long-term economic success.
When people get addicted to government checks they never want to stop.
But this is not what the poor need.
What the poor need are good jobs that pay good wages. Unfortunately, we keep shipping millions of those jobs overseas. So now the Chinese economy is thriving and our formerly great manufacturing cities are turning into hellholes.
Handouts do not give people hope, dignity and a future, but jobs can.
Also, as I have written about before, the big corporations and the ultra-wealthy have become masters at avoiding taxes. There is a reason why approximately a third of all the wealth in the world is held in “offshore” tax havens.
What U.S. corporations are able to get away with is absolutely amazing.
During those three years, all of the corporations below made a lot of money. Yet all of them paid net taxes that were below zero for those three years combined.
How is that possible? Well, it turns out that instead of paying in taxes to the federal government, they were actually getting money back.
So for these corporations, their rate of taxation was actually below zero.
If you have not seen these before, you are going to have a hard time believing some of these statistics…..
*Honeywell*
Profits: $4.9 billion
Taxes: -$34 million
*Fed Ex*
Profits: $3 billion
Taxes: -$23 million
*Wells Fargo*
Profits: $49.37 billion
Taxes: -$681 million
*Boeing*
Profits: $9.7 billion
Taxes: -$178 million
*Verizon*
Profits: $32.5 billion
Taxes: -$951 million
*Dupont*
Profits: $2.1 billion
Taxes -$72 million
*American Electric Power*
Profits: $5.89 billion
Taxes -$545 million
*General Electric*
Profits: $7.7 billion
Taxes: -$4.7 billion
Are you starting to get the picture?
I wish I could make $7.7 billion, pay no taxes and have the government give me $4.7 billion on top of it.
Our system has become corrupted beyond all recognition.
We need to throw out the current system of taxation and come up with something entirely new.
In fact, the truth is that for most of U.S. history there was not a federal income tax at all. But that is a story for another day.
If you believe in the U.S. Constitution and in the republic that our founding fathers established, then the very high concentrations of wealth and power in our society today should greatly concern you. Income inequality is not a “Democrat” or a “Republican” issue. A vibrant, thriving middle class should be a goal all of us can embrace.
But I have a feeling a whole lot of “Democrats” and a whole lot of “Republicans” were deeply offended by this article. Feel free to express your opinion by leaving a comment below….
Even in the midst of a horrific economic decline, there are tools that all of us can use to make the most of our limited resources. This includes doing some things that many of us never imagined that we would do. A couple of months ago I never would have imagined that I would be doing an article on coupons. But in these desperate economic times you have to look for any economic edge that you can get. Did you know that it is possible to get $500 worth of groceries for less than 10 dollars? I didn’t know that either until I started watching a show called “Extreme Couponing” on cable television. I was amazed as I watched person after person get over 95 percent off on their groceries. Personally, I have always thought that clipping coupons was a waste of time. Sure, you might save a few bucks, but I really didn’t think it was worth the time or the effort. Well, my opinion has changed. There are a growing number of people out there that are using coupons to provide all of the groceries that their families need almost for free. In an economic environment where incomes are going down but food prices continue to go up, “extreme couponing” is a financial weapon that virtually anyone can use.
Yes, not everyone can take it to the extent that many of these “extreme couponers” do. There are some women that spend 40, 50 or even 60 hours a week on their couponing. Most people cannot afford to do that.
But even if you just spend a couple of hours a week you can still save significant money. At a time when many family budgets are tighter than ever, saving 50 or 100 bucks at the grocery store can mean a world of difference.
Not only that, but “extreme couponing” is a great way to build up your stockpile of emergency food. Everyone should have enough food in their homes to feed their families for at least a year. Unfortunately, many people don’t have that kind of money. That is where “extreme couponing” comes in.
If you are willing to put a little hard work in, you can build a stockpile of emergency food for pennies on the dollar.
Extreme couponing is not complicated and thanks to the new TLC show it is becoming extremely popular. The following is how a recent article on MSNBC describes these “extreme couponers”….
Hard-core couponers are in it to win it — for free, if at all humanly possible. They plot their grocery-store trips with the precision of military commanders. They load up three or four shopping carts at a time. They test the mettle — and the congeniality — of cashiers by having them tally dozens of discounts on their behalf.
And what do they get in exchange? Hundreds of dollars’ worth of merchandise for as little as $5 to $10, the applause of onlookers — and a surge of adrenaline that can be downright addicting.
If you have never seen the show, you should check it out at least once. The following is a very brief preview of “Extreme Couponing”….
Yes, people are actually doing this. In fact, some of my readers are actually doing this.
On a recent article entitled “Inflation 2011: Honey – They Shrunk Our Paychecks” one of my regular readers named Maria shared that her and her circle of friends have adopted extreme couponing as a way to fight back against the bad economy….
In the last six months, I have seen a complete attitude adjustment in many of our friends and family. As a result, a resource sharing group has formed amongst us. We share work, ideas and tips on everything from budgeting to gardening. All of us have curtailed the “luxuries” like gym memberships, expensive clothing, latte’s and mochas from those expensive little stops on the way to work, dining at restaurants, first run movies at the theater, and a myriad of other little things.
Our latest discovery is the world of couponing. Anyone interested in dramatically cutting their household and grocery expenses should take a serious look at TheKrazyCouponLady.com and read their book, Pick Another Checkout Lane, Honey. I never understood how couponing could make a difference until I read this book. Our group now looks at coupons almost as a tax free source of income, because it is saving us hundreds of dollars a month…no exaggeration.
I admit, I am not as diligent as the others about using coupons, but even with my minimal efforts I saved 60% on my meat purchases last month. That was huge for my family of 6. Our home is out in the country near a rural community, and the only grocery store in town is Safeway. I never shopped there before, because it was too expensive. I drove into the big city once every three months to do our grocery shopping at the “discount” stores. Now, using coupons on sale items, I can shop at the local Safeway and save more money on food and gas.
Sadly, this extreme couponing phenomenon will not be around forever. As thousands more pile on to the bandwagon, it is inevitable that food producers and retailers will start changing the rules. So take advantage of extreme couponing while you can.
Look, I never imagined that I would be recommending that people should start clipping coupons. But when any of us are presented with solid evidence that we are wrong about something, we need to be willing to change.
Personally, I am not an expert on coupons.
