When They Shall Say “Peace And Safety”: Polls Show Americans Are The Most Optimistic They Have Been In A Very Long Time

By a very wide margin, this is the most optimistic that Americans have been about the future since I started The Economic Collapse Blog in late 2009.  Even though the middle class is shrinking, 102 million working age Americans do not have a job, and we are now 21 trillion dollars in debt, most people are feeling really good about things right now.  Especially among Republicans, there is an overwhelming consensus that the United States is starting to head in the right direction and that better times are ahead.  As a result, so many of the exact same people that were “prepping” while Barack Obama was in the White House are now partying now that Donald Trump is president.  But none of the long-term trends that are systematically destroying our nation have been significantly altered, and none of our long-term problems have been solved.  We are still steamrolling down a path toward national suicide, but most Americans simply do not care.

What Americans do care about is that it seems to be easier to find a job at the moment than it has in a very long time.  In fact, the percentage of Americans that believe that it is “a good time to find a quality job” is at the highest level that Gallup has ever recorded

Sixty-seven percent of Americans believe that now is a good time to find a quality job in the U.S., the highest percentage in 17 years of Gallup polling. Optimism about the availability of good jobs has grown by 25 percentage points since Donald Trump was elected president.

Gallup has asked Americans to say whether it is a good time or bad time to find a quality job monthly since August 2001. Prior to 2017, the percentage saying “good time” never reached 50%, but since Trump took office in January that year, the percentage has stayed at or above 50% and has been higher than 60% in eight of the past nine months.

A Rasmussen survey that asked a similar question came up with very similar results.

Of course the reality of the matter is that 66 percent of all jobs in the United States pay less than 20 dollars an hour, and 78 million Americans are participating in the “gig economy” because they need to supplement their normal incomes in order to make ends meet.

But perception is sometimes more powerful than reality, and right now the perception is that the U.S. economy is doing well

“Nothing is better for the issues about trade wars or issues about G-7 than a good economy,” Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management, said by phone. “The jobs report on Friday gave a lot of people confidence that the U.S. economy is still pretty solid.”

Small businesses in the United States are also feeling extremely optimistic right now.

In fact, one survey found that small business optimism has surged to record highs

The Q2 MetLife & U.S. Chamber of Commerce Small Business Index (Index) released today recorded an overall score of 68.7, up 2.4 points from the Q1 score of 66.3, driven in part by the strongest local economic outlook on record, a firmer hiring environment, and a stronger backdrop for investing. Two out of every three small business owners are optimistic about their company and the small business environment in the United States.

That is definitely a good sign, because we desperately need small businesses to do well, but is all of this optimism really warranted?

The financial markets continue to be filled with optimism as well.  Despite the outbreak of an international trade war and tremendous turmoil over in Europe, the Nasdaq closed at a brand new record high on Tuesday.

In recent years stock prices have just continued to go up and up and up no matter what news breaks, and now we are facing the greatest stock market bubble in our history.

How long do we have until it finally bursts?

There is a lot of optimism in the housing market as well.  At this point, a staggering 64 percent of all adults in this country believe that housing prices will continue to go up over the next year.  The following comes from Marketwatch

A majority of U.S. adults (64%) continue to believe home prices in their local area will increase over the next year, a recent survey released by polling firm Gallup concluded. That’s up nine percentage points over the past two years and is the highest percentage since before the housing market crash and Great Recession in the mid-2000s.

The level of optimism is edging closer to the 70% of adults in 2005 who said prices would continue rising. That, of course, was less than one year before the peak of the housing market bubble in early 2006, which was largely fueled by a wave of subprime lending.

Moving beyond short-term concerns, Americans are also becoming increasingly optimistic about the long-term future too.  A recent Gallup survey discovered that approximately 60 percent of all Americans believe that our young people “will have a better life than their parents did”…

About six in 10 Americans say it is very or somewhat likely that today’s young people will have a better life than their parents did. The latest reading marks continued improvement since the low of 44% in 2011 but is still not back to the level of 66% measured in February 2008.

Hopefully the optimists will be correct, but I do not believe they will be.  If we keep doing the same things that we have been doing as a nation, it is simply not possible that there will be any sort of a bright future for America.

And I will tell you one area where Americans are quite pessimistic.  One recent survey found that 77 percent of all Americans believe that morality is in decline in this country.  Our national character continues to deteriorate at a frightening pace, and most Americans appear to be quite aware that this is happening.

But instead of changing our ways, we proudly believe that our “greatness” will allow us to continue to enjoy a massively inflated debt-fueled standard of living for a very long time to come.

Unfortunately for us, it simply does not work that way, and as a nation we are way overdue for a very serious wake up call.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

 

Why America Is Heading Straight Toward The Worst Debt Crisis In History

Today, America is nearly 70 trillion dollars in debt, and that debt is shooting higher at an exponential rate.  Usually most of the focus in on the national debt, which is now 21 trillion dollars and rising, but when you total all forms of debt in our society together it comes to a grand total just short of 70 trillion dollars.  Many people seem to believe that the debt imbalances that existed prior to the great financial crisis of 2008 have been solved, but that is not the case at all.  We are living in the terminal phase of the greatest debt bubble in history, and with each passing day that mountain of debt just keeps on getting bigger and bigger.  It simply is not mathematically possible for debt to keep on growing at a pace that is many times greater than GDP growth, and at some point this absurd bubble will come to an abrupt end.  So those that are forecasting many years of prosperity to come are simply being delusional.  Our current standard of living is very heavily fueled by debt, and at some point we are going to hit a wall.

