One of the things that this era of American history will be known for is conspicuous consumption. Even though many of us won’t admit it, the truth is that almost all of us want a nice vehicle and a large home. They say that “everything is bigger in Texas”, but the same could be said for the entire nation as a whole. As you will see below, the size of the average new home has just hit a brand new record high and so has the size of the average auto loan. In the endless quest to achieve “the American Dream”, Americans are racking up bigger debts than ever before. Unfortunately, our paychecks are not keeping up and the middle class in the United States is steadily shrinking. The disparity between the lifestyle that society tells us that we ought to have and the size of our actual financial resources continues to grow. This is leading to a tremendous amount of frustration among those that can’t afford to buy expensive cars and large homes.
I remember the days when paying for a car over four years seemed like a massive commitment. But now nearly a quarter of all auto loans in the U.S. are extended out for six or seven years, and those loans have gotten larger than ever…
In the latest sign Americans are increasingly comfortable taking on more debt, auto buyers borrowed a record amount in the first quarter with the average monthly payment climbing to an all-time high of $474.
Not only that, buyers also continued to spread payments out over a longer period of time, with 24.8 percent of auto loans now coming with payment terms between six and seven years according to a new report from Experian Automotive.
That’s the highest percentage of 6 and 7-year loans Experian has ever recorded in a quarter.
Didn’t the last financial crisis teach us about the dangers of being overextended?
During the first quarter 0f 2014, the size of the average auto loan soared to an all-time record $27,612.
But if you go back just five years ago it was just $24,174.
And because we are taking out such large auto loans that are extended out over such a long period of time, we are now holding on to our vehicles much longer.
According to CNBC, Americans now keep their vehicles for an average of six years and one month.
Ten years ago, it was just four years and two months.
My how things have changed.
And consumer credit as a whole has also reached a brand new all-time record high in the United States.
Consumer credit includes auto loans, but it doesn’t include things like mortgages. The following is how Investopedia defines consumer credit…
Consumer credit is basically the amount of credit used by consumers to purchase non-investment goods or services that are consumed and whose value depreciates quickly. This includes automobiles, recreational vehicles (RVs), education, boat and trailer loans but excludes debts taken out to purchase real estate or margin on investment accounts.
As you can see from the chart below, Americans were reducing their exposure to consumer credit for a little while after the last financial crisis struck, but now it is rapidly rising again at essentially the same trajectory as before…
Have we learned nothing?
Meanwhile, America also seems to continue to have an insatiable demand for even larger homes.
According to Zero Hedge, the size of the average new home in the United States has just hit another brand new record high…
There was a small ray of hope just after the Lehman collapse that one of the most deplorable characteristics of US society – the relentless urge to build massive McMansions (funding questions aside) – was fading. Alas, as the Census Bureau today confirmed, that normalization in the innate desire for bigger, bigger, bigger not only did not go away but is now back with a bang.
According to just released data, both the median and average size of a new single-family home built in 2013 hit new all time highs of 2,384 and 2,598 square feet respectively.
And while it is known that in absolute number terms the total number of new home sales is still a fraction of what it was before the crisis, the one strata of new home sales which appears to not only not have been impacted but is openly flourishing once more, are the same McMansions which cater to the New Normal uberwealthy (which incidentally are the same as the Old Normal uberwealthy, only wealthier) and which for many symbolize America’s unbridled greed for mega housing no matter the cost.
There is certainly nothing wrong with having a large home.
But if people are overextending themselves financially, that is when it becomes a major problem.
Just remember what happened back in 2007.
And just like prior to the last financial crisis, Americans are treating their homes like piggy banks once again. Home equity lines of credit are up 8 percent over the past 12 months, and homeowners are increasingly being encouraged to put their homes at risk to fund their excessive lifestyles.
But there has been one big change that we have seen since the last financial crisis.
Lending standards have gotten a lot tougher, and many younger adults find that they are not able to buy homes even though they would really like to. Stifled by absolutely suffocating levels of student loan debt, many of these young adults are putting off purchasing a home indefinitely. The following is an excerpt from a recent CNN article about this phenomenon…
The Millennial generation is great at many things: texting, social media, selfies. But buying a home? Not so much.
Just 36% of Americans under the age of 35 own a home, according to the Census Bureau. That’s down from 42% in 2007 and the lowest level since 1982, when the agency began tracking homeownership by age.
It’s not all their fault. Millennials want to buy homes — 90% prefer owning over renting, according to a recent survey from Fannie Mae.
But student loan debt, tight lending standards and stiff competition have made it next to impossible for many of these younger Americans to make the leap.
This is one of the primary reasons why homeownership in America is declining.
A lot of young adults would love to buy a home, but they are already financially crippled from the very start of their adult lives by student loan debt. In fact, the total amount of student loan debt is now up to approximately 1.1 trillion dollars. That is even more than the total amount of credit card debt in this country.
We live in a debt-based system which is incredibly fragile.
We experienced this firsthand during the last financial crisis.
But we just can’t help ourselves.
We have always got to have more, and society teaches us that if we don’t have enough money to pay for it that we should just go into even more debt.
Unfortunately, just as so many individuals and families have found out in recent years, eventually a day of reckoning arrives.
And a day of reckoning is coming for the nation as a whole at some point as well.
You can count on that.
What in the world is China up to? Over the past several years, the Chinese government and large Chinese corporations (which are often at least partially owned by the government) have been systematically buying up businesses, homes, farmland, real estate, infrastructure and natural resources all over America. In some cases, China appears to be attempting to purchase entire communities in one fell swoop. So why is this happening? Is this some form of “economic colonization” that is taking place? Some have speculated that China may be intending to establish “special economic zones” inside the United States modeled after the very successful Chinese city of Shenzhen. Back in the 1970s, Shenzhen was just a very small fishing village, but now it is a sprawling metropolis of over 14 million people. Initially, these “special economic zones” were only established within China, but now the Chinese government has been buying huge tracts of land in foreign countries such as Nigeria and establishing special economic zones in those nations. So could such a thing actually happen in America? Well, according to Dr. Jerome Corsi, a plan being pushed by the Chinese Central Bank would set up “development zones” in the United States that would allow China to “establish Chinese-owned businesses and bring in its citizens to the U.S. to work.” Under the plan, some of the $1.17 trillion that the U.S. owes China would be converted from debt to “equity”. As a result, “China would own U.S. businesses, U.S. infrastructure and U.S. high-value land, all with a U.S. government guarantee against loss.” Does all of this sound far-fetched? Well, it isn’t. In fact, the economic colonization of America is already far more advanced than most Americans would dare to imagine.
So how in the world did we get to this point? A few decades ago, the United States was the unchallenged economic powerhouse of the world and China was essentially a third world country.
So what happened?
Well, we entered into a whole bunch of extremely unfavorable “free trade” agreements, and countries such as China began to aggressively use “free trade” as an economic weapon against us.
