Karen Hudes is a graduate of Yale Law School and she worked in the legal department of the World Bank for more than 20 years. In fact, when she was fired for blowing the whistle on corruption inside the World Bank, she held the position of Senior Counsel. She was in a unique position to see exactly how the global elite rule the world, and the information that she is now revealing to the public is absolutely stunning. According to Hudes, the elite use a very tight core of financial institutions and mega-corporations to dominate the planet. The goal is control. They want all of us enslaved to debt, they want all of our governments enslaved to debt, and they want all of our politicians addicted to the huge financial contributions that they funnel into their campaigns. Since the elite also own all of the big media companies, the mainstream media never lets us in on the secret that there is something fundamentally wrong with the way that our system works.
Remember, this is not some “conspiracy theorist” that is saying these things. This is a Yale-educated attorney that worked inside the World Bank for more than two decades. The following summary of her credentials comes directly from her website…
Karen Hudes studied law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non Governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.
Today, Hudes is trying very hard to expose the corrupt financial system that the global elite are using to control the wealth of the world. During an interview with the New American, she discussed how we are willingly allowing this group of elitists to totally dominate the resources of the planet…
A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success.
Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”
Previously, I have written about the Swiss study that Hudes mentioned. It was conducted by a team of researchers at the Swiss Federal Institute of Technology in Zurich, Switzerland. They studied the relationships between 37 million companies and investors worldwide, and what they discovered is that there is a “super-entity” of just 147 very tightly knit mega-corporations that controls 40 percent of the entire global economy…
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
But the global elite don’t just control these mega-corporations. According to Hudes, they also dominate the unelected, unaccountable organizations that control the finances of virtually every nation on the face of the planet. The World Bank, the IMF and central banks such as the Federal Reserve literally control the creation and the flow of money worldwide.
At the apex of this system is the Bank for International Settlements. It is the central bank of central banks, and posted below is a video where you can watch Hudes tell Greg Hunter of USAWatchdog.com the following…
“We don’t have to wait for anybody to fire the Fed or Bank for International Settlements . . . some states have already started to recognize silver and gold, the precious metals, as currency”
Most people have never even heard of the Bank for International Settlements, but it is an extremely important organization. In a previous article, I described how this “central bank of the world” is literally immune to the laws of all national governments…
An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe. It is called the Bank for International Settlements, and it is the central bank of central banks. It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City. It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws. Even Wikipedia admits that “it is not accountable to any single national government.” The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system. Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does. Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”. During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on. The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.
This system did not come into being by accident. In fact, the global elite have been developing this system for a very long time. In a previous article entitled “Who Runs The World? Solid Proof That A Core Group Of Wealthy Elitists Is Pulling The Strings“, I included a quote from Georgetown University history professor Carroll Quigley from a book that he authored all the way back in 1966 in which he discussed the big plans that the elite had for the Bank for International Settlements…
[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.
And that is exactly what we have today.
We have a system of “neo-feudalism” in which all of us and our national governments are enslaved to debt. This system is governed by the central banks and by the Bank for International Settlements, and it systematically transfers the wealth of the world out of our hands and into the hands of the global elite.
But most people have no idea that any of this is happening because the global elite also control what we see, hear and think about. Today, there are just six giant media corporations that control more than 90 percent of the news and entertainment that you watch on your television in the United States.
This is the insidious system that Karen Hudes is seeking to expose. For much more, you can listen to Joyce Riley of the Power Hour interview her for an entire hour right here.
So what do you think about what Hudes is saying? Please feel free to share your thoughts by posting a comment below…
U.S. financial markets are exhibiting the classic behavior patterns of an addict. Just a hint that the Fed may start slowing down the flow of the “juice” was all that it took to cause the financial markets to throw an epic temper tantrum on Wednesday. In fact, one CNN article stated that the markets “freaked out” when Federal Reserve Chairman Ben Bernanke suggested that the Fed would eventually start tapering the bond buying program if the economy improves. And please note that Bernanke did not announce that the money printing would actually slow down any time soon. He just said that it may be “appropriate to moderate the pace of purchases later this year” if the economy is looking good. For now, the Fed is going to continue wildly printing money and injecting it into the financial markets. So nothing has actually changed yet. But just the suggestion that this round of quantitative easing would eventually end if the economy improves was enough to severely rattle Wall Street on Wednesday. U.S. financial markets have become completely and totally addicted to easy money, and nobody is quite sure what is going to happen when the Fed takes the “smack” away. When that day comes, will the largest bond bubble in the history of the world burst? Will interest rates rise dramatically? Will it throw the U.S. economy into another deep recession?
Judging by what happened on Wednesday, the end of Fed bond buying is not going to go well. Just check out the carnage that we witnessed…
-The Dow dropped by 206 points on Wednesday.
-The yield on 10 year U.S. Treasuries shot up substantially, and it is now the highest that it has been since March 2012.
-On Wednesday we witnessed the largest percentage rise in the yield on 5 year U.S. Treasury bonds ever. It is now the highest that it has been in nearly two years.
-We also learned that the MBS mortgage refinance applications index has fallen by 38 percent over the past six weeks.
If the markets react like this when the Fed doesn’t even do anything, what are they going to do when the Fed actually starts cutting back the monetary injections?
Posted below is an excerpt from the statement that the Fed released on Wednesday. Please note that the Fed is saying that the current quantitative easing program is going to continue at the same pace for right now…
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
The Committee will closely monitor incoming information on economic and financial developments in coming months. The Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes. In determining the size, pace, and composition of its asset purchases, the Committee will continue to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives.
To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent.
So why doesn’t the Federal Reserve just stop these emergency measures right now?
After all, we are supposed to be in the midst of an “economic recovery”, right?
What is Bernanke afraid of?
That is a question that Rick Santelli of CNBC asked on Wednesday. If you have not seen his epic rant yet, you should definitely check it out…
On days like this, it is easy to see who has the most influence over the U.S. economy. The financial world literally hangs on every word that comes out of the mouth of Federal Reserve Chairman Ben Bernanke. The same cannot be said about Barack Obama or anyone else.
The central planners over at the Federal Reserve are at the very heart of what is wrong with our economy and our financial system. If you doubt this, please see this article: “11 Reasons Why The Federal Reserve Should Be Abolished“. Bernanke knows that the actions that the Fed has taken in recent years have grossly distorted our financial system, and he is concerned about what is going to happen when the Fed starts removing those emergency measures.
Unfortunately, we can’t send the U.S. financial system off to rehab at a clinic somewhere. The entire world is going to watch as our financial markets go through withdrawal.
The Fed has purposely inflated a massive financial bubble, and now it is trying to figure out what to do about it. Can the Fed fix this mess without it totally blowing up?