Let’s talk about consumer debt first.  Excluding mortgage debt, consumer debt is projected to hit the 4 trillion dollar mark by the end of the year

Americans are in a borrowing mood, and their total tab for consumer debt could reach a record $4 trillion by the end of 2018.

That’s according to LendingTree, a loan comparison website, which analyzed data from the Federal Reserve on nonmortgage debts including credit cards, and auto, personal and student loans.

Americans owe more than 26 percent of their annual income to this debt. That’s up from 22 percent in 2010. It’s also higher than debt levels during the mid-2000s when credit availability soared.

We have never seen this level of consumer debt before in all of U.S. history.  Just a few days ago I wrote about how tens of millions of Americans are living on the edge financially, and this is yet more evidence to back up that claim.

Right now, Americans owe more than a trillion dollars on auto loans, and we are clearly in the greatest auto loan debt bubble that we have ever seen.

Americans also owe more than a trillion dollars on their credit cards, and credit card delinquency rates are rising.  In fact, in some ways what we witnessed during the first quarter of 2018 was quite reminiscent of the peak of the last financial crisis

In the first quarter, the delinquency rate on credit-card loan balances at commercial banks other than the largest 100 – so at the 4,788 smaller banks in the US – spiked in to 5.9%. This exceeds the peak during the Financial Crisis. The credit-card charge-off rate at these banks spiked to 8%. This is approaching the peak during the Financial Crisis.

The student loan debt bubble has also surpassed a trillion dollars, and the average young adult with student loan debt has a negative net worth

Despite economic and stock market gains over the past nine years, many young adults are still struggling to get ahead in their financial lives and, in some ways, things may have actually gotten worse.

Americans age 25 to 34 with college degrees and student debt have a median net wealth of negative $1,900, according to a report analyzing 2016 Federal Reserve data released Thursday by Young Invincibles, a young adult advocacy group. That’s a drop of $9,000 from 2013, YI’s analysis found.

Meanwhile, corporate debt has doubled since the last financial crisis.  Thousands of companies are so highly leveraged that even a slight economic downturn could completely wipe them out.

State and local government debt levels are also at record highs, but nobody seems to care.  And if we never have another recession everything might work out okay.

The biggest offender of all, of course, is the United States federal government.  We have been adding about a trillion dollars a year to the national debt since Barack Obama first entered the White House, and Goldman Sachs is projecting that number will surpass 2 trillion dollars by 2028

The fiscal outlook for the United States “is not good,” according to Goldman Sachs, and could pose a threat to the country’s economic security during the next recession.

According to forecasts from the bank’s chief economist, the federal deficit will increase from $825 billion (or 4.1 percent of gross domestic product) to $1.25 trillion (5.5 percent of GDP) by 2021. And by 2028, the bank expects the number to balloon to $2.05 trillion (7 percent of GDP).

Our national debt has been growing at an exponential rate for decades, and because total disaster has not struck yet many people seem to believe that we can keep on doing this.

But the truth is that it simply is not possible.  There is only so much debt that a society can take on before the entire system implodes.

So how close are we to that point?

The following chart comes from Charles Hugh Smith, and it shows the exponential rise in overall debt levels that has taken us to the brink of nearly 70 trillion dollars in debt…

And this next chart from the SRSrocco Report shows how our rate of overall debt growth has compared to our rate of GDP growth…

We are literally on a path to national suicide.

Whether it happens next month, next year or five years from now, it is inevitable that we are going to slam into a brick wall of financial reality.

For the moment, the only way that we can continue to enjoy our current debt-fueled standard of living is to continue increasing our debt bubble at an exponential rate.

But that can only go on for so long, and when the party ends we are going to experience the greatest debt crisis in history.

Today, the average American household is nearly $140,000 in debt, and that is more than double median household income.  And if we were to include each household’s share of corporate debt, local government debt, state government debt and federal government debt, that number would be many times higher.

All of this debt will never be repaid.  Ultimately there will come a day when the system will completely collapse under the weight of so much debt, and most Americans are completely unaware that such a day of reckoning is rapidly approaching.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

Federal Reserve: More Than 4 Out Of 10 Americans Do Not Even Have Enough Money To Cover An Unexpected $400 Expense

The U.S. economy is not doing nearly as well as the mainstream media would have you believe.  A few days ago I wrote about a new study that discovered that nearly 51 million U.S. households “can’t afford basics like rent and food”, and just yesterday I discussed the fact that we are on pace for the worst year for retail store closings ever.  Now we have just gotten new numbers from the Federal Reserve which are absolutely staggering.  According to the Fed’s latest study, more than 4 out of every 10 Americans do not even have enough money to cover an unexpected $400 expense without borrowing the funds or selling something.  In essence, nearly half the country has no significant financial cushion whatsoever.  So what are all of those people going to do when the next economic crisis hits?

Sadly, living on the edge has become a daily reality for tens of millions of Americans.  The following is from a CNN article about the Fed’s new report…

Can you cover an unexpected $400 expense?

Four in ten Americans can’t, according to a new report from the Federal Reserve Board. Those who don’t have the cash on hand say they’d have to cover it by borrowing or selling something.

According to the report, the exact figure is 41 percent.

41 percent of all U.S. adults cannot cover an unexpected $400 expense.

Let that number sink in for a moment.

I am sorry – if you can’t come up with $400 right now without borrowing it, you are broke.  And as of right now that is the financial condition of 41 percent of all Americans.

Amazingly, the Federal Reserve is actually trying to spin this report as good news

“This year’s survey finds that rising levels of employment are translating into improved financial conditions for many but not all Americans,” Fed Governor Lael Brainard said.

Really?