Over the past decade, we have lost tens of thousands of businesses and millions of jobs to China. When the final numbers for 2012 come out, our trade deficit with China for the year will be well over 300 billion dollars, and that will be the largest trade deficit that one country has had with another country in the history of the world.
Overall, the U.S. has run a trade deficit with China over the past decade that comes to more than 2.3 trillion dollars. That 2.3 trillion dollars could have gone to U.S. businesses and U.S. workers, and in turn taxes would have been paid on all of that money. But instead, all of that money went to China.
Rather than just sitting on all of that money, China has been lending much of it back to us – at interest. We now owe China more than a trillion dollars, and our politicians are constantly pleading with China to lend more money to us so that we can finance our exploding debt.
Today, the U.S. government pays China approximately 100 million dollars a day in interest on the debt that we owe them. Those that say that the U.S. debt “does not matter” are being incredibly foolish.
So thanks to our massive trade deficit and our exploding national debt, China is systematically getting wealthier and the United States is systematically getting poorer.
And now China is starting to use a lot of that wealth to aggressively expand their power and influence around the globe.
But isn’t it more than a bit far-fetched to suggest that China may be planning to establish Chinese cities and special economic zones in America?
Just look at what has already happened up in Canada. It is well-known that the Chinese population of Vancouver, Canada has absolutely exploded in recent years. In fact, the Vancouver suburb of Richmond is now approximately half Chinese. The following is an excerpt from a BBC article…
Richmond is North America’s most Asian city – 50% of residents here identify themselves as Chinese. But it’s not just here that the Chinese community in British Columbia (BC) – some 407,000 strong – has left its mark. All across Vancouver, Chinese-Canadians have helped shape the local landscape.
A similar thing is happening in many communities along the west coast of the United States. In fact, Chinese citizens purchased one out of every ten homes that were sold in the state of California in 2011.
But in other areas of the United States, the Chinese are approaching things much more systematically.
For example, as I have written about previously, a Chinese group identified as “Sino-Michigan Properties LLC” has purchased 200 acres of land near the town of Milan, Michigan. Their stated goal is to build a “China City” that has artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.
In other instances, large chunks of real estate in major U.S. cities that are down on their luck are being snapped up by Chinese investors. Just check out what a Fortune article from a while back says has been happening over in Toledo, Ohio…
In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city’s Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.
Toledo is being promoted to Chinese investors as a “5-star logistics region“. From Toledo it is very easy to get to Chicago, Detroit, Cleveland, Pittsburgh, Columbus and Indianapolis…
With a population of 287,000, Toledo is only the fourth largest city in Ohio, but it lies at the junction of two important highways — I-75 and I-80/90. “My vision is to make Toledo a true international city,” Toledo’s Mayor Mike Bell told the Toledo Blade.
But some of these deals appear to be about far more than just making “investments”. According to the Idaho Statesman, a Chinese company known as Sinomach (which is actually controlled by the Chinese government) was actually interested in developing a 50 square mile self-sustaining “technology zone” south of the Boise airport…
A Chinese national company is interested in developing a 10,000- to 30,000-acre technology zone for industry, retail centers and homes south of the Boise Airport.
Officials of the China National Machinery Industry Corp. have broached the idea — based on a concept popular in China today — to city and state leaders.
The article suggested that this “technology zone” would be modeled after similar projects that already exist in China, and that Chinese officials were conducting similar negotiations with other U.S. states as well…
Sinomach is not looking only at Idaho.
The company sent delegations to Ohio, Michigan and Pennsylvania this year to talk about setting up research and development bases and industrial parks. It has an interest in electric transmission projects and alternative energy as well.
The technology zone proposal follows a model of science, technology and industrial parks in China — often fully contained cities with all services included.
Thankfully the deal in Idaho appears to be stalled for now, but could we soon see China establish special economic zones in other communities all around America?
The Chinese certainly do seem to be laying the groundwork for something. They have been voraciously gobbling up important infrastructure all over the country. The following comes from a recent American Free Press article…
In addition to already owning vital ports in Long Beach, Calif. and Boston, Mass., the China Ocean Shipping Company is eyeing major ports on the East Coast and Gulf of Mexico. China also owns access to ports at the entry and exit points of the Panama Canal.
And due to fiscal woes plaguing many American cities and states, U.S. legislators have been actively seeking out Chinese investors. In one of the worst cases, Baton Rouge, La., Mayor Kip Holden offered the Chinese government ownership and operating rights to a new toll way system if the Chinese would provide the funding to build it.
Does it make sense for the Chinese to own some of our most important ports?
Isn’t there a national security risk?
Sadly, there isn’t much of anything that our politicians won’t sell these days as long as someone is willing to flash a lot of cash.
The Chinese have also been busy buying up important real estate on the east coast as a recent Forbes article explained….
According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.
But it is not only just land and infrastructure that the Chinese have been buying up.
They have also been purchasing rights to vital oil and natural gas deposits all over the United States.
There have been two Chinese companies that have been primarily involved in this effort.
The first is the China National Offshore Oil Corporation (CNOOC). According to Wikipedia, CNOOC is 100 percent owned by the Chinese government…
CNOOC Group is a state-owned oil company, fully owned by the Government of the People’s Republic of China, and the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) performs the rights and obligations of shareholder on behalf of the government.
The second is Sinopec Corporation. Sinopec Group is the largest shareholder (approx. 75% ownership) in Sinopec Corporation. And as the Sinopec website tells us, Sinopec Group is fully owned by the Chinese government…
Sinopec Group, the largest shareholder of Sinopec Corp., is a super-large petroleum and petrochemical group incorporated by the State in 1998 based on the former China Petrochemical Corporation. Funded by the State, it is a State authorized investment arm and State-owned controlling company.
So whenever you see CNOOC or Sinopec, you can replace those names with the Chinese government. The Chinese government essentially runs both of those companies.
And as you can see from the following list compiled by the Wall Street Journal, those two companies have been extremely aggressive in buying up rights to oil and natural gas all over the nation…
Colorado: Cnooc gained a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming in a $1.27 billion pact with Chesapeake Energy Corp.
Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion deal with Devon Energy.
Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.
Ohio: Sinopec acquired a one-third stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.
Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.
Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.
Wyoming: Cnooc has a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming after a $1.27 billion pact with Chesapeake Energy. Sinopec gained a one-third interest in Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.
Gulf of Mexico: Cnooc Ltd. separately acquired minority stakes in some of Statoil ASA’s leases as well as six of Nexen Inc.’s deep-water wells.
So why is the U.S. government allowing this?
That is a very good question.
For a nation that purports to be pursuing “energy independence”, we sure do have a funny way of going about things.
Unfortunately, the sad truth is that China is absolutely mopping the floor with the United States on the global economic stage. China is rising and America is in an advanced state of decline. Global economic power has shifted dramatically and most Americans still don’t understand what has happened.
