There Is Not Going To Be A Solution To Our Economic Problems On The National Level

For those waiting for our economic problems to be solved, you can quit holding your breath.  There is simply not going to be a solution to our economic problems on the national level.  So why is that the case?  Well, it is because the economic policies of both major political parties are very, very similar when you take a close look at them.  Yes, that statement may sound downright bizarre to many Americans, but it is true.  Both major political parties supported the Wall Street bailouts, both of them fully support the job-killing “free trade” globalization agenda, both of them have dramatically increased the national debt when in power, both of them fully support the currency-killing policies of the Federal Reserve, and neither major political party would get rid of the income tax and the IRS.  And that is just for starters.  Yes, there are some minor differences when it comes to taxing and spending between the two parties, but the truth is that they are a lot more similar on economic issues than they are different.  What we desperately need on the national level is a fundamental change in direction when it comes to economic policy, but we simply are not going to get that from either the Democrats or the Republicans.  That means that there is no hope that the economic storm that is coming will be averted.

So why are the Democrats and the Republicans so similar on these issues?  Well, a big reason is because of who they are trying to please.

The reality of the matter is that most politicians do not really care about what you or I have to say.  Instead, what they are really concerned about is getting as much money for their campaigns as possible so that they can keep getting elected.

When you take a close look at the results of federal elections over the past several decades, it quickly becomes apparent that the candidate that raises the most money almost always wins.

So most politicians have learned to please those that fund their campaigns so that the money will keep rolling in.

Yes, there are a few candidates that are willing to rebel against “the system”, but they are few and far between and the major parties tend to marginalize them.

Once again in 2012, political races will overwhelmingly be won by those that raise the most cash.  The following is from Politifact….

In congressional races in 2010, the candidate who spent the most won 85 percent of the House races and 83 percent of the Senate races, according to the Center for Responsive Politics. That’s a large percentage, but it’s lower than what the sign indicated.

Indeed, the percentage for 2010 was lower than it had been in recent election cycles. The center found that in 2008, the biggest spenders won 93 percent of House races and 86 percent of Senate races. In 2006, the top spenders won 94 percent of House races and 73 percent of Senate races. And in 2004, 98 percent of House seats went to candidates who spent the most, as did 88 percent of Senate seats.

Once you understand how Washington works, it becomes easier to understand why our politicians do such stupid things.

For example, big corporations tend to donate large amounts of money to political campaigns and they love the “free trade” globalization agenda.

They love to import massive quantities of super cheap foreign goods so that they can undercut the prices of goods made in the United States.

They love to set up manufacturing facilities on the other side of the globe where it is legal to pay slave labor wages to workers.

The “free trade” agenda is great for the largest corporations, but it is horrible for the average American worker.

According to the Economic Policy Institute, the U.S. economy loses approximately 9,000 jobs for every $1 billion of goods that are imported from overseas.

Trade with other countries can be good as long as it is balanced.  Unfortunately, the U.S. trading relationship with the rest of the world is tremendously imbalanced.

In 2011, the United States bought more than 550 billion dollars more stuff from the rest of the world than they bought from us.

This trade deficit has enormous consequences that most Americans simply do not understand.

Over the past decade, tens of thousands of businesses, millions of jobs and trillions of dollars have left our country.

Our industrial base is being dismantled and we are rapidly becoming poorer as a nation.

According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities a day closed down in the United States during 2010.

Just think about that.

Every single day we lost 23 more.

Overall, America has lost a total of more than 56,000 manufacturing facilities since 2001.

Why do you think cities like Detroit are dying?

The truth is that we killed them with our idiotic policies.

America has a trade imbalance that is more than 5 times larger than any other nation on earth has.  We are losing wealth, jobs and businesses at a pace that is absolutely astounding.

It is neither “conservative” nor “liberal” to commit national economic suicide.

Our trade imbalance with China is particularly bad.  The U.S. spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

Does that sound fair to you?

China slaps huge tariffs on many of our products, they deeply subsidize their own national industries, the brazenly steal technology from us, and they manipulate currency rates so that their products end up being significantly cheaper than ours.

Our trade deficit with China in 2011 was nearly 300 billion dollars.  That was the largest trade deficit that one country has had with another country in the history of the world.

Yet both major political parties refuse to do anything about it.

Back in 1985, the U.S. trade deficit with China was only 6 million dollars for the entire year.

In 2011, our trade deficit with China was more than 49,000 times larger.

The consequences of this trade deficit with China are being felt all over the United States every single day.