Unfortunately, most severe addictions never end well. In a recent article, Charles Hugh Smith described the predicament that the Fed is currently facing quite eloquently…
One of the enduring analogies of the Federal Reserve’s quantitative easing (QE) program is that the stock market is now addicted to this constant injection of free money. The aptness of this analogy has never been more apparent than now, as the market plummets on the mere rumor that the Fed will cut back its monthly injection of financial smack. (The analogy typically refers to crack cocaine, due to the state of delusional euphoria QE induces in the stock market. But the zombified state of the heroin addict is arguably the more accurate analogy of the U.S. stock market.)
You know the key self-delusion of all addiction: “I can stop any time I want.” This eerily echoes the language of Fed Chairman Ben Bernanke, who routinely declares he can stop QE any time he chooses.
But Ben, the pusher of QE money, knows his addict–the stock market–will die if the smack is cut back too abruptly. Like all pushers, Ben has his own delusion: that he can actually control the addiction he has nurtured.
You’re dreaming, Ben–your pushing QE has backed you into a corner. The addict (the stock market) is now so dependent and fragile that the slightest decrease in QE smack will send it to the emergency room, and quite possibly the morgue.
We are rapidly approaching a turning point. We have a massively inflated stock market bubble, a massively inflated bond bubble, and a financial system that is absolutely addicted to easy money.
The Fed is desperately hoping that it can find a way to engineer some sort of a soft landing.
The Fed is desperately hoping to avoid a repeat of the financial crisis of 2008.
Federal Reserve Chairman Ben Bernanke insists that he knows how to handle things this time.
Federal Reserve Chairman Ben Bernanke is on the way out the door, but the consequences of the bond bubble that he has helped to create will stay with us for a very, very long time. During Bernanke’s tenure, interest rates on U.S. Treasuries have fallen to record lows. This has enabled the U.S. government to pile up an extraordinary amount of debt. During his tenure we have also seen mortgage rates fall to record lows. All of this has helped to spur economic activity in the short-term, but what happens when interest rates start going back to normal? If the average rate of interest on U.S. government debt rises to just 6 percent, the U.S. government will suddenly be paying out a trillion dollars a year just in interest on the national debt. And remember, there have been times in the past when the average rate of interest on U.S. government debt has been much higher than that. In addition, when the U.S. government starts having to pay more to borrow money so will everyone else. What will that do to home sales and car sales? And of course we all remember what happened to adjustable rate mortgages when interest rates started to rise just prior to the last recession. We have gotten ourselves into a position where the U.S. economy simply cannot afford for interest rates to go up. We have become addicted to the cheap money made available by a grossly distorted financial system, and we have Ben Bernanke to thank for that. The Federal Reserve is at the very heart of the economic problems that we are facing in America, and this time is certainly no exception.
This week Barack Obama publicly praised Ben Bernanke and stated that Bernanke has “already stayed a lot longer than he wanted” as Chairman of the Federal Reserve. Bernanke’s term ends on January 31st, but many observers believe that he could leave even sooner than that. Bernanke appears to be tired of the job and eager to move on.
So who would replace him? Well, the mainstream media is making it sound like the appointment of Janet Yellen is already a forgone conclusion. She would be the first woman ever to chair the Federal Reserve, and her philosophy is that a little bit of inflation is good for an economy. It seems likely that she would continue to take us down the path that Bernanke has taken us.
But is it a fundamentally sound path? Keeping interest rates pressed to the floor and wildly printing money may be producing some positive results in the short-term, but the crazy bubble that this is creating will burst at some point. In fact, the director of financial stability for the Bank of England, Andy Haldane, recently admitted that the central bankers have “intentionally blown the biggest government bond bubble in history” and he warned about what might happen once it ends…
“If I were to single out what for me would be biggest risk to global financial stability right now it would be a disorderly reversion in the yields of government bonds globally.” he said. There had been “shades of that” in recent weeks as government bond yields have edged higher amid talk that central banks, particularly the US Federal Reserve, will start to reduce its stimulus.
“Let’s be clear. We’ve intentionally blown the biggest government bond bubble in history,” Haldane said. “We need to be vigilant to the consequences of that bubble deflating more quickly than [we] might otherwise have wanted.”
Posted below is a chart that demonstrates how interest rates on 10-year U.S. Treasury bonds have fallen over the last several decades. This has helped to fuel the false prosperity that we have been enjoying, but there is no way that the U.S. government should have been able to borrow money so cheaply. This bubble that we are living in now is setting the stage for a very, very painful adjustment…
Ten-year Treasury notes have been kicked down from their historic pedestal last July when some poor souls, blinded by the Fed’s halo of omnipotence and benevolence, bought them at a minuscule yield of 1.3%. For them, it’s been an ice-cold shower ever since. As Treasuries dropped, yields meandered upward in fits and starts. After a five-week jump from 1.88% in early May, they hit 2.29% on Tuesday last week – they’ve retreated to 2.19% since then. Now investors are wondering out loud what would happen if ten-year Treasury yields were to return to more normal levels of 4% or even 5%, dragging other long-term interest rates with them. They know what would happen: carnage!
And according to Richter, there are already signs that the bond bubble is beginning to burst…
Wholesale dumping of Treasuries by exasperated foreigners has already commenced. Private foreigners dumped $30.8 billion in Treasuries in April, an all-time record. Official holders got rid of $23.7 billion in long-term Treasury debt, the highest since November 2008, and $30.1 billion in short-term debt. Sell, sell, sell!
Bond fund redemptions spoke of fear and loathing: in the week ended June 12, investors yanked $14.5 billion out of Treasury bond funds, the second highest ever, beating the prior second-highest-ever outflow of $12.5 billion of the week before. They were inferior only to the October 2008 massacre as chaos descended upon financial markets. $27 billion in two weeks!
In lockstep, average 30-year fixed-rate mortgage rates jumped from 3.59% in early May to 4.15% last week. The mortgage refinancing bubble, by which banks have creamed off billions in fees, is imploding – the index has plunged 36% since early May.
If interest rates start to climb significantly, that will have a dramatic affect on economic activity in the United States.
And we have seen this pattern before.
As Robert Wenzel noted in a recent article on the Economic Policy Journal, we saw interest rates rise suddenly just prior to the October 1987 stock market crash, and we also saw them rise substantially prior to the financial crisis of 2008…
As Federal Reserve chairman Paul Volcker left the Fed chairmanship in August 1987, the interest rate on the 10 year note climbed from 8.2% to 9.2% between June 1987 and September 1987. This was followed, of course by the October 1987 stock market crash.
