It’s The Economy Stupid – Nearly 80 Percent Of Americans Say They Don’t Trust The Government

Back during Bill Clinton’s 1992 presidential campaign, “It’s the economy, stupid” was a phrase that Clinton campaign officials used to keep the focus on the troubled U.S. economy.  The truth is that Americans as a whole care about very few things more than their own economic well being, and by keeping the debate focused on economic issues, Clinton was able to defeat George H. W. Bush.  Nearly 20 years later, that slogan is as true today as it ever has been.  The American people care dearly about their own wallets and bank accounts.  With the economy tanking badly and with unemployment at very high levels, dissatisfaction with the U.S. government is at record highs.  In fact, acccording to a newly released poll byPew Research Center, just 22% of Americans believe that they can trust the government in Washington almost always or most of the time.  Nearly half of the respondents said that the government has a negative effect on their daily lives.  Only 25% of those responding expressed a favorable opinion of Congress, which was the lowest favorable rating for Congress in a quarter century of Pew Research Center surveys.

So why are the American people so angry and frustrated with their government?

It’s the economy, stupid.

Millions of Americans have lost their jobs and their homes, and millions more Americans are on the verge of losing their jobs and homes.

There are approximately 5.5 unemployed Americans for every job opening.  RealtyTrac projects that there will be 4.5 million home foreclosures in 2010.  The economic nightmare just keeps going from bad to worse.

The result is a massive horde of pissed off American voters.

As long as Americans are fat and happy and their wallets are full, most of them really could care less how involved the government is in their lives.  But when things go bad economically, all of a sudden the government becomes a major annoyance.

And this is not a Republican v. Democrat thing either.  The truth is that both parties have been radically expanding the size of the U.S. government for decades.  Both parties have been spending taxpayer money like there is no tomorrow.  Both parties have mortgaged the future of America to please their constituents.  Now average Americans from both parties are alarmed at how large the government has become and how badly it is screwing things up.  Just consider the following quote from USAToday.com….

“The government’s been lying to people for years. Politicians make promises to get elected, and when they get elected, they don’t follow through,” says Cindy Wanto, 57, a registered Democrat from Pennsylvania who joined several thousand for a rally in Washington on April 15 — the tax filing deadline. “There’s too much government in my business. It was a problem before Obama, but he’s certainly not helping fix it.”

If he wants to get re-elected, the best thing that Barack Obama could do to get votes would be to get the U.S. government to spend as much money as humanly possible in a last ditch attempt to stimulate the U.S. economy with a flood of paper money.  That might work just long enough to get re-elected and buy himself another four years in the White House.  Of course that strategy would also likely create hyperinflation and would make the long-term financial problems of the U.S. government far, far worse.

But unless the American people start feeling a lot better about the economy, they are not going to look too kindly on anyone who is currently holding office either in 2010 or in 2012.

Meanwhile, playing politics is more profitable than it ever has been.

Barack Obama and his wife Michelle raked in a cool 5.5 million dollars in 2009.

Sarah Palin has earned approximately 12 million dollars since last July.

According to Forbes magazine, Glenn Beck made 32 million dollars in the 12 months ending March 1st.

Politicians may not be very popular these days, but it sure is a profitable racket if you can get into the club.

Republicans make a ton of money convincing millions of Americans that the Democrats are the cause of all the problems that they are experiencing.  Democrats make a ton of money convincing millions of Americans that that Republicans are the cause of all the problems that they are experiencing.  Meanwhile, both parties continue to pile up the biggest mountain of debt in the history of the world and continue to sell out the future of our children and our grandchildren.

Neither party seems interested in addressing the root causes of our national financial nightmare.  Instead, politicians from both parties seem to think that they can keep making all kinds of promises to get elected and then never delivering on them.

Well, the American people are starting to wake up to all of this nonsense.  Tens of millions of Americans are experiencing extreme financial pain and they are looking for answers.

Unfortunately, the U.S. economy is going to get a whole lot worse, and very few of the politicians in Washington have the guts to tell the American people the truth.

