The American People Are Utterly Clueless About What Is Going To Happen As We Enter 2015

Wrong Way - Public DomainThe American people are feeling really good right about now.  For example, Gallup’s economic confidence index has hit the highest level that we have seen since the last recession.  In addition, nearly half of all Americans believe that 2015 will be a better year than 2014 was, and only about 10 percent believe that it will be a worse year.  And a lot of people are generally feeling quite good about the people that have been leading our nation.  According to Gallup, once again this year Hillary Clinton is the most admired woman in America and Barack Obama is the most admired man in America.  I don’t know what that says about our nation, but it can’t be good.  Unfortunately, when things seem to be going well common sense tends to go out the window.  A couple days ago, the Guardian ran an article entitled “Goodbye to one of the best years in history“, and a whole lot of people out there are feeling really optimistic these days.  But should they be?

Sadly, what we are experiencing right now is so similar to what we witnessed in 2007 and early 2008.  The stock market had been on a great run, people were flipping houses like crazy and most people were convinced that the party would never end.

But then it did end – very painfully.

The signs of trouble were there, but most people chose to ignore them.

Sadly, the exact same thing is happening again.

On Monday, the price of oil hit a brand new five year low.  As I write this, U.S. oil is sitting at a price of $53.76 a barrel, which is nearly a 50 percent decline from the peak earlier this year.

There is only one other time in history when the price of oil has declined by more than 50 dollars a barrel in such a short time frame.  That was back in the middle of 2008, shortly before the worst stock market crash since the Great Depression.

Unless the price of oil starts really bouncing back, the U.S. economy is going to be hit really hard.

Since 2009, oil industry employment has risen by 50 percent.  And jobs in the oil industry pay quite well.  One figure that I saw put the average weekly wage at about 1700 dollars.

But now we aren’t going to be gaining those types of jobs.  Instead, we are going to rapidly start losing them.

Already, the oil rig count has dropped for three weeks in a row and is now at an 8 month low.  And as the oil industry suffers, all of the industries that it supports are also going to start feeling the pain.  In fact, Business Insider is reporting that Texas business executives are “freaked out” about what is happening…

Business executives in Texas are worried about the drop in oil prices.

On Monday, the Dallas Fed’s latest manufacturing survey showed that activity in Texas was slowing down.

The latest composite index came in at 4.1, widely missing expectations and down big from November’s reading. Expectations were for the index to come in at 9, down from 10.5 last month.

So while most Americans are feeling really good about the coming year, many of those with an inside view are becoming quite alarmed.  One Texas business executive went so far as to say that the stunning decline in oil prices was going to make things ugly … quickly.

Meanwhile, the 9 trillion dollar U.S. dollar carry trade is starting to unwind.

The following is an excerpt from a recent Zero Hedge article

Oil’s collapse is predicated by one major event: the explosion of the US Dollar carry trade. Worldwide, there is over $9 TRILLION in borrowed US Dollars that has been ploughed into risk assets.

Energy projects, particularly Oil Shale in the US, are one of the prime spots for this. But it is not the only one. Economies that are closely aligned with commodities (all of which are priced in US Dollars) are getting demolished too.

Just about everything will be hit as well. Most of the “recovery” of the last five years has been fueled by cheap borrowed Dollars. Now that the US Dollar has broken out of a multi-year range, you’re going to see more and more “risk assets” (read: projects or investments fueled by borrowed Dollars) blow up. Oil is just the beginning, not a  standalone story.

If things really pick up steam, there’s over $9 TRILLION worth of potential explosions waiting in the wings. Imagine if the entire economies of both Germany and Japan exploded and you’ve got a decent idea of the size of the potential impact on the financial system.

And that’s assuming NO increased leverage from derivative usage.

Ouch.

And yes, as that last excerpt mentioned, derivatives could soon become a massive problem.  The big banks are holding trillions in commodity derivatives that could blow up if the price of oil does not rebound.  Overall, there are five U.S. banks that each have more than 40 trillion dollars of exposure to derivatives of all types, and the total global derivatives bubble is at least 700 trillion dollars at this point.

At the same time, many are becoming concerned that the unprecedented bond bubble that we are witnessing could soon implode and trillions of dollars of “wealth” could disappear into thin air.

In fact, Bloomberg says that we should “get ready for a disastrous year” for bonds…

Get ready for a disastrous year for U.S. government bonds. That’s the message forecasters on Wall Street are sending.

With Federal Reserve Chair Janet Yellen poised to raise interest rates in 2015 for the first time in almost a decade, prognosticators are convinced Treasury yields have nowhere to go except up. Their calls for higher yields next year are the most aggressive since 2009, when U.S. debt securities suffered record losses, according to data compiled by Bloomberg.

That certainly does not sound very optimistic, does it?

Anyone with even a minimal amount of intelligence should be able to see the massive financial bubbles that the central banks of the world have created, and anyone with even a minimal amount of intelligence should be able to see that we are heading for a massive financial implosion which will be extraordinarily painful.

Unfortunately, as I wrote about yesterday, the American people have become “zombiefied“.  Instead of thinking for themselves, they let “the matrix” do their thinking for them.  And right now “the matrix” is telling them that everything is going to be just fine in 2015.