Fortunately, there are others that are seeing right through the spin and are telling it like it is

“The finding that four-in-ten adults couldn’t cover an unexpected $400 expense without selling something or borrowing money is troubling,” said Greg McBride, chief financial analyst at Bankrate.com. “Nothing is more fundamental to achieving financial stability than having savings that can be drawn upon when the unexpected occurs.”

And that wasn’t the only bad news in the report.

Here are some more incredible facts from the report as summarized by Zero Hedge

  • One-third of those with varying income, or 10 percent of all adults, say they struggled to pay their bills at least once in the past year due to varying income
  • Over three-fourths of whites were at least doing okay financially in 2017 versus less than two-thirds of blacks and Hispanics.
  • Over a quarter of young adults ages 25 to 29, and slightly more than 1 in 10 in their 30s, live with their parents.
  • Over two-fifths of young adults in their late 20s provide financial assistance to their parents
  • Nearly 25 percent of young adults under age 30, and 10 percent of all adults, receive some form of financial support from someone living outside their home.
  • While 8 in 10 adults living in middle- and upper-income neighborhoods are satisfied with the overall quality of their community, only 6 in 10 living in low- and moderate-income neighborhoods are satisfied
  • Seven in 10 low-income renters spend more than 30 percent of their monthly income on rent

And on top of all of that, here is one more really alarming number to chew on

Even without an unexpected expense, the report reveals, 22% of adults expected to forgo payment on some of their bills in the month of the survey. “One-third of those who are not able to pay all their bills say that their rent, mortgage, or utility bills will be left at least partially unpaid.”

When 22 percent of the people in your country cannot pay their bills this month, that is called a crisis.

Yes, we are hopeful for better things for the U.S. economy under President Trump.  But the current blind optimism that we are witnessing out there right now is simply absurd

A new poll shows an overwhelming number of Americans believe President Trump is playing a positive role in the current state of the economy.

The CBS survey reveals almost 70% of respondents think the president is –either mostly or somewhat– responsible for the current economic climate.

Additionally, around 65% of Americans believe the economy is doing well, compared to under 10% who think it’s doing ‘very poorly.’

Ladies and gentlemen, the U.S. economy has not had a full year of 3 percent GDP growth since the middle of the Bush administration.

This is the longest stretch of below 3 percent growth in all of U.S. history by a very wide margin.

So please don’t try to tell me that the U.S. economy is “doing well” until we can get back above that 3 percent number.

The sad truth is that we have been in a very long period of economic stagnation, and during this period wealth is being increasingly concentrated at the very top of the pyramid and the middle class is being systematically eviscerated.

Tens of millions of families are just barely scraping by from month to month, and when an unexpected emergency happens that is often enough to push a lot of families completely over the edge.

In fact, my good friend Daisy Luther recently wrote about how this actually happened to her own family…

Before my daughter’s illness, I was doing everything “right.”

  • I had enough money in my emergency fund to carry me through 3 lean months
  • I had numerous credit cards with zero balances
  • My only debt was my car
  • My kids are going to school without student loans
  • I opted out of health insurance because it was more financially practical to pay cash (and I still agree with that decision)

Everything was great.

Until it wasn’t.

I am sure that many of you can identify with Daisy.

Most of us have had a life-altering event cause serious financial stress at some point.  And close to half the country is completely unprepared for such an event.

For years, I have been strongly encouraging my readers to build up their emergency funds, because one thing that you can count on in life is that the unexpected will happen.  Having a good financial cushion is one of the best things that you can possibly do for yourself and your family financially, and if you haven’t gotten started on that yet, I would urge you to do so as soon as possible.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

 

77 Million Square Feet Of Retail Space And Counting – America’s Retail Apocalypse Is Spiraling Out Of Control In 2018

In 2017 we absolutely shattered the all-time record for retail store closings in a single year, and this year it looks like we are going to shatter the record once again.  In fact, there are some that are projecting that up to 9,000 retail stores could close by the time that we get to the end of this calendar year.  Already, the amount of retail space that has shut down is simply jaw-dropping.  If you total up all of the retail store closings that have been announced so far in 2018, it accounts for 77 million square feet of retail space.  Let that number sink in for a bit.  Many shopping centers and strip malls around the country already have a post-apocalyptic feel to them, and more “space available” signs are going up with each passing day.  And in case you are tempted to think that I am making this figure up, here it is straight from Bloomberg

At last count, U.S. store closures announced this year reached a staggering 77 million square feet, according to data on national and regional chains compiled by CoStar Group Inc. That means retailers are well on their way to surpassing the record 105 million square feet announced for closure in all of 2017.

In the end, we could shatter the all-time record that was established just last year by 20 or 30 million square feet.

At moments such as this, the phrase “retail apocalypse” doesn’t really seem to fit the gravity of what is actually taking place.

And unfortunately for the retail industry, it doesn’t appear that this crisis is going to end any time soon.  Here is more from Bloomberg

And with shifts to internet shopping and retailer debt woes continuing, there’s no indication the shakeout will end anytime soon. “A huge amount of retail real estate in the U.S. is going to meet its demise,” says James Corl, managing director and head of real estate at private equity firm Siguler Guff & Co. Property owners will “try to re-let it as a gun range or a church—or it’s going to go back to being a cornfield.”

Will retail real estate be the trigger for the next great debacle on Wall Street?

Some people think so.

A lot of major retail projects are going to go belly up, and somebody is going to be left holding the bag.

And the warning signs are definitely there.  In fact, retail sector debt defaults set a brand new record during the first quarter of 2018…

Financial stress in the retail industry is at a historic high.