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12 Reasons Why Millions Of Americans Are Incredibly Angry About The State Of The U.S. Economy

We have reached a very interesting turning point in American history.  More than at any other point in modern times, Americans are deeply angry about the state of the economy.  In fact, it is no stretch to say that millions of U.S. citizens are hopping mad about the economic situation.  Most of them don’t know exactly what is wrong, and even fewer of them have any idea about how to go about fixing things, but they do know one thing.  They know that they are mad.  As Americans, we were raised with the belief that our overwhelmingly powerful economic machine would always provide good jobs and prosperity for all of us as long as we worked hard.  But we have come to learn that is not true.  We have come to learn that our politicians and our leaders have squandered the great inheritance that our forefathers left for us.  We have come to learn that the financial future of our nation is beyond bleak.  We have come to learn that our government has piled up the biggest mountain of debt in the history of the world.  Now the foolish decisions of the past several decades are catching up with us.  The U.S. economy is experiencing structural failure, and the American people are angry.  They want answers.  They want someone to fix things.  They want things to go back to the way they used to be.

But that isn’t going to happen.  Once the American people truly start realizing that, the anger that will erupt will dwarf what we are seeing now.

Not that they are aren’t already incredibly steamed.  The following are 12 reasons why many Americans are absolutely furious about the state of the U.S. economy….

#1) There simply are not enough jobs for everyone.  The number of unemployed Americans per job opening has started to increase again, hitting 5.5 in February.  Even many of those who are able to get some work find themselves only able to obtain part-time employment.  Gallup’s underemployment measure hit 20.0% on March 15th.  This was up from 19.7% two weeks earlier and 19.5% at the start of the year.

#2) More Americans than ever find themselves having to rely on the U.S. government just to survive.  According to the U.S. Department of Agriculture, about 39.4 million Americans, a new all-time record, received food stamps in January.  This was up 22% from a year earlier.  In fact, the number of Americans on food stamps has hit all-time records for 14 consecutive months.

#3) Foreclosures continue to set records across the United States.  RealtyTrac, the California-based authority on property trends and valuations, projects that there will be 4.5 million home foreclosures before the end of this year.  If you figure 4 people per household, that is another 18 million people that will be forced out of their homes.

#4) As unemployment and foreclosures continue to soar, “tent slums” have started popping up all over the United States.  Is this why our founding fathers fought and died?  So we could all live in “tent slums” as the big fat cats on Wall Street roll around in their bailout cash?

#5) But even with all of these economic problems, the price of food is going up.  Rising demand and reduced supply drove supermarket prices for 16 basic foods up 6.2% in the first quarter of 2010.

#6) Due to the exploding government debt, the American people are going to be confronted with some tough choices.  According to Federal Reserve Chairman Ben Bernanke, the United States will soon have to make difficult choices between higher taxes and reduced social spending.  Either alternative will slow down the U.S. economy.

#7) Meanwhile, corruption in the financial system is running rampant.  The CEOs of bailed-out regional banks are actually getting big raises.  The guy who helped bring down AIG is going to get off scott-free and will be able to keep the millions in profits that he made in the process.

#8) But the biggest fraud is being committed by the boys at the top of the food chain.  A whistle blower has come forward with “smoking gun” evidence of price manipulation by major financial institutions in the precious metals markets.  The scope of this fraud is in the trillions of dollars.  The American people can’t stomach much more of this type of thing.

#9) Almost all financial experts agree that the era of super cheap money is over and that interest rates are about to rise significantly.  This is going to make it much more expensive for most Americans to borrow money to buy a home, to buy a car, to buy things with their credit cards or to borrow money for education.  Those who already have adjustable loans are going to find a much larger portion of their income going to pay interest.  Needless to say, this is going to cause the U.S. economy to experience a significant slowdown.

#10) One of the biggest things that the American people are upset about is the “health care reform” bill that was just rammed down their throats.  It turns out that “health care reform” is actually going to be the biggest tax increase in American history.  Not only that, but because of taxes and mandates imposed upon health insurance companies by the legislation, health insurance premiums are also about to increase substantially.  So where will the average American family get the money to pay for these increases?