The following are 44 more signs of how dominant the economy of China has become…
1. A Chinese firm recently made a $2.6 billion offer to buy movie theater chain AMC.
2. A different Chinese firm made a $1.8 billion offer to buy aircraft maker Hawker Beechcraft.
3. In December it was announced that a Chinese group would be purchasing AIG’s plane leasing unit for $4.23 billion.
4. It was recently announced that the Federal Reserve will now allow Chinese banks to buy up American banks.
5. A $190 million bridge project up in Alaska was awarded to a Chinese firm.
6. A $400 million contract to renovate the Alexander Hamilton bridge in New York was awarded to a Chinese firm.
7. A $7.2 billion contract to construct a new bridge between San Francisco and Oakland was awarded to a Chinese firm.
8. The uniforms for the U.S. Olympic team were made in China.
9. 85 percent of all artificial Christmas trees are made in China.
10. The new World Trade Center tower is going to include glass that has been imported from China.
11. The new Martin Luther King memorial on the National Mall was made in China.
12. In 2001, American consumers spent 102 billion dollars on products made in China. In 2011, American consumers spent 399 billion dollars on products made in China.
13. The United States 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.
14. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.
15. The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.
16. The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.
17. The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.
18. Overall, the United States has lost a total of more than 56,000 manufacturing facilities since 2001.
19. According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
20. Between December 2000 and December 2010, 38 percent of the manufacturing jobs in Ohio were lost, 42 percent of the manufacturing jobs in North Carolina were lost and 48 percent of the manufacturing jobs in Michigan were lost.
21. In 2010, China produced more than twice as many automobiles as the United States did.
22. Since the auto industry bailout, approximately 70 percent of all GM vehicles have been built outside the United States.
23. After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government. The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.
24. Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.
25. The United States has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.
26. China’s number one export to the U.S. is computer equipment.
27. The number one U.S. export to China is “scrap and trash”.
28. The U.S. trade deficit with China is now more than 28 times larger than it was back in 1990.
29. Back in 1985, the U.S. trade deficit with China was just 6 million dollars for the entire year. For the month of November 2012 alone, the U.S. trade deficit with China was 28.9 billion dollars.
30. China now consumes more energy than the United States does.
31. China is now the leading manufacturer of goods in the entire world.
32. China uses more cement than the rest of the world combined.
33. China is now the number one producer of wind and solar power on the entire globe.
34. Today, China produces nearly twice as much beer as the United States does.
35. Right now, China is producing more than three times as much coal as the United States does.
36. China now produces 11 times as much steel as the United States does.
37. China produces more than 90 percent of the global supply of rare earth elements.
38. China is now the number one supplier of components that are critical to the operation of U.S. defense systems.
39. A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain.
40. 15 years ago, China was 14th in the world in published scientific research articles. But now, China is expected to pass the United States and become number one very shortly.
41. China now awards more doctoral degrees in engineering each year than the United States does.
42. According to one study, the Chinese economy already has roughly the same amount of purchasing power as the U.S. economy does.
43. According to the IMF, China will pass the United States and will become the largest economy in the world in 2016.
44. Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.
Without the “globalization” of the world economy, none of this would have ever happened. But instead of admitting our mistakes and fixing them, our politicians continue to press for even more “free trade” and even more integration with communist nations such as China.
In fact, according to Dr. Jerome Corsi, the U.S. government has already set up 257 “foreign trade zones” all over America. These “foreign trade zones” are apparently given “special U.S. customs treatment” and are used to promote “free trade”…
Corsi noted that the U.S. government has created 257 foreign trade zones, or FTZs, throughout the United States, designed to extend special U.S. customs treatment to U.S. plants engaged in international-trade-related activities.
The FTZs tend to be located near airports, with easy access into the continental NAFTA and WTO multi-modal transportation systems being created to move free-trade goods cheaply, quickly and efficiently throughout the continent of North America.
“There is nothing in the U.S. government’s description of FTZs that would prevent a foreign government, like China, from operating a shell U.S. company that is in reality owned and financed by the Chinese government and operated through a Chinese government-owned corporation,” Corsi wrote.
Sadly, we are probably going to see a whole lot more of this in the years ahead.
According to Corsi, a professor of economics at Tsighua University in Beijing named Yu Qiao has suggested the following plan as a way to transform the debt that the United States owes China into something more “tangible”…
- China would negotiate with the U.S. government to create a “crisis relief facility,” or CRF. The CRF “would be used alongside U.S. federal efforts to stabilize the banking system and to invest in capital-intensive infrastructure projects such as high-speed railroad from Boston to Washington, D.C.
- China would pool a portion of its holdings of Treasury bonds under the CFR umbrella to convert sovereign debt into equity. Any CFR funds that were designated for investment in U.S. corporations would still be owned and managed by U.S. equity holders, with the Asians holding minority equity shares “that would, like preferred stock, be convertible.”
- The U.S. government would act as a guarantor, “providing a sovereign guarantee scheme to assure the investment principal of the CRF against possible default of targeted companies or projects”.
- The Federal Reserve would set up a special account to supply the liquidity the CRF would require to swap sovereign debt into industrial investment in the United States.
Apparently the Bank of China really likes this plan and would like to see something like this implemented.
In the years ahead, perhaps many of you will end up working in a “special economic zone” for a Chinese company on a project that is being financially guaranteed by the U.S. government.
If that sounds like a form of slavery to you, the truth is that you are probably not too far off the mark.
The borrower is the servant of the lender, and we should have never allowed ourselves to get into so much debt.
Now we will pay the price.
To get an idea of how much the world has changed in recent years, just check out this incredible photo which contrasts the decline of Detroit over the years with the amazing rise of Shanghai, China.
Things did not have to turn out this way. Unfortunately, we made decades of incredibly foolish decisions and we wrecked the greatest economic machine that the world has ever seen.
Now the future for America looks really bleak.
Or could it be that I am being too pessimistic? Please feel free to post a comment with your thoughts below…
It is hard to put into words the absolute devastation that we are seeing along many areas of the east coast right now. Boats have been washed ashore, homes have been razed, some coastal roads have been essentially destroyed, and large numbers of people are still trapped in their homes by flood waters. It is being reported that more than 50 people are dead and more than 8 million people along the east coast have lost power. Those without power might not get it back for a week or more. In New York City, an all-time record storm surge of almost 14 feet caused incredible destruction. It is going to take months for New York City to recover, and along the Jersey coast things are even worse. Hurricane Sandy really did turn out to be “the worst case scenario” for much of the eastern seaboard. At this point more than 15,000 flights have been cancelled, and nobody knows when subway service in New York City is going to be restored. More than 4 million people a day use that subway system, and right now many of the most important tunnels are absolutely flooded with water. Sadly, this crisis is far from over. The storm formerly known as Hurricane Sandy has moved inland over Pennsylvania where it continues to do a tremendous amount of damage. The full extent of the destruction caused by this storm will probably not be known for weeks.