Moody’s said in a report on Tuesday that retail sector defaults hit a record high during the first three months of 2018 as the rise of e-commerce and decline of malls continues to eat away at profits.

But the mainstream media is telling us that the U.S. economy is in great shape, and so everything is going to work out okay, right?

Sadly, nothing has changed regarding the long-term trends that are eating away at our economy like a cancer.  Just a few days ago I wrote about a brand new report that found that nearly 51 million U.S. households “can’t afford basics like rent and food”.  The real reason why our retailers are in decline is because the middle class is being systematically destroyed.  Once upon a time the middle class had plenty of discretionary income, but now the middle class is disappearing right in front of our eyes, but most of us are in such a state of denial that we won’t even admit what is happening.

Hopefully as stores continue to close by the hundreds people will start waking up.  The following is a list of just some of the major retailers that are closing stores in 2018

  • Abercrombie & Fitch: 60 more stores are charted to close
  • Aerosoles: Only 4 of their 88 stores are definitely remaining open
  • American Apparel: They’ve filed for bankruptcy and all their stores have closed (or will soon)
  • BCBG: 118 stores have closed
  • Bebe: Bebe is history and all 168 stores have closed
  • Bon-Ton: They’ve filed for Chapter 11 and will be closing 48 stores.
  • The Children’s Place: They plan to close hundreds of stores by 2020 and are going digital.
  • CVS: They closed 70 stores but thousands still remain viable.
  • Foot Locker: They’re closing 110 underperforming stores shortly.
  • Guess: 60 stores will bite the dust this year.
  • Gymboree: A whopping 350 stores will close their doors for good this year
  • HHGregg: All 220 stores will be closed this year after the company filed for bankruptcy.
  • J. Crew: They’ll be closing 50 stores instead of the original 20 they had announced.
  • J.C. Penney: They’ve closed 138 stores and plan to turn all the remaining ones into toy stores.
  • The Limited: All 250 retail locations have been closed and they’ve gone digital in an effort to remain in business.
  • Macy’s: 7 more stores will soon close and more than 5000 employees will be laid off.
  • Michael Kors: They’ll close 125 stores this year.
  • Payless: They’ll be closing a whopping 800 stores this year after recently filing for bankruptcy.
  • Radio Shack: More than 1000 stores have been shut down this year, leaving them with only 70 stores nationwide.
  • Rue 21: They’ll be closing 400 stores this year.
  • Sears/Kmart: They’ve closed over 300 locations.
  • ToysRUs: They’ve filed for bankruptcy but at this point, have not announced store closures, and have in fact, stated their stores will remain open.
  • Wet Seal: This place is history – all 171 stores will soon be closed.

A lot of people are blaming online retailers such as Amazon.com for the decline of brick and mortar stores, and without a doubt online sales are rising, but they still account for less than 10 percent of the entire retail industry.

And it isn’t just retailers that are closing locations.

Personally, I was greatly saddened when it was announced that Subway was planning on shutting down 500 locations in the United States…

Feeling the need to improve its store fleet amid intense competition in the sandwich industry, Subway is planning to close 500 U.S. locations this year, according to Bloomberg News.

Subway restaurants are small in size, but ubiquitous. The chain is the largest in the U.S. by store count of any quick-service chain with nearly 26,000 locations, well above the 14,000 McDonald’s (mcd, +0.29%) restaurants in this country. This has long been a point of pride for the company.

I have always been a big fan of Subway, and if they ever closed my hometown location I would be seriously distressed.

And banks are closing locations at an astounding rate as well.  In fact, from June 2016 to June 2017 the number of bank branches in the United States fell by more than 1,700.

That was the biggest decline that we have ever seen.

If the U.S. economy really was in good shape, none of this would be taking place.  Something really big is happening, and what we have seen so far is just the very small tip of a very large iceberg.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

Nearly 51 Million Households In The United States ‘Can’t Afford Basics Like Rent And Food’

If the U.S. economy is performing well, then why can’t 51 million households in the United States “afford basics like rent and food”.  A stunning new report that was just put out by the United Way ALICE Project shows that the gap between the wealthy and the poor in this country is perhaps the biggest that it has been in any of our lifetimes.  In some of the wealthiest areas of the nation, homes are now selling for up to 100 million dollars, but meanwhile tens of millions of families are barely scraping by from month to month.  Many believe that this growing “inequality gap” is setting the stage for major societal problems.

In general, the U.S. economy seems to be performing better than expected so far in 2018, but the ranks of the poor and the working poor just continue to grow.  The following comes from CNN

Nearly 51 million households don’t earn enough to afford a monthly budget that includes housing, food, child care, health care, transportation and a cell phone, according to a study released Thursday by the United Way ALICE Project. That’s 43% of households in the United States.

The figure includes the 16.1 million households living in poverty, as well as the 34.7 million families that the United Way has dubbed ALICE — Asset Limited, Income Constrained, Employed. This group makes less than what’s needed “to survive in the modern economy.”

If 43 percent of all Americans cannot even afford “the basics”, what does that say about the true state of the U.S. economy?

Of course the biggest reason why so many American families are struggling is the lack of good jobs.

In America today, 66 percent of all jobs pay less than 20 dollars an hour.

66 percent.

Just let that sink in for a minute.

You cannot support a middle class family on 20 dollars an hour.  As a result, many Americans are working more than one job, and in many households both the mother and the father are working more than one job.

