A new law that has been introduced in the U.S. House of Representatives “would prohibit the sale, transfer or possession of military-level body armor by civilians”. In other words, private citizens all over the entire nation would be permanently banned from owning body armor if this bill gets passed and signed into law. The bill that I am talking about is H.R. 5344 (The Responsible Body Armor Possession Act), and you can view the proposed legislation for yourself right here. The driving force behind this new law is Democrat Mike Honda from California. To Honda, it doesn’t matter that large numbers of very responsible Americans have purchased body armor to protect themselves and their families in a society that is rapidly decaying. Instead, it makes perfect sense to Honda to ban body armor because “access to military-grade body armor emboldens criminals and mass shooters to act.” And Honda wants to make possession of body armor a criminal offense with a penalty of up to 10 years in prison. This is absolutely crazy, and it is yet another example of the “police state mentality” that is so prevalent among our politicians these days.
When I first learned about this new law, I could hardly believe it. But it is actually true. The following is an excerpt from a news story about the introduction of this new bill…
Rep. Mike Honda, D-San Jose, has announced legislation that would block civilians from accessing military-grade body armor to prevent criminals from using them in gun battles with law enforcement.
Honda, speaking at a news conference in San Jose Wednesday morning with police chiefs and the district attorneys and sheriffs from Santa Clara and Alameda counties, said his proposal would discourage criminals from wearing enhanced body armor to commit mass shootings.
“This bill will keep military body armor out of the wrong hands,” Honda said. “It would ensure that only law enforcement, firefighters and other first responders would be able to access enhanced body armor.”
Fortunately, it is incredibly tough to get just about anything accomplished in Congress these days, so the odds of this bill ever becoming law are probably pretty low.
But without a doubt those that are attempting to systematically disarm the American people will just keep on trying.
And we need to be vigilant, because history has shown what happens when entire populations are disarmed. All we have to do is look back at the millions that were killed under Nazi Germany or the tens of millions that were killed under the communist Chinese.
Of course one of the greatest examples of this phenomenon was what happened under Joseph Stalin as Simon Black recently explained…
By the late 1920s, Joseph Stalin became the unchallenged leader of the Soviet Union after having eliminated his opposition.
He topped it off in 1929 by serving a decisive blow to anyone that would dare to oppose him by outlawing private gun ownership in the country.
From that year on until 1953 when Stalin died, it’s estimated that more than 20 million Soviet citizens that were seen as a threat to the country’s leadership.
Many Americans are tempted to believe that it is impossible for that kind of tyranny to happen in our day and age, but the truth of the matter is that America is becoming more like Nazi Germany with each passing day.
For example, the “Department of Homeland Security” recently raided dozens of families all over the nation because they “imported unsafe vehicles“…
Jennifer Brinkley of North Carolina says when saw a line of law enforcement vehicles coming up her driveway earlier this month she didn’t know what to think. “I haven’t done anything wrong.”
According to WBTV, the Homeland Security agents were not there to take her away, they were looking for illegally imported Land Rover Defenders.
It was a task government officials were performing in several states in early July. Forums on defendersource.com contain posts from Defender owners claiming their vehicles were seized by the government.
All vehicles coming into the United States must meet U.S. safety and emissions standards. Many British manufactured Land Rover Defenders do not.
Why in the world are armed Homeland Security agents roaming the countryside hunting down vehicles that don’t conform to federal regulations?
That is absolutely absurd.
But this is the kind of society that we now live in.
In a recent article, John W. Whitehead shared some more examples of how our control freak bureaucrats are ruining our society…
Debra Harrell, a 46-year-old South Carolina working mother, was arrested, charged with abandonment and had her child placed in state custody after allowing the 9-year-old to spend unsupervised time at a neighborhood playground while the mom worked a shift at McDonald’s. Mind you, the child asked to play outside, was given a cell phone in case she needed to reach someone, and the park—a stone’s throw from the mom’s place of work—was overrun with kids enjoying its swings, splash pad, and shade.
A Connecticut mother was charged with leaving her 11-year-old daughter in the car unsupervised while she ran inside a store—despite the fact that the child asked to stay in the car and was not overheated or in distress. A few states away, a New Jersey man was arrested and charged with endangering the welfare of his children after leaving them in a car parked in a police station parking lot, windows rolled down, while he ran inside to pay a ticket.
A Virginia teenager was charged with violating the state’s sexting law after exchanging sexually provocative videos with his girlfriend. Instead of insisting that the matter be dealt with as a matter of parental concern, police charged the boy with manufacturing and distributing child pornography and issued a search warrant to “medically induce an erection” in the 17-year-old boy in order to photograph his erect penis and compare it to the images sent in the sexting exchange. The police had already taken an initial photograph of the boy’s penis against his will, upon his arrest.
In Georgia, a toddler had his face severely burned when a flash bang grenade, launched by a SWAT team during the course of a no-knock warrant, landed in his portable crib, detonating on his pillow. Also in Georgia, a police officer shot and killed a 17-year-old boy who answered the door, reportedly with a Nintendo Wii controller in his hands. The cop claimed the teenager pointed a gun at her, thereby justifying the use of deadly force. Then there was the incident wherein a police officer, responding to a complaint that some children were “chopping off tree limbs” creating “tripping hazards,” pulled a gun on a group of 11-year-old boys who were playing in a wooded area, attempting to build a tree fort.
For many more examples like this, please see my previous article entitled “30 Signs That America Is Being Transformed Into A ‘Big Brother’ Police State“.
The United States was supposed to be a beacon of liberty and freedom for the entire globe.
Instead, we are going to end up looking just like North Korea eventually if we are not careful.
Our freedoms and liberties are being eroded a little bit more with each passing day. And if the American people don’t start standing up and objecting to all of this craziness, the control freaks are going to feel empowered to keep on pushing the envelope even further.
So what do you think about all of this? Please feel free to share your thoughts by posting a comment below…
Rioting, looting, burning down stores and shooting police officers – is this about to become the “new normal” in America? What we just witnessed happen in the streets of Ferguson, Missouri is a prime example of how quickly the streets of America can descend into chaos. There is so much anger and frustration in this country, especially among our young people, that all it takes is a “trigger event” to spark a wildfire. In this case, it was the shooting of an unarmed black teen by a police officer. According to the police, 18-year-old Michael Brown got into a physical altercation with an officer and was subsequently shot. Word spread quickly throughout the community, and protests were rapidly organized. But the protests didn’t stay peaceful. People started chanting “kill the police” and throwing rocks and bottles. Store windows were smashed, the looting began, and people went absolutely crazy. And it wasn’t just a few people that were doing the looting. Huge mobs of people looted stores all over Ferguson. At one point an ATM was even dragged out of a QuikTrip gas station and a while after that the store was set on fire. But this is what happens when things descend into chaos. The owners of those stores didn’t have anything to do with the shooting of Michael Brown, but the violence got directed at them anyway. And someday when we see similar scenes erupt in major cities all over the nation, it won’t matter what your political beliefs are. You just better not be in the wrong place at the wrong time.