We have truly seen some unprecedented things during this storm. For example, a 168 foot long tanker was driven ashore on Staten Island. Right now the tanker is sitting on Front Street.
In the beachfront Queens neighborhood of Breezy Point, a massive fire broke out and burned just about everything that was not already flooded. The blaze destroyed close to 100 homes, and by the end of the fire more than 190 firefighters were battling it.
Some areas in the West Virginia mountains have already had up to 3 feet of snow, and yet it just continues to fall. When all of that snow starts to melt in a few days, tremendous flooding is anticipated.
The northeast has never seen a storm quite like this, and the ripple effects are going to be felt for years to come.
The following are 18 startling quotes about the incredible destruction caused by Hurricane Sandy…
#1 New Jersey Governor Chris Christie
“The devastation on the Jersey Shore is some of the worst we’ve ever seen. The cost of the storm is incalculable at this point.”
#2 MTA Chairman Joseph Lhota
“The New York City subway system is 108 years old, but it has never faced a disaster as devastating as what we experienced last night. Hurricane Sandy wreaked havoc on our entire transportation system, in every borough and county of the region. It has brought down trees, ripped out power and inundated tunnels, rail yards and bus depots. As of last night, seven subway tunnels under the East River flooded. Metro-North Railroad lost power from 59th Street to Croton-Harmon on the Hudson Line and to New Haven on the New Haven Line. The Long Island Rail Road evacuated its West Side Yards and suffered flooding in one East River tunnel. The Hugh L. Carey Tunnel is flooded from end to end and the Queens Midtown Tunnel also took on water and was closed. Six bus garages were disabled by high water. We are assessing the extent of the damage and beginning the process of recovery. Our employees have shown remarkable dedication over the past few days, and I thank them on behalf of every New Yorker. In 108 years, our employees have never faced a challenge like the one that confronts us now. All of us at the MTA are committed to restoring the system as quickly as we can to help bring New York back to normal.”
#3 Hoboken, New Jersey Mayor Dawn Zimmer
“The Hudson River came in and filled half of Hoboken like a bathtub”
#4 Little Ferry resident Leo Quigley
“I looked out and the next thing you know, the water just came up through the grates. It came up so quickly you couldn’t do anything about it. If you wanted to move your car to higher ground you didn’t have enough time”
#5 New Jersey resident Montgomery Dahm
“I mean, there’s cars that are just completely underwater in some of the places I would never believe that there would be water.”
#6 Mobile home park resident Juan Allen
“I watched a tree crush a guy’s house like a wet sponge.”
#7 Angela Valenta, mother of 9-year-old Angelo Valenta
“He kept saying, ‘Am I going to die?'”
#8 U.S. Representative Bob Turner
“I, along with many other Breezy Point residents, lost our homes last night and I am grateful that my family and I are safe after this destructive storm. I hope you will join me in lending a hand to those who were less fortunate and keep everyone impacted by this storm in your thoughts and prayers.”
#9 Long Branch, New Jersey resident David Arnold
“The ocean is in the road, there are trees down everywhere. I’ve never seen it this bad.”
#10 New York resident William Yaeck
“I am looking outside of my sixth-floor apartment, and I see that a new lake has formed in the parking lot adjacent (to) my building”
#11 Motel owner Peter Sandomeno
“There are boats in the street five blocks from the ocean”
#12 West Virginia meteorologist Reed Timmer
“It’s 3 feet of heavy snow. It’s like concrete”
#13 Maryland State Police dispatcher Bill Wiltson
“It’s like a long-tailed cat in a room full of rocking chairs up here”
#14 Con Edison spokeswoman Sara Banda
“This is the largest storm-related outage in history”
#15 John Miksad, senior vice president for electric operations at Con Edison
“This will be one for the record books”
#16 New York City Mayor Michael Bloomberg
“Clearly the challenges our city faces in the coming days are enormous”
#17 New York Governor Andrew Cuomo
“You want to talk about a situation that gets old very quickly. You are sitting in a house with no power and you can’t open the refrigerator”
#18 National Weather Service meteorologist Joe Pollina
“It was an extremely devastating and destructive storm, hopefully one that people will only see once in their lifetime”
So what will this storm ultimately cost the U.S. economy? Well, Fox News is reporting that the total cost could reach 45 billion dollars. Others estimate that the economic toll may be even higher than that.
But one thing is for certain – at a time when layoffs are already surging, this is definitely not going to help. The U.S. economy is showing lots of signs of slowing down again, and this storm may have just nudged us even farther in that direction.
Hopefully we will have some time to recover before the next major crisis strikes, but with the election coming up early next week that does not seem too likely.
When it comes to materialism, has any nation ever surpassed what we are seeing in the United States right now? We define our lives by how much stuff we have, to a large degree our personal and business relationships are defined by how much money we make, and even most of the important dates on our calendar are all about materialism. Just think about it. We throw outrageous birthday parties for our kids and we shower them with gifts. Most of our “holidays” have become highly materialistic, and the biggest holiday of all in our society, Christmas, is an absolute orgy of materialism. We make lists of the “wealthiest Americans” and we glorify their achievements. We spend most of our time either making money or spending it. Even the phrase “the American Dream” reveals how materialistic we are. When most people are asked what “the American Dream” is, they start talking about a house, a car, vacations, retirement, sending your kids to college, etc. The American Dream has become all about money and stuff. Sadly, no matter how big our homes are and no matter how many shiny new toys we accumulate, we never seem to be happy. We always want more, and we always seem to be willing to go into more debt to get it. We are the most materialistic society in the history of the world, and our endless greed is going to end up swallowing us alive.
When it comes to materialism in America, there are outrageous examples all around us, but one of my favorite examples is the “Rich Kids of Instagram“. It is a Tumblr blog of photos from Instagram of young Americans showing off how they are enjoying the vast wealth of their parents. The following is how the Washington Post describes the blog….
The controversial new Tumblr is a collection of snapshots from the photo-sharing site that depicts the children of wealth and privilege — summering in the Hamptons, lounging on yachts and posing by their luxury cars.
One does a back-flip out of a helicopter near St. Tropez. Others snap pictures of their restaurant bills — allegedly paying thousands of dollars for lobster, champagne and high-end liquor.
In the warm patina of the Instagram, the youngsters appear to be living over-the-top lifestyles — and enjoying every moment.
“Our everyday is better than your best day,” reads one caption, a bit tauntingly. And, “Do you have a horse in your backyard? Didn’t think so.”
But just because you have a horse on your property does that make your life better than the rest of our lives?
Of course not.
Wealth does not equal happiness.
Unfortunately, however, most Americans have totally bought into this lie.
Most Americans believe that more money equals a better life.
In response to “the Rich Kids of Instagram”, the Huffington Post recently put together a piece entitled “the Rich Cats of Instagram” that features photos of cats as they “model upscale accessories, lounge with bottles of champagne, sail on yachts and ponder life while relaxing atop piles of money.”