Thankfully, there are some people out there that are, and they have shared their knowledge for free on the Internet. The following are some of the best extreme couponing sites around if you are interested in learning more….
People are always urging me to write more about solutions. Well, extreme couponing is a solution. A lot of us men might not like the idea of “extreme couponing” because it may not seem like a very “manly” thing to do, but the truth is that it works. In these desperate economic times, you have got to do what you have got to do. Today, one out of every four American children is on food stamps. An increasing number of children are falling into poverty. If it takes clipping coupons in order to survive, then that is just what we are going to have to do.
As mentioned above, all of this exposure on television is going to mean that “extreme couponing” is not going to be around forever. When too many people start jumping on a boat it is inevitable that it is going to sink.
But while this tool still exists, why not use it?
In particular, this is a great way to build up your emergency food stockpile for a fraction of the cost.
So what do all of you think about extreme couponing? Do you think it is a good tool? Do you have other tools that you would suggest for saving money in this tough economy? Feel free to leave a comment with your thoughts below….
Do you ever have the feeling that there are holes in your pockets? These days our money seems to slip through our hands faster than ever. The Federal Reserve keeps telling us that the rate of inflation in 2011 is “close to zero”, and this is causing confusion for many Americans because they are making just as much money as they did in previous years but it doesn’t seem to go nearly as far. So what in the world is going on out there? Well, sadly, the truth is that we really don’t even know what the government considers “inflation” to be anymore. The way that the U.S. government calculates inflation has changed an astounding 24 times since 1978. You see, it is always politically beneficial to have a low inflation rate, so recent administrations have been changing the formula constantly in an attempt to look good. But these days most Americans know something is up. All they have to do is stop at a gas station, go shopping for food or open up their bills. The reality is that inflation in 2011 is about as bad as we saw back in the 1970s, it is just that the government is much less honest about it now.
Many years ago Kenny Rogers released a song that contained the following lyrics….
You got to know when to hold em, know when to fold em
Know when to walk away and know when to run
You never count your money when you’re sitting at the table
There’ll be time for counting when the dealer’s done
Well, the U.S. middle class has been dealt a losing hand, but in the game of life you just can’t fold.
Over the past 3 decades, the average household income for the bottom 80 percent of Americans has been remarkably flat. In fact, over the past several years we have actually seen median household income decline several times. If you do not know about how the U.S. middle class is being ripped to shreds, just read this article. Without a doubt, America is getting poorer.
Well, not the top 1 percent, but the vast majority of the rest of us sure are.
Meanwhile, prices have started to rise with a vengeance.
According to an article in the Daily Mail, a Memorial Day cookout will cost you 29 percent more this year than it did last year.
That doesn’t sound good.
Will it be 29 percent more expensive again next year?
Perhaps some of us will just have to stop having Memorial Day cookouts because we can’t afford them anymore.
The price of gas is also digging into our paychecks big time.
A gallon of gas costs about a dollar more than it did a year ago, but we can’t avoid buying gas. All of us have got to get to work and drive to the store.
Sadly, each time the price of gasoline goes up 50 cents it takes about $70 billion out of the U.S. economy (on a yearly basis).
A recent article in USA Today described the kind of impact these high gas prices are having on average American families….
For every $10 the typical household earns before taxes, almost a full dollar now goes toward gas, a 40 percent bigger bite than normal.
Households spent an average of $369 on gas last month. In April 2009, they spent just $201.
But don’t worry, according to Ben Bernanke we barely have any inflation at all in 2011.
Some companies are trying to avoid raising their prices by reducing their package sizes. A recent article posted on Marketwatch entitled “Inflation diet: same price, less product” explored this phenomenon in detail. Millions of Americans are going to the supermarket and are finding that many of their favorite products are now 10 or 20 percent smaller and yet they are paying the same price as before.
Another thing that is happening is that product quality is going down. Have you noticed how things just don’t seem to be made the way that they used to? This is not a coincidence.
According to Global Hunter Securities Macro and Consumer Strategist Richard Hastings, retailers have been collaborating with their production contractors for about two years. They are trying to push back on the total volume, cost and weight of every unit.
“Along the way, the consumer barely noticed. By now, everybody knows something is wrong,” said Hastings. “If we had to put a number on it, it’s probably a 7.5% decline in total quality and durability of products compared to a bigger increase in the cost of production per unit made outside of the U.S.”
But no matter how hard companies try to hide it, at some point the American people are going to wake up and they are going to realize that they aren’t getting as much for their money as they were before.
This is why so many people get upset when the Federal Reserve and the U.S. government devalue our money. Inflation is a “hidden tax” on every single one of us. When our dollars don’t buy as much stuff, that means that we are all poorer than we were before.
All of this inflation is coming at a time when the economy is really struggling. Personally, I am seeing all kinds of signals that the economy is really starting to slow down once again.
What is going to make things even worse is all of the government austerity that is going to be implemented over the next couple of years.
Once upon a time, a government job was the safest kind of a job you could have. Sadly, as a recent Reuters article noted, those days are long gone….
Around 450,000 people who work for U.S. states, counties, cities, towns and villages could get pink slips in fiscal 2012, sharply up from the 300,000 positions shed this year, a report said on Monday.
So should we, as many of our liberal friends insist, tax the rich so that we can pay for all of those government workers?
Well, the truth is that the wealthy are already being taxed into oblivion. If you doubt this, just read this editorial in The Wall Street Journal: “A 62% Top Tax Rate?”
Most of the “ultra-wealthy” have learned how to avoid most of this taxation by moving their wealth offshore. In fact, as I have written about previously, it is estimated that a third of all the wealth in the world is now held in “offshore” tax havens.
The Federal Reserve and our politicians in Washington D.C. have been very naughty. They have been systematically destroying the value of our dollars.
Someday when you are using your money as toilet paper because toilet paper is actually much more valuable than dollars are you will wish that the American people had stood up and insisted on a different path.
Don’t laugh – during the hyperinflation that the Weimar Republic experienced in the 1920s, German citizens were actually burning stacks of money in their furnaces in order to keep their homes warm.
100 years ago, a U.S. dollar had more than 20 times the purchasing power than it has today.
Sadly, we are now in a terminal phase of dollar devaluation. It is only going to get worse from here. Someday we will look back and long for the days of “low inflation” that we had back in 2011.