Housing costs account for the biggest item in most family budgets, and the fact that housing costs have just continued to soar is putting a huge amount of financial stress on hard working families.  Just today we learned that there is a tremendous rush to buy homes as mortgage rates rise rapidly

Today, according to the latest Freddie Mac mortgage rates report, after plateauing in recent weeks, mortgage rates reversed course and reached a new high last seen eight years ago as the 30-year fixed mortgage rate edged up to 4.61% matching the highest level since May 19, 2011.

But while the highest mortgage rates in 8 years are predictably crushing mortgage refinance activity, they appears to be having the opposite effect on home purchases, where there is a sheer scramble to buy, and sell, houses. As Bloomberg notes, citing brokerage Redfin, the average home across the US that sold last month went into contract after a median of 36 only days on the market – a record speed in data going back to 2010.

If you will remember, we witnessed a very similar pattern just before the subprime mortgage meltdown in 2008.

History is repeating itself, and we never seem to learn from our past mistakes.

Housing prices in some cities are absolutely obscene right now, and many working families find themselves completely priced out of the market.  That has some people asking one very simple question

Many San Francisco renters I met while reporting an article on affordable housing lotteries had responded to the region’s housing crisis by putting up with great discomfort: They crammed in with family; they split apartments with strangers. Some even lived out of their cars.

Why, lots of readers wanted to know, didn’t they simply move away instead?

Yes, some people are moving, and this is something that I plan to do an article about very soon.

But for most hard working families, moving across the country simply is not an option.  Moving out of state is very expensive, it can be very difficult to find a similar job in an entirely new area, and many families are very dependent on the social networks where they currently live…

People who struggle financially often have valuable social networks — family to help with child care, acquaintances who know of jobs. The prospect of dropping into, say, Oklahoma or Georgia would mean doing without the good income and the social support. Those intangible connections that keep people in places with bad economies also keep people in booming regions where the rent is too high.

In the end, moving is just not an option for a lot of people.

We need to structure our economic system so that it works for all Americans – not just a few.  Unfortunately, it is probably going to take another major crisis before people are ready for such a restructuring.

And such a crisis may not be that far away.  In fact, even Pope Francis is now warning about the dangers of derivatives

In a sweeping critique of global finance released by the Vatican on Thursday, the Holy See singled out derivatives including credit-default swaps for particular scorn. “A ticking time bomb,” the Vatican called them. The unusual rebuke — derivatives rarely reach the level of religious doctrine — is in keeping with Francis’s skeptical view of unbridled global capitalism.

“The market of CDS, in the wake of the economic crisis of 2007, was imposing enough to represent almost the equivalent of the GDP of the entire world. The spread of such a kind of contract without proper limits has encouraged the growth of a finance of chance, and of gambling on the failure of others, which is unacceptable from the ethical point of view,” the Vatican said in the document.

I have written about derivatives extensively in the past, and Pope Francis is 100 percent correct when he says that they are a ticking time bomb which could absolutely devastate the global financial system at any moment.

We don’t know exactly when it will happen, but we do know that such a crisis is coming at some point.

Sadly, most of the population is completely asleep, and they will be completely blindsided by the coming crisis when it does finally arrive.

Michael Snyder is a nationally syndicated writer, media personality and political activist.  He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Budget-Busting $1.3 Trillion Spending Bill That Was Just Passed By Congress Is A Betrayal Of The American People

I don’t know if I even have the words to express how disgusted I am with the omnibus spending bill that was just rushed through Congress.  Members of the House of Representatives were given less than 24 hours to read this 2,232 page monstrosity of a bill before they were expected to vote on it, and so obviously nobody was able to read the entire thing before the vote was held.  This is the kind of thing that Democrats were greatly criticized for in the past, but now it is Republicans that are doing it.  The Republican Party is supposed to stand for limited government, and this is yet another example that shows how badly broken the system in Washington has become.

I am running for Congress in Idaho’s first congressional district, and I want to make it exceedingly clear that I would have voted against this bill.  In addition to fully funding Planned Parenthood, this bill also funds a whole host of other liberal priorities.  But other than an increase in military spending, conservative priorities are almost entirely ignored by this bill.

Over the past decade, we have been adding more than a trillion dollars a year to the national debt, and this omnibus spending bill dramatically increases government spending at a time when we should be desperately trying to get our financial house in order.

On Twitter, Rand Paul documented just a few of the examples of the tremendous waste in this bill…

o $12m for Scholarships for Lebanon
o $20m for Middle East Partnership Initiative Scholarship Program
o $12m in military funding for Vietnam
o $3.5m in nutrition assistance to Laos
o $15m in Developmental assistance to China
o $10m for Women LEOs in Afghanistan
o $1m for the World Meteorological Organization
o $218m for Promoting Democracy Development in Europe
o $10m for disadvantaged Egyptian Students
o $1.371bn for Contributions to International Organizations
o $51m to promote International Family Planning and Reproductive Health
o $7m promoting International Conservation
o $10m for UN Environmental Programs
o $5m for Vietnam Education Foundation Grants
o $2.579m for Commission on Security and Co-operation in Europe
o $15m to USAID for promoting international higher education between universities
o $1m for the Cultural Antiquities Task Force
o $6.25m for the Ambassadors Fund for Cultural Preservation
o $20m for Countering Foreign State Propaganda
o $12m for Countering State Disinformation and Pressure

After it passed, Democratic leaders were jubilant.  The following comes from the American Mirror

House Minority Leader Nancy Pelosi and her esteemed counterpart in the Senate, Sen. Chuck Schumer, are declaring the spending bill rushed through by Republicans this week as “a victory.”

“The distinguished leader has clearly put forth many of the priorities that we’re very proud of in a bill that’s one yard high,” Pelosi said of House Speaker Paul Ryan at a joint press conference with Schumer on Thursday.

