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.
Plenty of this on my site in the last few years.
Good article with ample statistical backing. One point…shipping jobs overseas does not make a company “greedy” it saves them money and allows them to be competitive. Unions, corporate taxes,government mandates and over-regulation have all played major roles in forcing companies to export jobs. “Greedy” companies would gladly hire workers here and manufacture in the U.S if it were more affordable. With the rising Federal debt and an INCREASE in Federal taxes and fees on the horizon the chances of that happening in the near future are zero to none.
One problem missed in this article; the American people. As we are no longer a melting pot, lets break it down into groups.
Amnesty for those who entered this country illegally. The tsunami of the impoverished across our borders and social costs incurred with the passage of amnesty.
People still going through life like nothing is happening. Ignoranance is bliss.
Reparations for past injustices.
When money for entitlements dry up. What then? Increase taxes and fees, forcing more businesses into bankruptcy and higher unemployment. On and on it goes, round and round.
There is no escape from what is coming. It will get real bad when desperation, hunger and fear becomes a reality. Martial Law, confiscation and a suspension of the Constitution will be soon to follow.
There is no changing the power structure in DC. It’s beyond corrupt.
We can layout a whole hosts of ways to turn it around. But the train of pain will still be rolling down the tracks.
It’s no coincidence that this all falls on the heels of the “conservative revolution” that started around 30 years ago.
I knew this would happen back then and am vindicated. Now, hopefully, I’ll get to watch as the country implodes and the children and grandchildren of all those people who voted republican over the years get to SUFFER through a diminished, ugly future.
When the people finally figure out that this is the fault of conservatives and liberal populism emerges, we’ll get to see them burning reagan in effigy and putting conservatives in work camps.
A happy ending for all!
@cyndee The commercial loans are the Alt-A and Option Arm loans, they are in the recast chart and those are about to start going kaboom.
@Mikey No you can’t eat gold or silver but Bernanke will keep printing like like a fool, there may be a day that dollar buys next to nothing and those metals may be the best way to buy food. 10 to 15% in physical metals is not unwise for the long term.
The article is fairly depressing stuff, but the MSM barely talk about this stuff, few politicians talk about this stuff, if we don’t acknowledge the real issues then how can we fix them? I’m glad to see hard news like this, it gives me hope someone might take notice and actually do something.
What everyone needs to realize is that this is a fight for the survival of America. It’s not a fight between rich and poor, black and white, left and right, conservative or liberal. The fight is between the people and those in power. It’s the same fight that has been waged for personal freedom since the beginning of time.
The political class is at the center of all of it. Funded by special interest, promoted by the media, they have brought us to where we are today. Not to say we each haven’t played our part.
It’s time to take back our freedoms. Eliminate the political class.
@dino…
you, you have nailed it on the head. goes to show voting republican is dangerous. the republican mentality goes to show that they think things will always be the same and why should things change. that is a conservative republican for ya. well things change and we as a people have to change with them or suffer. well i am democratic and very liberal. you have to change or die basically.
It is never too late, but, our situation is grim. The only way to reverse the situation now, without violence, is to, 1] Eliminate the income tax, 2) Abolish the Federal reserve board, 3)abolish most of the Federal government, 4)reafirm the original constitution, eliminating everything after the tenth amendment,and adding an eleventh, term limits.
Come to think of it, it may be too late! Viva la Revolucion!
Don’t bother with PAPER MONEY. You can’t eat it, you can’t plant it and you can’t power your freezer with it. Having a little may be prudent (in case things don’t get too bad), but don’t forget to have plenty of staples and room for a garden
GOLD AND SILVER HAVE BEEN REAL MONEY FOR FIVE THOUSAND YEARS. THEY ARE NOW. THEY ALWAYS WILL BE. GOT GOLD ???
Stop deluding yourselves, the financial meltdown isn’t a result government corruption or power struggle, it’s due to the American people getting greedy and borrowing way too much money. Wake-up.
