Many were anticipating that #ComeyDay would be the most monumental congressional hearing in decades, but the truth is that it turned out to be quite a dud. During two and a half hours of testimony in front of the Senate Intelligence Committee, former FBI Director James Comey didn’t tell us anything that we don’t already know. Of course liberal news outlets such as CNN are breathlessly proclaiming that we are now “in Nixon territory”, but that isn’t accurate at all. There is absolutely no evidence that President Trump committed any crime, and there is absolutely nothing that warrants impeachment.
And I am far from alone in that assessment. For example, an analysis published by CNBC says that nothing in Comey’s testimony was “powerful enough to end the Trump presidency literally or figuratively”…
“Former FBI Director James Comey’s Senate testimony Thursday will indeed have a big political impact in Washington. It will foster more partisan bitterness and more bad feelings about our political process and news media. But none of his testimony rises to the level of anything legally powerful enough to end the Trump presidency literally or figuratively.
The bottom line is that Comey spent a few hours Thursday telling the Senate committee that he felt uncomfortable and even stunned by President Trump’s behavior. And he peppered that narrative with numerous damaging statements about the president’s behavior and character, including basically calling him a liar”
When Comey accused Trump of being a liar, that certainly made a lot of headlines, but unless you are under oath it is not a crime to lie.
Perhaps we should make it a crime for our politicians to lie, because if we did we would clean out the toilet that Washington D.C. has become rather quickly. But as it stands, even if Trump is a low-down dirty liar as Comey is claiming, that would simply put Trump on the same level as most of the current members of Congress.
The much more important question is whether or not Trump committed obstruction of justice. Fortunately for Trump, there is a very clear answer to that question.
First of all, we must remember that Trump was Comey’s boss. As chief executive, Trump has constitutional power to direct the activities of his subordinates, and he is free to fire them whenever he chooses. So, as Alan Dershowitz just pointed out on CNN, Trump cannot be impeached for simply exercising his constitutional authority…
Renowned Harvard professor and legal mind Alan Dershowitz sparked quite a reaction during a CNN segment on Wednesday night after he proclaimed that former FBI director James Comey’s prepared testimony indicates that President Donald Trump didn’t commit any crimes.
Dershowitz argued that Trump “could have told Comey, ‘You are commanded, directed to drop the investigation against [Gen. Michael] Flynn,’” but noted that he didn’t do so, according to Comey’s prepared testimony that was published on Wednesday.
The famed attorney also said Trump could have pardoned Flynn as well, but also chose not to do so. In the end, he concluded that there appears to be no criminal activity on the part of the president, particularly when it comes to obstruction of justice claims.
Traditionally, the FBI has operated in a highly independent manner, but there is nothing in the law that gives the FBI independent status.
If Congress wants to pass a law to remove the FBI from being under the president’s authority they can certainly do that, but as it stands what Trump did was fully within the law.
But even if Trump didn’t have the authority, there would still be no obstruction of justice. The two most important federal statutes that cover obstruction of justice are 18 U.S.C. § 1503 and 18 U.S.C. § 1505. In both cases, it would be exceedingly difficult for prosecutors to prove that Trump acted “corruptly” in this case. Not only that, there was no “proceeding” that Trump was trying to influence. For a more extended analysis, please see the article that I posted yesterday entitled “Even If Everything James Comey Is Claiming Is True, There Is Still No Evidence That Trump Is Guilty Of Any Crime”.
If Comey is being straight with us, and at this point his credibility is pretty much shot, but if he is being straight with us there is still nothing that is going to end Trump’s presidency.
What Trump did may have been “inappropriate”, but you don’t impeach a president for being “inappropriate”.
In the aftermath of Comey’s testimony, Trump’s attorney said that the president feels “completely and totally vindicated”…
President Donald Trump’s private attorney, Marc Kasowitz, on Wednesday said his client felt “completely and totally vindicated” by James Comey’s prepared opening statement to the Senate Intelligence Committee.
Comey’s remarks, released Wednesday in advance of Thursday’s Senate hearing, confirmed previous statements by Trump that Comey had told him three times that he was not personally being investigated amid the FBI’s wide-ranging inquiry into Russian meddling in the election and the Trump campaign’s possible ties to Russia.
Personally, I hope that this whole “scandal” will go away now. There never was anything to it in the first place, and the American people want a government that is going to focus on solving problems instead of focusing on investigations that were doomed to go absolutely nowhere from the start.
But even if this Comey angle doesn’t work out, the Democrats will just keep on trying. In fact, the Huffington Post is already starting to promote the theory that Trump’s withdrawal from the Paris climate agreement is an impeachable offense.
In the end, the Democrats are never going to give up until they find something that they can use against Trump. What I am hearing is that they are going to make an all-out push to take back the House and the Senate in 2018, and if they can do that they plan to use their congressional majorities to get rid of Trump one way or another.
This is just another reason why the 2018 mid-term elections are going to be the most important mid-term elections in modern American history, because if the Democrats have their way Trump will never even make it to 2020.
On Tuesday, President Trump announced that he would nominate Neil Gorsuch to fill the open seat on the U.S. Supreme Court. Gorsuch currently serves on the 10th U.S. Circuit Court of Appeals in Denver, and he was confirmed unanimously by the Senate when he was appointed to that position by President George W. Bush in 2006. Gorsuch appears to have some strong similarities to Antonin Scalia, and many conservatives are hoping that when Gorsuch fills Scalia’s seat that it will represent a shift in the balance of power on the Supreme Court. Because for almost a year, the court has been operating with only eight justices. Four of them were nominated by Republican presidents and four of them were nominated by Democrats, and so many Republicans are anticipating that there will now be a Supreme Court majority for conservatives.
Unfortunately, things are not that simple, because a couple of the “conservative” justices are not actually very conservative at all.
For example, it is important to remember that Scalia was still on the court when the Supreme Court decision that forced all 50 states to legalize gay marriage was decided. Justice Anthony Kennedy joined the four liberal justices in a majority opinion that Scalia harshly criticized. So with Gorsuch on the court, that case would still have been decided the exact same way.
Sadly, even though Kennedy was nominated by Ronald Reagan, he has turned out to be quite liberal. In the past, not nearly enough scrutiny was given to justices that were nominated by Republican presidents, and a few of them have turned out to be total disasters.