#11) In addition, the new health care law that was supposed to give all of us much better health care is actually going to force the cancellation of at least 60 doctor-owned hospitals that were scheduled to be opened according to the executive director of Physician Hospitals of America.  Why?  Well, it turns out that the new law singles out physician-owned hospitals, making new physician-owned projects ineligible to receive payments for Medicare and Medicaid patients.

#12) The reality is that Americans are increasingly becoming disenchanted with the lack of leadership in both political parties.  Approval ratings for leaders in both parties are extremely low, and anger at politicians is at an all-time high.  The Tea Party movement is just one symptom of the seething anger many Americans are feeling.  While many Americans are gathering together at large protest rallies to demonstrate against the policies of the government, others are expressing their displeasure on blogs and websites.  There has never been a moment in modern times when Americans have been so disenchanted with their political leadership.

This anger is not going to go away.  It could be soothed a bit if the U.S. economy was fully fixed and things went back to the way they used to be.  But as noted previously, that just is not going to happen.  Harder times are ahead.  Americans are going to get angrier and angrier.

But there is not much that can be done to prevent that anger.  The politicians who are in office when things really hit the fan are going to take the brunt of the anger, but it won’t be their fault.  The truth is that this economic collapse has been building for decades.  The American people are just not going to understand that the financial system cannot be fixed overnight.

Dark times are coming.  It is not going to be pretty.  There is going to be a lot of anger and a lot of hate.  But all of these economic problems could be seen well ahead of time and there have been those who have been screaming and yelling about them for decades.

But very few people wanted to listen.

Austin Coins

FDIC Opens A Massive New Office Near Chicago Just To Handle The Coming Tidal Wave Of Midwest Bank Closings They Are Expecting

Is the Midwest about to see a massive wave of bank closings?  That is apparently what the FDIC is expecting.  The FDIC is opening up a massive new satellite office in the Chicago area that will be dedicated to managing receiverships and liquidating assets from failed Midwest banks.  This new facility will occupy 7 floors in an 11 floor building.  The office space that the FDIC is leasing is well over 100,000 square feet and will employ approximately 500 temporary employees and contractors.  This is a huge expenditure by the FDIC.  So will there really be so many bank failures over the next couple of years in the Midwest that a 100,000 square foot facility is required to deal with it?

Apparently someone at the FDIC thinks so.

But this is not the first time the FDIC has done something like this.

The FDIC has already opened similar offices in Irvine, California and Jacksonville, Florida.  Each time, the number of bank failures in those states increased dramatically after the FDIC opened those facilities.

So what is going to cause such a massive wave of bank failures that the FDIC will need hundreds of new employees just to deal with it?

Well, as we have reported previously, the financial powers in the U.S. are now moving to reduce the money supply, hoard cash and tighten credit.  All of those things cause a slowdown in economic growth.

At the same time, a gigantic “second wave” of adjustable mortgages is scheduled to reset starting this year.  This could push the U.S. economy into “part 2” of the housing crisis.  Just check out the chart below….

In fact, one new study has been released that estimates that 5 million houses and condominiums on which mortgages are now delinquent will go through foreclosure and be put on the market within the next few years.

Another devastating housing crisis would absolutely destroy the vast majority of small to mid-size banks in the United States.  In such a scenario, the FDIC would definitely be able to make use of the new facilities that they are opening up around the United States.

There are even rumors that the big bankers do not intend for most small and mid-size bankers to survive the coming crisis.  There are whispers that the big bankers see all of this economic turmoil as a great opportunity to “consolidate” the banking industry.

So what should you and your family do to get prepared?  Get out of debt and get rid of any unnecessary expenses.  Try to start developing alternate streams of income and come up with a plan for what you will do if you lose your job.

The reality is that hard times are coming and a lot of people are going to lose their homes and their jobs.  Don’t just blindly trust “the system” – now is the time to make sure that you and your family will be prepared even if a total economic collapse happens.

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