Of course a lot of those pictures are quite funny, but they also reveal a deep truth about our society.
We have spent our lives chasing after the almighty dollar thinking that it will make us happy. Study after study has shown that we tend to link wealth and happiness. The following is from a recent NBC News article about one of those studies….
Many parents already know older children can be materialistic. Some tweens not only want the latest games and clothes, but also think owning these things will bring them happiness, friends and popularity. And marketers are eager to get them to buy: Tweens spend $28 billion a year, not including the more than $200 billion their parents spend on them, according to market research company C+R Research.
But even though we have an incredibly high standard of living compared to most of the rest of the world, are most of us actually happy?
No way. In fact, Americans take more anti-depressants than anyone else on the planet.
It is really easy to get caught up in materialism though. Let me share an example from my own life.
Several months ago our old truck completely died. Instead of pouring thousands of more dollars into fixing it, we decided that we would get another used truck.
So the other day I stopped by a dealership while my wife was grabbing some things from Home Depot. The salesperson started showing me some of the used trucks on the lot, but after a while I suggested that he show me some of the new trucks that were sitting on the other side of the lot.
Before I knew it, I was sitting in the most expensive truck on the lot and he was showing me all of the cool features it had.
And I have to admit – for a few moments there I was really enamored with that truck. It was the coolest truck that I had ever seen in my life.
Of course my wife and I don’t need a truck like that. We only need to haul stuff around a few times a month. And we certainly do not need the amount of debt that it would take to buy such a truck.
But for a few moments there I really wanted it. The pull of materialism can be very strong.
So would that truck have “changed my life” or brought me lasting happiness?
Of course not.
It would have brought some thrills for the first couple of days, but after a while it would just be sitting in the garage taking up space just like any other truck would.
So did I end up buying a truck?
Not yet. But we need one soon. My wife has been without a truck for quite a few months now and she is getting impatient.
But whether we get a nice used truck or a used truck that has one foot in the grave, it really isn’t going to change our lives much.
In the end, our lives should not be defined by what we own or by how much money we have in the bank.
But how do we refer to ourselves in this day and age?
The American people are called “consumers” and the truth is that we consume far more than anyone else on the globe does.
Just look at our eating habits. Of all the major industrialized nations, America is the most obese.
The next time you go into a store, take note of how many people are overweight.
It has not always been this way. Back in 1962, only 13 percent of all Americans were obese.
But now overeating is a national sport. At this point, approximately 36 percent of all Americans are obese, and it is being projected that number will rise to 42 percent by 2030.
While we are gorging ourselves with food, what else do we like to do?
That’s right – we love to watch television. In fact, the average American watches 28 hours of television every single week.
We have become completely and totally addicted to entertainment, and we have become trained to be constantly “plugged in” to something.
Our lives have become all about constantly feeding our greed and our selfishness. In fact, that is a major reason for the breakdown of the family in America. We tend to view marriage as a temporary condition that can be quickly discarded when it no longer makes us happy.
Sadly, the United States has the highest divorce rate in the world by a very wide margin at this point.
In addition, more Americans than ever are putting off marriage these days. Young Americans are being told that “an education” and “a career” are more important. According to the Pew Research Center, only 51 percent of all American adults are currently married. Back in 1960, 72 percent of all adults in America were married.
As a result of these factors, we are an incredibly lonely nation. Today, the United States has the highest percentage of one person households on the entire globe.
In order to fill the void, the American people turn to things that will numb the pain. American use more legal drugs than anyone else on the planet and they also use more illegal drugs than anyone else on the planet.
We have more “stuff” than any other society in the history of the world has ever had, but it has not made us happy.
And how did we pay for all of this?
We paid for a lot of this with debt. In fact, we have accumulated the biggest mountain of debt in the history of the world.
During my lifetime, the debt of the U.S. government has gotten more than 30 times larger. For much more on this, please see my previous article entitled “27 Things That Every American Should Know About The National Debt“.
But the federal government is not the only one with a debt problem. The truth is that our entire society is absolutely drowning in debt.
Over the past 50 years, the total amount of debt in the U.S. has grown from less than a trillion dollars to nearly 55 trillion dollars….
We have used massive amounts of debt in an attempt to feed our endless greed and materialism and we have gotten ourselves into a whole lot of trouble.
This is one of the reasons why I write. I want people to understand how bad things have really gotten.
Thanks to our foolishness, our economy has been declining, it is going to continue to decline, and a massive economic collapse is coming.
Some people believe that this is a message of “doom and gloom”, but that is not the case at all.
Sticking our heads in the sand and pretending that somehow everything is going to be just fine is not going to do anyone any good.
Instead, I believe that warning people about the coming economic collapse is a message of hope.
There is hope in understanding what is happening, developing a plan to deal with it, and preparing yourself and your family for the storm that is coming.
It is the people that are ignoring all of the warnings that are going to be in real trouble.
Millions upon millions of people will be absolutely blindsided by what is coming. Many will give in to total despair once they realize that their prosperity is gone and they have done nothing to prepare for what they are now facing.
My hope is that the information that I write about will be shocking enough that it will wake people up and motivate them to get prepared so that they can handle the incredibly challenging years that are ahead.
And the truth is that our lives should not be about our money and our stuff anyway.
Your possessions are just temporary. None of them are going to last forever and you certainly cannot take them with you when you die.
Even though our economy has had some rough times, we still have a higher standard of living than 99 percent of the humans that have ever lived on this planet have had.
You would think that would be enough for us.
But it isn’t. We have hoarded our wealth and we have lived in luxury and self-indulgence.
When our debt-fueled prosperity disappears, most Americans are not going to know how to handle it.
Most Americans will believe that their lives are “over” at that point.
But those that are not caught up in materialism and that have prepared for what is ahead will understand that the next chapters of their lives can be the greatest chapters of all.
If you were hoping for a recession in 2012, then you are going to be very happy with the numbers you are about to see. The U.S. economy is heading downhill just in time for the 2012 election. Retail sales have fallen for three months in a row for the first time since 2008, manufacturing activity is dropping like a rock, sales of new homes are declining again, consumer confidence has moved significantly lower and a depressingly small percentage of businesses anticipate hiring more workers in the coming months. Even though the Federal Reserve has been wildly pumping money into the financial system and even though the federal government has been injecting gigantic piles of borrowed cash into the economy, we still haven’t seen an economic recovery. In fact, we appear to be on the verge of yet another major downturn. In California the other night, Barack Obama told supporters that “we tried our plan — and it worked“, but only those that are still drinking the Obama kool-aid would believe something so preposterous. The truth is that the U.S. economy has been steadily declining for many years and now we have reached another very painful recession.
And don’t let the second quarter GDP number on Friday fool you. Analysts are expecting to see GDP growth of about 1.4 percent for the second quarter, but the only reason for our very small amount of “economic growth” is because the economy has been flooded with new dollars.
Let me give you an example. If I could go out overnight and magically double the bank accounts of every single American, would we all be twice as wealthy?