And let us also remember that Scalia was still on the court when the big Obamacare case was decided. Chief Justice John Roberts joined the four liberal justices in a decision that was perhaps one of the most bizarre in the modern history of the U.S. Supreme Court.
For some reason, Justice Roberts was determined to preserve Obamacare, and if you read what he wrote it is some of the most twisted legal reasoning that I have ever come across.
As someone that was once part of the legal world, let me let you in on a little secret. Most judges simply do whatever they feel like doing, and then they will try to find a way to justify their decisions. So if you ever find yourself in court, you should pray that you will get a judge that is sympathetic to your cause.
Fortunately, Gorsuch appears to be one of the rare breed of judges that actually cares what the U.S. Constitution and our laws have to say. In that respect, he is very much like Scalia…
Gorsuch is seen by analysts as a jurist similar to Scalia, who died on Feb. 13, 2016. Scalia, praised by Gorsuch as “a lion of the law,” was known not only for his hard-line conservatism but for interpreting the U.S. Constitution based on what he considered its original meaning, and laws as written by legislators. Like Scalia, Gorsuch is known for sharp writing skills.
“It is the role of judges to apply, not alter, the work of the people’s representatives,” Gorsuch said on Tuesday at the White House event announcing the nomination in remarks that echoed Scalia’s views.
One of the most high profile cases that Gorsuch was involved with came in 2013. That was the famous “Hobby Lobby case”, and it represented a key turning point in the fight for religious freedom. The following comes from CNN…
In 2013, he joined in an opinion by the full Court of Appeals holding that federal law prohibited the Department of Health and Human Services from requiring closely-held, for-profit secular corporations to provide contraceptive coverage as part of their employer-sponsored health insurance plans.
And although a narrowly divided 5-4 Supreme Court would endorse that view (and affirm the 10th Circuit) the following year, Gorsuch wrote that he would have gone even further, and allowed not just the corporations, but the individual owners, to challenge the mandate.
Donald Trump said that he wanted a conservative judge in the mold of Scalia, but I think that he was also looking for someone that he could get through the Senate.
And considering the fact that Gorsuch was confirmed unanimously by the Senate in 2006 will make it quite difficult for Democrats to block him now. Gorsuch has tremendous academic and professional credentials, and he will probably have a smoother road to confirmation than someone like appeals court judge William Pryor would…
Trump may have favored Gorsuch for the job in hopes of a smoother confirmation process than for other potential candidates such as appeals court judge William Pryor, who has called the 1973 Supreme Court ruling legalizing abortion “the worst abomination of constitutional law in our history.”
But Pryor is still reportedly on the short list for the next spot on the Supreme Court that opens up, and by then the rancor in the Senate may have died down.
If Gorsuch is confirmed, what will this mean for some of the most important moral issues of our time?
As for abortion, even if Gorsuch is confirmed I do not believe that the votes are there to overturn Roe v. Wade. But if Trump is able to nominate a couple more Supreme Court justices that could change.
But even if Roe v. Wade is overturned, it would not suddenly make abortion illegal. Instead, all 50 states would then be free to make their own laws regarding abortion, and a solid majority of the states would continue to keep it legal.
The analysis is similar when we look at gay marriage. If the Supreme Court decision legalizing gay marriage in all 50 states was overturned, each state would get to decide whether gay marriage should be legal or not for their own citizens. And just like with abortion, it is likely that only a limited number of states would end up banning gay marriage.
So the nomination of Neil Gorsuch to the Supreme Court appears to be a positive step, but it does not mean that we are going to see dramatic change when it comes to issues such as abortion or gay marriage any time soon.
But at least Gorsuch can help stop the relentless march of the progressive agenda through our court system. So in the end we may not make that much progress for right now, but at least the liberals won’t either.
A horse named “American Pharoah” just won the Triple Crown. Is this some sort of a sign for America? The office of the presidency was greatly strengthened under previous administrations, but now Barack Obama has grabbed an unprecedented amount of power for himself. In this article, I am going to focus on immigration, but Obama’s power grab is certainly not limited to this area. And as I have written about previously, if there is some sort of major “national emergency” over the next year or so, the legal framework has already been created for Obama to use his “emergency powers” to take total control of virtually everything. So is comparing Obama to the pharoahs of ancient Egypt unfair? I don’t think so at all. He is certainly acting as if he would like the powers of a dictator, his policies in the Middle East would make the pharoahs proud, and without a doubt Obama loves the adoration and worship of his fans. In my opinion, he is the closest thing to a pharoah that the United States has ever seen.
Just consider Obama’s approach to immigration. The laws of our land require him to protect our borders, but he has left them wide open and has openly encouraged illegal immigration because that is what he decided was best. He also attempted to use his “executive powers” to grant amnesty to millions upon millions of immigrants that were in this country illegally. Fortunately, that action has been blocked in the courts (at least for now), but Obama says that he is going to keep trying to do everything he can to “bring them out of the shadows”.
Personally, I am someone that believes that the United States will always need a certain level of legal immigration. But the key word there is “legal”. It is absolutely imperative that we require everyone to come in by the front door, so that we can weed out those that would be damaging to our society. But instead of adopting a system that makes sense, we have left the back door wide open while making it extremely challenging to come in through the front door. As a result, we have seen an endless flow of gang members, drug dealers, serial criminals, welfare parasites and political radicals enter this country illegally. We have made it really easy for the “bad guys” to come in, but extraordinarily difficult for the “good guys” to move here. What we are doing does not make any sense at all.
And thanks to our foolishness and the refusal of recent presidential administrations to enforce the law, all of this immigration has fundamentally altered the employment picture in this nation. According to the latest numbers, nearly all of the job gains that the U.S. economy has experienced since 2007 have gone to foreign born workers…
Assuming, the Household and Establishment surveys were congruent, this would mean that there was just 1K native-born workers added in May of the total 280K jobs added.
Alternatively, assuming the series, which is not seasonally adjusted, was indicative of seasonally adjusted data, then the 272K increase in total Household Survey civilian employment in May would imply a decline of 7K native-born workers offset by the increase of 279K “foreign borns.”
But while all of these comparisons are apples to oranges, using the BLS’ own Native-Born series, also presented on an unadjusted basis, we find the following stunner: since the start of the Second Great Depression, the US has added 2.3 million “foreign-born” workers, offset by just 727K “native-born”.