As Federal Reserve chairman Alan Greenspan left the Fed chairmanship at the end of January 2006, the interest rate on the 10 year note climbed from 4.35% to 4.65%. It then climbed above 5%.
So keep a close eye on interest rates in the months ahead. If they start to rise significantly, that will be a red flag.
And it makes perfect sense why Bernanke is looking to hand over the reins of the Fed at this point. He can probably sense the carnage that is coming and he wants to get out of Dodge while he still can.
Do you believe that you really think for yourself? Did you come up with your attitudes, opinions and beliefs on your own, or are they continually being shaped and molded by someone else? Could it be possible that you and everyone around you is actually hooked into a real life version of “the matrix” that is constantly defining your reality for you? Sadly, the truth is that almost all of us have willingly hooked ourselves into a colossal media system that literally tells us what to think. In the United States today, the average American watches 153 hours of television a month. We also spend huge amounts of time watching movies, surfing the Internet, reading books and magazines, playing video games and listening to music. Many Americans are so addicted to being “connected” that they will actually become physically uncomfortable if they are at home and there is total silence. Unfortunately, as I pointed out in a previous article, somewhere around 90 percent of the “information” that we are allowing to be endlessly pumped into our heads is owned by just 6 gigantic media corporations. So could it be possible that the thousands of hours of “news and entertainment” that you are allowing these gigantic corporations to fill your head with each year is having an effect on you? Does the mainstream media have more control over you than you ever dreamed possible? If you want to continue on in blissful ignorance, stop reading now, but if you want to take “the red pill”, keep on reading because the further down the rabbit hole you go, the stranger that things get.
When you go to work or to school in the morning, what is everyone talking about?
Usually, people are talking about something that they saw on television or that they heard about in the news.
In our society today, the limited interactions that we do have with other people are usually defined by our mutual connection to the media.
The mainstream media literally defines for us what is important and what is not. If the mainstream media does not talk about something, then it simply does not matter.
I don’t know how many times over the years I have heard someone tell me some version of the following statement: “If that was true we would have heard about it on the news.”
Has anyone ever said something similar to you?
The funny thing is that most of the time I won’t even mention something important that I may have heard in one of my articles unless I can back it up with a “mainstream source”, and I don’t even trust the mainstream media.
I know that the mainstream media often distorts the facts and often tells outright lies, but I regularly link to them because that gives my articles more “credibility” in the eyes of those that are still fully hooked into the matrix.
In a world where the big media corporations have so much power, is there any hope for us?
As long as the big corporations that control the media are dominating and controlling the conversation, is there any chance that there will ever be a mass awakening among the American people?
Our young people seem particularly addicted to being constantly “connected” to the media matrix that is being constructed all around us. The following is a brief excerpt from a recent article by Daniel Taylor…
According to a 2010 LA Times report, young people spend on average 53 hours a week watching TV, playing video games, and sitting at the computer.
Wow – our young people spend more than 200 hours a month connected to the mainstream media?
But we only have about 480 waking hours a month to work with.
If they are being exposed to that amount of continuous propaganda, what hope do our young people have?
In the old days, kids actually played with each other in the streets and adults actually left their homes to interact with one another.
But these days we spend nearly all of our time sitting passively in our homes staring at flickering screens.
Is that a sign of a healthy society?
We were created to be social creatures. We were designed to love and to be loved. But these days people “love” their favorite sports teams or they “love” their favorite television shows but we have an increasingly difficult time having real relationships with each other.
Meanwhile, the global elite rely on the mainstream media to keep us distracted and to control the boundaries of public discourse. Most of the time, the mainstream media focuses on the latest celebrity scandal or the latest dogfights between the Republicans and the Democrats and they systematically ignore many of the more important things that are taking place out there.
Let me just give you one example of how the mainstream media shapes the news. For decades, there was almost a complete and total media blackout on the Bilderberg Group meetings that happen every year. Top newspaper executives from the United States would actually attend these meetings, but then their newspapers would not say a single word about them.
If anyone out there did bring up “the Bilderberg Group”, they were dismissed as wacky “conspiracy theorists” and were told that it simply does not exist.
Of course now we all know that it does exist, although the mainstream media in the U.S. still mostly ignores it. In fact, this has been by design. The following is what David Rockefeller is alleged to have said during a Bilderberg Group meeting back in 1991…
We are grateful to The Washington Post, The New York Times, Time magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. … It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity during those years. But, the world is now much more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.
Even today, many prominent “journalists” in the U.S. mock people when they bring up the Bilderberg Group. For example, Lawrence O’Donnell of MSNBC says that he is “way too lazy” to look into the Bilderberg Group and that he “doesn’t know about it, so it must not exist”.
Instead of telling us what is really going on in the world, the mainstream media keeps us endlessly distracted. The following are just a few of the headlines that can be found on the front pages of major mainstream news sites right now…
Wow – those are some examples of some really hard-hitting journalism right there.
So why do most Americans continue to fall for this nonsense?
Sadly, part of the reason is because we have become so “dumbed down” as a society.
Recently, the Guardian conducted an evaluation of the reading level of every State of the Union address in U.S. history. What they found is that Barack Obama’s State of the Union addresses have had the second lowest reading level average in history, and that in general the reading levels of the speeches have been significantly declining over time.
But it is not just our presidents that appear to be getting stupider. The truth is that our public education system is a total joke at this point. Many of our high school students are as dumb as a rock, and if you can believe it, 23 percent of all Americans cannot even read beyond a fourth-grade level.
Of course the elite are quite pleased with this, because a stupid public is a public that is easier to dominate.
When a large segment of the population can barely read and is accustomed to letting others do their thinking for them, it becomes easier to lie.
“Growing dependence on government is mostly a myth”
Of course most of you that are reading this know that is a flat-out lie. The charts in this article clearly show that the number of Americans on food stamps is at an all-time high and the percentage of the population that is on food stamps is at an all-time high.
Back in 1983, less than a third of all Americans lived in a household that got money from the federal government each month, Now, an all-time high 49 percent of all Americans live in a home where at least one person receives money from the government each month.
For many more stats and charts that demonstrate the stunning growth of government dependence, please see this article and this article.
Sadly, the truth doesn’t seem to matter too much to the media these days. The mainstream media tends to be incredibly arrogant, and most of the time they don’t even pretend to be “objective” or “neutral” anymore.
Fortunately, more Americans than ever are becoming dissatisfied with the mainstream media and are starting to seek out alternative sources of information. According to a recent Gallup poll, the level of trust that the American public has in the mainstream media is now at an all-time low.