You all make out like it’s the “government” or the “greedy corporations” to blame for all this but we’ve only got ourselves to blame. WE were the ones that bought the houses at ever increasing prices, hoping to make a quick buck, WE were the ones that orgied on debt, WE were the ones that demanded ever cheaper products (when did you last buy American made?) and not so long ago, WE were the ones that idolised the corporate CEO’s of these now “greedy corporations” when they were making us good money in the share market. Rather than blaming everyone and everything else, look in the mirror!!!!!!
20 problems is only about 3 problem.
Debt, Job, and Home Market.
Here’s how you solve our problem. Take my message to our incompetent political leaders.
1. Look at our government budget. Cut defense and social welfare spending. Use it to pay off the debt and create job.
2. All the lazy American needs to get their butt go to college or do something to retrain themselves to match the current demand.
3. The big bank will need to re-adjust the all the mortgage contract to where American can pay. They have to do it or fall along side all Americans.
4. The most important of all… For all the stupid American to stop buying everything they want, and only buy what they really need. Those American who can do this will not suffer as much as those who can’t.
I keep hearing conservatives say we need to get rid of “Social Security” and go back to when families took care of family members. These people have to be “out of touch with reality” because the family unit has been broken for years in this country and continues to break down. Disabled, elderly people, in general, have no family members willing to help them. Children and grandchildren often have no time for their older parents and grandparents and often feel that older and disabled folk are in the way and only contact them when they themselves need money or wish to check on their possible inheritance from older members of their family. Many young people think nothing of “stealing” from thier parents and elderly grandparents if they think they can get away with it. Many families with children have only one adult or parent to support and nurture the children and many women, right here in Missoula, Montana, are supporting thier “boy friends” and fewer and fewer “couples” are getting “married”. A large number of family units are in deep financial trouble as the good paying jobs keep disappearing and the materialistic young people feel they must buy the latest new toy or electronic gadget on the market. Even these college graduates often leave college with huge debts they incurred in the form of student loans and are often in serious financial trouble. Where is the “family” support and help for the elderly and disabled coming from??? Many young adults often try to make older folks feel they have outlived thier welcome no matter how hard they worked when they were young to help build the nation these young people feel belongs only to them.
Hmm, thirty years of supply side economics. “Take care of the supply side and the demand side will take care of itself”. Strange, how is it we ended up with far too much supply and not enough demand? Wait, doesn’t this question answer itself? I thought so…
The conservative revolution produced 25 years of unprecedented prosperity in America. Protectionism was instituted by Reagan in 1982. 2 decades of a booming economy until….. globalization started around 1997-1998. A decade of that is the real cause of this mess. $700 billion in annual trade deficits, $300 bl of it with China each and every year. Raising guest worker visa caps in late 1998 from 65,000 per year to 115,000 per year and to 195,000 per year again in April 2000 – both of which BILL CLINTON signed into law. USA continues to import 1 million foregn SKILLED workers to the USA every year to take jobs Americans need. 3-7 million skilled workers in the USA sending money home every month in the form of remittances in the billions. $45 billion a year in remittances to India, $75 billion to Mexico – every single year. Think that might have something to do with it. Not protecting U.S. workers under Title 8, Section 1182 AS REQUIRED BY LAW. Not deporting all foreign guest workers in time of recession, as Japan is now doing. It’s impossible to have a foreign workforce that sends their money home and at the same time have a functioning economy. Undo Clinton’s globalization mess that he started in 1997 and you’ll see the U.S. economy recover REAL quick.