This means that the “recovery” has almost entirely benefited foreign-born workers, to the tune of 3 to 1 relative to native-born Americans!
It is getting to the point where we have a national epidemic on our hands. According to one recent study, nearly one out of every 10 workers in the entire state of California is here illegally. Imagine how much easier it would be to get a job in that state if the illegal workers were not part of the equation.
And of course it isn’t just employment that we need to be concerned about. Thanks to unchecked illegal immigration, there are now 1.4 million gang members living in our cities, and these gang members often commit crimes that are absolutely horrific. For example, the following is from an article about a crime that was recently committed by members of MS-13…
Three teenage reputed members of the MS-13 street gang were ordered held without bail Friday on charges they forced a 16-year-old into a wooded area of a Long Island golf course, where two of them took turns raping her while the third stood as a lookout.
‘This is one of the most brutal, heinous crimes that I have seen in a long, long time,’ Suffolk County District Attorney Thomas Spota said at a news conference following the suspects’ arraignments.
‘This poor young woman is so lucky that, quite frankly, that she is alive. These are vicious young men, vicious young men and what they did to her was absolutely terrible.’
If Barack Obama had protected our borders like he should have, those members of MS-13 would have never gotten into this country and they never would have raped that girl.
But instead of admitting that what he has done has been wrong, Pharoah Obama is doubling down on his current approach. He insists that leaving the border wide open is “the right thing to do”, and he pledges to “bring more undocumented immigrants out of the shadows”. The following comes from the Examiner…
After executive amnesty was blocked in the courts and in the House the last two days, President Obama used his weekly radio address to ridicule House Republicans for blocking a vote on immigration reform, while promising that he would keep up the fight for undocumented immigrants.
“I’m going to keep doing everything I can to make our immigration system more just and more fair,” Obama said. “Last fall, I took action to provide more resources for border security; focus enforcement on the real threats to our security; modernize the legal immigration system for workers, employers and students; and bring more undocumented immigrants out of the shadows so they can get right with the law.”
“Some folks are still fighting against these actions,” Obama said, without directly naming the legal hurdles his executive actions face. “I’m going to keep fighting for them. Because the law is on our side. It’s the right thing to do. And it will make America stronger.”
And if Obama has his way, this is only just the beginning.
I have previously written about the devastating impact that the Trans-Pacific Partnership will have on our economy, but did you know that this secret new treaty that Obama is negotiating will also allow for the free flow of people within the Asia-Pacific region? The following comes from WND…
The European Union was founded on “four freedoms”: the free flow of people, goods, money and services among members. We learned at a recent White House press conference the Trans-Pacific Partnership will ensure “people, goods and money will flow freely within the Asia Pacific region.”
So what does that mean?
Will immigrants be able to move around the nations that are involved in the Trans-Pacific Partnership as freely as they do in the European Union today? Mexico is one of the countries that will be a part of this new treaty. Does that mean that people will now “flow freely” between our two nations?
We have seen it time and time again – once Obama is blocked one way, he just comes back and tries to advance his agenda another way. When he promised to “fundamentally transform” this country, I don’t think that most people had any idea of what we would really be in for.
At this point, many regard Barack Obama as a “lame duck” president that is on his way out.
I don’t see it like that at all. In fact, I believe that the most tumultuous time of Obama’s presidency is still to come.
Do you agree? Tell us what you think the remainder of Obama’s time in the White House will look like by leaving a comment below…
Are they expecting something to happen? As you will read about below, the European Union says that any nation within the EU that does not enact “bail-in” legislation within the next two months will face legal action. The countries that are being threatened in this manner include Italy and France. If you fast forward two months from this moment, that puts us in early August. So clearly the European Union wants everything to be squared away by the end of the summer. Is there a reason for this? Are they anticipating that something really bad will happen in September or thereafter? Why such a rush?
We all remember what happened when major banks were “bailed out” during the last financial crisis. A tremendous amount of taxpayer money was given to the big banks to help prop them up so they wouldn’t fail. This greatly upset a lot of people.
Well, when the next great financial crisis hits Europe, banks are not going to get “bailed out” this time. Instead, we are going to see “bail-ins”.
So precisely what is a “bail-in”? Essentially, what happens is that wealth is transferred from the “stakeholders” in the bank to the bank itself in order to keep it solvent. That means that creditors and shareholders could potentially lose everything if a major bank in Europe fails. And if their “contributions” are not enough to save the bank, those holding private bank accounts will have to take “haircuts” just like we saw in Cyprus. In fact, the travesty that we witnessed in Cyprus is being used as a “template” for much of the new legislation that is being enacted all over Europe.
The bottom line is that not a single bank account in the European Union will ever be truly safe again.
By this time, everyone in the EU was already supposed to have enacted “bail-in” legislation, but some countries in Europe have been dragging their feet. So now the European Commission (the executive body of the European Union) is giving them a hard deadline. According to Reuters, any nation that has not passed “bail-in” legislation within two months will be subject to legal action…
The European Commission on Thursday gave France, Italy and nine other EU countries two months to adopt new EU rules on propping up failed banks or face legal action.
The rules, known as the bank recovery and resolution directive (BRRD), seek to shield taxpayers from having to bail out troubled lenders, forcing creditors and shareholders to contribute to the rescue in a process known as “bail-in”.
So which countries are being threatened?
It turns out that there are 11 of them. The following comes from Mark O’Byrne…
The article “EU regulators tell 11 countries to adopt bank bail-in rules” reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy.
France and Italy are two countries who are regarded as having particularly fragile banking systems.
But why only two months to get this done?
When I was in law school, I took an entire course on European Union law. Normally, things in Europe take a very long time to get done. It is out of character for the European Commission to rush to get something like this done so quickly.
Could they be anticipating that this legislation will need to be put into use very soon?
What we do know is that bonds in Europe have already been crashing, and it appears that the European Central Bank is starting to lose control over European financial markets.
And we also know that there has been a sustained bank run in Greece. In fact, it is being reported that 700 million euros were pulled out of Greek banks on Friday alone. Personally, I think that anyone that still has any money in Greek banks is absolutely insane. Some day in the not too distant future, Greek bank account holders are going to be in for a “haircut” just like we saw in Cyprus. The following comes from Zero Hedge…
While the Greek government believes it may have won the battle, if not the war with Europe, the reality is that every additional day in which Athens does not have a funding backstop, be it the ECB (or the BRIC bank), is a day which brings the local banking system to total collapse.