For example, the United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.

Do you support losing more than half a million manufacturing jobs a year?

If not, then you should be for “fair trade” instead of “free trade” where other nations can cheat us blind as often as they want.

The Economic Policy Institute says that since 2001 America has lost approximately 2.8 million jobs due to our trade deficit with China alone.

Do you think that the U.S. economy could use an extra 2.8 million jobs right now?

Sadly, if current trends continue things are going to get a lot worse.

According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades.

So why won’t our politicians do something?

The United States has run a trade deficit every single year since 1976.

During that time, America has had a total trade imbalance of more than 7.5 trillion dollars with the rest of the world.

That 7.5 trillion dollars could have gone to support U.S. jobs and U.S. businesses.

Taxes could have been paid on that 7.5 trillion dollars.

Instead, it went out of the country and made foreigners wealthier.

So what is Barack Obama doing about all of this?

Well, Obama has been aggressively pushing for even more “free trade” agreements.  The Obama administration has inked deals with Panama, South Korea and Colombia and the Obama administration is making the Trans-Pacific Partnership (“the NAFTA of the Pacific“) a very high priority.

Well, Mitt Romney must be criticizing these moves, right?

No, Romney has actually criticized Obama for not pushing for more “free trade” fast enough.

Mitt Romney wants to make it even easier for jobs to go out of the country and for other countries to drain our wealth.  The following quote comes directly from the Romney campaign website….

Access to foreign markets is crucial to growing our economy. We must reassert American leadership in international negotiations, follow through on commitments we have already made, and push aggressively for advantageous new agreements.

So we are not going to see a change in direction in trade policy no matter who wins the next election.

Well, what about the national debt?

Are there differences between the two parties on this issue?

Sadly, there are only minor differences.

Both major political parties are packed with big spenders that have been spending us into oblivion.

Since Barack Obama entered the White House, the U.S. national debt has increased by $5,027,761,476,484.56.

That comes to $16,043.39 for every man, woman and child living in the United States.

What the Obama administration and the Democrats are doing to future generations is absolutely criminal.

So what about the Republicans?

Well, when the Republicans have had control of the White House they have run up debt “like a drunken sailor” as well.

If the Republican Party wants to have any credibility when it comes to fiscal issues, it needs to publicly admit that George W. Bush was a horrible failure when it came to the federal budget.

George W. Bush was a “big government” politician that dramatically increased the size of the federal government and spent money like it was going out of style.

He was not a conservative when it came to fiscal issues, and that is the truth.

Sadly, neither political party is proposing to balance the federal budget any time soon.  There are a few politicians that have suggested doing this, but they have been marginalized.

So why don’t our politicians support living within our means?

Well, the truth is that if the federal government balanced the budget today, it would result in a catastrophic drop in living standards inside the United States.  We are currently living in an era of debt-fueled “false prosperity”, and if that false prosperity were to disappear there would be riots in the streets of our major cities within months.

It is much easier for our politicians to continue to pile up more debt and to continue to kick the can down the road.

But this party cannot go on too much longer.  Already, the United States has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.

As you can see from the chart below, we are in a whole lot of trouble….

Our foolishness will catch up to us in a big way eventually.

Another area where the two major political parties agree is that they both fully support the Federal Reserve.

The Federal Reserve is supposed to keep inflation low, but the truth is that the Fed has absolutely killed the value of the U.S. dollar.  Just check out the chart below which was produced by the Fed itself.  It shows how dramatically the purchasing power of the U.S. dollar has declined over the years….

Keep in mind that the chart above is using official government numbers which actually downplay how much the U.S. dollar has been debased.

If inflation was measured the exact same way that it was back in 1980, the annual rate of inflation would be more than 10 percent right now.

By any measure, the Federal Reserve has been a colossal failure for the American people.  Since the Fed was created, our currency has lost more than 95 percent of its value and our national debt has gotten more than 5000 times larger.

The current Federal Reserve Chairman, Ben Bernanke, has a track record of failure that is legendary.  If you doubt this, just read this article, this article and this article.

But Barack Obama just loves Bernanke.  He nominated him for another term as Fed Chairman and he never criticizes anything that he does.

Thanks Obama.

So will things be any different under Mitt Romney?

Of course not.

During one Republican debate, Mitt Romney actually had the gall to try to explain to all of us why “we need to have a Fed“.

Mitt Romney says that he is “not going to take my effort and focus on the Federal Reserve“.

But the Federal Reserve is at the very heart of our economic problems.

Doesn’t Mitt Romney understand that?