The reason this country will go down in flames is as much that the right-wing and its armies of brainwashed teabaggers are only willing to spend money on military adventures, which do ZERO to develop our country for the future and basically are throwing billions out a helicopter door. The reason this country is toast is that Congress will not fund alt-energy or infrastructure projects, or health care, or restoring education, all of which would greatly benefit our country. The USA could publicly commit to reduce our consumption of oil and the price would collapse in a week, but the vested right-wing interests – the oil, drug, and arms manufacturers, are going to drive this country straight into the dirt. Also, in states like CA, wealthy people are paying very little in property taxes, as are corporations. Until we reign in the corporations, the whole world is run by thieves. It’s gonna take a mob with torches visiting whatever CEO offices they can find that aren’t offshore to change anything, and then they’ll just leave. The USA could save itself, but considering the complexity and success of the brainwashing, it isn’t going to happen easily if at all. Eventually, though, the anger of the public will reach a high enough fever pitch that the elites will have to start battling each other behind closed doors to avoid riots in the streets. Truthfully, the worse things get, the closer we get to a dictatorship, which, while bad for global business, could surprise the power structure, although they will try to take out any strong leader.
I’d have to disagree with Fred Gorsline @ 1:53pm to some extent. The majority of corporations that offshore their production are large and usually publicly traded ie: they have stockholders. Stockholders have expectations of ever increasing profits, therefore offshoring to reduce labor costs is a necessity.
Yes taxes,unions and regulations have played a part but it’s not the entire story.
And furthermore regulations are good to a large extent. Remember the contaminated Pet Foods, contaminated drywall for housing construction, and god only knows what else they do. They do not have identical regulations to North America.
I personally am a believer of Hubbard’s peak oil theory, in which case globalization will not succeed in the end. Oil prices will escalate back to previous highs and then some.
Shipping costs will no longer be as attractive. And jobs will need to come back.
We need stop buying crap Made In China and that includes food. I do this but it is becoming increasingly difficult.
If everything possible is offshored and we are left with,a large service based economy and bloated public sector, how long would the country continue to function?
A nation of McDonald’s and Wal-Mart workers to support it all? I can’t visualize that as being sustainable. And that goes for both sides of the border as we have similar problems here although on a much smaller scale.
Your neighbour from Canada.
fred gorsline….you could not be more wrong. So when companies go to countries where the pay is pennies per hour how exactly would you suggest the US worker competes with that??
This has nothing to do with one party or the other. They are two wings of the same bird. There are differneces on the surface, but in the end when you peel away the layers, they are both headed in the same direction and have the same goals, and have layed the ground work for the next adminastration to achieve there goals of a New World Order. The only way to get there is to bring America to its knees and to the same level playing field as everyone else. This whole economic collapse is intentional and not by accident. All they want to do is distract you, and cause division amongst the peolple. WAKE UP!!! Time is short before things turn real ugly. I give it a max of two years, but personally think the inplosion will happen even sooner than that. The writing is on the wall, & they are all corrupt, and in bed internationally with other corrupt individuals and governments. Rep/Dem it does not matter. Now is the time to think clearly and prepare your self and possibly family for what is to come.
I work in the credit/finance world- front line…no, people in general, and those I work with do not get it. They are as blind as anyone. I sound like I am prosyletizing when I implore folks to prepare. Guess the next night out or new pair of shoes or handbag, or the next round of Idol are more important.
Those who get it, shake the dust from your sandals and move on. Do what you know in your heart you need to do. Prepare to survive. All of us will be hit differently, get ready for the worst and pray to God it isn’t harsh for you and yours.
I think what’s developing is much more complex than is presented here. By that I mean there will be many countervailing forces at work. I think, for example, that both deflation and inflation will occur but in different markets (e.g., material costs will go up and labor cost will go down; tax rates will increase but official incomes will drop (more grey market activity and barter)). One wild card will be how long most people continue to think that the government can help. Government interference in the economy – regardless of whether you call it regulation or subzidation or stimulation – IS the source of all the imbalances listed here. Government is however the reflection of mass beliefs and far too many people feel entitled and have cynically and selfishly demanded or allowed a “Nanny” state to do whatever it wants in exchange for their little piece of largess. But not every one thinks that way and that is your salvation. You form your own reality and you will not experience personally what you have not sowed.