As a reminder, Greek banks already depends on the ECB for some €80.7 billion in Emergency Liquidity Assistance which was about 60% of total deposits in the Greek financial system as of April 30. In other words, they are woefully insolvent and only the day to day generosity of the ECB prevents a roughly 40% forced “bail in” deposit haircut a la Cyprus.
But of course Greece will only be just the beginning. In the end, I expect major banks to fail all over Europe as we head into the greatest financial crisis that Europe has ever seen. Bank account holders all over the continent could end up having to take “haircuts”, and that would just make the coming deflationary cycle in Europe a lot worse.
And I actually expect events in Europe to start accelerating greatly by the end of this calendar year. Apparently the top dogs in the European Union are also concerned about the immediate future, because they are rushing to get “bail-in” legislation passed in every nation in the EU by the end of the summer.
Fortunately, the United States has not moved in a similar direction – at least not yet. It is always possible that during an “emergency situation” anything can happen. We saw that in Cyprus. But for the moment, European bank accounts appear to be more vulnerable than U.S. bank accounts.
Not that any of us should have much confidence in the major banks in the United States either. Since the end of the last financial crisis they have become more reckless than ever. At this point, the six largest banks in this country collectively have 278 trillion dollars of exposure to derivatives. A day is coming when the “too big to fail” banks will actually start failing, and that will absolutely cripple our economy.
We are moving into a time of great financial instability. During such a time, one of the keys will be to not have all of your eggs in one basket. That way it will be more difficult for your wealth to be wiped out by a single event.
So what other advice would you give to people that are wondering how to deal with the coming global banking crisis? Please feel free to add to the discussion by posting a comment below…
The next time you visit a hospital, it is your wallet that may end up hurting the most. All over the United States, it has become common practice for hospitals to wildly inflate medical bills. For example, it has been reported that some hospitals are charging up to 30 dollars for a single aspirin pill. And as you will see below, some victims report being billed tens of thousands of dollars for a non-surgical hospital visit that lasts only a few hours. When something is seriously wrong with us, most of us never stop to ask our health professionals how much it will cost to actually treat us. In that moment, we are desperate and we just want someone to help us. Many doctors and hospitals take full advantage of this by billing their “customers” as much as they feel they can possible get away with. It is a legal scam that is bilking ordinary Americans out of billions of dollars every single year.
Over the weekend, the New York Times reported on one case that is a perfect example of the outrageous medical billing that I am talking about…
Before his three-hour neck surgery for herniated disks in December, Peter Drier, 37, signed a pile of consent forms. A bank technology manager who had researched his insurance coverage, Mr. Drier was prepared when the bills started arriving: $56,000 from Lenox Hill Hospital in Manhattan, $4,300 from the anesthesiologist and even $133,000 from his orthopedist, who he knew would accept a fraction of that fee.
He was blindsided, though, by a bill of about $117,000 from an “assistant surgeon,” a Queens-based neurosurgeon whom Mr. Drier did not recall meeting.
“I thought I understood the risks,” Mr. Drier, who lives in New York City, said later. “But this was just so wrong — I had no choice and no negotiating power.”
The practice known as “drive-by doctoring” has gotten completely and totally out of control.
All over America, doctors are popping into surgeries or are stopping by to talk to another doctor’s patients for a few minutes and are charging thousands of dollars for this “assistance”.
It is a morally reprehensible scam that needs to be stopped.
Another thing that needs to be stopped is the practice that many hospitals have of billing patients for emergency medications at a rate that is thousands of times over cost.
For example, just check out what happened when 52-year-old Marcie Edmonds went in to a hospital in Arizona to get treated for a scorpion sting…
With the help of a friend, she called Poison Control and was advised to go to the nearest hospital that had scorpion antivenom, Chandler Regional Medical Center. At the hospital, an emergency room doctor told her about the antivenom, called Anascorp, that could quickly relieve her symptoms. Edmonds said the physician never talked with her about the cost of the drug or treatment alternatives.
Her symptoms subsided after she received two doses of the drug Anascorp through an IV, and she was discharged from the hospital in about three hours.
Weeks later, she received a bill for $83,046 from Chandler Regional Medical Center. The hospital, owned by Dignity Health, charged her $39,652 per dose of Anascorp.
Did that hospital actually need to charge that much?
Of course not.
Hospitals down in Mexico only charge $100 per dose of Anascorp.
And anyone that has ever been in for major surgery knows how outrageous some of these hospital bills can be.
For instance, consider the experience of an NBC News reporter that chose to have neck surgery for degenerative disc disease….
Once I got my itemized bill, the grand total was a little over $66,013.40! That was for a one night stay and a four level vertebrae fusion surgery. The charges included $22 for one sleeping pill, $427 for one dissecting tool, and $32,000 for four titanium plates and ten screws.
I brought it to Todd Hill, a fee based patient advocate who helps people decipher their medical bills. “The screws in your procedure were billed at $605 a piece for a total of $6050 dollars. We’ve seen those in our past research for $25 or $30,” he said. “In this case, the markup is tremendous,” he added.
One of the primary reasons why so many Americans die completely broke is because medical bills can run up to astronomical heights if you happen to have a terminal illness.
For example, a while back Time Magazine reported on one cancer patient in California that had run up nearly a million dollars in hospital bills before he died…
By the time Steven D. died at his home in Northern California the following November, he had lived for an additional 11 months. And Alice had collected bills totaling $902,452. The family’s first bill — for $348,000 — which arrived when Steven got home from the Seton Medical Center in Daly City, Calif., was full of all the usual chargemaster profit grabs: $18 each for 88 diabetes-test strips that Amazon sells in boxes of 50 for $27.85; $24 each for 19 niacin pills that are sold in drugstores for about a nickel apiece. There were also four boxes of sterile gauze pads for $77 each. None of that was considered part of what was provided in return for Seton’s facility charge for the intensive-care unit for two days at $13,225 a day, 12 days in the critical unit at $7,315 a day and one day in a standard room (all of which totaled $120,116 over 15 days). There was also $20,886 for CT scans and $24,251 for lab work.