Senator Schumer also admitted that the Democrats got more accomplished in this bill than they did during any of the spending bills when Barack Obama was in the White House, and Nancy Pelosi added that Republican leadership rushed this legislation through so quickly because “they didn’t want their colleagues to see what was in the bill.”

What we have in Washington D.C. today doesn’t look anything like what our founders originally intended.  It is time to take our government back, and we need fresh leadership in Washington.

I am not going to Washington to be a cog in the system.  Rather, I am going to Washington to drain the swamp and to turn the current corrupt system completely upside down.  If you would like to learn more about what we are trying to do, please visit MichaelSnyderForCongress.com.

Michael Snyder is a pro-Trump candidate for Congress in Idaho’s First Congressional District.  If you would like to help him win on May 15th, you can donate online, by Paypal or by sending a check made out to “Michael Snyder for Congress” to P.O. Box 1136 – Bonners Ferry, ID 83805.  To learn more, please visit MichaelSnyderForCongress.com.

Debt Cancer: More Than 80 Percent Of American Adults Owe Somebody Else Money

How long can our debt levels keep growing much, much faster than the overall economy?  We haven’t had a year of 3 percent growth for the U.S. economy since the middle of the Bush administration, but we keep borrowing money as if there is no tomorrow.  Much of the focus has been on the exploding debt of the federal government, and that is definitely something I plan to address once I get to Washington.  But on an individual level, U.S. consumers have been extremely irresponsible as well.  In fact, one new survey has found that more than 80 percent of all American adults are currently in debt

It’s no secret that America is a nation that runs on debt, but it may surprise you to learn that the overwhelming majority of U.S. adults owe money in some way, shape, or form. According to new data from Comet, here’s how many Americans have debt at present:

  • 80.9% of Baby Boomers
  • 79.9% of Gen Xers
  • 81.5% of Millennials

For most of us, it starts very early.  We were told that going into debt to get a college education would not be a problem because we would be able to pay those loans off with the good jobs we would get after graduation.

Unfortunately, those good jobs never really materialized for many of us, and now millions of former college students are absolutely drowning in debt

A study released Friday by the Brookings Institution finds that most borrowers who left school owing at least $50,000 in student loans in 2010 had failed to pay down any of their debt four years later. Instead, their balances had on average risen by 5% as interest accrued on their debt.

As of 2014 there were about 5 million borrowers with such large loan balances, out of 40 million Americans total with student debt. Large-balance borrowers represented 17% of student borrowers leaving college or grad school in 2014, up from 2% of all borrowers in 1990 after adjusting for inflation. Large-balance borrowers now owe 58% of the nation’s $1.4 trillion in outstanding student debt.

In addition to owing more than a trillion dollars on student loans, Americans are also now carrying more than a trillion dollars of auto loan debt and more than a trillion dollars of credit card debt.

Corporations have been incredibly irresponsible as well.  Corporate debt has doubled since the last financial crisis, and corporate bankruptcies have been rising steadily in recent years.  All it would take for the dominoes to really start falling is some sort of a major economic downturn.

Local, state and federal government debt levels are all at record highs as well.  It is now being projected that our national debt will hit 30 trillion dollars by 2028, and those projections are probably too optimistic.

My guess is that we will almost certainly hit the 30 trillion dollar mark far sooner than that.

We can’t keep doing this to ourselves.  Our incessant greed is literally destroying the future, but anyone that tries to warn about the collective insanity that has descended upon our society is mocked and ridiculed.

Let me ask you a question.

Would you willingly choose to give yourself cancer?

Of course not, but that is essentially what we are doing to ourselves as a society.

Debt is economic cancer, and as Lance Roberts has pointed out, if we continue to allow debt levels to grow like this eventually it will kill our entire economy…

Debt is, by its very nature, a cancer on economic growth. As debt levels rise it consumes more capital by diverting it from productive investments into debt service. As debt levels spread through the system it consumes greater amounts of capital until it eventually kills the host.

Debt is addictive, because it does boost our standard of living in the short-term.  It is so easy to keep going back for one more “hit”, but every time we do it just makes our long-term crisis even worse.

Most people out there seem to think that our economic problems have been “solved”, but that is not true at all.

The truth is that our long-term problems just continue to grow with each passing day, and that is one of the reasons why I am so determined to go to Washington.  We are at such a critical juncture right now, and if something is not done the prognosis is extremely negative.

If we stay on this current path, the very best that we can hope for is a “soft landing” and a greatly reduced standard of living for future generations of Americans.  Here is more from Lance Roberts

The processes that fueled the economic growth over the last 30 years are now beginning to run in reverse, and when combined with the demographic shifts in the U.S., the impact could be far more immediate and prolonged than the media, economists, and analysts are currently expecting. Sacrifices will have to be made, the economy will drag on at subpar rates of growth, individuals will be working far longer into their retirement years and the next generation of Americans will lead a far different life than what the currently retiring generation enjoyed.

It is simply a function of the math.

I am sorry for not writing more lately.  I have been working night and day to get ready for May 15th.  With Donald Trump in the White House, this is our opportunity to take our government back.  If we miss this window, we may never have this sort of opportunity ever again.

America is drowning in debt, but of course our problems go far beyond that.  Our economic, political, cultural and spiritual problems go very deep, and we desperately need to change course as a nation.

Unfortunately, most of the population is in a deep state of sleep, and my hope is that we can wake them up while there is still time to turn things around.