Did you know that nearly half of the 44 million Americans that are on food stamps today are children? Did you know that more than a fifth of all U.S. children are living in poverty and that a fourth of all U.S. children are enrolled in the food stamp program? Did you know that most of the people that starve to death around the globe are children? In 2011, child hunger and child poverty are major problems in the United States and they are at epidemic levels in many areas of the world. The facts that are you are about to read are tough to stomach and they are meant to break your heart. Most of us need to be touched on an emotional level before we will take action. As I have written about previously, the world is on the verge of a horrific global food crisis. Unless a miracle happens, there is not going to be nearly enough food for everyone in the world in the future. We all need to prepare so that we will be able to feed our own families when that time comes and so that we will be able to be generous and share with others in need.
The food stamp program is the modern equivalent of the old-fashioned bread lines. Today, the number of Americans on food stamps is absolutely exploding. Despite claims that the economy is “recovering”, the number of Americans relying on food assistance just continues to increase.
“The trend started about three years ago and it has increased significantly we have some stores up 40% from last year,” said Scott Karns owner of seven Karns Supermarkets in central PA.
Sadly, a disproportionate number of those on food stamps are children. Even as you read this article, there are millions of children in the United States that are wondering where their next meal is going to come from.
The following are 20 facts about child hunger and child poverty that will break your heart….
#1 According to one recent study, approximately 21 percent of all children in the United States were living below the poverty line in 2010. In the UK and in France that figure is well under 10 percent.
#2 According to the U.S. Census, the number of children living in poverty has gone up by about 2 million in just the past 2 years.
#4 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.
#5 It is estimated that up to half a million children may currently be homeless in the United States.
#6More than 44 million Americans are currently on food stamps. That is an all-time record and that number is 18 million higher than it was back at the beginning of 2007.
#748 percent of the 44 million Americans that are now on food stamps are children.
#8 According to Feeding America’s 2010 hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.
#9 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.
#10 According to Feeding America, 50.2 million Americans lived in “food insecure households” during 2009.
#11 Even with tens of millions of Americans on food stamps there are still large numbers of Americans that go hungry each night. According to the BBC, 15% of all U.S. households experienced a shortage of food at some point during 2009.
#12More than 20 million U.S. children rely on school meal programs to keep from going hungry.
#13 One out of every six Americans is now enrolled in at least one government anti-poverty program.
#14 The poorest 50% of all Americans collectively own just 2.5% of all the wealth in the United States. Statistically, there are more children in poor households than in wealthy ones.
#15 Child hunger is a major problem all over the world. Approximately 1 billion people around the world go to bed hungry each night.
#16 A lack of food among pregnant women in developing countries results in one out of every 6 babies being born with a low birth weight.
#17Approximately 28 percent of all children in developing countries are considered to be underweight or have had their growth stunted as a result of malnutrition.
#19 Somewhere in the world someone starves to death every 3.6 seconds, and 75 percent of those are children under the age of five.
#20Almost 9 million children around the world died before they reached their fifth birthday during 2008. Approximately a third of all of those deaths were attributed to hunger and malnutrition.
Most Americans have traditionally thought of “hunger” as something that happens over in Africa or Asia, but that is simply not the case anymore.
There are tens of millions of Americans that would be going without enough food if it weren’t for the food stamp program, school meal programs, food pantries, soup kitchens and the kindness of religious organizations.
Sadly, as the price of food continues to rise there are tens of millions more Americans that are on fixed incomes or on limited incomes that are going to be facing food insecurity.
The average American now spends approximately 23 percent of his or her income on food and gas. That is going to rise even higher thanks to all of the new money that the U.S. government and the Federal Reserve have pumped into the financial system.
Inflation is a hidden tax that is very cruel. It hits those with limited resources the hardest.
What are most American families going to do someday when a loaf of bread is 10 dollars and a gallon of milk is 20 dollars?
And it is not just the price of food that is going up.
According to consulting firm Milliman Inc., the average American family of four that is covered by health insurance had an average of $19,393 in health care costs last year.
Many Americans (even if they have insurance) are simply avoiding doctors and avoiding hospitals altogether because they can no longer afford them.
Our whole system is breaking down. As the economy crumbles, frustration and anger are rising. As I have written about previously, the number of Americans that have “gone wild” seems to be increasing.
The following are a couple more examples of this phenomenon….
*When things start falling apart, people start going crazy. Just recently, one man stripped naked while riding a New York city subway. He hurled racial and ethnic slurs at the people around him and physically harassed a couple of people before a cop was able to wrestle him to the ground.
*Another example of this happened in California just a few days ago. An elderly woman pulled out a gun and held up a pregnant woman outside of a Kohl’s department store in broad daylight on Mother’s Day. When old women start shoving guns in our faces and demanding our money that should be a sign to all of us that things really are starting to fall to pieces.
Things are starting to get crazy but this is just the beginning.
Someday when the global economy is in shambles and there is a massive global food crisis, what do you think Americans are going to do when they have been without food for 3 or 4 days and their families are crying out for something to eat?
Don’t think that it won’t happen. The era of endless amounts of cheap food is coming to an end. There is going to be a massive amount of hunger and poverty in the years to come.
So what do all of you think about this? Feel free to leave a comment with your opinion below….
Are the American people losing faith in the U.S. economy? The statistics that you are about to read might surprise you. Not everyone believes that the U.S. economy is dying (there are still millions out there that will swallow anything that the mainstream media tells them), but the reality is that there is a growing chunk of the population that has completely lost faith in our leaders and in our economic system. A brand new Gallup poll has found that the number of Americans that believe that we are in a “depression” is actually larger than the number of Americans that believe that the economy is “growing”. That is absolutely shocking because according to official government figures, the U.S. economy is growing right now and virtually nobody in the mainstream media or the government has used the term “depression” to describe the economic downturn that we went through recently. In fact, according to Gallup a total of 55% of the American people believe that we are either in a recession or a depression right now. This is clear evidence that the American people are losing faith in U.S. government economic statistics and instead they are basing their opinions on what they see in their own communities. Despite the pablum about an “economic recovery” constantly being spewed by Ben Bernanke and Barack Obama, faith in our economic system continues to decline. The truth is that the American people are not stupid. They can see what is happening to the economy.
Back when I was a teenager, one day I walked over to the local McDonald’s and filled out an application and was immediately hired.
But that is not how it works today.
Recently, McDonald’s made headlines when they held a National Hiring Day. Some commentators pointed to that event as evidence that the economy was recovering.