America is rapidly becoming a nation of takers. An increasing number of Americans expect the government to take care of them from the cradle to the grave, and they expect the government to dig into the pockets of others in order to pay for it all. This philosophy can be very seductive, but what happens when the number of takers eventually outnumbers the number of producers? In 11 different U.S. states, the number of government dependents exceeds the number of private sector workers. This list of states includes some of the biggest states in the country: California, New York, Illinois, Ohio, Maine, Kentucky, South Carolina, Mississippi, Alabama, New Mexico and Hawaii. It is interesting to note that seven of those states were won by Barack Obama on election night. In California, there are 139 “takers” for every 100 private sector workers. That is crazy! The American people have become absolutely addicted to government money, and it gets worse with each passing year. If you can believe it, entitlements accounted for 62 percent of all federal spending in fiscal year 2012. It would be one thing if we could afford all of this spending, but unfortunately we simply cannot. We are drowning in debt, and we are stealing more than a hundred million more dollars from future generations with each passing hour. No bank robber in history can match that kind of theft.
Yes, we will always need a safety net. There are many people out there that simply cannot take care of themselves. We certainly don’t want to see anyone sleeping in the streets or starving to death.
But if the number of people jumping on to the safety net continues to grow at the current pace, the net will break and it will not be available for any of us.
For example, the number of Americans on food stamps grew from about 17 million in 2000 to more than 47 million today. It nearly tripled in just 12 years.
What will happen if it nearly triples again over the next 12 years?
The federal government even has a website (benefits.gov) that guides people through the process of figuring out what welfare programs they can take advantage of.
Overall, the federal government runs nearly 80 different “means-tested welfare programs” and more than 100 million Americans are already enrolled in at least one of those programs.
Yes, I realize that figure is very hard to believe. I had a hard time believing it when I first came across it.
And it is even more shocking when you realize that the figure of 100 million Americans does not even include those who only receive Social Security or Medicare.
To support all of those Americans on Social Security, there are only about 94.75 million full-time private sector workers.
So there are just 1.67 full-time private sector workers to support each American that is on Social Security.
Medicare is also growing like crazy. As I wrote about the other day, the number of Americans on Medicare is expected to grow from 50.7 million in 2012 to 73.2 million in 2025.
How much farther can we push things before the entire system collapses?
In order to support this exploding entitlement system, we need a lot more Americans to be working good paying jobs.
Unfortunately, millions of good paying jobs continue to be shipped overseas and they aren’t coming back.
We are even losing good jobs to our own prisoners. The United States has the largest prison population in the world by far, and the exploitation of that low wage labor pool has become a boom industry in America. Even Microsoft and Boeing are using prison labor now. Just check out this video.
Meanwhile, there are millions upon millions of law-abiding Americans that cannot find jobs and that cannot take care of their families.
So poverty and dependence on the government are absolutely exploding. We have a system that is so messed up that it is hard to even put it into words. The middle class is being viciously shredded, and most Americans just continue to applaud the politicians from both parties that are doing this to us.
Our economy is being gutted at the same time that the welfare state is experiencing unprecedented growth. Instead of giving us real answers, our “leaders” just continue to borrow, spend and print more money. We are about to hit the debt limit again, and the Obama administration is saying that we should just do away with the debt limit permanently.
Most of our politicians don’t seem to understand that they are systematically destroying our economy and the bright futures that our children and our grandchildren were supposed to have.
But there are some politicians out there that get it. Unfortunately, many of them live in other countries. For example, Canadian MP Pierre Poilievre seems to have a firm grasp on what debt is doing to the United States. The following are some excerpts from one of his speeches…
“By 2020, the US Government will be spending more annually on debt interest than the total combined military budgets of China, Britain, France, Russia, Japan, Germany, Saudi Arabia, India, Italy, South Korea, Brazil, Canada, Australia, Spain, Turkey, and Israel.”
“Through government spending the indulgence of one is the burden of another; through government borrowing, the excess of one generation becomes the yoke of the next; through international bailouts, one nation’s extravagance becomes another nation’s debt”
“Everyone takes, nobody makes, work doesn’t pay, indulgence doesn’t cost, money is free, and money is worthless.”
And if we continue down this path it is most definitely true that our money will eventually become worthless at some point. Just today I was down at the grocery store, and a can of chili that I was able to get on sale for 75 cents a couple of years ago now has a “sale price” of $1.69. If the Federal Reserve keeps recklessly printing dollars, eventually we will be fortunate to get a can of chili for 10 bucks. Things cost too much already, and the Fed seems absolutely determined to cut the legs out from under the U.S. dollar.
Unfortunately, printing money is the only way that we are going to be able to service the gigantic amounts of debt that we are accumulating.
The United States is clearly in an advanced state of decline. Many people around the world (and even inside America) rejoice at this, but not me. I mourn for the country that I was born in and that I still love. Yes, the United States has never been perfect, but the Republic that our Founding Fathers started truly has been a light to the rest of the world in a lot of ways over the centuries. Unfortunately, our foundations are badly rotting and our nation is collapsing all around us. Many Americans like to think that the United States is greater today than it has ever been before, but the truth is that America is like a patient that has stage 4 cancer that has spread to almost every area of the body. Our nation is being destroyed in thousands of different ways, and more distressing news emerges with each passing day. This article will mainly focus on the economic decline of America, but much could also be said about our social, political, moral and spiritual decline as well. We are simply not the same country that we used to be. Americans are proud, selfish, greedy, arrogant, ungrateful, treacherous and completely addicted to entertainment and pleasure. Our country is literally falling apart all around us, but most Americans are so plugged into entertainment that they can’t even be bothered to notice what is happening. Most Americans seem to assume that we will always have endless prosperity just because of who we are, but unfortunately that simply is not true. We inherited the greatest economic machine the world has ever seen and we have wrecked it, and now a very painful day of reckoning is approaching. But most people will not understand until it is too late.
The following are 34 signs that America is in decline…
#1 According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001. That number dropped to 21.6 percent in 2011. That is not just a decline – that is a freefall. Just check out the chart in this article.
#2 According to The Economist, the United States was the best place in the world to be born into back in 1988. Today, the United States is only tied for 16th place.
#3 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
#4 According to the Wall Street Journal, of the 40 biggest publicly traded corporate spenders, half of them plan to reduce capital expenditures in coming months.
#5 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.
#6 America once had the greatest manufacturing cities on the face of the earth. Now many of our formerly great manufacturing cities have degenerated into festering hellholes. For example, the city of Detroit is on the verge of financial collapse, and one state lawmaker is now saying that “dissolving Detroit” should be looked at as an option.
#7 In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
#10 Sadly, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
#11 Median household income in America has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
#12 The U.S. trade deficit with China during 2011 was 28 times larger than it was back in 1990.