Ferguson is a little town just outside of St. Louis with a population of about 21,000 people. You wouldn’t think that it would be possible to see such massive rioting in such a small community. But that is precisely what happened. On Monday, millions of Americans were absolutely mesmerized by the images coming out of Ferguson. The following is how one news source described what happened…
Brian Schellman, with the St. Louis County Police Department, said close to 300 police officers from at least 15 different departments were called to Ferguson when angry mobs began smashing windows, setting fires and looting businesses in the area.
Schellman said a St. Louis County officer injured his knee while at a Foot Locker store during the rioting. He said another officer was injured when he had a brick thrown at him.
Throughout the evening, numerous cop cars sustained damage and Ferguson Police Chief Tom Jackson said someone in a yellow pickup truck fired shots at officers while circling a WalMart parking lot. Chief Jackson said he got into a cop car to give chase to the truck but the truck got away.
Police said shots were also fired at a police helicopter in the area.
But words do not really accurately convey the level of craziness that was unleashed. I would encourage you to watch some of the videos on YouTube of the rioting and looting that were going on in Ferguson. The video posted below is just one example…
Sadly, this violence might continue for a while.
Just check out what one very angry 30-year-old man told the St. Louis Post-Dispatch…
DeAndre Smith, 30, of Ferguson was happy to justify the looting when a reporter asked him about it Monday morning.
“This is exactly what is supposed to be happening when an injustice is happening in your community,” he said, adding: “You have kids getting killed for nothing.”
Smith, who moved to St. Louis from New York in December, said there could be more to come.
“I don’t think it’s over honestly,” he said. “I just think they got a taste of what fighting back means.”
Of course this is not the first time that we have seen this kind of thing happen. Earlier this year, all it took was a snow storm for people in Atlanta to start behaving like crazed lunatics. And late last year we saw rioting and looting all over the nation when a technical glitch caused the EBT system to go down for a short while.
Even though the economy has somewhat stabilized (at least for the moment), levels of anger and frustration have continued to grow in this country. We have been taught to hate one another and to blame one another for our problems, and so now the U.S. is more divided than at any other point in recent memory. For much more on this, please see my previous article entitled “America The Divided: Everyone Knows We Have Problems But There Is Very Little Agreement On Solutions“.
We live at a time when things are so tense that even a small spark can light an absolutely huge fire. America has become a tinderbox. Next time it might not be a racially-charged shooting. Next time it might be an Ebola outbreak that sparks looting and panic. Or it might be some sort of financial collapse. We just don’t know.
But what we do know is that there are lots and lots of people that are willing to riot and loot and commit unspeakable crimes given the right circumstances.
Decades of social decay have gotten us to the point where the thin veneer of civilization that we all take for granted every single day is wearing dangerously thin.
The truth is that it is not going to take much to push this nation over the edge.
If this kind of rioting can take place in a community with just over 20,000 people, what would a full-blown riot look like in a city with millions of people?
That is a very sobering thing to think about.
Once upon a time in America, you could leave your doors unlocked at night and you could let your kids play in the streets without ever having to worry.
But now we are a sick, decaying nation that has millions of people ready to riot and loot at the drop of a hat.
Is there any hope for us?
During 2013, America continued to steadily march down a self-destructive path toward oblivion. As a society, our debt levels are completely and totally out of control. Our financial system has been transformed into the largest casino on the entire planet and our big banks are behaving even more recklessly than they did just before the last financial crisis. We continue to see thousands of businesses and millions of jobs get shipped out of the United States, and the middle class is being absolutely eviscerated. Due to the lack of decent jobs, poverty is absolutely exploding. Government dependence is at an all-time high and crime is rising. Evidence of social and moral decay is seemingly everywhere, and our government appears to be going insane. If we are going to have any hope of solving these problems, the American people need to take a long, hard look in the mirror and finally admit how bad things have actually become. If we all just blindly have faith that “everything is going to be okay”, the consequences of decades of incredibly foolish decisions are going to absolutely blindside us and we will be absolutely devastated by the great crisis that is rapidly approaching. The United States is in a massive amount of trouble, and it is time that we all started facing the truth. The following are 83 numbers from 2013 that are almost too crazy to believe…
#1 Most people that hear this statistic do not believe that it is actually true, but right now an all-time record 102 million working age Americans do not have a job. That number has risen by about 27 million since the year 2000.
#2 Because of the lack of jobs, poverty is spreading like wildfire in the United States. According to the most recent numbers from the U.S. Census Bureau, an all-time record 49.2 percent of all Americans are receiving benefits from at least one government program each month.
#3 As society breaks down, the government feels a greater need than ever before to watch, monitor and track the population. For example, every single day the NSA intercepts and permanently stores close to 2 billion emails and phone calls in addition to a whole host of other data.
#4 The Bank for International Settlements says that total public and private debt levels around the globe are now 30 percent higher than they were back during the financial crisis of 2008.
#5 According to a recent World Bank report, private domestic debt in China has grown from 9 trillion dollars in 2008 to 23 trillion dollars today.
#6 In 1985, there were more than 18,000 banks in the United States. Today, there are only 6,891 left.
#7 The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.
#8 The U.S. banking system has 14.4 trillion dollars in total assets. The six largest banks now account for 67 percent of those assets and all of the other banks account for only 33 percent of those assets.
#9 JPMorgan Chase is roughly the size of the entire British economy.
#10 The five largest banks now account for 42 percent of all loans in the United States.
#11 Right now, four of the “too big to fail” banks each have total exposure to derivatives that is well in excess of 40 trillion dollars.
#12 The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.
#13 According to the Bank for International Settlements, the global financial system has a total of 441 trillion dollars worth of exposure to interest rate derivatives.
#14 Through the end of November, approximately 365,000 Americans had signed up for Obamacare but approximately 4 million Americans had already lost their current health insurance policies because of Obamacare.
#15 It is being projected that up to 100 million more Americans could have their health insurance policies canceled by the time Obamacare is fully rolled out.
#16 At this point, 82.4 million Americans live in a home where at least one person is enrolled in the Medicaid program.
#17 It is has been estimated that Obamacare will add 21 million more Americans to the Medicaid rolls.
#18 It is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent under Obamacare.
#19 One couple down in Texas received a letter from their health insurance company that informed them that they were being hit with a 539 percent rate increase because of Obamacare.
#20 Back in 1999, 64.1 percent of all Americans were covered by employment-based health insurance. Today, only 54.9 percent of all Americans are covered by employment-based health insurance.
#21 The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.
#22 Incredibly, 74 percent of all the wealth in the United States is owned by the wealthiest 10 percent of all Americans.
#23 According to Consumer Reports, the number of children in the United States taking antipsychotic drugs has nearly tripled over the past 15 years.
#24 The marriage rate in the United States has fallen to an all-time low. Right now it is sitting at a yearly rate of just 6.8 marriages per 1000 people.