That means that somewhere around 938,000 eager job applicants were turned away.
Just think about that.
Only about 6.2 percent of those that applied for a job at McDonald’s were accepted.
As Joe Weisenthal of Business Insider recently pointed out, that means that Harvard now has a higher acceptance rate than McDonald’s does.
Harvard accepts about 7% of those that apply to go to school there.
Who ever thought we would see the day when a higher percentage of applicants get accepted into Harvard than get hired at McDonald’s?
Sadly, the number of jobs continues to shrink. The competition for good jobs has become absolutely crazy.
Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.
So why is this happening? Well, there are a lot of reasons, but as I have written about previously, the fact that millions of our jobs are being shipped overseas is a huge factor.
Without good jobs, an increasing number of Americans are being forced to turn to government assistance in order to survive.
Today, more than 44 million Americans are on food stamps. In addition, government transfer payments now make up 18 percent of all personal income in the United States.
That is frightening.
Things have gotten so bad that now even Wal-Mart is warning that their customers are running out of money.
A large percentage of Wal-Mart customers are just surviving month to month and Wal-Mart has been noticing a huge drop off in sales towards the end of the month when their customers run out of cash. The following is what the CEO of Wal-Mart had to say about this phenomenon recently….
“Purchases are really dropping off by the end of the month even more than last year.”
People are starting to get desperate. When economic times get tough, crime tends to increase. Sadly, as a report in USA Today recently noted, thefts of gasoline are increasing all over the nation.
We never had this kind of a problem back when a gallon of gas only was about a dollar a gallon.
Do you remember those days?
They weren’t that long ago.
Now it takes some people over a hundred dollars to fill up their gas tanks.
Our leaders keep promising that they know what is happening and that they are going to fix things, but most Americans are not buying it. Many Americans are completely losing faith in the system altogether.
Our economic decline has been one of the things that has fueled the growth of the prepper movement. Millions of Americans have decided that they want to start becoming independent of the system. One recent article described what some residents of Colorado are doing to prepare, but the truth is that this phenomenon is happening all over the nation….
A Black Forest resident has erected a geodesic dome on her 5-acre spread to grow vegetables, keeps horses for emergency transportation, in case she can’t get gasoline for her car, and plans to acquire chickens and goats as food sources.
A husband and wife who have a cabin on 100 acres of secluded land in Park County have weaned their property from the electric grid, acquired a three-year food supply and taken other measures to become self-sufficient.
Of course the mainstream media loves to portray preppers as “crazies”, but as the U.S. economy continues to die it would be a bit crazy not to prepare.
No job is completely safe today. Millions of Americans that assumed that their “good jobs” would always be there have had their lives shattered over the past couple of years.
There is nothing wrong with trying to become more self-sufficient.
Everyone should be thinking about either starting up a business or developing alternative sources of income. Yes, it can be exhausting to work on a side business during evening and weekends, but the time for loafing is over. Those that are going to make it through the times ahead are those that are going to be willing to work really hard.
People need to start thinking about becoming less dependent on “the system” however they can. One way to insulate yourself against rising food prices is to learn how to grow your own food.
Even if you only have a very small amount of room you can still grow your own food. For example, there is one family that is actually producing 6000 pounds of produce on just 1/10th of an acre right in the middle of Pasadena, California.
Just because we have lost some of the basic skills that previous generations possessed doesn’t mean that we can’t get them back. Back during World War II, “victory gardens” enabled Americans to grow 40 percent of all the vegetables that they needed. Those gardens greatly contributed to the war effort and helped Americans get through some very difficult times.
There are a lot of preppers out there that are totally out of debt, that own their own land, that are entirely off the electrical grid and that grow most of their own food. Many Americans would look at such people as “crazies” but those preppers will be in a much better position than most people when the economy totally collapses.
Don’t wait until it is too late to prepare. Millions of Americans are completely losing faith in our economic system. People are smart. They can see that we are living in the biggest debt bubble in the history of the world. They can see that the guts of our economic infrastructure are being ripped out and shredded. They can see that the number of people living in poverty continues to increase year after year. They can see the the number of good jobs continues to decrease year after year.
When you see a horrible storm coming the rational thing to do is to prepare. Just think about all of those tornadoes that ravaged the southeast U.S. the other day. Most of the people directly in the path of those tornadoes did whatever they could to survive when they realized the twisters were about to hit.
Well, a horrific economic storm is coming. Every American will be affected by this economic storm at least to some extent. We all need to prepare while we still can.
The U.S. economy is dying and we are heading for the next Great Depression. The talking heads in the mainstream media love to spin the economic numbers around and around and they love to make it sound like the economy is improving, but the truth is that it doesn’t take a genius to see what is happening to the U.S. economic system. All over the nation many of our greatest cities are being slowly but surely transformed into post-apocalyptic wastelands. All over the mid-Atlantic, all along the Gulf coast, all throughout the “rust belt” and all over the entire state of California cities that once had incredibly vibrant economies are being turned into rotting, post-industrial hellholes. In many U.S. cities, the “real” rate of unemployment is over 30 percent. There are some communities that will start depressing you almost the moment that you drive into them. It is almost as if all of the hope has been sucked right out of those communities. If you live in one of those American hellholes you know what I am talking about. Sadly, it is not just a few cities that are becoming hellholes. This is happening in the east, in the west, in the north and in the south. America is literally being transformed right in front of our eyes.
If you still live in an area of the United States that is prosperous, do not mock the cities that you are about to read about. The cold, hard reality of the matter is that economic decline and economic despair are spreading rapidly and they will come to your area soon enough. Right now we are still talking about “American hellholes”, but if the long-term economic trends that are destroying this nation are not turned around eventually we will just be talking about one gigantic “American hellhole”. In the end, no area of the country will completely escape the economic hell that is coming.
Let’s take a closer look at what is currently happening in some of the worst areas of the country….
Detroit, Michigan
In the city of Detroit today, there are over 33,000 abandoned houses, 70 schools are being permanently closed down, the mayor wants to bulldoze one-fourth of the city and you can literally buy a house for one dollar in the worst areas.
During the boom days of the 1950s, Detroit was a teeming metropolis of approximately 2 million people, but today the current population is less than half that. The city of Detroit, once a shining example of middle class America, is now a rotting cesspool of economic decline and it actually saw its population decline by 25 percent during the decade that recently ended. According to the U.S. Census Bureau, Detroit lost a resident every 22 minutes between the years of 2000 and 2010.