The sad truth is that the U.S. health care system has become a giant money making scam, and all of us are the victims.
Those that work in this industry should be greatly ashamed for what they are doing to us.
Just consider the following numbers…
-It has been estimated that hospitals in the United States overcharge their patients by about 10 billion dollars every single year.
-Medical bills are the number one reason why Americans file for bankruptcy. One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
-According to a report published in The American Journal of Medicine, medical bills cause more than 60 percent of the personal bankruptcies in the United States.
-Health insurance is not nearly as much protection as you might think. According to a report published in the American Journal of Medicine, of all bankruptcies caused by medical debt approximately 75 percent of the time the people actually did have health insurance.
-Hospitals are not shy about sending debt collection agencies after people with unpaid medical bills. In fact, collection agencies seek to collect unpaid medical bills from approximately 30 million Americans every year.
-Back in 1980, less than 10 percent of U.S. GDP went to health care. Today, about 18 percent of U.S. GDP goes toward health care.
-If the U.S. health care system was a nation, it would be the 6th largest economy on the entire planet.
Does anyone out there have any doubt that the system is completely broken?
Please share this article with as many people as you can. Hospitals all over America are brazenly ripping us off, and we need to stand up and say that enough is enough.
How would you feel if you went to the store to buy something, and someone rushed ahead of you and purchased it first and then sold it to you at a higher price? Well, in the financial world this happens millions upon millions of times. In fact, this practice has become so popular that it has spawned an entire industry known as “high frequency trading”. At this point, high frequency trading makes up about half of all trading volume on Wall Street, and it is costing the rest of us billions of dollars a year. And the funny thing is that this is all perfectly legal. High frequency trading firms are exploiting a glitch in the system, and by allowing this to go on, the authorities have essentially given them a license to steal from the rest of us. Sadly, this is just another example that shows that the odds are never in our favor. The “little guy” never seems to be able to win, and those at the top of the food chain like it that way.
Making money in the stock market is supposed to be about making wise investment decisions. It isn’t supposed to be about finding a glitch in a video game and exploiting it. But that is essentially what these high frequency traders have done. They have spent an extraordinary amount of time and energy figuring out ways to make pennies (or sometimes just fractions of a penny) on the trades that the rest of us make.
Fortunately, this practice was exposed in front of the entire world by 60 Minutes the other night. Steve Kroft interviewed a former trader named Michael Lewis that just released a new book entitled “Flash Boys” that is all about the evils of high frequency trading. The following is an excerpt from that interview…
Steve Kroft: And this is all being done by computers?
Michael Lewis: All being done by computers. It’s too fast to be done by humans. Humans have been completely removed from the marketplace.
“Fast” is the operative word. Machines with secret programs are now trading stocks in tiny fractions of a second, way too fast to be seen or recorded on a stock ticker or computer screen. Faster than the market itself. High-frequency traders, big Wall Street firms and stock exchanges have spent billions to gain an advantage of a millisecond for themselves and their customers, just to get a peek at stock market prices and orders a flash before everyone else, along with the opportunity to act on it.
Michael Lewis: The insiders are able to move faster than you. They’re able to see your order and play it against other orders in ways that you don’t understand. They’re able to front run your order.
Steve Kroft: What do you mean front run?
Michael Lewis: Means they’re able to identify your desire to, to buy shares in Microsoft and buy ’em in front of you and sell ’em back to you at a higher price. It all happens in infinitesimally small periods of time. There’s speed advantage that the faster traders have is milliseconds, some of it is fractions of milliseconds. But it”s enough for them to identify what you’re gonna do and do it before you do it at your expense.
Steve Kroft: So it drives the price up.
Michael Lewis: So it drives the price up, and in turn you pay a higher price.
You can watch the entire interview right here. Unlike most mainstream media news reports, this one is actually worth your time. I have watched the entire thing, and I highly recommend it.
Of course there have been many that have been screaming about high frequency trading for many years. Zero Hedge is just one example. This practice has gone on year after year and the federal government has looked the other way.
These high frequency trading firms do not add anything to society. As Barry Ritholtz noted recently, one of these firms has an average holding period for stocks of just 11 seconds, and at one point it stated that it had “not had a losing day of trading in four years“…
The only surprising thing about Lewis’s assertion was that anyone could be even remotely surprised by it.
The math on trading is simple: It is a zero-sum game. One trader’s gain is another trader’s loss. Only in the case of HFT, the losers are the investors — by way of their pension funds, retirement accounts and institutional funds. The HFT’s take — the “skim” — comes out of these large institution’s trade executions.
The technology behind HFT may be complex, but the math is that simple. Once the Securities and Exchange Commission allowed stock exchanges to share with traders all of the unexecuted incoming orders, it was hard not to make money by skimming a few cents or fractions of a cent from each trade. Several years ago, the founder of Tradebot, one of the biggest high-frequency firms, had said that the firm had “not had a losing day of trading in four years.” The firm’s average holding period for stocks is 11 seconds.
How in the world does that kind of behavior add any value to society?
They are just skimming money that should be going to others. Billions of dollars is essentially being stolen from pension funds and retirement accounts, and it is time that people started getting outraged about this.
Unfortunately, even if this practice is outlawed, the truth is that the odds will still never be in our favor.
There are millions of Americans that dream of getting ahead, but they never seem to be able to get there. They work incredibly hard, but the more they earn, the more the government taxes them. If somehow you do manage to scrape together a little bit of money to invest in the financial markets, any profits that you make will be endlessly eroded by fees, commissions and even more taxes.
And it is important to remember that in the financial world, the “little guy” is regarded as easy prey by the hungry wolves that are all too eager to find a way to transfer your money into their own pockets. If you don’t know what you are doing, it is all too easy to get absolutely slaughtered.
On Wall Street, there are winners and there are losers.
Most of the time, “the little guys” end up losing.
But at least they could try to have a system that at least has the appearance of fairness. As long as high frequency trading exists, that will never be the case.