Michael Snyder is a pro-Trump candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

Is Washington Nuts? Increasing Spending AND Cutting Taxes Will EXPLODE The Size Of The National Debt

Our national debt is rapidly approaching 21 trillion dollars, and yet Congress wants to follow up a large tax cut bill with a massive increase in federal spending.  This is absolute madness, and it is going to make our long-term financial problems as a nation far worse.  After passing the tax bill, the appropriate thing to do would have been to cut federal spending.  Yes, that would have not been a positive thing for the economy in the short-term, but we must start addressing our long-term priorities.  If we do not do something about this exploding national debt, it could potentially destroy our republic all by itself.

Earlier today, I was absolutely horrified when I learned of a budget deal in the Senate that would increase federal spending by about 200 billion dollars in each of the next two years…

The Senate’s Republican and Democratic leaders unveiled a sweeping two-year budget agreement on Wednesday that would increase federal spending by hundreds of billions of dollars on domestic and defense programs alike.

That deal would eliminate strict budget caps, set in 2011 to reduce the federal deficit, and would allow Congress to spend about $200 billion more in the current fiscal year and in fiscal year 2019.

Seriously?

Our federal debt is going to hit 21 trillion dollars some time this year, and they want to throw hundreds of billions of dollars more spending on top of what we are already doing?

This alone is why we need true conservatives all over the nation to run for Congress.  Our endless greed is literally destroying the bright future that our children and our grandchildren were supposed to have.

I don’t know if I even have the words to describe how foolish our leaders are being.  If interest rates on government debt were to return to their long-term averages, the game would already be over.  We should be desperately attempting to get our financial house in order, but instead we are spending money as if tomorrow will never come.

But tomorrow always arrives, and a day of reckoning is fast approaching.

Fortunately, there are some members of Congress that seem to understand that we cannot keep spending money that we do not have.  The following comes from USA Today

Rep.  Mark Meadows, R-N.C., who chairs the hard-line House Freedom Caucus, wants to see what comes back from the Senate, said his spokesman Ben Williamson.

“But if the numbers are as high as we’re hearing, Rep. Meadows does not support the budget deal,” Williamson said.

Rep. Mo Brooks, R-Ala., said “this spending bill is a debt junkie’s dream… I’m not only a ‘no.’ I’m a ‘hell no.'”

As a member of Congress, I would always be a resounding “no” vote on these sorts of absurd budget deals.

Whatever happened to all of the strong fiscal conservatives that we sent to Congress during the days of the Tea Party movement?  So many of them seem to have been enveloped by the swamp and are now doing whatever party leadership tells them to do.

Sadly, most Americans don’t even seem to understand that we have been adding more than a trillion dollars a year to the national debt since Barack Obama first entered the White House.  The following is an extended excerpt from one of my previous articles

When Barack Obama entered the White House, the U.S. national debt was just over 10.6 trillion dollars, and when he left the White House 8 years later it was sitting just shy of 20 trillion dollars.

So during those 8 years more than 9 trillion dollars was added to the national debt. But for purposes of this example we will round down to an even 9 trillion dollars.

When you divide 9 trillion dollars by 8, you get an average of 1.125 trillion dollars that was added to the national debt per year during the Obama era.

Dividing that figure by 365, you find that an average of $3,082,191,780 was added to the national debt every single day during the Obama administration.

And since there are 24 hours in a day, that means that an average of $128,424,657 was stolen from our children and our grandchildren every single hour of every single day while Barack Obama was president.

Under President Trump, we should be dramatically reducing federal spending and the size of the federal government.

Yes, this would hurt the economy in the short-term, but if we continue down the road we are currently on it is a recipe for national suicide.

As interest rates rise, it won’t be too long before we are paying more than a trillion dollars a year just in interest on the national debt.  And when America plunges into a debt nightmare, there won’t be anyone in the entire world big enough to bail us out.

America cannot be great again if we are drowning in debt.  What is happening in Washington is utter madness, and it should greatly anger all of us that our irresponsible politicians are systematically destroying the greatest republic that the world has ever seen.

Michael Snyder is a pro-Trump candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

A Potential Government Shutdown Is Literally Just Hours Away, But Congressional Leaders Insist That Everything Will Be Just Fine

Either the Republicans are going to give Democrats virtually everything that they want, or the federal government will shut down at the end of the day on Friday.  We have been through this process time after time, and in every single instance the Republicans have always folded like a 20 dollar suit.  Unfortunately, it looks like the Democrats are going to win big this time around too.  The spending agreement is essentially an updated Obama budget that fully funds Planned Parenthood, that contains no money for a border wall, and that doesn’t reflect any of President Trump’s other important priorities either.  On Thursday, the House is expected to pass this horrible bill, and the Senate is expected to take up the matter on Friday.  According to Bloomberg, right now this plan would keep the government open through December 22nd…

The House Rules Committee approved a rule setting the bill up for a floor vote Thursday, after which the Senate will have until the end of the day Friday to avoid a partial government shutdown. A formal check of how members would vote on the Dec. 22 deadline came back showing widespread support, said Representative Dennis Ross, a member of the vote-whipping team.

So even if this plan gets through both the House and the Senate, we will be facing another government shutdown deadline in just a few weeks.

And every time one of these deadlines approaches, the Democrats use it as leverage to get what they want.  In addition to getting a spending agreement that is extremely lopsided in their favor, many Democrats want to use this current deadline to pass the DREAM Act before the end of 2017.  In fact, Kirsten Gillibrand, Kamala Harris, Bernie Sanders, Dick Durbin, Elizabeth Warren and Corey Booker have all said that they will not vote in favor of any spending agreement unless it includes the DREAM Act.