Conservative values = balanced budgets. I’m too young to remember any “conservative revolution” 30 years ago, but I do know that ~40 years ago Nixon took the US off the gold standard, leaving the dollar to begin its decent–NOT a conservative move. Before that and since then, Democratic policies instituted the biggest drains on our economy–welfare & social security, making debt no big deal as people no longer had to be responsible for their own financial problems. It’s Democratic policies that gave FM and FM too much power and no responsibility for tax payer dollars. The blame for the current state of the economy lies in the hands of Republicans AND Democrats–and every American citizen who has been irresponsible with their money. It is true conservatism that got Alaska out of debt, that makes Texas one of the most fiscally sound states in the US, etc. Just as being conservative with our personal finances will save our necks, being conservative with taxpayer dollars–cutting budgets, eliminating waste, COULD save our economy. Unfortunately, senators are too busy looking forward to their cushy life-long incomes to care what happens to the rest of us and do anything about it. Those life-time salaries should be the 1st thing to go, imo.
For those in the big cities, be ready to get out in a moments notice the day the dollar becomes toilet paper
The cities will burst into flames once the rotten scum stop getting their government checks
And there isn’t a police force or army that will stop them,
They will run away to protect the rich and powerful and leave the middle class to die
I’m hoping the scum will consume each other,
However they have the guns and the corrupt politicians and activists on their side
Kalifornia has 5 absolute useless Stooges for Congress and Senate leadership and they will let this state go up in flames
The coming riots and unrest will make the riots of 92 look like a church picnic
DINO, you’re a simpleton.
Well,get all the lawyering out of the system will help a lot.
Hey Dino, In the words of Dr. Evil: “Right!!!!”
you idiot
To Mikey, Yes you can’t eat gold. No you probably won’t trade it for some bread, why would you do that when you can buy a wheat field?
FYI: There are a lot of things you can’t eat, stocks and bonds also come to mind, same with rocks. I don’t ever understand why people keep pointing out the obvious.
Yes, get your garden on. That’s a good idea. So is owning some freaking gold and silver.
Maybe I am paranoid, but I am gathering a library of books on subjects like growing food and how to weld to prepare for the time that we will all may need to be more self sufficient. while I am not convinced that the economy is in a unrecoverable death spiral, I do think that the current way of life in the US is not sustainable, and people who are prepared to live more self sufficiently will have an easier time of it.
Mary,
I agree with you! I am a “child of the 60′s” (so my parents are your age) – my first memory is being in a stroller during a civil rights march. I would love to have the freedom to protest – the truth is that civil disobedience is getting very expensive, and dangerous. It is not politically correct to take to the streets anymore (at least in my gen) I get the feeling that the police (force) is looking to fine and prosecute for anything – even if it is “just to get money” for cities and counties (tough on bogus crime is the new economy). I just got pulled over and ticketed for having a balloon in my car! I offered to pop it, and my daughter sobbed. They gave me a ticket anyways. Crazy. I live in Cali – metro area. I’ve been to protests in SF and they felt tired and pointless. We need a new kind of movement. I think things need to get just a little bit worst to wake people up.
Hey Dino … And I thought it was we conservatives that were the hate-mongers…
Mikey…that is how I feel about gold…I have been saying for years if things get as bad as I think they will, gold will be of no value!
1st- Guns
2nd – Ammo
3rd – Water
4th – Food
5th – Seeds
6th – Miscellaneous items…
Dino:
You are confused. The Republicans have been supporting the democrats for generations (ever since roosevelt started social security). 99% of all violent criminals in jail are (YOU GUESSED IT) democrats. California and Michigan are welfare STATES. Obama has spent more money than all the other administrations combined. These are facts, but you can only argue with feelings and beliefs. We are sick and tired of supporting your lazy butts. We shall see who sinks, you moron. We will take our money and leave the country.