#25 According to a shocking new study, the average American that turned 65 this year will receive $327,500 more in federal benefits than they paid in taxes over the course of their lifetimes.
#26 In just one week in December, a combined total of more than 2000 new cold temperature and snowfall records were set in the United States.
#27 According to the U.S. Census Bureau, median household income in the United States has fallen for five years in a row.
#28 The rate of homeownership in the United States has fallen for eight years in a row.
#29 Only 47 percent of all adults in America have a full-time job at this point.
#30 The unemployment rate in the eurozone recently hit a new all-time high of 12.2 percent.
#31 If you assume that the labor force participation rate in the U.S. is at the long-term average, the unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.
#32 In November 2000, 64.3 percent of all working age Americans had a job. When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job. Today, only 58.6 percent of all working age Americans have a job.
#33 There are 1,148,000 fewer Americans working today than there was in November 2006. Meanwhile, our population has grown by more than 16 million people during that time frame.
#34 Only 19 percent of all Americans believe that the job market is better than it was a year ago.
#35 Just 14 percent of all Americans believe that the stock market will rise next year.
#36 According to CNBC, Pinterest is currently valued at more than 3 billion dollars even though it has never earned a profit.
#37 Twitter is a seven-year-old company that has never made a profit. It actually lost 64.6 million dollars last quarter. But according to the financial markets it is currently worth about 22 billion dollars.
#38 Right now, Facebook is trading at a valuation that is equivalent to approximately 100 years of earnings, and it is currently supposedly worth about 115 billion dollars.
#39 Total consumer credit has risen by a whopping 22 percent over the past three years.
#40 Student loans are up by an astounding 61 percent over the past three years.
#41 At this moment, there are 6 million Americans in the 16 to 24-year-old age group that are neither in school or working.
#42 The “inactivity rate” for men in their prime working years (25 to 54) has just hit a brand new all-time record high.
#43 It is hard to believe, but in America today one out of every ten jobs is now filled by a temp agency.
#44 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then.
#45 According to the Social Security Administration, 40 percent of all U.S. workers make less than $20,000 a year.
#46 Approximately one out of every four part-time workers in America is living below the poverty line.
#47 After accounting for inflation, 40 percent of all U.S. workers are making less than what a full-time minimum wage worker made back in 1968.
#48 When Barack Obama took office, the average duration of unemployment in this country was 19.8 weeks. Today, it is 37.2 weeks.
#49 Investors pulled an astounding 72 billion dollars out of bond mutual funds in 2013. It was the worst year for bond funds ever.
#50 Small business is rapidly dying in America. At this point, only about 7 percent of all non-farm workers in the United States are self-employed. That is an all-time record low.
#51 The six heirs of Wal-Mart founder Sam Walton have as much wealth as the bottom one-third of all Americans combined.
#52 Once January 1st hits, it will officially be illegal to manufacture or import traditional incandescent light bulbs in the United States. It is being projected that millions of Americans will attempt to stock up on the old light bulbs before they are totally gone from store shelves.
#53 The Japanese government has estimated that approximately 300 tons of highly radioactive water is being released into the Pacific Ocean from the destroyed Fukushima nuclear facility every single day.
#54 Back in 1967, the U.S. military had more than 31,000 strategic nuclear warheads. That number is already being cut down to 1,550, and now Barack Obama wants to reduce it to only about 1,000.
#55 As you read this, 60 percent of all children in Detroit are living in poverty and there are approximately 78,000 abandoned homes in the city.
#56 Wal-Mart recently opened up two new stores in Washington D.C., and more than 23,000 people applied for just 600 positions. That means that only about 2.6 percent of the applicants were ultimately hired. In comparison, Harvard offers admission to 6.1 percent of their applicants.
#57 At this point, almost half of all public school students in America come from low income homes.
#58 Tragically, there are 1.2 million students that attend public schools in the United States that are homeless. That number has risen by 72 percent since the start of the last recession.
#59 According to a Gallup poll that was recently released, 20.0 percent of all Americans did not have enough money to buy food that they or their families needed at some point over the past year. That is just under the all-time record of 20.4 percent that was set back in November 2008.
#60 The number of Americans on food stamps has grown from 17 million in the year 2000 to more than 47 million today.
#61 Right now, one out of every five households in the United States is on food stamps.
#62 The U.S. economy loses approximately 9,000 jobs for every 1 billion dollars of goods that are imported from overseas.
#63 Back in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.
#64 According to one survey, approximately 75 percent of all American women do not have any interest in dating unemployed men.
#65 China exports 4 billion pounds of food to the United States every year.
#66 Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.
#67 The number of Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.
#68 It is being projected that the number of Americans on Social Security will rise from 57 million today to more than 100 million in 25 years.
#69 Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars. Today it is over 56 trillion dollars.
#70 Back on September 30th, 2012 our national debt was sitting at a total of 16.1 trillion dollars. Today, it is up to 17.2 trillion dollars.
#71 The U.S. government “rolled over” more than 7.5 trillion dollars of existing debt in fiscal 2013.
#72 If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
#73 When Barack Obama was first elected, the U.S. debt to GDP ratio was under 70 percent. Today, it is up to 101 percent.
#74 The U.S. national debt is on pace to more than double during the eight years of the Obama administration. In other words, under Barack Obama the U.S. government will accumulate more debt than it did under all of the other presidents in U.S. history combined.
#75 The federal government is borrowing (stealing) roughly 100 million dollars from our children and our grandchildren every single hour of every single day.
#76 At this point, the U.S. already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
#77 Japan now has a debt to GDP ratio of more than 211 percent.
#78 As of December 5th, 83 volcanic eruptions had been recorded around the planet so far this year. That is a new all-time record high.
#79 53 percent of all Americans do not have a 3 day supply of nonperishable food and water in their homes.
#80 Violent crime in the United States was up 15 percent last year.
#81 According to a very surprising survey that was recently conducted, 68 percent of all Americans believe that the country is currently on the wrong track.
#82 Back in 1972, 46 percent of all Americans believed that “most people can be trusted”. Today, only 32 percent of all Americans believe that “most people can be trusted”.
#83 According to a recent Pew Research survey, only 19 percent of all Americans trust the government. Back in 1958, 73 percent of all Americans trusted the government.
So do you have any numbers from 2013 that you would add to this list? If so, please feel free to share them by posting a comment below…
Did you know that there are more than 102 million working age Americans that do not have a job? Yes, I know that number sounds absolutely crazy, but it is true. Right now, there are more than 11 million Americans that are considered to be “officially unemployed”, and there are more than 91 million Americans that are not employed and that are considered to be “not in the labor force”. When you add those two numbers together, the total is more than 102 million. Overall, the number of working age Americans that do not have a job has increased by about 27 million since the year 2000. But aren’t things getting better? After all, the mainstream media is full of headlines about how “good” the jobs numbers for October were. Sadly, the truth is that the mainstream media is not being straight with the American people. As you will see below, we are in the midst of a long-term unemployment crisis in America, and things got even worse last month.