#13 Incredibly, more than 56,000 manufacturing facilities in the United States have been shut down since 2001. During 2010, manufacturing facilities were shutting down at the rate of 23 per day. How can anyone say that “things are getting better” when our economic infrastructure is being absolutely gutted?
#14 Back in early 2005, the average price of a gallon of gasoline was less than 2 dollars a gallon. During 2012, the average price of a gallon of gasoline has been $3.63.
#15 In 1999, 64.1 percent of all Americans were covered by employment-based health insurance. Today, only 55.1 percent are covered by employment-based health insurance.
#16 As I have written about previously, 61 percent of all Americans were “middle income” back in 1971 according to the Pew Research Center. Today, only 51 percent of all Americans are “middle income”.
#17 There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
#18 According to the U.S. Census Bureau, the poverty rate for children living in the United States is about 22 percent.
#19 Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned. By 2007, that figure had soared to $1.48.
#20 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#24 Back in 1950, 78 percent of all households in the United States contained a married couple. Today, that number has declined to 48 percent.
#25 According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
#26 In 1980, government transfer payments accounted for just 11.7 percent of all income. Today, government transfer payments account for more than 18 percent of all income.
#27 In November 2008, 30.8 million Americans were on food stamps. Today, 47.1 million Americans are on food stamps.
#29 As I wrote about the other day, according to one calculation the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
#30 Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#33 According to a PBS report from earlier this year, U.S. households that make $13,000 or less per year spend 9 percent of their incomes on lottery tickets. Could that possibly be accurate? Are people really that foolish?
#34 As the U.S. economy has declined, the American people have been downing more antidepressants and other prescription drugs than ever before. In fact, the American people spent 60 billion dollars more on prescription drugs in 2010 than they did in 2005.
So what are our “leaders” doing about all of this?
They just continue to insist that everything is “just fine”.
Sadly, the truth is that they live in a world that is very different from most of the rest of us.
When was the last time you got to take a 20 day vacation?
And most of our “leaders” have no idea what it is like to struggle from month to month on a paycheck.
Overall, more than half of the members of Congress are millionaires. We are led by wealthy men who are serving the interests of other wealthy men.
But the problem with our system is not limited to the president and the members of Congress. The truth is that the political system in America has become a colossal beast that just continues to grow no matter who is in power. The political establishment of both parties is totally dependent on this beast, and they will continue to feed it and serve it because it has been very good to them. The following is from an outstanding article by Steve McCann…
The Republican and Democratic political establishments are made up of the following:
1) many current and nearly all retired national office holders whose livelihood and narcissistic demands depends upon fealty to Party and access to government largesse;
2) the majority of the media elite, including pundits, editors, writers and television news personalities based in Washington and New York whose proximity to power and access is vital to their continued standard of living;
3) academia, numerous think-tanks, so-called non-government organizations, and lobbyists who fasten onto those in the administration and Congress for employment, grants, favorable legislation and ego-gratification;
4) the reliable deep pocket political contributors and political consultants whose future is irrevocably tied to the political machinery of the Party; and
5) the crony capitalists, i.e. leaders of the corporate and financial community as well as unions whose entities are dependent on or subject to government oversight and/or benevolence .
Do you think that there is any chance that this insidious system will be uprooted any time soon?
Of course not.
We will continue on the same path that we are on right now and America will continue to decline.
Many will rejoice as America falls, but I will not.
I will mourn for a mighty Republic that has fallen and for a dream that has been lost.
The future of the United States of America is being systematically destroyed by our politicians, but unfortunately most Americans don’t really grasp exactly what is happening. 30 years ago, our national debt had just crossed the one trillion dollar mark. Just recently, it crossed the 16 trillion dollar mark. Prior to every election, politicians from both parties swear up and down that they will do something about our exploding debt, but it never happens. Once again this year, our politicians are making all kinds of grand promises about getting U.S. government finances under control. But they are also promising all kinds of new plans and programs which are going to cost a lot more money on top of what we are already spending. For the average American, all of this can be incredibly confusing. That is why I have put together a list of facts about the debt and U.S. government finances below. These are things that every voter should know. The federal government is stealing more than a trillion dollars a year from our children and our grandchildren, and they are spending that money in some of the most foolish ways that you could ever imagine. We have accumulated the largest mountain of debt in the history of the world, but our politicians just can’t help themselves – they appear to be absolutely addicted to spending money. If we continue on the path that we are currently on, our entire financial system and our entire economy will be destroyed by all of this debt. Time is running out and urgent action is needed to address this crisis.
Many of our founding fathers attempted to warn us about the dangers of government debt. For example, Thomas Jefferson once said the following…
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.
Where would we be today if such an amendment had been added to our Constitution?
How much brighter would our future be if the federal government had been forced to only spend what it took in all these years?
Those are very good questions.
The following are 55 facts about the debt and U.S. government finances that every American voter should know….
#1 While Barack Obama has been president, the U.S. government has spent about 11 dollars for every 7 dollars of revenue that it has actually brought in.
#3 During fiscal year 2011, over a trillion dollars of government money was spent on 83 different welfare programs, and those numbers do not even include Social Security or Medicare.
#4 Over the past four years, welfare spending has increased by 32 percent. In inflation-adjusted dollars, spending on those programs has risen by 378 percent over the past 30 years. At this point, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. Once again, these figures do not even include Social Security or Medicare.
#5 Over the past year, the number of Americans getting a free cell phone from the federal government has grown by 43 percent. Now more than 16 million Americans are enjoying what has come to be known as an “Obamaphone”.
#6 When Barack Obama first entered the White House, about 32 million Americans were on food stamps. Now, nearly 47 million Americans are on food stamps. And this has happened during what Obama refers to as “an economic recovery”.
#8 The U.S. Department of Agriculture recently spent $300,000 to encourage Americans to eat caviar at a time when more families than ever are having a really hard time just trying to put any food on the table at all.
#10 The U.S. Department of Agriculture gave the largest snack food maker in the world (PepsiCo Inc.) a total of 1.3 million dollars in corporate welfare that was used to help build “a Greek yogurt factory in New York.”
#11 The National Science Foundation recently gave researchers at Purdue University $350,000. They used part of that money to help fund a study that discovered that if golfers imagine that a hole is bigger it will help them with their putting.
#12 If you can believe it, $10,000 from the federal government was actually used to purchase talking urinal cakes up in Michigan.
#13 The National Science Foundation recently gave a whopping $697,177 to a New York City-based theater company to produce a musical about climate change.
#14 The National Institutes of Health recently gave $666,905 to a group of researchers that is studying the benefits of watching reruns on television.
#15 The National Science Foundation has given 1.2 million dollars to a team of “scientists” that is spending part of that money on a study that is seeking to determine whether elderly Americans would benefit from playing World of Warcraft or not.