The one thing that will stop all of those statistics in the original article is to bring in tariffs on some articles and start making them in the States again.
Less imports
More Jobs
More Taxes paid
The downside is that some prices will go up.
And tell China to start letting their currency float freely or we will put tarrifs on more goods.
Call their bluff – sure they have lots of dollars invested, but they also have millions relying on exports to the USA !
The government, unions, big business and banks have unwillingly conspired to let the cost of goods, food and clothes drop so that people can spend more of their income on housing.
So, this means I can buy the State of Minnesota with a couple of thousand Euro’s in a couple of years? All because of stupid and greedy Congressmen, and Senators, who have been bribed by the multi-nationals?
Somehow, I don’t think the fatcats are going to pay for their crimes… People are stupid.
Our wonderful country is heading for bankrupsty when the tax revenues exceed the interest payments on our debts, the US will have no other choice but to file for chapter 11 or 7…
There is a way to save our Republic, get rid of the Gestapo IRS and put in its place a consumption tax called FAIRTAX. This one move will save our Republic!!
See http://www.fairtax.com
I love this country and it pains me to see what is happening…too much debt!
Most of these 20 reasons do not imply the economy won’t recover. Most of them just state that things really suck right now. Also, you have to compare to the rest of the world as well for relative value of the dollar and economy. Where are you going to put your money, the renminbi? Please.
Great comments.
The biggest problem is the new world order. We all have great ideas of getting the economy going and so forth, such as electic cars, and different ways we can cut costs, but BOTTOM LINE, it always comes down to the people in control making the decisions which is NOT OUR GVT.
The point being, is The People IN control WANT to tank the economy. Get them exposed, and we can solve the problem. Alex Jones does a great job of showing the average person who they are.
For good news, more people are waking up. The average citizen is using their voices, and SCREAMING now, instead of just taking the rape.
Great Article!
Want to save America …. use less government. That equates to lower taxes and a better economy. That’s how we got prosperous. Now we have social security, medicare, drug prescriptions, outrageous public pensions, huge public employee unions, corrupt politicians, waste, waste and more waste. For a few bribes and stipends anyone can pull the BIG Government levers to stack the deck in their favor (IE Wall Street). China is a more FREE Market than America… that’s why it is growing.
You want all this government then accept the doom. You are the problem that caused it.
And yes….. people can use much less government. Strengthen your family, be more rugged, responsible and independent. Step up and do it yourself. Simply put … be better than that.
Rant over…. (save your stupid comments …I won’t read them)
Ban1944,
The devaluation of the dollar is a huge tax on already angry people. The first revolution was fought over taxes and so will this one (moron).
Hey, how’s it going eh!
I’m a Canadian long haul truck driver that regularly crosses the border (what a pain)to bring various commodities (mostly fuels and foods)into the USA. Sometimes I run short of US currency on my trips, it happens. One time, I pulled into a “dunking” coffee shop and tried to buy a coffee with my Canadian dollars; I couldn’t. I was told that my money was no good!
Hey friends, what are you going to buy from the world when the world says to you “YOUR MONEY IS NO GOOD”?
Cash, gas or ass; nobody rides for free!
While most of the 20 reasons are very valid in detail, I’ll go ahead and deliver these additional views.
We have 3 major broken syatems in this country that have been and will continue to hamper any and every effort to address these hardships:
- Political system – the filibuster has been co-opted by the political parties to install filter politics in every major initiative in the USA. There is no civility in the Senate now, the Senate has become the critical path to anything getting through Congress. The filibuster was not written into the Constitution, nor should it have been. This was a late 18th century chamber rule that morphed into the biggest obstruction in more effective political leadership in the nation today. This minority empowering tool is sure to contimue to tamp down any kind of effective throughput from the Senate, and without the Senate nothing gets through Congress.