The mainstream media is already telling us not to expect any significant changes at the Fed if Romney wins.  A recent Reuters article had the following headline….

Analysis: A Romney win would likely change little at Federal Reserve

Are you starting to understand why I am saying that there is not going to be a solution to our economic problems at the national level?

A great economic cataclysm is coming, and there is very little hope that it can be averted.

So what does that mean?

It means that we all need to start preparing to weather the coming storm on an individual level.

The nation as a whole may not change course, but as individuals and as families we can change course.

All of us can work to reduce our expenses, get out of debt, build up a six month financial cushion, learn to grow a garden and slowly become more independent of the system.

Both political parties are leading us down a road that will only end in economic disaster.

Instead of waiting for a “national solution” that is never going to come, you need to focus on being your own solution.

Time is short, so you better get ready.

Bed Bugs

The United States is currently experiencing a nightmarish epidemic of disgusting blood sucking parasites, and no, I am not talking about our politicians.  There is a full blown bed bug epidemic happening all across America and it just seems to get worse with each passing year. For cities such as New York and Philadelphia which are at the epicenter of the outbreak, bed bugs have become an important political issue.  Once bed bugs become entrenched in an area, virtually everyone is thinking about them.  Bed bugs will not kill you, but they can drive you insane.  Anyone that has ever had big, red welts all over their bodies from bed bug bites knows how terribly frustrating bed bugs can be.  They can be incredibly difficult to get rid of.  So why am I talking about bed bugs when there are hundreds of other important economic issues to talk about right now?  Well, this is just another example of how our country seems to be cursed.  Even the simplest things seem to become major problems for us these days. The reality is that there were almost no bed bugs inside the U.S. between the end of World War II and the 1990s.  But today the number of bed bugs is absolutely exploding.  I remember when I was young my mother would tell me to “sleep tight and don’t let the bed bugs bite”, but I didn’t even know what bed bugs were because I had never seen any.  But today, CBS News says that more than 250 million dollars a year (and rising) is spent fighting bed bugs.

Things have gotten so bad that a “National Bed Bug Summit” was held earlier this year in Washington D.C.

Will we soon have a “war on bed bugs”?

I can just see it now: “You are either with us or you are with the bed bugs”.

So exactly what are bed bugs?

Well, basically bed bugs are small, brown, flat insects that love to suck the blood of animals and humans.  They are commonly found in hospitals, businesses, homes, sofas, mattresses, buses, subways, trains, airplanes, classrooms, retail stores, movie theaters and especially in hotels.

As mentioned above, you will not die from bed bug bites.  But many people have been driven absolutely crazy from constant bed bug bites for weeks or months on end.

One of the worst things about a bed bug infestation is all of the itching that bed bug bites cause.  It can get to a point where it can be absolutely debilitating.

Some people become so traumatized by the fear of having bed bugs crawl all over them and bite them all night that they actually become afraid to go to sleep.  A really bad bed bug infestation can cause panic attacks and even depression.

Right now there are large numbers of New Yorkers that are absolutely obsessed with bed bugs.  The bed bug infestation in the city just seems to get worse and worse.  The following is a quote from a local NBC news station in New York….

New statistics from the city’s Department of Housing, Preservation and Development reveal an epidemic: Manhattanites have been complaining about bed bugs at six times the rate they did in 2005. On Staten Island, the number of complaints has soared 32 times higher than it was five years ago.

Just because you have bed bugs does not mean that you are dirty or unsanitary.  The truth is that some of the finest hotels in the country have bed bugs.

According to The New York Post, bed bugs have even infested the Metropolitan Opera House, the Waldorf-Astoria Hotel, the Empire State Building and the United Nations.

I once experienced a problem with bed bugs myself.  Back when I was much younger and barely scraping by financially, I figured I would save a few bucks by buying a used mattress.

That was a huge mistake.

For weeks I would wake up with huge red bites all over my legs.

Never, ever again will I buy a used mattress.

Once bed bugs arrive in your home, they can be almost impossible to get rid of without professional help.

Throwing out one piece of furniture or covering your mattress in plastic might help a little bit but it will not solve the problem.

Some adult bed bugs can live for up to 12 months without feeding at all.

Just when you think they are gone they can come out and start feasting again.

Also, bed bugs are great at multiplying.  Female bed bugs can lay up to 5 eggs in a single day and can lay up to 500 eggs during a lifetime.

Perhaps your area of the country does not have a problem with bed bugs yet, but this epidemic is spreading.  Just check out the CBS News video report posted below….