#16 The National Institutes of Health recently gave $548,731 to a team of researchers that concluded that those that drink heavily in their thirties also tend to feel more immature.
#17 The National Science Foundation recently spent $30,000 on a study to determine if “gaydar” actually exists. This is the conclusion that the researchers reached at the end of the study….
“Gaydar is indeed real and… its accuracy is driven by sensitivity to individual facial features”
#18 Back in 2011, the National Institutes of Health spent $592,527 on a study that sought to figure out once and for all why chimpanzees throw poop.
#19 The U.S. government spends more on the military than China, Russia, Japan, India, and the rest of NATO combined. In fact, the United States accounts for 41.0% of all military spending on the planet. China is next with only 8.2%.
#21 In 2006, only 12 percent of all federal workers made $100,000 or more per year. Now, approximately 22 percent of all federal workers do.
#22 If you can believe it, there are 77,000 federal workers that make more than the governors of their own states do.
#23 During 2010, the average federal employee in the Washington D.C. area received total compensation worth more than $126,000.
#24 The U.S. Department of Defense had just nine civilians earning $170,000 or more back in 2005. When Barack Obama became president, the U.S. Department of Defense had 214 civilians earning $170,000 or more. By June 2010, the U.S. Department of Defense had 994 civilians earning $170,000 or more.
#26 If you can believe it, close to 15,000 retired federal employees are currently collecting federal pensions for life worth at least $100,000 annually. That list includes such names as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.
#27 During 2010, the federal government spent $33,387 on the hair care needs of U.S. Senators.
#28 During 2010, U.S. Senators pulled $72,370 out of the “Senate Restaurant Fund”.
#29 During 2010, an average of $4,005,900 of U.S. taxpayer money was spent on “personal” and “office” expenses per Senator.
#30 In 2013, 3.7 million dollars will be spent to support the lavish lifestyles of former presidents such as George W. Bush and Bill Clinton.
#31 During 2011, the federal government spent a total of 1.4 BILLION dollars just on the Obamas.
#32 When you combine all federal government spending, all state government spending and all local government spending, it comes to approximately 41 percent of U.S. GDP. But don’t worry, all of our politicians insist that this is not socialism.
#33 As I have written about previously, less than 30 percent of all Americans lived in a home where at least one person received financial assistance from the federal government back in 1983. Today, that number is sitting at an all-time high of 49 percent.
#34 Back in 1990, the federal government accounted for just 32 percent of all health care spending in America. This year, it is being projected that the federal government will account for more than 50 percent of all health care spending in the United States.
#35 The number of Americans on Medicaid soared from 34 million in 2000 to 54 million in 2011, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#36 In one of my previous articles, I discussed how it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.
#37 If you can believe it, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for each and every household in the United States.
#40 When Barack Obama first took office, the U.S. national debt was about 10.6 trillion dollars. Now it is about 16.2 trillion dollars. That is an increase of 5.6 trillion dollars in less than 4 years.
#41 The federal government has now run a budget deficit of more than a trillion dollars for four years in a row.
#42 If right this moment you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
#43 If you were alive when Jesus Christ was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.
#44 Some suggest that “taxing the rich” is the answer. Well, if Bill Gates gave every single penny of his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.
#45 If the federal government used GAAP accounting standards like publicly traded corporations do, the real federal budget deficit for 2011 would have been 5 trillion dollars instead of 1.3 trillion dollars.
#46 The United States already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain does.
#47 At this point, the United States government is responsible for more than a third of all the government debt in the entire world.
#48 The amount of U.S. government debt held by foreigners is about 5 times larger than it was just a decade ago.
#49 Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that same time period.
#51 The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created.
#52 The U.S. national debt jumped more on the very first day of fiscal year 2013 than it did from 1776 to 1941 combined.
#53 Historically, the interest rate on 10 year U.S. Treasuries has averaged 6.68 percent. If the average interest rate on U.S. government debt rose to that level today, the U.S. government would find itself spending more than a trillion dollars per year just on interest on the national debt.
#55 Boston University economist Laurence Kotlikoff is warning that the U.S. government is facing a gigantic tsunami of unfunded liabilities in the coming years that we are counting on our children and our grandchildren to pay. Kotlikoff speaks of a “fiscal gap” which he defines as “the present value difference between projected future spending and revenue”. His calculations have led him to the conclusion that the federal government is facing a fiscal gap of 222 trillion dollars in the years ahead.
Please share this article with as many people as you can. Time is running out to fix these problems.
QE3 has barely even started and some folks on Wall Street are already clamoring for QE4. In fact, as you will read below, one equity strategist at Morgan Stanley says that he would not be “surprised” if the Federal Reserve announced another new round of money printing by the end of the year. But this is what tends to happen when a financial system starts becoming addicted to easy money. There is always a deep hunger for another “hit” of “currency meth”. Federal Reserve Chairman Ben Bernanke was probably hoping that QE3 would satisfy the wolves on Wall Street for a while. His promise to recklessly print 40 billion dollars a month and use it to buy mortgage-backed securities is being called “QEInfinity” by detractors. During QE3, nearly half a trillion dollars a year will be added to the financial system until the Fed decides that it is time to stop. This is so crazy that even former Federal Reserve officials are speaking out against it. For example, former Federal Reserve chairman Paul Volcker says that QE3 is the “most extreme easing of monetary policy” that he could ever remember. But the big Wall Street banks are never going to be satisfied. If QE4 is announced, they will start calling for QE5. As I noted in a previous article, quantitative easing tends to pump up the prices of financial assets such as stocks and commodities, and that is very good for Wall Street bankers. So of course they want more quantitative easing. They always want bigger profits and bigger bonus checks at the end of the year.
But at this point the Federal Reserve has already “jumped the shark”. If you don’t know what “jumping the shark” means, you can find a definition on Wikipedia right here. Whatever shreds of credibility the Fed had left are being washed away by a flood of newly printed money.
Those running the Fed have essentially used up all of their bullets and the next great financial crisis has not even fully erupted yet.
So what is the Fed going to do if the stock market crashes and the credit market freezes up like we saw back in 2008?
How much more extreme can the Fed go?
One can just picture “Helicopter Ben” strapping on a pair of water skis and making the following promise….
“We are going to print so much money that we’ll make Zimbabwe and the Weimar Republic look like wimps!”
Sadly, the truth is that money printing is not a “quick fix” and it never has been. Just look at Japan. The Bank of Japan is on round 8 of their quantitative easing strategy, and yet things in Japan continue to get even worse.
But that is not going to stop the folks on Wall Street from calling for even more quantitative easing.