So why are people leaving Detroit so rapidly?
There simply are no jobs.
At the height of the economic downturn, the mayor of Detroit admitted that while the “official” unemployment rate in Detroit was about 27 percent, the “real” unemployment rate in his city was actually somewhere around 50 percent.
Since there are not enough jobs, that also means that not enough tax money is coming in. Detroit is essentially insolvent at this point.
Detroit officials are trying to implement some austerity measures in a desperate attempt to get city finances under control.
For example, the state of Michigan recently granted approval to a plan that would shut down nearly half of the public schools in Detroit. Under the plan, 70 schools will be closed and 72 will continue operating.
It has been estimated that the remaining public schools will have class sizes of up to 60 students.
Detroit Mayor Dave Bing also wants to cut off 20 percent of the entire city from police and trash services in order to save money.
Essentially that would mean abandoning 20 percent of the city of Detroit to the gangs and to the homeless.
In fact, crime has gotten so bad and the citizens are so frustrated by the lack of police assistance that they have resorted to forming their own organizations to fight back. One group, known as “Detroit 300″, was formed after a 90-year-old woman on Detroit’s northwest side was brutally raped in August.
If you want to see what the future of America looks like, just take a few hours and go driving through Detroit some time. But please only do this during the day. Do not do this at night. Detroit is not a safe place anymore, and you cannot count on the police to help you in a timely manner.
Detroit was once one of the greatest cities in the world.
But today it is an absolute hellhole.
Camden, New Jersey
So is there any place in America that is worse than Detroit?
Well, many would nominate Camden, New Jersey.
Many years ago, Camden was actually thriving and prosperous. But today the city of Camden is known as “the second most dangerous city in America”.
In a recent article entitled “City of Ruins“, Chris Hedges did an amazing job of documenting the horrific decline of Camden. Hedges estimates that the real rate of unemployment in Camden is somewhere around 30 to 40 percent, and he makes it sound like nobody in their right mind would want to live there now….
Camden is where those discarded as human refuse are dumped, along with the physical refuse of postindustrial America. A sprawling sewage treatment plant on forty acres of riverfront land processes 58 million gallons of wastewater a day for Camden County. The stench of sewage lingers in the streets. There is a huge trash-burning plant that releases noxious clouds, a prison, a massive cement plant and mountains of scrap metal feeding into a giant shredder. The city is scarred with several thousand decaying abandoned row houses; the skeletal remains of windowless brick factories and gutted gas stations; overgrown vacant lots filled with garbage and old tires; neglected, weed-filled cemeteries; and boarded-up store fronts.
Gangs have stepped into the gaping void left by industry. In Camden today, drugs and prostitution are two of the only viable businesses left – especially for those who cannot find employment anywhere else. The following is how Hedges describes the current state of affairs….
There are perhaps a hundred open-air drug markets, most run by gangs like the Bloods, the Latin Kings, Los Nietos and MS-13. Knots of young men in black leather jackets and baggy sweatshirts sell weed and crack to clients, many of whom drive in from the suburbs. The drug trade is one of the city’s few thriving businesses. A weapon, police say, is never more than a few feet away, usually stashed behind a trash can, in the grass or on a porch.
But before we all start judging Camden for being such a horrible place to live, it is important to realize that this is happening in communities from coast to coast. All over the United States industries are leaving and deep social decay is setting in.
Even the criminals in Camden are struggling. Things have gotten so bad in Camden, New Jersey that not even the drug dealers are spending their money anymore.
So now the gangs and the drug dealers have more room to operate.
Sadly, this is not just happening in Camden. It is happening all over New Jersey.
Of 315 municipalities the New Jersey State Police union recently surveyed, more than half indicated that they were planning to lay off police officers.
So why doesn’t the state government step in and help out?
Well, the state of New Jersey is in such bad shape that they still are facing a $10 billion budget deficit for this year even after cutting a billion dollars from the education budget and laying off thousands of teachers.
New Jersey also has $46 billion in unfunded pension liabilities and $65 billion in unfunded health care liabilities. Nobody is quite sure how New Jersey is even going to come close to meeting those obligations.
Meanwhile, cities like Camden are rotting a little bit more every single day.
New Orleans, Louisiana
New Orleans had a struggling economy even before Hurricane Katrina struck back in 2005. But that event changed everything. It is now almost 6 years later and virtually the entire region is still a disaster zone.
New Orleans permanently lost 29% of its population after Hurricane Katrina. There are many areas of New Orleans that still look as if they have just been bombed.
21.5 percent of all houses in New Orleans, Louisiana are currently standing vacant. Many of those homes will never be inhabited again.
What made things even worse for New Orleans (and for residents all along the Gulf coast) was the horrific BP oil spill last year. The mainstream news does not talk about the oil spill much anymore, but those living in the area have to deal with the effects every single day.
Some of the industries in the Gulf region were really starting to recover from Hurricane Katrina but the BP oil spill put a stop to that.
Before the oil spill, Louisiana produced more fish and seafood than anywhere in the United States except for Alaska. But now the seafood industry has been absolutely devastated. It has been estimated that the cost of the BP oil spill to the fishing industry in Louisiana alone could top 3 billion dollars.
New Orleans keeps trying to bounce back from all of these disasters, but times are tough down there.
Today, New Orleans is the 13th most violent city in America. That is actually an improvement. Before Katrina New Orleans had even more violent crime.
The truth is that other areas along the Gulf coast are doing a lot worse than New Orleans is doing. A ton of big corporate money has flowed into New Orleans. Officials are trying to clean up the city and make it a huge tourist destination once again.
But in the surrounding areas things are not looking so bright. There are areas along the coasts of Louisiana, Mississippi, Alabama and the panhandle of Florida that are some of the most depressing places in the nation.
It is almost as if there are hundreds of thousands of people that time forgot. In some rural areas along the Gulf coast the poverty is absolutely mind blowing. There are very few jobs and there is very little hope. Meanwhile, large numbers of people in the region continue to get sick from the toxic dispersants used to clean up the oil spill.
Let us hope that we don’t see another major disaster in the Gulf of Mexico any time soon. As it is, it is going to take decades for that region to fully recover. There are a lot of really good people that live down there, and they deserve our prayers.