No, because there would be twice as many dollars now chasing the same amount of goods and services. The price of those goods and services would soon rise dramatically to reflect this new reality.
With all of those new dollars spinning around in the economy it would look like “economic growth” was going through the roof, but in reality the amount of real economic activity would be about the same.
So whenever we talk about GDP, we need to properly adjust it for inflation. That means using accurate inflation figures and not the highly manipulated inflation figures that the U.S. government is putting out these days.
And as I noted the other day, after properly adjusting for inflation the U.S. economy has been continually experiencing negative economic growth since about 2005.
So let’s not deceive ourselves. The U.S. economy has been declining for a long time.
But soon even the GDP number that the government gives us will turn negative. We will probably see a slightly positive number for the second quarter, and the number will likely go negative either in the third quarter or the fourth quarter.
Economists will debate when this new recession officially “began” just like they do with every recession, but it doesn’t take a genius to figure out what is happening to our economy right now.
The following are 17 reasons why those hoping for a recession in 2012 just got their wish….
1. U.S. retail sales have declined for three months in a row. This is the first time this has happened since 2008. Every other time this has happened in U.S. history (except for once) this has signaled that the U.S. economy was either already in a recession or was about to enter one.
2. The Philadelphia Fed index of manufacturing activity contracted for the third month in a row during July. According to the Financial Post, this is a very bad sign….
Seven out of eight times when the average reading has been that low (-11.8) for that long the U.S. economy has tipped into recession.
3. Manufacturing activity in the mid-Atlantic region has also declined for three months in a row. In fact, the only time in the past decade when manufacturing activity in the mid-Atlantic has fallen more dramatically was during the last recession.
4. A factory index calculated by the Institute for Supply Management has fallen to its lowest level since June 2009.
5. The Conference Board index of leading economic indicators has fallen for two of the past three months.
6. According to a recent survey conducted by the Conference Board, only 17 percent of CEOs had a positive view of the economy during the second quarter of 2012. During the first quarter of 2012, 67 percent did.
7. Gallup’s U.S. Economic Confidence Index is now the lowest that it has been since January.
8. Optimism among small business owners has declined in three of the last four months and is now at its lowest level since last October.
9. Believe it or not, the amount of waste being carted around on trains in the United States has an 82 percent correlation with U.S. economic growth. Unfortunately, right now the number of garbage carloads on trains is falling dramatically.
10. Sales of previously occupied homes dropped by 5.4 percent during June.
11. Sales of new homes declined by 8.4 percent during June. At this point new home sales are less than a third of what they were during the boom years.
12. An increasing number of Americans are relying on high interest “payday loans” to pay the rent and put food on the table.
13. Far more companies are defaulting on their debts this year than last year.
14. According to the U.S. Labor Department, the unemployment rate fell in 11 states and Washington, D.C. last month, but it rose in 27 states.
15. The unemployment rate in New York City is now back up to 10 percent. That equals the peak unemployment rate in New York City during the last recession.
16. The teen unemployment rate in Washington D.C. right now is 51.7 percent.
17. A recent survey conducted by the National Association for Business Economics found that only 23 percent of all U.S. companies plan to hire more workers over the next 6 months. When the same question was asked a few months ago that number was at 39 percent.
All of those are very powerful pieces of evidence that a new recession has started.
But do you want to know one of my favorite indicators that the U.S. economy is sliding into recession?
In a previous article, I noted that Federal Reserve Chairman Ben Bernanke made the following statement to Congress recently: “At this point we don’t see a double dip recession. We see continued moderate growth.”
As I mentioned the other day, Bernanke has a track record of failure that is absolutely embarrassing. Back on January 10, 2008 Bernanke made the following statement….
“The Federal Reserve is not currently forecasting a recession.”
That turned out to be a great call, didn’t it?
On June 10, 2008 he doubled down on his call that the U.S. economy was going to avoid a recession….
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
Just before Fannie Mae and Freddie Mac collapsed Bernanke made this statement….
“The GSEs are adequately capitalized. They are in no danger of failing.”
And there are dozens of other examples just like these.
This is the guy running our economic system.
I am very critical of the Federal Reserve, but there are very good reasons for this.
The Federal Reserve is running our economy into the ground, and we need to pound this into the heads of the American people so that they will wake up and demand change.
Perhaps this next recession will be painful enough to wake people up.
The Wall Street Journal is already even using the “D word” to describe what we are experiencing. Just today, the Wall Street Journal ran an article that asked this question: “Do Two Recessions Equal One Depression?”
Sadly, this is just the leading edge of what is coming. By the time 2014 or 2015 rolls around, we are going to look back and long for the “good old days” of 2011 and 2012.
Over the next few years, the unemployment rate is going to skyrocket and poverty in the United States is going to get a whole lot worse.
Now is not the time to goof off. Now is the time to work really hard to get yourself and your family into the best position that you can for the storm that is coming.
Nothing is going to stop the terrible economic crisis that is coming, but at least we can get prepared for it.
There is hope in being prepared.
Sadly, most people will never even see the next crisis coming until they get blindsided by it.
Sometimes it can be easy to forget that behind all of the horrible economic numbers that we hear about are millions of real people that have had their lives absolutely devastated by this economy. Elderly couples are being brutally evicted from their homes, young families are living in their cars, terminally ill people are dying because they cannot afford medication that they need and millions of parents can’t sleep at night as they wrestle with anxiety over not being able to provide for their children. Often those that lose their jobs or their homes discover that people start looking at them very differently and that there is very little compassion out there these days. As you will read about below, one major U.S. bank is even kicking an elderly woman with stage 4 breast cancer out of her home because she cannot make her full mortgage payment each month. When the next major global financial catastrophe happens, we are going to see a whole lot more economic despair. Will society respond to that crisis by becoming warmer and more compassionate, or will the world around us become even more cold and even more cruel? As bad as things are right now, it truly is frightening to think about what the world is going to look like after the next major economic downturn.
Many of the stories that you are about to read are truly heartbreaking. Unfortunately, they represent thousands upon thousands of other stories that never make it into the news….
Foreclosing On An Elderly Woman With Stage 4 Breast Cancer
Wells Fargo is threatening to evict an elderly woman with stage 4 breast cancer named Cindi Davis from her family home in North Carolina….
“They want us to make a house payment of almost $900 a month,” Cindi told the station of their lender, Wells Fargo bank. “We can afford maybe half that. I pay $1,100 a month in prescription medications.”
The couple says they have tried to work with Wells Fargo, even sending notes from Cindi’s doctors explaining her condition, but haven’t been able to come to a workable solution.
“They’re just going to put us out and it’s like, we are willing to pay what we can pay, but it’s not enough,” Cindi said.
Her cancer is in her lungs, lymph nodes and on her liver and she’s gone through a double mastectomy and multiple chemotherapy treatments, but Cindi has handled her disease like a fighter.