In this day and age, it is absolutely imperative that people start thinking for themselves. Just because the media tells you that something is true does not mean that it actually is. If unemployment was actually going down, the percentage of the working age population that has a job should actually be going up. As you are about to see, that is simply not the case. The following are 10 facts about the growing unemployment crisis in America that will blow your mind…
#1 The percentage of working age Americans with a job fell to 58.3 percent in October. The lowest that number has been at any point since the year 2000 is 58.2 percent. In other words, there has been absolutely no “jobs recovery”. During the last recession, the civilian employment-population ratio dropped from about 63 percent to below 59 percent and it has stayed there for 50 months in a row. Will the percentage of working age Americans with a job soon drop below the 58 percent mark?…
#2 The U.S. economy lost 623,000 full-time jobs last month. But we are being told to believe that the economy is actually getting “better”.
#3 The number of American women with a job fell by 357,000 during the month of October.
#4 The average duration of unemployment in October 2013 was nearly three times as long as it was in October 2000.
#5 The number of Americans “not in the labor force” increased by an astounding 932,000 during October. In other words, the Obama administration would have us believe that nearly a million people “disappeared” from the U.S. labor force in a single month.
#6 The number of Americans “not in the labor force” has grown by more than 11 million since Barack Obama first entered the White House.
#7 In October, the U.S. labor force participation rate fell from 63.2 percent to 62.8 percent. It is now the lowest that it has been since 1978. Below is a chart which shows how the labor force participation rate has been steadily declining since the year 2000. How can the economy be “healthy” if the percentage of Americans that are participating in the labor force is continually declining?…
#8 If the labor force participation rate was still at the same level it was at when Barack Obama was elected in 2008, the official unemployment rate would be about 11 percent right now.
#9 Even if you are working, that does not mean that you are able to take care of yourself and your family without any help. In fact, approximately one out of every four part-time workers in America is living below the poverty line.
#10 In January 2000, there were 75 million working age Americans that did not have a job. Today, there are 102 million working age Americans that do not have a job.
So what are our politicians doing to fix this?
Shouldn’t they be working night and day to solve this crisis?
After all, Barack Obama once made the following promise to the American people…
“But I want you all to know, I will not rest until anybody who’s looking for a job can find one — and I’m not talking about just any job, but good jobs that give every American decent wages and decent benefits and a fair shot at the American Dream.”
Unfortunately, things have not improved since Obama made that promise, but he has found the time to play 150 rounds of golf since he has been president.
Meanwhile, because there aren’t enough jobs, the number of Americans living in poverty continues to grow.
As I wrote about the other day, according to new numbers that were just released an all-time high 49.7 million Americans are living in poverty.
And right now 1.2 million public school students in the United States are homeless. For many more statistics like this, please see my previous article entitled “29 Incredible Facts Which Prove That Poverty In America Is Absolutely Exploding“.
The only thing that most Americans have to offer in the marketplace is their labor. If they can’t find a job, they don’t have any other way to take care of themselves and their families.
The future of the middle class in America depends upon the creation of good jobs. It really doesn’t matter how far the quantitative easing that the Federal Reserve has been doing pumps up the current stock market bubble. The American people were told that “economic stimulus” was the reason for doing all of this reckless money printing, but the percentage of working age Americans with a job is now actually lower than it was four years ago. Quantitative easing has been a complete and total failure in the job creation department, and it is doing a tremendous amount of long-term damage to our financial system.
The really frightening thing is that the Federal Reserve and the federal government have supposedly been doing all they can to try to “create jobs” and they have utterly failed. In fact, this is the first time in the post-World War II era that we have not seen an employment recovery following a recession.
And now the next wave of the economic collapse is rapidly approaching. What that hits us, millions more Americans will lose their jobs.
So the truth is that this is just the beginning of the unemployment crisis in America.
Yes, things are bad now, but soon they will get much worse.
Shouldn’t Internet companies actually “make a profit” at some point before being considered worth billions of dollars? A lot of investors laugh when they look back at the foolishness of the “Dotcom bubble” of the late 1990s, but the tech bubble that is inflating right in front of our eyes today is actually far worse. For example, what would you say if I told you that a seven-year-old company that has a long history of not being profitable and that actually lost 64 million dollars last quarter is worth more than 13 billion dollars? You would probably say that I was insane, but the company that I have just described is Twitter and Wall Street is going crazy for it right now. Please don’t get me wrong – I actually love Twitter. On my Twitter account I have sent out thousands of “tweets”. Twitter is a lot of fun, and it has had a huge impact on the entire planet. But is it worth 13 billion dollars? Of course not.
When it comes to the Internet, what is hot today will probably not be hot tomorrow.
Do you remember MySpace?
At one time, MySpace was considered to be the undisputed king of social media. But then something better came along (Facebook) and killed it.
It is important to keep in mind that Facebook did not even exist ten years ago. Yes, almost everybody is using it today, but will everybody still be using it a decade from now?
But the way that the financial markets are valuing these firms can only be justified if they are going to make absolutely massive profits for many decades to come.
Will Twitter eventually make a little bit of money?
Probably, as long as they get their act together.
In fact, Twitter should be making significant amounts of money right now if it was being run correctly.
But will Twitter ever make 13 billion dollars?
No, that simply is not going to happen. But that is what Wall Street says that Twitter is worth.
The utter foolishness that we are witnessing on Wall Street right now is so similar to what we saw back in the late 1990s. It is almost as if we have learned nothing from our past mistakes.
These days I keep having flashbacks of the Pets.com sock puppet. For those too young to remember, the following is a brief summary from Investopedia about what happened to Pets.com…
It’s impossible to think of the first Internet era without thinking of the Pets.com sock puppet. He was everywhere and was nearly as well-known as the Geico gecko is today.
That familiarity, in part, persuaded many investors to lay down money in the company’s February 2000 IPO (which was backed by Amazon.com). Pets.com raised $82.5 million – but nine months later it folded, due to major recurring losses. Part of the reason for that was aggressive advertising, but the company also lost money on virtually every item it sold. In the third quarter of 2000, Pets.com reported negative gross margins of $277,000. (The second quarter had seen a $1.7 million margin loss.) That same quarter (its last full quarter as an operating entity), the company lost $21.7 million on $9.4 million in revenue.
As for the puppet, he went on to shill for BarNone, which helps people with bad credit histories get car loans. He’s still there today, front and center on that website.
Everyone loves to laugh at the poor little sock puppet, but the truth is that the tech bubble that is inflating right now is far worse than the Dotcom bubble of the late 1990s. The following are 14 facts about the current tech bubble that will blow your mind…
#1 In just a few days, the Twitter IPO is expected to raise close to 2 billion dollars even though Twitter actually lost 64.6 million dollars last quarter and has a long history of not being profitable.
#2 It is being projected that after the IPO Twitter could have a market valuation of more than 13 billion dollars.