For example, the top U.S. equity strategist for Morgan Stanley, Adam Parker, made headlines all over the world this week by writing the following….
“QE3 will likely be insufficient to significantly boost equity markets and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end, particularly if economic and corporate news continue to deteriorate as they have over the past few weeks.”
Did you get what he is saying there?
He says that QE3 is not going to be enough to boost equity markets (the stock market) so more money printing will be necessary.
But wasn’t QE3 supposed to be about creating jobs and helping the middle class?
I can almost hear many of you laughing out loud already.
As I have written about before, QE3 is unlikely to change the employment picture in any significant way, but what it will do is create more inflation which will squeeze the poor, the middle class and the elderly.
The truth is that quantitative easing has always been about bailing out the banks, and the hope is that this will trickle down to the folks on Main Street as well, but that never seems to happen.
Wall Street is not calling for even more quantitative easing because it would be good for you and I. Rather, Wall Street is calling for even more quantitative easing because it would be good for them.
The Federal Reserve’s latest easing move has been nicknamed everything from “QE3″ to “QE Infinity” to “QEternal,” but some on Wall Street question whether the unprecedented move will be QEnough.
And of course everyone pretty much understands that QE3 is definitely not going to fix our economic problems. Even most of those on Wall Street will admit as much. In the CNBC article mentioned above, a couple of economists named Paul Ashworth and Paul Dales at Capital Economics were quoted as saying the following….
“The Fed can commit to deliver whatever economic outcome it likes, but the problem is that the crisis in the euro-zone and/or a stand-off in negotiations to avert the fiscal cliff in the U.S. may well reveal it to be like the proverbial Emperor with no clothes”
An emperor with no clothes?
I think the analogy fits.
The Federal Reserve is going to keep printing and printing and printing and things are not going to get any better.
The Federal Reserve’s QE3 bond buying program announced earlier this month could last until the middle of 2015 and eventually reach $2 trillion, according to an estimate from economists at Goldman Sachs.
The Goldman economists also wrote in a report that they believe the Fed will not raise the federal funds rate until 2016. This rate, which is used as a benchmark for a wide variety of consumer and business loans, has been near 0% since December 2008. The Fed said in its last statement that it expected rates would remain low until mid-2015.
So why is Wall Street whining and complaining so loudly right now?
Well, even with all of the bailouts and even with all of the help from the first two rounds of quantitative easing, things are still tough for them.
For example, Bank of America recently announced that they will be laying off 16,000 workers.
In addition, there are rumors that 100 highly paid partners at Goldman Sachs are going to be getting the axe. It is said that Goldman will save 2 billion dollars with such a move.
We haven’t even reached the next great financial crisis and the pink slips are already flying on Wall Street. Meredith Whitney says that she has never seen anything quite like this….
“The industry is as bad as I’ve seen it. So it’s certainly not a great time to be on Wall Street.”
But of course Wall Street is not going to get much sympathy from the rest of America. The truth is that things have been far rougher for most of the rest of us than things have been for them.
When the last crisis hit, they got trillions of dollars in bailout money and we got nothing.
So most people are not really in a mood to shed any tears for Wall Street.
But of course the Federal Reserve is definitely hoping to help their friends on Wall Street out by printing lots of money.
You never know, by the time this is all over we may see QE4, QE5, QE Reloaded, QE With A Vengeance and QE The Return Of The Bernanke.
Meanwhile, Europe is gearing up to print money like crazy too.
“Within our mandate, the European Central Bank is ready to do whatever it takes to preserve the euro, and believe me, it will be enough.”
And of course the Bank of Japan has joined the money printing party too. The following is from a recent article by David Kotok….
The recently announced additional program by the BOJ includes a fifty-percent allocation to the purchase of ten-year Japanese government bonds. The other fifty percent will buy shorter-term government securities. Thus, the BOJ is applying half of its additional QE stimulus to extracting long duration from the government bond market, denominated in Japanese yen.
All of the central banks seem to be getting on the QE bandwagon.
“Another round of QE is understandable – but it will fail to fix the problem. There is so much liquidity in the market that adding more is not going to change the economy.”
Sadly, most Americans have a ton of faith in the people running our system, but the truth is that they really do not know what they are doing. Just check out what Dallas Fed President Richard Fisher said the other day….
“The truth, however, is that nobody on the committee, nor on our staffs at the Board of Governors and the 12 Banks, really knows what is holding back the economy. Nobody really knows what will work to get the economy back on course. And nobody – in fact, no central bank anywhere on the planet – has the experience of successfully navigating a return home from the place in which we now find ourselves. No central bank – not, at least, the Federal Reserve – has ever been on this cruise before.”
Can you imagine the head coach of a football team coming in at halftime and telling his players the following….
“Nobody on the coaching stuff really has any idea what will work.”
That sure would not inspire a lot of confidence, would it?
Perhaps the Fed should be open to some input from the rest of us.
Actually, back on September 14th the Federal Reserve Bank of San Francisco posted a poll on Facebook that asked the following question….
The economy is not the only thing that is wrong with America. In order for a society to function smoothly, people need to be able to trust one another and be able to expect that most of their fellow citizens will behave in a somewhat civilized manner. Unfortunately, we are starting to see the very fabric of our society slowly unravel all over the nation. The truth is that America is becoming a very heartless place. People simply do not care about one another the way that they used to in this country. Of course there are many exceptions, but the reality is that millions of hearts are going cold from coast to coast. In America today, we are more self-absorbed than ever, more self-centered than ever, and we are more isolated from others than ever. Just think about the number of people that you personally interact with on a regular basis. Unless you are involved with a very large organization such as a school or a church, it is probably a very limited number. Our addiction to entertainment gives us the illusion of being connected to society, but the truth is that Americans spend less time personally interacting with one another than ever before. Meanwhile, Americans are seemingly becoming more arrogant, more prideful, more angry, more brutal, more greedy and more addicted to pleasure than ever before. When you combine millions of very cold hearts with an economy that is rapidly crumbling, that adds up to a whole lot of trouble in the years ahead.
Even government authorities are becoming heartless. TSA agents and police officers are actually trained to “act tough” and to bark orders at us. In the old days, you could reason with a police officer, but these days if you try to talk common sense with some of these thugs you will get tasered before you even realize what is happening.
The American people can see the deep corruption in Washington D.C. and throughout most of our other major institutions and they wonder why they should keep trying to do “the right thing”.
If our leaders are selfish and heartless, then it is only natural that millions of average Americans will follow their examples.
In America today, we are taught to hate one another. Democrats are taught to hate Republicans and Republicans are taught to hate Democrats. We are a deeply divided nation and our hearts are getting colder with each passing year.