Karen Hudes is a graduate of Yale Law School and she worked in the legal department of the World Bank for more than 20 years. In fact, when she was fired for blowing the whistle on corruption inside the World Bank, she held the position of Senior Counsel. She was in a unique position to see exactly how the global elite rule the world, and the information that she is now revealing to the public is absolutely stunning. According to Hudes, the elite use a very tight core of financial institutions and mega-corporations to dominate the planet. The goal is control. They want all of us enslaved to debt, they want all of our governments enslaved to debt, and they want all of our politicians addicted to the huge financial contributions that they funnel into their campaigns. Since the elite also own all of the big media companies, the mainstream media never lets us in on the secret that there is something fundamentally wrong with the way that our system works.
Remember, this is not some “conspiracy theorist” that is saying these things. This is a Yale-educated attorney that worked inside the World Bank for more than two decades. The following summary of her credentials comes directly from her website…
Karen Hudes studied law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non Governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.
Today, Hudes is trying very hard to expose the corrupt financial system that the global elite are using to control the wealth of the world. During an interview with the New American, she discussed how we are willingly allowing this group of elitists to totally dominate the resources of the planet…
A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success.
Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”
Previously, I have written about the Swiss study that Hudes mentioned. It was conducted by a team of researchers at the Swiss Federal Institute of Technology in Zurich, Switzerland. They studied the relationships between 37 million companies and investors worldwide, and what they discovered is that there is a “super-entity” of just 147 very tightly knit mega-corporations that controls 40 percent of the entire global economy…
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
But the global elite don’t just control these mega-corporations. According to Hudes, they also dominate the unelected, unaccountable organizations that control the finances of virtually every nation on the face of the planet. The World Bank, the IMF and central banks such as the Federal Reserve literally control the creation and the flow of money worldwide.
At the apex of this system is the Bank for International Settlements. It is the central bank of central banks, and posted below is a video where you can watch Hudes tell Greg Hunter of USAWatchdog.com the following…
“We don’t have to wait for anybody to fire the Fed or Bank for International Settlements . . . some states have already started to recognize silver and gold, the precious metals, as currency”
Most people have never even heard of the Bank for International Settlements, but it is an extremely important organization. In a previous article, I described how this “central bank of the world” is literally immune to the laws of all national governments…
An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe. It is called the Bank for International Settlements, and it is the central bank of central banks. It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City. It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws. Even Wikipedia admits that “it is not accountable to any single national government.” The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system. Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does. Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”. During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on. The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.
This system did not come into being by accident. In fact, the global elite have been developing this system for a very long time. In a previous article entitled “Who Runs The World? Solid Proof That A Core Group Of Wealthy Elitists Is Pulling The Strings“, I included a quote from Georgetown University history professor Carroll Quigley from a book that he authored all the way back in 1966 in which he discussed the big plans that the elite had for the Bank for International Settlements…
[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.
And that is exactly what we have today.
We have a system of “neo-feudalism” in which all of us and our national governments are enslaved to debt. This system is governed by the central banks and by the Bank for International Settlements, and it systematically transfers the wealth of the world out of our hands and into the hands of the global elite.
But most people have no idea that any of this is happening because the global elite also control what we see, hear and think about. Today, there are just six giant media corporations that control more than 90 percent of the news and entertainment that you watch on your television in the United States.
This is the insidious system that Karen Hudes is seeking to expose. For much more, you can listen to Joyce Riley of the Power Hour interview her for an entire hour right here.
So what do you think about what Hudes is saying? Please feel free to share your thoughts by posting a comment below…
Did you know that the big banks have a way to legally steal your house from you even if you don’t owe a single penny on your mortgage? Big banks and hedge funds are buying billions of dollars worth of tax liens from local governments all over the nation, and they are ruthlessly foreclosing on homeowners when they can’t pay the absolutely ridiculous penalties and legal fees that are tacked on to the original tax bill. As you will see below, one 76-year-old man lost his $197,000 home that he fully owned over a $134 tax bill. A 95-year-old woman lost her $300,000 home over a $44.79 tax bill. This is a very, very dirty way to make money, and the predatory financial institutions that are involved in this business definitely do not want to talk about it.
Of course much of the blame should also be shouldered by the local governments that are coldly selling these tax liens to these ruthless predators. If local governments want to collect their tax bills, they should do it themselves. They should not be auctioning off their tax liens to cold-hearted financial institutions that are very eager to commit a legal version of highway robbery.
A few days ago, the Washington Post reported on the tragic story of a 76-year-old former Marine named Bennie Coleman. Coleman had originally purchased his home with cash, but that didn’t stop tax lien predators from stealing his home over an unpaid $134 property tax bill…
On the day Bennie Coleman lost his house, the day armed U.S. marshals came to his door and ordered him off the property, he slumped in a folding chair across the street and watched the vestiges of his 76 years hauled to the curb.
Movers carted out his easy chair, his clothes, his television. Next came the things that were closest to his heart: his Marine Corps medals and photographs of his dead wife, Martha. The duplex in Northeast Washington that Coleman bought with cash two decades earlier was emptied and shuttered. By sundown, he had nowhere to go.
All because he didn’t pay a $134 property tax bill.
So why couldn’t he pay such a small bill?
Well, as the Post explained, these big banks and hedge funds keep tacking on interest, penalties and legal fees until the tax bills are many times the size that they originally were. When the distressed homeowners can’t come up with thousands of dollars to pay off the debts, the big banks and the hedge funds move in for the kill…
For decades, the District placed liens on properties when homeowners failed to pay their bills, then sold those liens at public auctions to mom-and-pop investors who drew a profit by charging owners interest on top of the tax debt until the money was repaid.
But under the watch of local leaders, the program has morphed into a predatory system of debt collection for well-financed, out-of-town companies that turned $500 delinquencies into $5,000 debts — then foreclosed on homes when families couldn’t pay, a Washington Post investigation found.
In particular, hedge funds have discovered that this is a great way to make huge piles of money. The following is a short excerpt from a CNN article that was published back in May…
With buyers identified only by numbers or unrelated names, the fragmented, unregulated industry is opaque. Even the market’s size is debated — $15 billion a year, according to Howard Liggett, the chief executive of Distressed Real Estate Consulting Services, or $5 billion a year, according to the National Tax Lien Association, a trade group. While returns are a closely kept secret, investors typically make between 2.5% and 10% a year, or in the low teens for larger buys.
“The hedge funds are chasing yield in this business” says Albert Friedman, a principal at Alterna Capital, an alternative investment firm in Boca Raton that buys tax liens.