#3 Twitter is not expected to make a profit until 2015 at the earliest.
#4 According to CNBC, Pinterest is currently valued at 3.8 billion dollars even though it has never earned a profit.
#5 Yahoo paid more than a billion dollars for Tumblr even though Tumblr’s revenues are so small that Yahoo is not even required to report them on financial statements.
#6 Snapchat, an Internet service that allows people to send out messages that “self-destruct”, is supposedly worth 4 billion dollars. But it actually has zero revenue coming in, and many believe that it is essentially worthless as a money making enterprise. For one extensive analysis by a tech blogger, please see this article.
#7 The stock of Rocket Fuel, an online advertising company, is trading at about 60 dollars a share and it has a market valuation of about 2 billion dollars even though it has never made a profit.
#8 The stock of local business review website Yelp is up 241 percent this year even though it has never earned a quarterly profit.
#9 Fab.com just raised 165 million dollars from investors even though it recently laid off 44o employees.
#10 LinkedIn stock has risen in price by 136 percent since the 2011 IPO, and it is now supposedly worth more than 18 billion dollars.
#11 The head of engineering at Twitter, Chris Fry, got a 10.3 million dollar pay package when he joined Twitter last year.
#12 Facebook’s VP of engineering, Mike Schroepfer, earned 24.4 million dollars in 2011.
#13 Office rents in San Francisco (where many of these tech companies are based) are now 23 percent higher than they were at the peak of the real estate market in 2008.
#14 Facebook stock is up close to 140 percent over the past 12 months and the company is now worth more than 120 billion dollars.
And I am certainly not the only one that is concerned that we are repeating the mistakes of the late 1990s…
“When you look at valuations and look at the lack of earnings and revenue, it seems to me much like the dot-com bubble,” said Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc. who helps oversee $10.2 billion. “This market looks a little frothy and Twitter is the personification of a risky trade.”
In fact, as the Wall Street Journal recently noted, we have seen some of these tech stocks crash more than once during the Internet age…
“It’s fascinating to me that today’s mini-mania includes shares of Amazon, Netflix and Priceline that have previously peaked and crashed before—in some cases they’ve peaked and crashed twice before,” says Darren Pollock, portfolio manager at Cheviot Value Management. “Stocks like these have again captured the imagination of speculators. We’re skeptical that there is enough underlying intrinsic value to many of the highfliers to support today’s prices.”
So how long will it be until the current tech bubble implodes?
That is a very good question. Please feel free to share what you think by posting a comment below…
Could that headline actually be true? Do Americans waste about 40 percent of all the food that we produce? That sounds like an absolutely crazy number, but it is actually quite accurate according to a study conducted by the Natural Resources Defense Council. What the NRDC discovered is that approximately 40 percent of our total food supply is either thrown into dumpsters by grocery stores, is discarded by restaurants, never gets harvested on our farms, or is thrown into the garbage by consumers in their homes. Even though 47 million Americans are on food stamps and millions of children go to bed hungry in this country every single night, we continue to waste approximately 263 million pounds of food every single day of the year. One day people will look back and regard us as probably the most wasteful society in the history of the planet.
So where does all of that food go?
Well, according to a recent Seattle Times article, “food waste” takes up more space in our landfills than anything else does…
Last year, the NRDC found that Americans throw out as much as 40 percent of the country’s food supply each year, adding up to $165 billion in losses.
Food waste makes up the largest portion of solid trash in landfills, according to researchers.
Some $900 million of expired food is dumped from the supply chain annually, much of it a result of confusion. Misinterpreted date labels cause the average American household of four to lose as much as $455 a year on squandered food, according to researchers.
The expired food that gets wasted is one of my personal pet peeves.
I don’t do this a lot, but today I am going to share a personal story with you.
Earlier today I was out running errands and I decided that I wanted to pick up some mini-cupcakes from Safeway that I just love. I do try to eat a healthy diet, but I do also like a treat from time to time. So I got over to Safeway, and I noticed that the only mini-cupcakes that they had out were ones with chocolate frosting, but I wanted ones with vanilla frosting.
So I went up to the bakery counter and there was nobody there, but behind the counter I saw a stack of several containers of vanilla cupcakes. I waited until the bakery lady got back and I asked her if I could have them.
I was astounded when she very firmly told me that I could not buy them.
She said that it was against regulations.
I implored her to sell them to me. I explained that I had come over to Safeway just to buy them and I didn’t care if they were a little old.
Again she very firmly told me that I could not buy them.
I could not understand this. I knew that the cupcakes were just going to be thrown out, so I asked to speak to her manager.
After a few moments her manager came over and I was once again told very firmly that under no circumstances would I be able to buy the cupcakes.
So needless to say, I left the store with a sad look on my face and without any cupcakes.
Now of course I probably didn’t need the cupcakes anyway. They are not healthy for me. But big chains such as Safeway throw away massive amounts of very good food as well. The level of the waste that goes on is absolutely astounding.
Meanwhile, the number of Americans that are dealing with hunger and malnutrition grows with each passing day. I want to share with you an excerpt from a recent article authored by Jason Ford entitled “I Work On The Breadline“…
I work as a cashier at a nationally known discount store. I sell clothing, cleaning products, house wares and food. The people I sell to are people of all colors, races, ages and sex, but most of them have one thing in common; EBT cards. I would say about half of every transaction I do is paid for with an EBT card. Sometimes people will use three different methods of payment. They will use whatever is left on their EBT card, then use whatever is left on their debit card, and then scrape their purse to find the remaining balance, and sometimes they still don’t have enough.
Another common trait of the people I serve besides the poverty is the poor health. The food I sell is not healthy, by any stretch. I sell potato chips, candy bars, bread, canned food, ice cream, soda, packaged meat, cigarettes and alcohol. I noticed quickly that a common ingredient of most of the foods is sugar and grains. Sugar and grains are easy to grow and produce cheaply and are used as fillers in processed food to cut cost and mask the taste of other questionable ingredients. Grains work in conjunction with sugars to inflame the body and compromise the immune system. Grains and sugars also have no nutritional value besides calories, so on top of inflaming the body; they do not provide the sustenance the body needs to survive. As the functions of the body require these nutrients the diet lacks, the body sucks these minerals from the bones, teeth and brain. Bone loss, and tooth decay and decreased brain function are the unfortunate symptoms of malnutrition. The poorest of the customers I serve are also the sickest. I have witnessed toothless mouths in the young and old. Mental retardation is also a common trait among many of them. I have even witnessed one unfortunate woman whose skin was a pale green color. These people are dying a slow starvation and they don’t even know it.
Doesn’t that just break your heart?
People are living like that, and yet America discards 263 million pounds of food every single day.
Something is fundamentally wrong with the way our system works.
So what is society going to do as the number of hungry people continues to grow in this country and around the world?