Along these lines, the basic lack of common civility and respect among Americans is appalling in the general sense. All needs to do is look at any media or internet blogs to reveal anger at unhealthy levels. How this chnages or reverses I don’t know, but that is up to every American to decide whether the United States continues to live up to its name. We have not been united in the real sense since the fall of the Soviet Union in my opinion, save for the brief time after 09/11.
Both the Democrats and Republicans have faults too numerous to detail, Americans continuing to fight and advocate for self-righteousness for one of the political parties against the other only extends the problems. The founding fathers knew the potential problems with political parties (why there is no reference to political parties in the Constitution), I am always amazed at the wisdom of this group of men going on 250 years ago.
- Information system – I don’t know about all of you, but I have learned that media outlets can no longer be trusted, perhaps they never should have been. Related to the hard partisan issues, major inroads of ideology into typical daily reporting has provided two alternate realities among Americans, one liberal and one conservative. No one talks to each other on political issues any more, they talk at and past each other. Institutions like Walter Cronkite, Huntley and Brinkley and others are gone forever in the era of tabloid reporting and instant gratification and titillation on new stories (e.g. any celebrities you can name including Tiger Woods, Charlie Sheen etc that fall into hard times captivate many Americans). Supposedly, the media keeps feeding what they believe will sell their product or service, many times they seem to judge correctly as to the shallow nature on how Americans view and react to news stories.
We have many experts that know how to corrupt and use the broken information system to serve their ends, to frame an agenda driven perception among Americans that many times works. Freedom of the press is fine in principle, but we have not really had a free press in the classical sense in a very long time.
- Financial systems – I could write a book on this and only repeat what many of us already know. Americans are not used to having to sacrifice for things in many cases, and there are a lot more bad people in the country that attempt to defraud others than I wish were there.
All the same, I am amazed we have not seen political violence yet on any major scale, but if the slide to economic depression continues and the top 1% of the rich continue to take resources from every one else, things will need to change I’m afraid. Much of what I wrote requires introspection from many people, I doubt anything will change truly until it is too late and violence and financial hardship escalate.
#1 on the list is…Americans are in the poorest health of any population in the developed world. We are a fat, lazy, obsese nation, getting older and less healthy every year. When the flabby Baby Boomers all start needing kidneys, metal knees, insulin, and nursing homes by the score, AND expecting their kids to pay for it and their Social Security to boot, the costs will be bigger than any war our nation has fought.
I wonder if most of you know that the economy of Heaven trumps that of earth? On earth, it’s about buying and selling, hence the mark. In the Kingdom, it’s about giving and receiving; about storing treasures in Heaven that we can call upon in great abundance in times of great need. God doesn’t run out of provision, though the earth certainly will.
So, what about it? Where’s your head at? Are you looking out only for yourself, buying and selling, or are you preparing for yourself and others? If you’re concern is more for others, then God will look after you and who better to have your back.
This is not the time to be tight-fisted but generous. Have faith (trust and confidence) in God. He is not a liar. He has NOT fallen off the throne in Heaven. He is our salvation, our deliverance, our protection and provision.
Jesus wondered if when He returned if He would find faith in the world.
I wonder too.
Man, this was the best article I’ve read in a long time. I agreed with about 98% of it. The only thing he left out was how the Fed “injected” $1 Billion into the housing market about a year ago….
@Mike
Another thing about BILL CLINTON, as you put it. Look at the debt chart. See that part where it starts to curve and go flat, then shoot back up again? That period was Bill’s time in office – where we started cutting back our national debt and had a balanced budget. See where shoots back up again after 2000?
Funny that.
We cannot blame any president for this – not even George W. with his insane spending. No, this falls far more on the shoulders of Congress and the American people themselves.