Insiders estimate hedge funds now control 40% of the tax-lien market, from under 5% five years ago, with regional banks, obscure partnerships sporting names like God’s ATM LLC, and mom-and-pop investors making up the rest.
And a number of “too big to fail” banks are involved in this business as well.
In a previous article, I described exactly how this works…
1) The big Wall Street banks set up or invest in shell companies that will disguise who they really are.
2) These shell companies run around and buy up all of the tax liens that they can get their hands on.
3) Predatory levels of interest (in some states as high as 18 percent), fees and penalties rapidly pile up on these unpaid tax liens. The affected homeowners quickly end up owing much, much more than what the original tax bills were for.
4) If the collecting firm has to hire a lawyer, then that gets charged to the homeowner as well. The bloated legal fees for some of these lawyers can end up being the biggest expense of all.
5) If the tax liens do not get paid, the collecting firms move in to foreclose as quickly as legally possible.
According to the Huffington Post, Wall Street banks such as Bank of America and JPMorgan Chase have been gobbling up several hundred thousand tax liens from local governments. It appears that “distressed housing markets” are being particularly targeted.
Many of these tax liens are sold in online auctions, so it is unclear if many local government officials even realize who the big money behind many of these shell companies is.
These big financial institutions may consider this to be “good business”, but the truth is that they are absolutely shattering lives in the process. This is particularly true when it comes to older people that do not fully understand what is happening to them. Just consider the following examples from a recent Washington Post article…
A 48-year-old math teacher paid his taxes in 2007, but the tax office took his $1,400 payment and applied it to the wrong house, crediting an entirely different taxpayer.
A 58-year-old bank employee almost lost her house in 2010 because the tax office mistakenly sent bills and notices to a wooded lot across from a strip shopping center in Virginia — 12 times.
A 69-year-old hat designer was given the wrong payoff amount and ended up in court to save her property, owned by her family since 1943.
Those homeowners found out about the mistakes in time to fight. Ninety-five-year-old Daisy Dolsey, living in a nursing home and struggling with Alzheimer’s, wasn’t so lucky: She lost her $300,000 house over a $44.79 tax debt even after she paid her taxes.
Doesn’t that just sicken you?
And then the big banks and the hedge funds have the gall to wonder why people dislike them so much.
In this day and age, large financial institutions have become more cold-hearted than ever before.
Always make sure that your property taxes are fully paid, and always keep a paper record of all financial transactions involving your home.
If you do slip up and make a mistake at some point, there is a very good chance that a ruthless financial institution will try to swoop in and steal your home right out from under your nose.
It is so sad to watch one of America’s greatest cities die a horrible death. Once upon a time, the city of Detroit was a teeming metropolis of 1.8 million people and it had the highest per capita income in the United States. Now it is a rotting, decaying hellhole of about 700,000 people that the rest of the world makes jokes about. On Thursday, we learned that the decision had been made for the city of Detroit to formally file for Chapter 9 bankruptcy. It was going to be the largest municipal bankruptcy in the history of the United States by far, but on Friday it was stopped at least temporarily by an Ingham County judge. She ruled that Detroit’s bankruptcy filing violates the Michigan Constitution because it would result in reduced pension payments for retired workers. She also stated that Detroit’s bankruptcy filing was “also not honoring the (United States) president, who took (Detroit’s auto companies) out of bankruptcy“, and she ordered that a copy of her judgment be sent to Barack Obama. How “honoring the president” has anything to do with the bankruptcy of Detroit is a bit of a mystery, but what that judge has done is ensured that there will be months of legal wrangling ahead over Detroit’s money woes. It will be very interesting to see how all of this plays out. But one thing is for sure – the city of Detroit is flat broke. One of the greatest cities in the history of the world is just a shell of its former self. The following are 25 facts about the fall of Detroit that will leave you shaking your head…
1) At this point, the city of Detroit owes money to more than 100,000 creditors.
2) Detroit is facing $20 billion in debt and unfunded liabilities. That breaks down to more than $25,000 per resident.
3) Back in 1960, the city of Detroit actually had the highest per-capita income in the entire nation.
4) In 1950, there were about 296,000 manufacturing jobs in Detroit. Today, there are less than 27,000.
5) Between December 2000 and December 2010, 48 percent of the manufacturing jobs in the state of Michigan were lost.
6) There are lots of houses available for sale in Detroit right now for $500 or less.
7) At this point, there are approximately 78,000 abandoned homes in the city.
8) About one-third of Detroit’s 140 square miles is either vacant or derelict.
9) An astounding 47 percent of the residents of the city of Detroit are functionally illiterate.
10) Less than half of the residents of Detroit over the age of 16 are working at this point.
11) If you can believe it, 60 percent of all children in the city of Detroit are living in poverty.
12) Detroit was once the fourth-largest city in the United States, but over the past 60 years the population of Detroit has fallen by 63 percent.
13) The city of Detroit is now very heavily dependent on the tax revenue it pulls in from the casinos in the city. Right now, Detroit is bringing in about 11 million dollars a month in tax revenue from the casinos.
14) There are 70 “Superfund” hazardous waste sites in Detroit.
15) 40 percent of the street lights do not work.
16) Only about a third of the ambulances are running.
17) Some ambulances in the city of Detroit have been used for so long that they have more than 250,000 miles on them.
18) Two-thirds of the parks in the city of Detroit have been permanently closed down since 2008.
19) The size of the police force in Detroit has been cut by about 40 percent over the past decade.
20) When you call the police in Detroit, it takes them an average of 58 minutes to respond.
21) Due to budget cutbacks, most police stations in Detroit are now closed to the public for 16 hours a day.
22) The violent crime rate in Detroit is five times higher than the national average.
23) The murder rate in Detroit is 11 times higher than it is in New York City.
24) Today, police solve less than 10 percent of the crimes that are committed in Detroit.
25) Crime has gotten so bad in Detroit that even the police are telling people to “enter Detroit at your own risk“.
It is easy to point fingers and mock Detroit, but the truth is that the rest of America is going down the exact same path that Detroit has gone down.
Detroit just got there first.
All over this country, there are hundreds of state and local governments that are also on the verge of financial ruin…
“Everyone will say, ‘Oh well, it’s Detroit. I thought it was already in bankruptcy,’ ” said Michigan State University economist Eric Scorsone. “But Detroit is not unique. It’s the same in Chicago and New York and San Diego and San Jose. It’s a lot of major cities in this country. They may not be as extreme as Detroit, but a lot of them face the same problems.”