Emboldened by their past successes, Democrats are asking for more than ever this time around.  But if we are just going to hand the Democrats whatever they want every time, what is the point of even having elections?  In 2016 we gave the Republicans control of the White House, the Senate and the House of Representatives, and yet the Democrats just keep winning over and over again.  This is deeply infuriating, and grassroots conservatives all over the country are sick and tired of Republicans acting like spineless jellyfish.

Fortunately, we do have a man with a spine in the White House, and it sounds like he has absolutely no intentions of giving in on the DREAM Act.  The following comes from NBC News

“Democrats are really looking at something very dangerous for our country. They are looking at shutting down, they want to have illegal immigrants, in many cases people that we don’t want in our country,” Trump told reporters at the White House. “We don’t want to have that, we want to have a great, beautiful, crime-free country.”

If the Democrats stand firm on their demands, there is a very real possibility that we could have a government shutdown, and federal agencies are already preparing for one.  When the government shuts down, it only affects about 13 percent of the federal government, and we don’t actually need most of that 13 percent anyway.

So even though the mainstream media would be totally freaking out, it definitely would not be the end of the world.

If you don’t remember the last government shutdown, the following is a pretty good summary of what would happen that was published by Newsweek

If the shutdown does occur this weekend, the effects will be felt immediately. All nonessential employees of the federal government will stay home until further notice, and some will stop receiving paychecks. Refunds from the IRS could be delayed, as could the State Department’s passport service. Most air-traffic controllers and Transportation Security Administration security will continue to go to work, but there won’t be as many as them so air-travel will be slower. Members of Congress will have limited staff and won’t be as responsive (well, as responsive as they normally are) to constituents. And after 10 days without a spending bill, federal courts will close.

Obviously it would be a good thing to avoid a government shutdown, but it is exceedingly foolish to give the Democrats whatever they want just to keep things functioning normally.

In case you are wondering, I would definitely vote “no” on the bill that is currently going through the House of Representatives.  I will not vote in favor of a spending bill that explodes the size of the national debt, that funds Planned Parenthood and that contains no money for a border wall.  I am never going to compromise on my most important principles, and any Republican that caves in and gives the Democrats whatever they want just to avoid a government shutdown should be ashamed of themselves.

Sadly, the Democrats have done a very good job of selling their story to the American people, and at this point most Americans are overwhelmingly in favor of a compromise…

Sixty-three percent say members of Congress should avoid a shutdown at all costs. Only 18 percent of voters surveyed say members should allow a temporary government shutdown if it helps them achieve their policy goals. The remaining 19 percent of voters are undecided.

Of course “compromise” means giving in to the Democrats on virtually every single point.  There are many things that the Democrats will never, ever compromise on, and that is why they keep on winning over and over again.

Most Republicans have been compromising for so long that most of them don’t even stand for anything any longer.

It is time to kick out the corrupt professional politicians and replace them with a new generation of leaders that are willing to stand up for us.  We will have a chance to do that in 2018, and we must not squander this opportunity.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

Imports From China Hit Record High As U.S. Trade Deficit Continues To Explode

It should upset you that virtually everything stocking the shelves of our major retailers seems to have been made somewhere else.  As a nation, we are consuming far more wealth than we are producing, and that is a recipe for national economic suicide.  This week we learned that imports from China hit an all-time record high in October, and that was one of the primary reasons why our trade deficit hit a staggering 48.7 billion dollars during that month.  Year after year we buy far more stuff from the rest of the world than they buy from us, and this is systematically impoverishing us.

Let me put this another way.  The amount of money that leaves our country each month is far greater than the amount of money that comes into it.  When you grasp this concept, it becomes easy to understand why major exporting nations such as China have become so wealthy, and why we are drowning in debt.

Sadly, most Americans don’t understand the trade deficit, and so they don’t understand how important news like this really is.  The following comes from Bloomberg

The U.S. trade deficit widened in October to a nine-month high on record imports that reflect steady domestic demand, Commerce Department data showed Tuesday.

The surge in imports probably reflected merchants preparing for the holiday-shopping season. Consumer goods imports increased almost $800 million, including a $303 million gain in cell phones and other household goods, as well as more inbound shipments of furniture, appliances, toys and clothing.

Since China joined the WTO in 2001, the United States has lost more than 70,000 manufacturing facilities and millions of good paying manufacturing jobs.  Formerly great manufacturing cities such as Detroit now resemble war zones, but until Donald Trump came along nobody seemed to really care very much about what was happening.

Of course the Chinese are going to keep taking advantage of us for as long as they can.  They slap all sorts of tariffs and fees on our goods, and meanwhile we allow them to flood our shores with their products.  As a result, our trade deficit with China keeps hitting record high after record  high

Record imports from China helped drive up the U.S. trade deficit 8.6 percent in October as retailers stocked up for the holidays, the Commerce Department reported Tuesday.

Goods and services coming into the U.S. from China, Mexico and the European Union all hit record levels, which boosted the trade gap to $48.7 billion from $44.9 billion in September. It’s the highest monthly trade deficit recorded since President Trump took office.

President Trump is precisely correct when he says that our trade agreements are not fair to American workers and American businesses.  We will always need to trade with the rest of the world, but we need to do so in a way that is fair for both sides.  As a member of Congress, I will fight tirelessly for American workers, and if you believe in what I am trying to do I hope that you will join the team.

We simply cannot stand by and do nothing.  Our trade deficits are absolutely killing our long-term economic future, and the only way that we have been able to maintain our standard of living is by going on the greatest debt binge in human history.

If we truly want to make America great again, we need to start making things in America again, and we need to start sending leaders to Washington that understand these issues.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.