If you do not think that there is a propaganda machine that tells us what to think, I want you to watch the video posted below very carefully.  This video makes it so obvious that even a small child can understand it…

 

28 Good Questions That The Mainstream Media Should Be Asking

Why is there so little trust in the mainstream media these days?  CNN ratings have been hovering close to record lows over the past few months.  A recent Gallup survey found that 60 percent of all Americans “have little or no trust” in the mainstream media.  That was a record high according to Gallup.  So why is this happening?  Sadly, the truth is that the mainstream media quit telling the truth a long time ago.  The mainstream media has an agenda, and more Americans than ever are beginning to recognize this.  Once upon a time, control of the news in the United States was at least somewhat decentralized.  But now there are just six giant media corporations that control almost everything that we see, hear and watch.  The version of “the news” that they give us is designed to serve the interests of those corporate giants and the other corporate giants that spend billions of dollars to advertise their products through those outlets.  Watching the news on television can be an extremely frustrating experience these days.  Yes, there are little bits and pieces of the truth in there, but you have to wade through an awful lot of “infotainment” to get to those bits and pieces.  That is one of the reasons why the “alternative media” has absolutely exploded in recent years.  The American people are hungry for the truth, and they are increasingly turning to alternative sources of news on the Internet in an attempt to find it.

We live at a time when the world is changing more rapidly than ever before.  Just about everything that can be shaken is being shaken, and anyone with half a brain realizes that we are heading for challenges that previous generations never even could have imagined.

There certainly is no shortage of news, but instead of focusing on the terribly important issues that we are facing, the mainstream media feeds us an endless stream of fluff, scandals and celebrities.

Just check out some of the headlines that I found on the front pages of major mainstream news websites today….

“Man Dies After Roach-Eating Contest”

“Ex-NFL Cheerleader Admits To Sex With Minor”

“Facebook Rolls Out Pinterest-Like Tool For Buying Stuff”

“Grumpy Cat Becomes Internet Sensation”

So what should the mainstream media really be talking about today?

The following are 28 good questions that the mainstream media should be asking….

1. Why is the IMF warning that there is an “alarmingly high” risk of a deeper global economic slowdown?

2. Why is Switzerland preparing for “major civil unrest” throughout Europe?

3. If the Spanish financial system completely collapses, what is that going to mean for the rest of Europe and the rest of the globe?

4. Is Turkey about to drag the rest of NATO (including the United States) into a war with Syria?

5. Why aren’t people screaming in outrage about the fact that the U.S. national debt increased by more than a trillion dollars for the fourth straight year in 2012?

6. Should we be concerned that the U.S. government added more to the U.S. national debt on the first day of fiscal year 2013 than it did from 1776 to 1941 combined?

7. If temporary refinery problems can cause some gas stations to shut down and cause gas prices in California to skyrocket to all-time highs, what would a real crisis do?

8. Why are some analysts predicting that a “rapid collapse” is coming for the U.S. dollar?

9. Will the U.S. dollar soon lose its status as the primary reserve currency of the world?

10. Why is Marc Faber warning that the wealthy “may lose up to 50 percent of their total wealth“?

11. By keeping interest rates near zero, is the Federal Reserve crushing the retirement dreams of millions of elderly Americans?

12. Why do Barack Obama, Mitt Romney and most members of Congress continue to stand behind the TSA when nearly 400 TSA employees have been fired for stealing from travelers since 2003?

13. Why are nearly half a million employees of the federal government making over $100,000 a year?

14. How in the world can you have a debate about the economy that lasts for an hour and a half and never even mention Ben Bernanke, the Federal Reserve or quantitative easing?

15. Why are Romney campaign signs being smeared with excrement?

16. British taxpayers spent 57.8 million dollars on the royal family in 2011.  U.S. taxpayers spent 1.4 billion dollars on the Obamas that same year.  How in the world can this be justified?

17. Why does the U.S. government treat our military veterans like garbage?  Many of them have given everything for their country.  Shouldn’t we treat them with more respect?

18. Why is the mainstream media ignoring a warning that an international gang of cybercriminals plans “to steal money from the online accounts of thousands of consumers at 30 or more major U.S. banks“?

19. The New England Complex Systems Institute in Cambridge, Massachusetts is warning that rapidly rising global food prices could soon lead to massive food riots all over the planet.  Is this something that we should be concerned about?

20. Why is the United Nations pushing to have the authority to impose “global taxes” on all of us?

21. How did we get to the point where sex trafficking is now at epidemic levels all over the United States?

22. Why are so many young people being arrested?  Should we be concerned that 41 percent of all Americans have been arrested by the time they reach the age of 23?

23. Why are most Americans either overweight or obese or severely obese?

24. How was one Baltimore woman able to accumulate 30 free cell phones all paid for by the federal government?

25. Why are nearly 30 percent of all young adults in the 25 to 34 year old age bracket living at home with their parents?

26. Why has the birth rate in the United States fallen to an all-time low?

27. With the race for president incredibly tight right now, will the side that loses end up accusing the other side of using voter fraud to steal the election?

28. Is the U.S. Supreme Court about to make it illegal to resell our own stuff at yard sales, in thrift stores and on eBay?

Do you have any questions to add to this list?

Please feel free to post a comment with your thoughts below….

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