Parents are becoming more cruel, thieves are becoming more bold and thugs are becoming more brutal. Hate, anger and frustration are fueling some really twisted behavior all over the country. America is changing, and not for the better.
The following are 19 signs that America is becoming a very heartless place….
#1 At one airport in Hawaii, TSA agents recently required one new mother to go to a public restroom and fill up the empty baby bottles she was carrying with breast milk before they would allow her to get on to her flight. The following is how one local news station described the incident….
She claims agents told her she couldn’t take the pump on the plane because the bottles in her carry-on were empty.
“I asked him if there was a private place I could pump and he said no, you can go in the women’s bathroom. I had to stand in front of the mirrors and the sinks and pump my breast in front of every tourist that walked into that bathroom. I was embarrassed and humiliated and then angry that I was treated this way.
When the bottles were full, she was allowed back on the plane.
#2 One way that a society is judged is by how it treats children. Unfortunately, stories such as the following one from Texas are becoming increasingly common in America today….
Texas authorities said Tuesday they removed 11 children from a crowded home where a registered sex offender lives after they found eight confined in a small, dark bedroom with restraints tying some to their beds.
Along with the children, 10 adults were living in the one-story, 1,700-square-foot home in Dayton, about 30 miles northeast of Houston, Child Protective Services spokeswoman Gwen Carter said. One month after a raid on the house, authorities are still trying to determine how the children are related and why they were there, she said.
#3 Across the United States, there have been an increasing number of reports of teens randomly attacking people on the street for no apparent reason whatsoever. In some cases, the victims are actually being pulled out of their vehicles. The following recent example comes from Philadelphia….
IN A HORRIFIC assault in Center City on Saturday night, three teenagers who were spouting racial slurs pulled a man out of a cab to beat him. And when the cabdriver intervened to stop the assault, the teens turned their rage on him, police said yesterday.
#4 One man down in Arizona was recently charged with skinning and eating a cat. He told authorities that he did it because he was “hungry”.
#5 In the Detroit area, an 86-year-old World War II veteran was recently brutally carjacked in the middle of the day at a gas station. His leg was broken during the assault, and as he slowly crawled across the concrete parking lot many people walked by him and drove by him as if he was not even there.
#6 One 69-year-old woman down in Texas recently went without running water for six years and nobody ever helped her out until just recently.
#7 In Ohio, one man has been charged with raping three children that he adopted and with allowing other men to have sex with them as well.
#8 One man down in Texas was recently fined by the city government for not mowing the lawn of a house that he had already lost to foreclosure.
#9 These days thieves will steal anything that is metal that they think that they can resell. In the Philadelphia area recently, there has been a rash of brass door knocker thefts. Thieves have been going up and pulling them right off of the front doors of private homes.
#10 As the price of gasoline rises, gasoline thieves are becoming more creative. The following is a recent example from the Tampa Bay area….
As gas thefts go, this one was deceptively elaborate.
Inside a blue Chevrolet Venture minivan, criminals had cut out a large hole in the floorboard and set up a portable pumping station, complete with power source, pump and plastic container.
The goal: to steal hundreds of gallons of gas pulled directly from the gas station’s underground storage tank and funneled into a plastic tank inside the van.
Gasoline thefts have become so common in Detroit that one city councilman wants to force gas station owners to hire security guards.
#11 One 29-year-old female tutor was recently arrested for having a sexual relationship with a 12-year-old boy that she was supposed to be tutoring.
#12 The ACLU is trying to force one library district in Washington state to allow full public access to pornography on library computers – even if children will be walking by and able to see what is going on.
#13 In America today, a lot of parents are becoming extremely cruel. Down in Alabama, one 9-year-old girl recently died after being forced by her mother and grandmother to run for three hours straight as punishment for lying about having eaten some candy bars.
#14 Some Americans have become so desperate that they are trying to get sent to prison on purpose. For example, one ex-police officer in Georgia recently robbed a bank and allowed authorities to catch him so that he could get food, shelter and free medical care in jail.
#15 What can account for the rash of seemingly random violent crimes that we have been seeing lately? Over near Seattle, an 88-year-old man and an 83-year-old woman were brutally attacked by a 31-year-old man armed with a crossbow and a hatchet for no apparent reason whatsoever….
Prosecutors say 31-year-old John Chase was walking down the highway when he saw Ralph Aldrich, 88, in his back yard. Detectives say Chase shot and killed Aldrich with a crossbow and then went inside the home and repeatedly hit 83-year-old June Aldrich with a hatchet.
#16 In America today, many people are so angry and so frustrated that even the slightest provocation can push them over the edge. For example, one man in Georgia actually firebombed a Taco Bell because they did not put enough meat in his Chalupa.
#17 These days Americans are having a hard time feeling safe in their own homes. Down in Maryland, one very sick home invader was recently sentenced to 100 years in prison for doing some very twisted things….
In one case, authorities said, he sexually assaulted a 17-year-old girl after breaking into her family’s Fort Washington home with a cinder block and forced her to pose nude on a bed as he took photographs and videos of her. Authorities said in another case, Scott and an accomplice, Marcus Dermanellian Hunter – who has already pleaded guilty to federal firearms charges – held up a Bowie family at gunpoint in April 2009, used their debit cards to steal money from ATM machines and then stole a luxury car.
#18 In America today you never know who is going to come driving up to you on the street. Most of the time people that you meet will be at least somewhat “normal”, but there is also a chance that the next strangers that you run into will be crack-fueled perverts. Unfortunately, that is exactly what happened to a Montana teacher named Sherry Arnold…
Spell and Waters had left Colorado days before the crime claiming they wanted work in eastern Montana and western North Dakota’s oil fields.
After smoking crack cocaine over the entire trip, Waters allegedly told Spell the drug ‘brought the devil out in him’ and began talking about kidnapping and killing a female, AP reports.
After they spotted Arnold, Spell claims that Waters told him to ‘grab the lady’ and pull her into their Ford Explorer as she jogged by.
After they got her into the Ford Explorer, they choked the life out of her and then buried her body in a shallow grave in North Dakota.
#19 In the Boston area, the FBI recently used a chainshaw to cut through the front door of one apartment during a raid. They quickly subdued the woman living inside and had her on the floor for 35 minutes as her young daughter cried out to her. Eventually they figured out that they had the wrong apartment and they issued a “routine apology” to the woman.
As our country falls apart all around us, there is going to be a greater need for love and compassion than ever before.
Don’t count on the government to help those in need. The government always does a miserable job of that.
As I have written about previously, already more than 40 percent of all children in Atlanta and more than 50 percent of all children in Detroit are living in poverty.
In the years ahead those numbers are going to get even worse.