Cindi and her husband say that if they are evicted they may have to move in to their pickup truck.
Can you imagine living your last days in a truck as you try desperately to battle stage 4 breast cancer?
Crushing Poverty In Greece
As I have written about before, Greece is essentially experiencing a full-blown economic depression at this point.
There is a severe shortage of medicine in Greece right now, and many doctors are essentially volunteers at this point because so few people can actually afford to pay their bills. The following description of the chaos in the Greek healthcare system comes from a recent Natural News article….
The economic situation in Greece is only continuing to worsen, as reports indicate that hospitals and care centers throughout the nation are running completely out of medicines, and many healthcare workers are now voluntarily providing care services without pay.
Strapped with spiraling debt, the Greek healthcare, which is government-run, has had to receive gobs of international financial aid just to keep operating with some semblance of normalcy. There has also been plenty of IOUs issued, and desperate patients quietly forking over cash “gifts” to doctors to receive treatments. All in all, the healthcare situation is in utter chaos, save for those that have sacrificed their own time, often free of charge, just to help those in need.
But it is not just the healthcare system that is deeply troubled.
Economic conditions have gotten so bad in Greece that some parents are actually abandoning their children in the streets according to the Daily Mail….
Children are being abandoned on Greece’s streets by their poverty-stricken families who cannot afford to look after them any more.
Youngsters are being dumped by their parents who are struggling to make ends meet in what is fast becoming the most tragic human consequence of the Euro crisis.
Could you ever do that to your children?
Sadly, it looks like things are going to get even worse in Greece. It is being projected that the unemployment rate in Greece will reach 30 percent by the end of the year.
Economic Shutdown In Portugal
Greece is not the only European nation that is going through an economic nightmare right now. The truth is that much of southern Europe is virtually shutting down right now.
Simon Black has described what he witnessed during a recent visit to Porto – the second largest city in Portugal….
Excluding the city’s still-bustling tourist areas, it’s very quiet around the city.
Street-level retail shops and restaurants are either devoid of customers or have been vacated. On many blocks I’ve seen more “for lease” signs than operating businesses.
Officially, the unemployment rate is 15.2% in Portugal, and the economy will contract 3% this year… yet the clear lack of economic activity suggests the real figures are much greater.
Without doubt, reality has set in. Locals have capitulated ‘hope’ that the good times will magically re-appear and have adjusted their habits accordingly.
American Families Living In Their Cars
In some areas of the United States you would never even know that an economic crisis is happening, but in other areas things are clearly falling apart very rapidly. There is a very serious shortage of decent jobs in most parts of the country, and we are seeing clear signs of societal breakdown in many of our major cities.
During the last recession, millions of Americans lost their jobs. Because a lot of them did not have much money saved up, many of those unemployed Americans also quickly lost their homes.
In the end, some of them ended up living in their vehicles.
And living in a car can be absolute hell. The following is from an ABC News report….
Three children — one suffering second-degree burns — were taken into protective custody Monday after they were discovered living with their parents in a “filthy” car in a Walmart parking lot.
Police were called to the parking lot Monday morning in Mount Dora, Fla., where they found the family of five living in a 1987 Cadillac Coupe de Ville full of clothes and garbage. Police told the Orlando Sentinel that days-old chicken bones were strewn about the car, along with a spoiled carton of milk and a bottle of tequila.
Other families try to make the best of it that they can. The following is one touching example from a recent 60 Minutes report….
This is the home of the Metzger family. Arielle, 15. Her brother Austin, 13. Their mother died when they were very young. Their dad, Tom, is a carpenter. And, he’s been looking for work ever since Florida’s construction industry collapsed. When foreclosure took their house, he bought the truck on Craigslist with his last thousand dollars. Tom’s a little camera shy – thought we ought to talk to the kids – and it didn’t take long to see why.
Pelley: How long have you been living in this truck?
Arielle Metzger: About five months.
Pelley: What’s that like?
Arielle Metzger: It’s an adventure.
Austin Metzger: That’s how we see it.
Pelley: When kids at school ask you where you live, what do you tell ’em?
Austin Metzger: When they see the truck they ask me if I live in it, and when I hesitate they kinda realize. And they say they won’t tell anybody.
Arielle Metzger: Yeah it’s not really that much an embarrassment. I mean, it’s only life. You do what you need to do, right?
Could you imagine being 13 years old or 15 years old and living in a truck?
Unfortunately, during the next major economic downturn a whole lot more families are going to end up living like this.
Desperately Hoping For Rain
Yesterday I wrote about how corn crops are dying all over the United States right now.
For most Americans, this will just mean higher prices at the grocery store.
But for corn farmers, a lack of rain can be absolutely devastating. The following are some recent comments from farmers about this crippling drought on agweb.com….
I am a small farmer, but my crops in Wayne County, Ill., are the worst I have had sine 1952-53. Corn will be lucky to make 10 bu. and beans are going downhill. It’s been over 100 degrees for 11 straight days. Bad crop.
Dryland corn is done! Some people in denial need to walk in field. Later corn tasseled and pollinating with no silks! No rain in seven days or low humidity 90 degrees and warmer by weekend. Yield range for corn on our farms…0 to 0 bpa. Soybeans…if it rains which is a big if may have some hope, not holding my breath!!
This is my 50th year of grain farming, so I think that I can say that I’ve seen it all. This is worse than 1988-Much worse for corn. Beans could still be fair if it starts to rain soon. Sat.-Sun. rains totaled only 1/4 inch.
This is worse than 1983 and 1988. Corn yield will be 30 to 40% of last year’s yield. The jury is still out on the beans. $10 corn is likely, because there will be so little of it relative to demand. Very sad…
You can see some incredible pictures of the drought in the middle part of the country right here.
When the economy falls to pieces, the politicians and the big banks get all the air time, but it is average hard working people that feel the most pain.
As the economy gets a lot worse (and it will) there is going to be a huge need for more love and compassion. The government is not going to be able “to save” everyone, and even now way too many people are falling through the cracks in the “safety net”.
Instead of looking down on the homeless and the unemployed, don’t be afraid to give them a helping hand up.
You never know, you might be the one in need of some assistance someday.
When the sun goes down every night, America becomes a very frightening place. There are communities all over the country where drug dealing, human trafficking and gang violence have gotten so out of control that authorities don’t really know what to do about it. In America tonight, thousands of meth heads will break into homes as they desperately search for enough money for another hit. In America tonight, thousands of children will be sold for sex at truck stops and on street corners. In America tonight, millions of criminal predators will be searching for a new victim. From the top levels of the federal government all the way down to the most depraved criminals on the street, America is rotting. Once upon a time our tremendous affluence masked the moral decay that was happening in this nation, but now that the economy is falling apart the damage to the fabric of our society is being revealed. We have become a nation of addicts, junkies, thrill seekers and predators. When we finally see the U.S. economy fully collapse, millions of desperate, angry and depraved monsters will take out their sick frustrations on all the rest of us.