Well, according to ABC News, some scientists plan to feed them with flour made out of bugs…
A team of MBA students were the recipients of the 2013 Hult Prize earlier this week, providing them with $1 million in seed money to produce an insect-based, protein-rich flour for feeding malnourished populations in other countries. The product is called Power Flour.
“It’s a huge deal because we had a very ambitious but highly executable five-year plan in place,” said team captain Mohammed Ashour, whose team hails from McGill University in Montreal. “So winning this prize is a great step in that direction.”
Ashour, along with teammates Shobhita Soor, Jesse Pearlstein, Zev Thompson and Gabe Mott, will be immediately working with an advisory board to recruit farmers and workers in Mexico, where a population of roughly 4 million live in slum conditions with widespread malnutrition.
“We will be starting with grasshoppers,” Ashour said.
Are you ready for a “protein-rich flour” made out of grasshoppers?
I know that I am not.
And in Japan, scientists have actually been working on a way to create meat out of poop. You can read more about that right here.
Perhaps if we just quit wasting so much food we would be able to feed everybody without resorting to such craziness.
These days, an increasing number of Americans are fighting back against the colossal waste that they see all around them. Some have even chosen to take advantage of the waste by regularly going “dumpster diving”. The following is how I described “dumpster diving” in one of my previous articles…
Have you ever thought about getting your food out of a trash can? Don’t laugh. Dumpster diving has become a hot new trend in America. In fact, dumpster divers even have a trendy new name. They call themselves “freegans”, and as the economy crumbles their numbers are multiplying. Many freegans consider dumpster diving to be a great way to save money on groceries. Others do it because they want to live more simply. Freegans that are concerned about the environment view dumpster diving as a great way to “recycle” and other politically-minded freegans consider dumpster diving to be a form of political protest. But whatever you want to call it, the reality is that thousands upon thousands of Americans will break out their boots, rubber gloves and flashlights and will be jumping into dumpsters looking for food once again tonight.
Who knows – perhaps some enterprising young dumpster diver will end up fishing the vanilla cupcakes that I wanted out of Safeway’s dumpsters this evening.
It is amazing what some of these dumpster divers are able to recover from “the trash”. In North Carolina, one man even takes his son dumpster diving with him…
A programmer by day, Todd takes to the streets of North Carolina by night, digging through Dumpsters at drug stores and grocery stores all around his rural neighborhood.
“You would be simply amazed at what businesses throw out,” he said. “I’ve only had to buy two loaves of bread all year. … Last week I had a trunk full of cereal, cookies, chips and ramen noodles.”
Todd slinks in and out of smelly places with low-light flashlights to evade rent-a-cops who will shoo him away. Most nights, his 14-year-old son comes along.
Unfortunately, dumpster diving is not as easy as it used to be.
As dumpster diving has soared in popularity, some grocery stores have responded by putting locks on their dumpsters.
And in some areas of the country, police have even started regularly arresting dumpster divers.
But in the end, dumpster diving was not going to be a permanent solution anyway.
A permanent solution would be to quit wasting so much food.
I applaud the grocery store chains that choose to donate their expired food to homeless shelters and food banks.
We need to see a lot more of that going on.
And in our own homes we need to find ways to give more food away and waste less of it.
All of this needless wasting of food does not have to happen. Let’s work together to find some solutions.
Why did the U.S. government spend 2.6 million dollars to train Chinese prostitutes to drink responsibly? Why did the U.S. government spend $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”? Why did the U.S. government spend nearly a million dollars on a new soccer field for detainees being held at Guantanamo Bay? This week when I saw that the IRS was about to pay out 70 million dollars in bonuses to their employees and that the U.S. government was going to be leaving 7 billion dollars worth of military equipment behind in Afghanistan, it caused me to reflect on all of the other crazy ways that the government has been wasting our money in recent years. So I decided to go back through my previous articles and put together a list. I call it “The Waste List”. Even though our politicians insist that there is very little that can still be cut out of the budget, the truth is that the federal budget is absolutely drowning in pork. The following are 66 crazy ways that the U.S. government is wasting your hard-earned money…
#1 The IRS is about to pay out 70 million dollars in bonuses to employees even though discretionary bonuses are supposed to be cancelled due to the sequester.
#2 According to the Washington Post, the U.S. government is going to leave 7 billion dollars worth of military equipment behind in Afghanistan.
#3 It is being projected that the trip that the Obamas will be making to Africa will cost U.S. taxpayers $100,000,000.
#4 The NIH plans to spend $509,840 on a study that “will send text messages in ‘gay lingo’ to methamphetamine addicts to try to persuade them to use fewer drugs and more condoms.”
#5 The National Science Foundation has given $384,949 to Yale University to do a study on “Sexual Conflict, Social Behavior and the Evolution of Waterfowl Genitalia”. Try not to laugh, but much of this research involves examining and measuring the reproductive organs of male ducks.
#6 The IRS spent $60,000 on a film parody of “Star Trek” and a film parody of “Gilligan’s Island”. Internal Revenue Service employees were the actors in the two parodies, so as you can imagine the acting was really bad.
#7 The NIH has given $1.5 million to Brigham and Women’s Hospital in Boston, Massachusetts to study why “three-quarters” of lesbians in the United States are overweight and why most gay males are not.
#8 The NIH has also spent $2.7 million to study why lesbians have more “vulnerability to hazardous drinking”.
#9 The U.S. government is giving sixteen F-16s and 200 Abrams tanks to the Muslim Brotherhood in Egypt even though the new president of Egypt, Mohammed Morsi (a member of the Muslim Brotherhood), constantly makes statements such as the following…
“Dear brothers, we must not forget to nurse our children and grandchildren on hatred towards those Zionists and Jews, and all those who support them”
#10 During 2012, the salaries of Barack Obama’s three climate change advisers combined came to a grand total of more than $370,000.
#11 Overall, 139 different White House staffers were making at least $100,000 during 2012, and there were 20 staffers that made the maximum of $172,200.
#12 Amazingly, U.S. taxpayers spend more than 1.4 billion dollars a year on the Obamas. Meanwhile, British taxpayers only spend about 58 million dollars on the entire royal family.
#13 During 2012, $25,000 of federal money was spent on a promotional tour for the Alabama Watermelon Queen.
#14 The U.S. government spent $505,000 “to promote specialty hair and beauty products for cats and dogs” in 2012.
#15 NASA spends close to a million dollars a year developing a menu of food for a manned mission to Mars even though it is being projected that a manned mission to Mars is still decades away.
#16 During 2012, the federal government spent 15 million dollars to help the Russians recruit nuclear scientists.
#17 Over the past 15 years, a total of approximately $5.25 million has been spent on hair care services for the U.S. Senate.
#18 The U.S. government spent 27 million dollars to teach Moroccans how to design and make pottery in 2012.
#19 At a time when we have an epidemic of unemployment in the United States, the U.S. Department of Education is spending $1.3 million to “reduce linguistic, academic, and employment barriers for skilled and low-skilled immigrants and refugees, and to integrate them into the U.S. workforce and professions.”