A while back, Meredith Whitney was highly criticized for predicting that there would be a huge wave of municipal defaults in this country. When it didn’t happen, the critics let her have it mercilessly.
But Meredith Whitney was not wrong.
She was just early.
Detroit is only just the beginning. When the next major financial crisis strikes, we are going to see a wave of municipal bankruptcies unlike anything we have ever seen before.
And of course the biggest debt problem of all in this country is the U.S. government. We are going to pay a great price for piling up nearly 17 trillion dollars of debt and over 200 trillion dollars of unfunded liabilities.
All over the nation, our economic infrastructure is being gutted, debt levels are exploding and poverty is spreading. We are consuming far more wealth than we are producing, and our share of global GDP has been declining dramatically.
We have been living way above our means for so long that we think it is “normal”, but an extremely painful “adjustment” is coming and most Americans are not going to know how to handle it.
So don’t laugh at Detroit. The economic pain that Detroit is experiencing will be coming to your area of the country soon enough.
Did you know that the total number of unemployed workers in G20 counties is now up to 93 million and that it is increasing with each passing day? You see, the truth is that the United States is not the only one dealing with a systemic unemployment crisis. This is literally happening all over the planet. So what is causing this crisis? Is there any hope that it will be turned around? Well, unfortunately there are several long-term trends that have been developing for decades that have played a major role in bringing us to this point. First of all, the giant corporations that now totally dominate the global economy have figured out that they can make a lot more money by replacing expensive workers that live in major industrialized nations with workers that live in nations where it is legal to pay slave labor wages. So it isn’t really a huge mystery why there is such a huge problem with unemployment in the western world. If you were running a giant corporation, why would you want to hire workers that will cost you 10 to 20 times as much as other workers? A worker is a worker, and over the past decade we have seen a massive movement of jobs to countries where labor is cheaper. In addition, large corporations are also trying to completely eliminate as many jobs as they can by using technology. If a corporation can get a computer or a machine or a robot to do a task more cheaply than a human worker can do it, then why would that corporation want to continue to rely on human labor? And of course we have seen an overall weakening of the economies of the western world in recent years as well. This has been particularly true in the United States. As these long-term trends intensify, the worldwide unemployment crisis is going to get even worse.
In fact, the director general of the International Labor Organization is fully convinced that unemployment is going to continue to rise in G20 nations. Just check out what he told CNBC on Friday…
Unemployment will likely soar further in the group of 20 major economic powers without immediate action, Guy Ryder, the director general of the International Labor Organization told CNBC on Friday, comparing the jobs crisis to the 2008-2009 financial crisis and warning it needs to be tackled urgently.
“We have gone backwards. It is quite alarming to see…that unemployment has not gone down, in fact it’s gone up,” Ryder told CNBC at the G20 finance ministers’ meeting in Moscow.
He said 93 million people were currently unemployed in the G20.
And when those living in G20 nations lose their jobs, they tend to stay out of work for a very long time. In fact, 30 percent of unemployed workers in G20 countries have been out of work for one year or longer.
Major industrialized nations all over the planet are no longer able to produce enough jobs for their people. In many “wealthy nations” the unemployment rate has already risen well up into double digits. Just consider the following numbers…
-The unemployment rate is above 25 percent in South Africa.
-The unemployment rate in France recently hit a 15 year high.
-The unemployment rate in Italy is up to 12.2 percent, which is the highest in 35 years.
-The unemployment rate in the eurozone as a whole is up to an all-time high of 12.2 percent.
-The unemployment rate in Poland is 13.2 percent.
-The unemployment rate in Ireland is now 13.6 percent.
-The unemployment rate in Portugal has rocketed up to 17.7 percent.
-The unemployment rate in Greece is currently sitting at 26.9 percent and it is being projected that it will soon hit 30 percent.
-The unemployment rate in Spain is even worse than in Greece. The unemployment rate in Spain is a staggering 27.2 percent.
Sadly, it looks like things are not going to be getting better any time soon. In fact, global business confidence is now the lowest that it has been since the last recession.
So what about the United States?
Well, it is true that our official numbers do not look quite as bad as much of the rest of the world. But the official unemployment rate in the U.S. has been at 7.5 percent or higher for 54 months in a row. That is the longest stretch in U.S. history.
But at least it is not in double digits yet.
Things could be worse.
However, that does not mean that we are doing well either.
The mainstream media is attempting to convince us that everything is just fine because the unemployment rate has been “going down”, but when you take a deeper look at the numbers that is not exactly an accurate assessment of our situation.
As the New York Times recently pointed out, the decline in the unemployment rate can almost entirely be accounted for by a decline in the labor participation rate…
Let’s take a step back. Lots of people lost jobs during the Great Recession. In the aftermath, the great surprise has been how few are looking for new jobs. Labor force participation, the share of adults working or trying to find work, has stagnated at about 63.5 percent, almost three percentage points below the pre-recession level.
The unemployment rate has dropped almost entirely because of this decline in labor force participation. In other words, it has not fallen because people are finding jobs. It has fallen because fewer people are looking for jobs.
To get a more accurate picture of what is really happening with employment in America, you need to look at the employment-population ratio. It is a measurement of the percentage of the working age population that is actually working. As you can see, the percentage of working age Americans that actually have a job has been declining since the year 2000…
As you can see, there has been no employment recovery.
When the mainstream media tells you that the employment numbers for June were “great”, that is not being honest. The truth is that the unemployment rate rose in 28 U.S. states and it only declined in 11 states during June, and as I mentioned yesterday, the U.S. economy actually lost 240,000 full-time jobs last month.
So no, things are not getting better, and the unemployment problems in the United States and in Europe are likely going to continue to get worse in the years ahead.
That is very bad news for most of us, because the only thing that most of us have to offer in the marketplace is our labor. If the value that is placed on our labor is continually declining, then that puts us in a very difficult position.
It is almost as if we have all been drafted to play a very twisted game of musical chairs. Each time the music stops, more chairs (jobs) are being pulled out of the game.
You might be doing okay for the moment, but what is going to happen when the music suddenly stops one day and your chair gets pulled out of the game?
That is something that you might want to start thinking about.