Vallejo, California (And Virtually The Rest Of The State Of California)
Almost the entire state of California is an economic disaster zone. Austerity measures are being implemented in city after city as tax revenues have nosedived.
The following is an excerpt from a recent New York Times article that describes the brutal austerity that has been implemented in Vallejo, California….
Vallejo is still in bankruptcy. The police force has shrunk from 153 officers to 92. Calls for any but the most serious crimes go unanswered. Residents who complain about prostitutes or vandals are told to fill out a form. Three of the city’s firehouses were closed. Last summer, a fire ravaged a house in one of the city’s better neighborhoods; one of the firetrucks came from another town, 15 miles away. Is this America’s future?
Sadly, that is what the future of America is going to look like. Public services are being slashed all over the nation due to budget crunches.
Unless there is a major jobs recovery, the situation in California is going to continue to degenerate. The truth is that the state of California needs millions and millions of new jobs just to get back to “normal”. For example, near the end of last year it was reported that 24.3 percent of the residents of El Centro, California were unemployed. Not only that, as of the end of last year the number of people unemployed in the state of California was approximately equivalent to the entire populations of Nevada, New Hampshire and Vermont combined.
As a result of all of this, home prices in many areas of California have completely fallen off a cliff. For example, the average home in Merced, California has declined in value by 63 percent over the past four years.
California also had more foreclosure filings that any other U.S. state in 2010. The 546,669 total foreclosure filings during the year means that over 4 percent of all the housing units in the state of California received a foreclosure filing at some point during 2010.
Sadly, things don’t look like they are going to turn around in California any time soon. Forbes recently compiled a list entitled “Cities Where The Economy May Get Worse“.
Six of the top seven spots were held by cities in California.
California is becoming a very frightening place. When you combine high unemployment with unchecked illegal immigration what you get is rampant poverty.
20 percent of the residents of Los Angeles County are now receiving public aid of one form or another.
In particular, the number of children that are considered to be in need of public assistance is truly scary.
Incredibly, 60 percent of all the students attending California public schools now qualify for free or reduced-price school lunches.
Poverty and illegal immigration have also caused a tremendous health care crisis in the state. The hordes of illegal aliens taking advantage of “free” medical care at hospital emergency rooms have caused dozens of hospitals across the state of California to completely shut down. As a result, the state of California now ranks dead last out of all 50 states in the number of emergency rooms per million people.
The bozos in Sacramento keep passing hundreds of new laws in an attempt to “fix” the state, but the truth is that for the poorest residents of the state all of those new laws don’t make a shred of difference.
The following is how Victor Davis Hansen describes what he saw during his recent tour of the “forgotten areas of central California”….
Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World . There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business – rigid zoning laws, strict building codes, constant inspections – but apparently none of that applies out here.
Hansen also says that he observed that people in these areas are doing whatever they can to get by….
At crossroads, peddlers in a counter-California economy sell almost anything. Here is what I noticed at an intersection on the west side last week: shovels, rakes, hoes, gas pumps, lawnmowers, edgers, blowers, jackets, gloves, and caps. The merchandise was all new. I doubt whether in high-tax California sales taxes or income taxes were paid on any of these stop-and-go transactions.
In two supermarkets 50 miles apart, I was the only one in line who did not pay with a social-service plastic card (gone are the days when “food stamps” were embarrassing bulky coupons).
Are you frightened yet?
You know what they say – “as goes California, so goes the nation”.
What is happening in California now is eventually going to come to your area.
Right now California is also having a huge problem with gangs. Gang violence in America is getting totally out of control. According to authorities, there are now over 1 million members of criminal gangs operating inside the country, and those gangs are responsible for up to 80% of the violent crimes committed in the U.S. each year.
But instead of ramping up to fight crime and fight illegal immigration, police forces all over California are being cut back.
For example, because of extreme budget cuts and police layoffs, Oakland, California Police Chief Anthony Batts has announced that there are a number of crimes that his department simply will no longer respond to due to a lack of resources. The following is a partial list of the crimes that police officers in Oakland will no longer be responding to….
burglary
theft
embezzlement
grand theft
grand theft: dog
identity theft
false information to peace officer
required to register as sex or arson offender
dump waste or offensive matter
loud music
possess forged notes
pass fictitious check
obtain money by false voucher
fraudulent use of access cards
stolen license plate
embezzlement by an employee
extortion
attempted extortion
false personification of other
injure telephone/power line
interfere with power line
unauthorized cable tv connection
vandalism
Not that Oakland wasn’t already a mess before all this, but now how long do you think it will be before total chaos and anarchy reigns on the streets of Oakland?
But Oakland is not the only major California city that is facing these kinds of issues.
Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”
Already the police force in Stockton has been stripped down to almost nothing.
Meanwhile, the standard of living in California is going right into the toilet. Housing values are plummeting. Unemployment has risen above 20 percent in many areas of the state. Crime and gang activity is on the rise even as police budgets are being hacked to the bone. The health care system is an absolute disaster. At this point California has the fewest emergency rooms per million people out of all 50 states. While all of this has been going on, the state legislature in Sacramento has been very busy passing hundreds of new laws that are mostly about promoting one radical agenda or another. The state government has become so radically anti-business that it is a wonder that any businesses have remained in the state. It seems like the moving vans never stop as an endless parade of businesses and families leave California as quickly as they can.
But this is not just a “California thing”. The truth is that what is happening in California, in Detroit, in Camden and in hundreds of other communities is also going to happen where you live.
The U.S. economy is slowly dying. Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in U.S. history.
People are getting desperate. There are ten percent fewer middle class jobs than there were a decade ago and the competition for good jobs has become insane. More than 44 million Americans are now on food stamps and that number grows every single month. Millions more American families fall into poverty every single year.
It is time to face the truth about what is happening to America. Our economy is not growing and becoming stronger. Rather, the cold, hard reality of the matter is that our economy is very sick and it is dying. The seemingly boundless prosperity that we have enjoyed for decade after decade is coming to an end. Our communities are being transformed into absolute hellholes.
Those that are telling you that the U.S. economy will soon be better than ever are lying to you. The U.S. economy is going to go down and it is going to go down hard.