#20 The federal government still sends about 20 million dollars a year to the surviving family members of veterans of World War I, even though World War I ended 94 years ago.
#21 The U.S. government is spending approximately 3.6 million dollars a year to support the lavish lifestyles of former presidents such as George W. Bush and Bill Clinton.
#22 During fiscal 2012, the National Science Foundation 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.
#23 The U.S. government is giving hundreds of millions of dollars to the Palestinian Authority every single year.
#24 Federal agencies have purchased a total of approximately 2 billion rounds of ammunition over the past couple of years. It is claimed that all of this ammunition is needed for “training purposes”.
#25 During 2012, the National Science Foundation spent $516,000 on the creation of a video game called “Prom Week” which apparently simulates “all the social interactions of the event.”
#26 If you can believe it, $10,000 of U.S. taxpayer money was actually used to purchase talking urinal cakes up in Michigan.
#27 When Joe Biden and his staff took a trip to London, the hotel bill cost U.S. taxpayers $459,388.65.
#28 Joe Biden and his staff also stopped in Paris for one night. The hotel bill for that one night came to $585,000.50.
#29 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.
#30 The U.S. Department of Agriculture has spent $300,000 to encourage Americans to eat caviar.
#31 The National Institutes of Health recently gave $666,905 to a group of researchers that is conducting a study on the benefits of watching reruns on television.
#32 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.
#33 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.
#34 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”
#35 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.
#36 The National Institutes of Health has spent more than 5 million dollars on a website called Sexpulse that is targeted at “men who use the Internet to seek sex with men”. According to Fox News, the website “includes pornographic images of homosexual sex as well as naked and scantily clad men” and features “a Space Invaders-style interactive game that uses a penis-shaped blaster to shoot down gay epithets.”
#37 The General Services Administration spent $822,751 on a “training conference” for 300 west coast employees at the M Resort and Casino in Las Vegas. The following is how the Washington Post described some of the wasteful expenses that happened during this “conference”…
Among the “excessive, wasteful and in some cases impermissable” spending the inspector general documented: $5,600 for three semi-private catered in-room parties and $44 per person daily breakfasts; $75,000 for a “team-building” exercise — the goal was to build a bicycle; $146,000 on catered food and drinks; and $6,325 on commemorative coins in velvet boxes to reward all participants for their work on stimulus projects. The $31,208 “networking” reception featured a $19-per-person artisanal cheese display and $7,000 of sushi. At the conference’s closing-night dinner, employees received “yearbooks” with their pictures, at a cost of $8,130.
You can see some stunning pictures of GSA employees living the high life in Las Vegas right here.
#38 Do you remember when credit rating agency Egan Jones downgraded U.S. government debt from AA+ to AA? Well, someone in the federal government apparently did not like that at all. According to Zero Hedge, the SEC planned to file charges against Egan Jones for “misstatements” on a regulatory application with the SEC.
Normally, the SEC does not go after anyone. After all, when is the last time a major banker went to prison?
No, the truth is that the SEC is usually just a huge waste of taxpayer money. According to ABC News, one investigation found that 17 senior SEC officials had been regularly viewing pornography while at work. While the American people were paying their salaries, this is what senior SEC officials were busy doing…
One senior attorney at SEC headquarters in Washington spent up to eight hours a day accessing Internet porn, according to the report, which has yet to be released. When he filled all the space on his government computer with pornographic images, he downloaded more to CDs and DVDs that accumulated in boxes in his offices.
An SEC accountant attempted to access porn websites 1,800 times in a two-week period and had 600 pornographic images on her computer hard drive.
Another SEC accountant used his SEC-issued computer to upload his own sexually explicit videos onto porn websites he joined.
And another SEC accountant attempted to access porn sites 16,000 times in a single month.
#39 According to InformationWeek, the federal government is spending “millions of dollars” to train Asian call center workers.
#40 If you can believe it, the federal government has actually spent $750,000 on a new soccer field for detainees held at Guantanamo Bay.
#41 The U.S. Agency for International Development spent 10 million dollars to create a version of “Sesame Street” for Pakistani television.
#42 The Obama administration has plans to spend between 16 and 20 million dollars to help students from Indonesia get master’s degrees.
#43 The National Science Foundation spent $198,000 on a University of California-Riverside study that explored “motivations, expectations and goal pursuit in social media.” One of the questions the study sought an answer to was the following: “Do unhappy people spend more time on Twitter or Facebook?”
#44 In 2011, $147,138 was given to the American Museum of Magic in Marshall, Michigan. Their best magic trick is making U.S. taxpayer dollars disappear.
#45 The federal government recently spent $74,000 to help Michigan “increase awareness about the role Michigan plays in the production of trees and poinsettias.”
#46 In 2011, the federal government gave $550,000 toward the making of a documentary about how rock and roll contributed to the fall of the Soviet Union.
#47 The National Institutes of Health has contributed $55,382 toward a study of “hookah smoking habits” in the country of Jordan.
#48 The federal government gave $606,000 to researchers at Columbia University to study how heterosexuals use the Internet to find love.
#49 A total of $133,277 was recently given to the International Center for the History of Electronic Games for video game preservation. The International Center for the History of Electronic Games says that it “collects, studies, and interprets video games, other electronic games, and related materials and the ways in which electronic games are changing how people play, learn, and connect with each other, including across boundaries of culture and geography.”
#50 The federal government has given approximately $3 million to researchers at the University of California at Irvine to fund their “research” into video games such as World of Warcraft.
#51 In 2011, the National Science Foundation gave one team of researchers $149,990 to create a video game called “RapidGuppy” for cell phones and other mobile devices.
#52 In 2011, $936,818 was spent developing an online soap opera entitled “Diary of a Single Mom”. The show “chronicles the lives and challenges of three single mothers and their families trying to get ahead despite obstacles that all single mothers face, such as childcare, healthcare, education, and finances.”
#53 Last year, the federal government spent $96,000 to buy iPads for kindergarten students in Maine.
#54 The U.S. Postal Service once spent $13,500 for a single dinner at Ruth’s Chris Steakhouse.
#55 In 2011, the Air Force Academy completed work on an outdoor worship area for pagans and Wiccans. The worship area consists of “a small Stonehenge-like circle of boulders with [a] propane fire pit” and it cost $51,474 to build. The worship area is “for the handful of current or future cadets whose religions fall under the broad category of ‘Earth-based’, which includes Wiccans, druids and pagans.” At this point, that only includes 3 current students at the Air Force Academy.
#56 The National Institutes of Health once gave researchers $400,000 to study why gay men in Argentina engage in risky sexual behavior when they are drunk.
#57 The National Institutes of Health once gave researchers $442,340 to study the behavior of male prostitutes in Vietnam.
#58 The National Institutes of Health once spent $800,000 in “stimulus funds” to study the impact of a “genital-washing program” on men in South Africa.
#59 The National Science Foundation recently spent $200,000 on a study that examined how voters react when politicians change their stances on climate change.