It isn’t talked a lot about anymore, but the meth epidemic in America is getting worse. According to PBS, there are approximately 1.4 million meth users in America. Meth is unbelievable addictive and it can absolutely destroy your life. If you doubt this, just check out these before and after pictures.
Sadly, there are indications that meth use is on the rise once again. According to the DEA, meth seizures increased from 2,839 in 2007 to 6,168 in 2010.
When you take meth, it can literally make you crazy. The following is from a recent USA Today article….
A mother in Bakersfield, California, was sentenced Tuesday for stabbing her newborn while in a meth rage. An Oklahoma woman drowned her baby in a washing machine in November. A New Mexico woman claiming to be God stabbed her son with a screwdriver last month, saying, “God wants him dead.”
Large numbers of meth addicts turn into thieves when they run out of money. Often, they will steal just about anything they can in order to get money for their next hit. Some things that meth addicts have stolen recently include agricultural plumbing, copper wiring and lawn sprinklers.
And making meth can be extremely dangerous as well. U.S. hospitals are filled with thousands and thousands of uninsured burn patients that were horribly burned while trying to make “shake and bake” meth.
The following comes from a recent Daily Mail article….
It is filling hospitals with thousands of uninsured burn patients requiring millions of dollars in advanced treatment – a burden so costly that it is contributing to the closure of some burns units.
So-called ‘shake-and-bake’ meth is produced by combining raw, unstable ingredients in a two-litre bottle.
But if the person mixing the noxious brew makes the slightest error, such as removing the cap too soon or accidentally perforating the plastic, the concoction can explode, searing flesh and causing permanent disfigurement, blindness or even death.
A survey of key hospitals in America’s most-active meth states showed that up to a third of patients in some burns units were hurt while making meth, and most were uninsured.
But of course meth is just one of the highly addictive drugs that are plaguing our youth. There are many other nightmarish drugs that could also be discussed. Nearly every community in America is dealing with some sort of a drug problem, and despite the “war on drugs” this crisis just seems to keep getting worse every single year.
Perhaps even more alarming is the rise of human trafficking in America.
When I was going through school, I was taught that slavery had been abolished in the United States.
But that was a lie.
Right now, thousands upon thousands of Americans are living as slaves. Most of them are sex slaves. As you read this, there are women all over America that are literally chained to beds in dark rooms where men pay their “owners” to have sex with them.
The following stats about human trafficking come from a recent Detroit Free Press article….
• Human trafficking is a $32-billion industry worldwide.
• Up to 2 million people are trafficked worldwide every year. Of those, 15,000-18,000 are in the U.S.
• Eight in 10 human trafficking cases involve the sex industry; the others involve labor trafficking.
• In 2010, 2,515 human trafficking cases were under investigation in the U.S.
• Eighty-three percent of victims in confirmed sex trafficking cases in the U.S. in 2010 were American citizens
Many Americans would be absolutely horrified to learn what goes on behind closed doors in America.
All over the nation tonight, vicious monsters will be selling or “renting” young children to other vicious monsters for sex.
The following story of one human trafficking victim comes from a recent Fox News article….
Today, Keisha Head is a wife and mother of three. But more than decade ago, she was the victim of a notorious human trafficker.
At 16-years old, Head says she was being sold on the streets of Atlanta for sex.
“I did not know that a normal, average man who was a preacher, who was a lawyer, who was a senator – could turn into this monster,” Head said. “That is the scariest moment when you are amongst people who claim to be normal yet they purchase you and they turn into these monsters. They rape you. They beat you. And then act as if they’re normal. These are not your normal pedophiles.”
When you push morality out of the schools and out of public life, this is the kind of thing that starts happening.
Thousands upon thousands of other women “work for themselves” on the streets of America. Some are willing to let strangers have sex with them for next to nothing.
For example, one woman in Los Angeles was recently arrested for approaching customers at one McDonald’s and offering sexual favors in exchange for Chicken McNuggets.
A lot of really weird stuff happens in America after dark.
As the economy has crumbled, thieves all over the country have become increasingly bold and increasingly desperate.
The following are just a few recent examples….
*In Fresno, California the damage caused by thieves stealing copper wire from city street lights is costing the city approximately $50,000 a month. So far, about 2,500 street lights have been stripped of their wiring.
*In northern Alabama, one group of crooks has been using a forklift to pull entire ATM machines out of the ground.
*A while back, a team of ambitious thieves in Pennsylvania actually stole an entire 50 foot long bridge.
Other crimes are committed by members of the government. In Chicago, the bodies of poor people that don’t have enough money to bury themselves are being treated with absolutely no respect at all by government officials. Just check out what Cook County Sheriff Tom Dart says that he found….
“Babies are buried 10, 15 to a box. They’re buried in there with animal remains. They’re buried in there with arms and legs from body parts they found during the course of the year. It is not anything that our county or society should ever sit there and say is acceptable”
Can you imagine that?
What kind of a monster would do such a thing?
Of course I could go on for ages about the sick corruption of our government officials, but that will have to be left for another day.
For now, I want to focus on another rising problem in our society. As I wrote about the other day, the FBI says that there are now 1.4 million gang members living inside the United States. That number has risen by an astounding 40 percent since 2009.
Nearly every major U.S. city has areas that are essentially “owned” by gangs. Some of these gangs are the size of small armies. For example, it is estimated that the Latin Kings have 18,000 members in the city of Chicago alone.
When civil unrest erupts in America, these organized groups of criminal predators will have a field day. Even now, law enforcement authorities in many areas of the country are having an incredibly difficult time trying to contain them.
As things fall apart all around us, an increasing number of Americans are coming to the realization that they are not going to be able to depend on someone else to defend themselves and their families.
Perhaps that is why the American people stocked up on firearms at an astounding rate during 2011.
In some areas of the country, a firefight can potentially erupt just about at any time. The following is from an article that was recently posted on standwitharizona.com….
Barbed wire fencing doesn’t keep illegal aliens off the property anymore. One Starr County, TX rancher doesn’t have time to worry about the illegals these days. He now worries about the smugglers protecting their loads.
“I don’t think they would have any conscience of taking someone’s life,” the rancher says.
He saw that will to kill firsthand. A smuggler shot at him on his own land.
“One round was fired at me, and it missed my head by about two feet,” says the rancher.
He says there’s only way to react.
“Fire all the rounds you have, reload, and do it again,” says the rancher.
We don’t do ourselves any favors by pretending that America is going to somehow turn around and become the safe, friendly place that it used to be.
There are millions of criminal predators in this country today that have little or no conscience. They don’t care about you, your spouse or your children. All they care about is feeding their addictions.
In the months and years to come, the economy is going to get worse. As it does, all of those predators are going to become even more desperate.
Desperate people do desperate things.
America is going to become a very frightening place. But instead of curling up into a ball and crying about it, the better response is to be strong and courageous and to get prepared the best that you can.