Rotten scum? Government checks? Are you KIDDING me? Please take your racist, bigoted bull somewhere else, LATaxSlave. I would not be as woried about grandma on Social Security as I would be about the working folks who are going to, for the first time, understand that the “system” is not designed to meet their needs at all, but rather to exploit them and steal their money at every turn in order to give it to the Fat Cats on Wall Street. Them’s gonna be some pissed off mothers.
to those who think I who own a wheat field, or a can of food would even consider trading for a pot of gold is ignorant and not in touch with how bad it could get. you will not be able to buy from grocers and stores they will not have any products to buy.
to those who think economy is fixable, the powers that be will not allow it, to make a one world government you must get rid of capitalism. and then bring in socialism. Gold can be confiscated, as was done by Roosevelt, it can be outlawed as history has proven.
This country has tried for many many decades to bring the standard of living of other countries up to the level enjoyed by Americans, it has proven impossible due to gangs, dictatorships, and greed in those countries, so the only alternative is to bring ours down to their level. There is no other way for socialism and the New world order. So unless you are willing to phyically stop them with revolution,and go back to isolationism, I suggest you
prepare for a long long hold out.
20 problems is only about 3 problem.
Debt, Job, and Home Market.
Here’s how you solve our problem. Take my message to our incompetent political leaders.
1. Look at our government budget. Cut defense and social welfare spending. Use it to pay off the debt and create job.
2. All the lazy American needs to get their butt go to college or do something to retrain themselves to match the current demand.
3. The big bank will need to re-adjust the all the mortgage contract to where American can pay. They have to do it or fall along side all Americans.
4. The most important of all… For all the stupid American to stop buying everything they want, and only buy what they really need. Those American who can do this will not suffer as much as those who can’t.
Wow your recommendation are a little contradictory.
1 Stop social programs? how? Stop affording the military? when we are at our weakest, is suicide. disbanding soldiers?
Seems to me that soldiers on the social programs line will defeat your purpose of less social programs, and also all the people going back to school? who will feed them other then social programs to go to school, for 4 years or more?
or do you plan to make education free,
as to the mortgage companies why would they readjust when then can have your property if you don’t pay. and still get the money from bailouts? then tear down your homes and sell them to big farm corp. you expect them to not make money why be in business then? and as to the people buying what they need and not what they want, hmmm how is that gonna creat jobs?
as I said a little condradictory to say the least a little more thought into the problems is required.
to those who are in the midst of the blame game! kinda reminds me of children, we the people need to take the responsibility.you know like grown ups.
even worse,
So true, how do you explain the richest, with all the medical, vaccines, foods, etc. have the worst health?
could it be the richest lifestyles that cause it? Just as it causes lazy, depressed, cows waiting for slavery. funny perhaps man was not made to live in such conditions and the future fall will increase the health of America,
I have to tell you. I love all your comments. You are all very much awake. this is why I have been buying silver over the past 2 years and have a decent size food storage in my house.
2012 is coming or perhaps is already here.
What does it mean?
Many speculate the possibilities that are coming which is normal.
One thing for sure is that the people are going to suffer for a time and then those control freaks that run wall street, the biggest casino around, will find them selves out to lunch as good sense and harmony return and people stop worshiping the material things and begin to discover again the spiritual meaning on life.
Modern Religion has little to do with the spiritual.
Modern religion is the cause of a great deal of the insanity that prevails today on the planet.
Perhaps most beliefs that are rooted in religion are to blame to some extent.
A few thoughts from out there to ponder.
The first and number 1 reason the economy is going down a black hole probably not be what you expect. When loans start adjusting , right now, because rates are so low they may actually adjust down like mine did. I had a 3 year fixed rate. I got the original loan in 2004. The loan was not subprime it was through Wells Fargo.
Original rate- 3.875 % (Fixed for 3 years 3/2004 to 2/2008)
First adjustment – 5.875% 3/2008(The Feds had just raised rates the first adustment cap was a max of 2% more then my original rate)
2nd Adjustment – 3.875% 3/2009(went back down as the Feds slashed rates because of our recession)
This march will be the 3rd and final adjustment should take the rate down to 2% fixed for the life of the loan. WOWWWWW!!!!! 2% fixed interest rate when I had an adjustable rate mortgage! YEAHHHHH
When the loans start adjusting, depending on the index, they actually may have a lower interest rate on thier loan like I did. This wave of rate adjustment may be a good thing for the people, like it was for me. These loans that are coming due are 5 and 7 year fixed. They are good loans. They are likely to have rate decreases not increases in our current enviroment.