The United States is in the middle of a devastating long-term economic decline and it is getting really hard to deny it. Over the past year I have included literally thousands of depressing statistics in my articles about the U.S. economy. I have done this in order to make an overwhelming case that the U.S. economy is in deep decline and is dying a little bit more every single day. Until we understand exactly how bad our problems are we will never be willing to accept the solutions. The truth is that our leaders have absolutely wrecked the greatest economic machine that the world has ever seen. Most Americans just assume that we will always experience overwhelming prosperity, but that is not anywhere close to the truth. We are not guaranteed anything. Our manufacturing base has been gutted, the number of jobs is declining, more Americans are dependent on government handouts than ever before, our dollar is dying and as a nation we are absolutely drowning in debt. The economists that are trumpeting an “economic recovery” and that are declaring that the U.S. economy will soon be “better than ever” are delusional. We really are steamrolling toward a complete and total economic collapse and our leaders are doing nothing to stop it.
The following are 24 more signs of economic decline in America. Hopefully you will not get too depressed as you read them….
#1 On Monday, Standard & Poor’s altered its outlook on U.S. government debt from “stable” to “negative” and warned the U.S. that it could soon lose its AAA rating. This is yet another sign that the rest of the world is losing faith in the U.S. dollar and in U.S. Treasuries.
#2 China has announced that they are going to be reducing their holdings of U.S. dollars. In fact, there are persistent rumors that this has already been happening.
#3 Hedge fund manager Dennis Gartman says that “panic dollar selling is setting in” and that the U.S. dollar could be in for a huge decline.
#5 This cruel economy is causing “ghost towns” to appear all across the United States. There are quite a few counties across the nation that now have home vacancy rates of over 50%.
#6 There are now about 7.25 million less jobs in America than when the recession began back in 2007.
#7 The average American family is having a really tough time right now. Only 45.4% of Americans had a job during 2010. The last time the employment level was that low was back in 1983.
#8 Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.
#9 According to a new report from the AFL-CIO, the average CEO made 343 times more money than the average American did last year.
#10 Gas prices reached five dollars per gallon at a gas station in Washington, DC on April 19th, 2011. Could we see $6 gas soon?
#11 Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.
#15 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#16 Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.
#17 Average household debt in the United States has now reached a level of 136% of average household income. In China, average household debt is only 17% of average household income.
#18 The average American now spends approximately 23 percent of his or her income on food and gas.
#19 In a recent survey conducted by Deloitte Consulting, 74 percent of Americans said that they planned to slow down their spending in coming months due to rising prices.
#2059 percent of all Americans now receive money from the federal government in one form or another.
#21 According to the U.S. Bureau of Labor Statistics, the average length of unemployment in the U.S. is now an all-time record 39 weeks.
#22 As the economy continues to collapse, frustration among young people will continue to grow and we will see more seemingly “random acts of violence”. One shocking example of this happened in the Atlanta area recently. The following is how a local Atlanta newspaper described the attack….
Roughly two dozen teens, chanting the name of a well-known Atlanta gang, brought mob rule to MARTA early Sunday morning, overwhelming nervous passengers and assaulting two Delta flight attendants.
#24 As the economy has declined, the American people have been gobbling up larger and larger amounts of antidepressants and other prescription drugs. In fact, the American people spent 60 billion dollars more on prescription drugs in 2010 than they did in 2005.
It seems like wherever you turn there is bad news for the U.S. economy. Unemployment is rampant, the cost of gasoline is going up, the cost of food is going up and American families are getting poorer. Millions of jobs continue to leave the country and everyone is wondering why it seems like the “American Dream” is dying. American consumers are absolutely swamped with staggering levels of credit card debt, student loan debt and mortgage debt and each year the consumer debt crisis only seems to get worse. For millions of American families the money problems never seem to end. Meanwhile, our politicians are doing next to nothing to fix our horrific national debt problem. So yes, there are a whole lot of reasons to be absolutely disgusted with the U.S. economy. We are living in the greatest debt bubble in the history of the world, and anyone with half a brain can see that we are heading for complete and total disaster.
A lot of Americans do not like to read about economics, but what has been going on over the last few years has been nothing short of extraordinary. The Federal Reserve has basically tripled the adjusted monetary base. We have now been conditioned to accept that trillion dollar deficits are “normal”. The U.S. dollar is being systematically destroyed right in front of our eyes and most Americans don’t even seem alarmed about it.
Our entire financial system is coming apart.
The signs are everywhere.
The following are 25 reasons to be absolutely disgusted with the U.S. economy….
#1 There are now 6.4 million fewer jobs in America than there were when the recession began.
#2 In Southern California, the average price of a gallon of gasoline is $1.00 higher than it was at this time last year.
#3 The average price of gasoline in the United States has jumped about 20 cents in just the last two weeks.
#4 Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.
#5 In the 8 days leading up to the “historic” $38.5 billion budget deal, the U.S. national debt increased by $54.1 billion dollars.
#6 The $38.5 billion in budget cuts that the Republicans and the Democrats have agreed to represent approximately one percent of the federal budget.
#7 During the 2010 campaign, the Republicans promised voters they would cut $100 billion from the budget for 2011. Instead, they gave in when the Democrats offered just $38.5 billion.
#8 The Obama administration had been estimating that the federal budget deficit for fiscal 2011 would be approximately 1.6 trillion dollars. Now it will likely be somewhere around 1.55 trillion dollars which will still be an all-time record.
#9 According to numbers released by Deloitte Consulting, a whopping 875,000 Americans were “medical tourists” in 2010.
#10 The median pay for CEOs increased by 27 percent during 2010.
#11 Thanks to globalism, U.S. workers now must directly compete for jobs with workers in places such as Indonesia. In Indonesia, full-time workers make as little as two dollars a day. So how are Americans supposed to compete with that?
#12 Last week, the price of gold set a new all-time record on Tuesday, on Wednesday, on Thursday and on Friday.
#14 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#15According to the Economic Policy Institute, almost 25 percent of U.S. households now have zero net worth or negative net worth. Back in 2007, that number was just 18.6 percent.
#17 According to the New York Times, as of 2009 the wealthiest 5 percent of all Americans had 63.5 percent of all the wealth in America. Meanwhile, the bottom 80 percent had just 12.8 percent of all the wealth.
#18 According to a recent report from the National Employment Law Project, higher wage industries accounted for 40 percent of the job losses over the past 12 months but only 14 percent of the job growth. Lower wage industries accounted for just 23 percent of the job losses over the past 12 months and a whopping 49 percent of the job growth.
#21 According to the U.S. Bureau of Labor Statistics, the average length of unemployment in the U.S. is now an all-time record 39 weeks.