Perhaps you saw in the news recently that some scientists have found that bed bugs are now carrying a “superbug” known as MRSA.

Scientists in Vancouver, Canada say that for the first time ever they have found bed bugs that have methicillin-resistant Staphylococcus aureus.  The following is a quote from a recent CTV article about this discovery….

Researchers discovered that a sample of the blood-sucking insects taken from three patients who live in Vancouver’s gritty Downtown Eastside were carrying two types of drug-resistant bacteria.

Co-investigator Dr. Marc Romney, a medical microbiologist at nearby St. Paul’s Hospital, said five bedbugs plucked from the patients or their belongings were carrying MRSA (methicillin-resistant Staphylococcus aureus) or VRE (vancomycin-resistant enterococci). Dubbed superbugs, the bacteria are resistant to many standard antibiotics.

The good news is that these scientists do not have any evidence that bed bugs are spreading MRSA to humans.

Bed bugs are able to be infected by at least 28 different human pathogens, but at least to this point they are not very effective at spreading them.

Let us hope that does not change.

It turns out that MRSA has also been found in our supermarket meat.

For the first time in the United States, scientists have found antibiotic-resistant MRSA in supermarket meat.

According to Business Insider, “scientists at Wayne State University tested 289 raw meat samples from 30 Detroit grocery stores. Six of the samples were infected with the potentially deadly bacteria, including three chicken, two beef and one turkey.”

Yuck!

MRSA is not something you want to mess around with.

This is yet another example of how unsafe our food is becoming.

We like to think of ourselves as so advanced, but we can’t even protect ourselves from annoying little bed bugs and we can’t even keep very serious pathogens out of our food supply.

If you stop and think about all of the gross things in our society it can really stress you out.  For example, the next time you use a soda fountain at a fast food restaurant there is a good chance that you may encounter fecal contamination.  Just check out the following quote from Organic Health….

According to a study published in the January issue of the International Journal of Food Microbiology, nearly half of the 90 beverages from soda fountain machines in one area in Virginia tested positive for coliform bacteria – which could indicate possible fecal contamination.

But getting back to bed bugs, for those dealing with an infestation the number one thing they want to know is what to do about it.

Well, there was one very effective chemical known as “Propoxur”, but it has been banned by the EPA.  It turns out that Propoxur “is a known human carcinogen” and is very dangerous to children.

Some are urging the EPA to reconsider this ban, but so far the EPA has been standing firm.

Meanwhile, the bed bugs continue to multiply and terrorize more Americans.

On one bed bug forum, one woman identified as “avenae” shared a particularly brutal bed bug horror story….

It all started in April, woke up one morning with a red welt on my leg. Never really thought much of it. Then it kept happening, so I thought I had fleas, treated my animals, checked the house for them. Never saw a single flea. Also no one else in my home was being affected. Then I thought maybe I was having an allergic reaction to a new soap I had bought so I stopped using that and nothing changed. Kept realizing I was waking up in the middle of the night scratching my body parts almost raw. The itch was so intense it felt like a million fire ants biting me all over. So I start researching, read up on bed bugs and searched my entire home….nothing. But I seem to be having a sever reaction to the bites.

Mind you I hadn’t traveled, had any visitors, nothing that would have brought these nasty little creatures into my home.

Ever night I wake up, every morning new red welts all over me. One night I thought I’d wear long pants and sock and a long sleeve shirt, only to wake up with bites all over my neck and face! STILL could not find a single bug. It got to the point were I was crying myself to sleep at night and taking sleeping pills just to be able to sleep. Didn’t want to start sleeping on the couch out of fear of them following me out.

Do you have a similar bed bug horror story?

If so, we would love to hear about it.  Please feel free to share your thoughts about bed bugs below….

***UPDATE***

A reader named Emily left the following comment that I think we all should consider the next time we travel….

“I use to work as a Hotel Manager. Trust me when I say, all hotels are infested with bed bugs. It was terrible fighting with the corp. owners of the property; they only weighed your safety against profits and profits always won! We did try to kill the bugs, but nothing really is effective so we rented out infective rooms and if guest complained, we would offer them a discount on the room. It finally got to the point I could not look people in the face so I left. It goes with out saying; I would never stay in a hotel room, period! What can you do if you must travel, I don’t know! It is a fact of life that we must expose our selves to many nasty parasites in the environment and most of the time we survive, but nature is coming up with much more deadly threats all the time and it is no longer an option to be exposed. We need to wake up to these threats.”

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