Let’s celebrate the only silver lining I see on a very big black cloud.
I think our economy is getting worse and jobs are being lost. Until this problam gets better I am scared regardless of the interest rate on my mortgage. Taxes are going to go up because of our deficit spending. Eventually we’ll have inflation. The middle east is going to stop trading their oil is US Dollars as soon as we leave them unoccupied. I pray for our country, there are so many issues….
I like some of the ideas relating to how we can take back our financial freedom and get this country back on track. The problem is that we never got rid of the monarchy, they just rule from the shadows. Self-interest is not limited to the masses, the leaders have it too, and they can do something about it. What they have done is created so many laws that should we try to change anything, we will run into one or another law that will keep us from being successful. Tariffs are supposed to pay for governement, not income taxes. NAFTA says that if the country does something to impede a corporations right to make the most money it can make, the company can sue for damages. We are screwed, blued, and chewed. It is what they want it to be and by the time any change comes it will have to be drastic (ie. god, aliens, violence, anarchy) Not a fun buncha choices for the majority.
You are forgetting commercial real estate resetting
We need term limits for everyone in Washington. The same old farts have bilked us for years and years to their/coprorate advantages. 2-terms and your out of Washington!
It’s obvious that we are now a Banana Republic, with the super-rich owning and controlling everything, while the peasants toil like hamsters in a wheel. I disagree about the struggle–it is absolutely between the rich and the poor.
The middle class is disappearing because we’ve been squeezed for the last 30 years by policies and laws that take our money while sending our jobs overseas. These outsourced jobs are not likely to return. There will be no recovery for Main Street.
And for all the dissing you give socialism, when things fall apart, it may be the only way we collectively can survive. Saying that Obama and Congress are “socialists” is just more Republican name-calling. It’s yet another way to divide us and distract us from what is really happening–and that is corporate fascism.
Exactly why I paid off all creditors, bought gold, food, and guns so I could hang onto the first two. If you are doing anything else than this then you are a fool.
As far as I can see, this may be our only hope:
http://www.fairtax.org/
It isn’t only the middle class being hit, just FYI. We had become very successful, due to hard work, just as many of our friends had. Guess what is happening to us? Well…we develop and hold real estate. The banks have now gotten new appraisals on our properties and are calling the loans due, stating that the values have dropped. In the bank’s eyes, this means we have defaulted on the agreements. They know we can’t get a new loan to pay them, and even though we were paying our loans on time, they are still coming after us. Someone knocked on our door tonight delivering lawsuit paperwork. Because of this, they will cause MANY of us to go bankrupt. We have employed 100′s of people over the years, as have our friends. If the commercial side of real estate falls apart, then my friends, we are in REAL serious trouble. You ALL have to remember that people who make money, hire people to help them run their businesses as they grow. Stop beating up on capitalism, because it is NOT the problem. The problem is the GOVERNMENT!!!!!!!!!!!
One more point I would like to make, that is important.
When someone has a private sector job, they are paying taxes into OUR tax/bank account.
When the govt hires someone to work in the public sector, then we pay that person out of our tax/bank account.
Let’s assume that both the private and the public employee makes $50,000/year.
The private person pays you and me about 30% or $15,000 into our tax/bank account.
The public person making $50,000/yr gives us back 30% in taxes, which is the same $15,000, BUT that means that we are still paying out $35,000 from our tax/bank account.
So, not only are we losing the $35,000 but we are also losing the $15,000 we would have gained from the private person that is now doing a govt job. Do the math. Big govt costs us all dearly!!!