#60 The federal government recently spent $484,000 to help build a Mellow Mushroom pizzeria in Arlington, Texas.
#61 At this point, China is holding over a trillion dollars of U.S. government debt. But that didn’t stop the United States from sending 17.8 million dollars in foreign aid to China in 2011.
#62 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.”
#63 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.
#64 The federal government once shelled out $2.6 million to train Chinese prostitutes to drink responsibly.
#65 The U.S. Department of Agriculture once handed researchers at the University of New Hampshire $700,000 to study methane gas emissions from dairy cows.
#66 The federal government has spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”.
What a year 2012 has been! The mainstream media continues to tell us what a “great job” the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class. It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening. If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode. Just “tweaking” things slightly is not going to fix our economy. We need a fundamental change in direction. Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic “adjustment” that America has ever gone through. We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done. Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up.
The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year. Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones. Sadly, most Americans still tend to doubt that we are heading into economic oblivion. So if you have someone among your family and friends that believes that everything is going to be “just fine”, just show them these numbers. They are a good summary of the problems that the U.S. economy is currently facing.
The following are 50 economic numbers from 2012 that are almost too crazy to believe…
#1 In December 2008, 31.6 million Americans were on food stamps. Today, a new all-time record of 47.7 million Americans are on food stamps. That number has increased by more than 50 percent over the past four years, and yet the mainstream media still has the gall to insist that “things are getting better”.
#2 Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, about one out of every 6.5 Americans is on food stamps.
#3 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.”
#4 According to one recent survey, 55 percent of all Americans have received money from a safety net program run by the federal government at some point in their lives.
#5 For the first time ever, more than a million public school students in the United States are homeless. That number has risen by 57 percent since the 2006-2007 school year.
#6 Median household income in the U.S. has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
#7 Families that have a head of household under the age of 30 have a poverty rate of 37 percent.
#8 The percentage of working age Americans with a job has been under 59 percent for 39 months in a row.
#9 In September 2009, during the depths of the last economic crisis, 58.7 percent of all working age Americans were employed. In November 2012, 58.7 percent of all working age Americans were employed. It is more then 3 years later, and we are in the exact same place.
#10 When you total up all working age Americans that do not have a job in America today, it comes to more than 100 million.
#11 According to one recent survey, 55 percent of all small business owners in America “say they would not start a business today given what they know now and in the current environment.”
#12 The number of jobs at new small businesses continues to decline. According to economist Tim Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down by presidential administration…
Bush Sr.: 11.3
Bush Jr.: 10.8
#13 The U.S. share of global GDP has fallen from 31.8 percent in 2001 to 21.6 percent in 2011.
#14 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
#15 There are four major U.S. banks that each have more than 40 trillion dollars of exposure to derivatives.
#16 In 2000, there were more than 17 million Americans working in manufacturing, but now there are less than 12 million.
#17 According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971. Today, only 51 percent of all Americans are.
#18 The Pew Research Center has also found that 85 percent of all middle class Americans say that it is harder to maintain a middle class standard of living today than it was 10 years ago.
#19 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.
#20 Right now, approximately 48 percent of all Americans are either considered to be “low income” or are living in poverty.
#21 Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.
#22 According to one survey, 77 percent of all Americans are now living paycheck to paycheck at least part of the time.
#23 Back in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.
#24 The average amount of time that an unemployed worker stays out of work in the United States is 40 weeks.
#25 If you can believe it, approximately one out of every four American workers makes 10 dollars an hour or less.
#26 According to the U.S. Census Bureau, an all-time record 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government. Back in 1983, that number was less than 30 percent.
#27 Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even count Social Security or Medicare. Overall, there are almost 80 different “means-tested welfare programs” that the federal government is currently running.
#28 When you account for all government transfer payments and all forms of government employment, more than half of all Americans are now at least partially financially dependent on the government.
#29 Barack Obama has been president for less than four years, and during that time the number of Americans “not in the labor force” has increased by nearly 8.5 million. Something seems really “off” about that number, because during the entire decade of the 1980s the number of Americans “not in the labor force” only rose by about 2.5 million.
#30 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
#31 According to USA Today, many Americans have actually seen their water bills triple over the past 12 years.
#32 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.
#33 Right now, approximately 25 million American adults are living with their parents.
#34 As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
#35 At this point, only 24.6 percent of all jobs in the United States are good jobs.
#36 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.
#37 Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.
#38 If you can believe it, one out of every seven Americans has at least 10 credit cards.
#39 One survey of business executives has ranked California as the worst state in America to do business for 8 years in a row.
#40 In the city of Detroit today, more than 50 percent of all children are living in poverty, and close to 50 percent of all adults are functionally illiterate.
#41 It is being projected that half of all American children will be on food stamps at least once before they turn 18 years of age.
#42 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.
#43 If you can believe it, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed last year.
#44 The U.S. economy continues to trade good paying jobs for low paying jobs. 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.
#45 Our trade deficit with China in 2011 was $295.5 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.
#46 The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
#47 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
#48 The U.S. tax code is now more than 3.8 million words long. If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.
#49 According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banking havens such as the Cayman Islands.
#50 The value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.
#51 2012 was the third year in a row that the yield for corn has declined in the United States.
#52 Experts are telling us that global food reserves have reached their lowest level in almost 40 years.
#53 One recent survey discovered that 40 percent of all Americans have $500 or less in savings.
#54 If you can believe it, one recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies.
#55 Medical costs related to obesity in the United States are estimated to be approximately $147 billion a year.
#56 Corporate profits as a percentage of GDP are at an all-time high. Meanwhile, wages as a percentage of GDP are near an all-time low.
#57 Today, the wealthiest 1 percent of all Americans own more wealth than the bottom 95 percent combined.
#58 The wealthiest 400 families in the United States have about as much wealth as the bottom 50 percent of all Americans combined.
#59 The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
#60 At this point, the poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.
#61 Nearly 500,000 federal employees now make at least $100,000 a year.
#62 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.
#63 If you can believe it, there are 77,000 federal workers that make more than the governors of their own states do.
#64 Nearly 15,000 retired federal workers are collecting federal pensions for life worth at least $100,000 annually. The list includes such names as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.
#65 U.S. taxpayers spend more than 20 times as much on the Obamas as British taxpayers spend on the royal family.
#66 Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
#67 If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
#68 During fiscal year 2012, 62 percent of the federal budget was spent on entitlements.
#69 Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid.
#70 It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#71 Medicare is also growing by leaps and bounds. As I wrote about recently, 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.
#72 Thanks to our foolish politicians (including Obama), 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.
#73 Amazingly, the U.S. national debt is now up to 16.3 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
#74 During the first four years of the Obama administration, the U.S. government accumulated about as much debt as it did from the time that George Washington took office to the time that George W. Bush took office.
#75 Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was originally created back in 1913.
Please share this article with as many people as you can. Time is running out, and we need to wake up as many people as possible.