#22 Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue. Today they account for less than 7 percent of all federal revenue.
That last statistic really gets me. During the month of April the American people are going to be spending massive amounts of time and money to prepare their taxes.
But what do Americans get in return for their taxes?
What they get is a government that is completely and totally incompetent. Our “leaders” are running the greatest economy in the history of the world into the ground, but unfortunately most Americans have no idea what is happening.
Why are Americans so clueless?
Well, the truth is that over time we have been turned into a nation of idiots and morons.
Thanks to the slothfulness of society, the deficiencies in our education system and the toxins in our food, air and water it has become hard for most of us to think clearly.
Most of us are fat, dumb and totally clueless. The entire economic system is being shredded and most of us just drool and turn up the television a little louder.
If we have money problems, most of us just run out and apply for another credit card. If our state and local governments run into financial problems they just borrow even more money.
Of course the biggest offender of all is the federal government. What our politicians are doing to future generations is not just criminal. It is beyond criminal. It is absolutely unconscionable.
So please excuse me if I am absolutely disgusted with the U.S. economy.
We took the greatest economy in the history of the world and we wrecked it.
How in the world are we going to explain this to our children and our grandchildren?
Tens of millions of American families are about to go through economic hell and most of them don’t even realize it. Most Americans don’t spend a whole lot of time thinking about things like “monetary policy” or “economic cycles”. The vast majority of people just want to be able to get up in the morning, go to work and provide for their families. Most Americans realize that things seem “harder” these days, but most of them also have faith that things will eventually get better. Unfortunately, things aren’t going to get any better. The number of good jobs continues to decline, the number of Americans losing their homes continues to go up, people are having a much more difficult time paying their bills and our federal government is drowning in debt. Sadly, this is only just the beginning.
Money Problems That Never Seem To End: 25 Reasons To Be Absolutely Disgusted With The U.S. Economy
A lot of Americans do not like to read about economics, but what has been going on over the last few years has been nothing short of extraordinary. The Federal Reserve has basically tripled the adjusted monetary base. We have now been conditioned to accept that trillion dollar deficits are “normal”. The U.S. dollar is being systematically destroyed right in front of our eyes and most Americans don’t even seem alarmed about it.
Our entire financial system is coming apart.
The signs are everywhere.
The following are 25 reasons to be absolutely disgusted with the U.S. economy….
#1 There are now 6.4 million fewer jobs in America than there were when the recession began.
#2 In Southern California, the average price of a gallon of gasoline is $1.00 higher than it was at this time last year.
#3 The average price of gasoline in the United States has jumped about 20 cents in just the last two weeks.
#4 Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.
#5 In the 8 days leading up to the “historic” $38.5 billion budget deal, the U.S. national debt increased by $54.1 billion dollars.
#6 The $38.5 billion in budget cuts that the Republicans and the Democrats have agreed to represent approximately one percent of the federal budget.
#7 During the 2010 campaign, the Republicans promised voters they would cut $100 billion from the budget for 2011. Instead, they gave in when the Democrats offered just $38.5 billion.
#8 The Obama administration had been estimating that the federal budget deficit for fiscal 2011 would be approximately 1.6 trillion dollars. Now it will likely be somewhere around 1.55 trillion dollars which will still be an all-time record.
#9 According to numbers released by Deloitte Consulting, a whopping 875,000 Americans were “medical tourists” in 2010.
#10 The median pay for CEOs increased by 27 percent during 2010.
#11 Thanks to globalism, U.S. workers now must directly compete for jobs with workers in places such as Indonesia. In Indonesia, full-time workers make as little as two dollars a day. So how are Americans supposed to compete with that?
#12 Last week, the price of gold set a new all-time record on Tuesday, on Wednesday, on Thursday and on Friday.
#13 The price of silver rose almost 7 percent last week alone.
#14 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#15 According to the Economic Policy Institute, almost 25 percent of U.S. households now have zero net worth or negative net worth. Back in 2007, that number was just 18.6 percent.
#16 Americans now owe more than $903 billion on student loans.
#17 According to the New York Times, as of 2009 the wealthiest 5 percent of all Americans had 63.5 percent of all the wealth in America. Meanwhile, the bottom 80 percent had just 12.8 percent of all the wealth.
#18 According to a recent report from the National Employment Law Project, higher wage industries accounted for 40 percent of the job losses over the past 12 months but only 14 percent of the job growth. Lower wage industries accounted for just 23 percent of the job losses over the past 12 months and a whopping 49 percent of the job growth.
#19 The first week of air strikes in Libya cost the U.S. government about 600 million dollars.
#20 The price of corn has more than doubled over the past year.
#21 According to the U.S. Bureau of Labor Statistics, the average length of unemployment in the U.S. is now an all-time record 39 weeks.
#22 Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue. Today they account for less than 7 percent of all federal revenue.
#23 If the U.S. government eliminated all discretionary spending and all defense spending it would still not balance the budget.
#24 It is being projected that U.S. government debt will rise to about 400 percent of GDP by the year 2050.
#25 Americans spend approximately 27.7 billion dollars a year preparing their tax returns.
That last statistic really gets me. During the month of April the American people are going to be spending massive amounts of time and money to prepare their taxes.
But what do Americans get in return for their taxes?
What they get is a government that is completely and totally incompetent. Our “leaders” are running the greatest economy in the history of the world into the ground, but unfortunately most Americans have no idea what is happening.
Why are Americans so clueless?
Well, the truth is that over time we have been turned into a nation of idiots and morons.
To get an idea of just how “dumbed down” we have become as a nation, just check out this Harvard entrance exam from 1869.
I wouldn’t have a prayer of passing that exam.
What about you?
Thanks to the slothfulness of society, the deficiencies in our education system and the toxins in our food, air and water it has become hard for most of us to think clearly.
Most of us are fat, dumb and totally clueless. The entire economic system is being shredded and most of us just drool and turn up the television a little louder.
If we have money problems, most of us just run out and apply for another credit card. If our state and local governments run into financial problems they just borrow even more money.
Of course the biggest offender of all is the federal government. What our politicians are doing to future generations is not just criminal. It is beyond criminal. It is absolutely unconscionable.
So please excuse me if I am absolutely disgusted with the U.S. economy.
We took the greatest economy in the history of the world and we wrecked it.
How in the world are we going to explain this to our children and our grandchildren?