A New Digital Cash System Was Just Unveiled At A Secret Meeting For Bankers In New York

Secret - Public DomainLast month, a “secret meeting” that involved more than 100 executives from some of the biggest financial institutions in the United States was held in New York City.  During this “secret meeting“, a company known as “Chain” unveiled a technology that transforms U.S. dollars into “pure digital assets”.  Reportedly, there were representatives from Nasdaq, Citigroup, Visa, Fidelity, Fiserv and Pfizer in the room, and Chain also claims to be partnering with Capital One, State Street, and First Data.  This “revolutionary” technology is intended to completely change the way that we use money, and it would represent a major step toward a cashless society.  But if this new digital cash system is going to be so good for society, why was it unveiled during a secret meeting for Wall Street bankers?  Is there something more going on here than we are being told?

None of us probably would have ever heard about this secret meeting if it was not for a report in Bloomberg.  The following comes from their article entitled “Inside the Secret Meeting Where Wall Street Tested Digital Cash“…

On a recent Monday in April, more than 100 executives from some of the world’s largest financial institutions gathered for a private meeting at the Times Square office of Nasdaq Inc. They weren’t there to just talk about blockchain, the new technology some predict will transform finance, but to build and experiment with the software.

By the end of the day, they had seen something revolutionary: U.S. dollars transformed into pure digital assets, able to be used to execute and settle a trade instantly. That’s the promise of a blockchain, where the cumbersome and error-prone system that takes days to move money across town or around the world is replaced with almost instant certainty.

So it is not just Michael Snyder from The Economic Collapse Blog that is referring to this gathering as a “secret meeting”.  This is actually how it was described by Bloomberg.  And I think that there is a very good reason why this meeting was held in secret, because many in the general public would definitely be alarmed by this giant step toward a cashless society.  Here is more on this new system from Bloomberg

While cash in a bank account moves electronically all the time today, there’s a distinction between that system and what it means to say money is digital. Electronic payments are really just messages that cash needs to move from one account to another, and this reconciliation is what adds time to the payments process. For customers, moving money between accounts can take days as banks wait for confirmations. Digital dollars, however, are pre-loaded into a system like a blockchain. From there, they can be swapped immediately for an asset.

“Instead of a record or message being moved, it’s the actual asset,” Ludwin said. “The payment and the settlement become the same thing.”

Why this is so alarming is because we are seeing other major moves toward a cashless system all over the planet.  In Sweden, 95 percent of all retail transactions are already cashless, and ATM machines are being removed by the hundreds.  In Denmark, government officials actually have a stated goal of “eradicating cash” by the year 2030.  And in Norway, the biggest bank in the country has publicly called for the complete elimination of all cash.

Other nations in Europe have already banned cash transactions over a certain amount. Here are just a couple of examples

As I have written about previously, cash transactions of more than 2,500 euros have already been banned in Spain, and France and Italy have both banned all cash transactions of more than 1,000 euros.

Little by little, cash is being eradicated, and what we have seen so far is just the beginning. 417 billion cashless transactions were conducted in 2014, and the final number for 2015 is projected to be much higher.

The global push toward a cashless society is only going to intensify, because banks and governments both tend to really like the idea of such a system.

Banks really like the concept of a cashless society because it would force everyone to be their customers.  There would be no more hiding cash in a mattress at home or trying to pay all of your bills with paper money.  Under a cashless system, we would all be dependent on the banks, and they would make lots of money whenever we swiped our cards or our “chips” were scanned.

Governments see a lot of advantages in a cashless society as well.  They tell us that they would be able to crack down on drug dealers, tax evaders, terrorists and money launderers, but the truth is that it would enable them to watch, track, monitor and control virtually all of our financial transactions.  Our lives would become open books to the government, and financial privacy would be a thing of the past.

In addition, the potential for tyranny would be absolutely off the charts.

Just imagine a world where the government could serve as the gatekeeper for who is allowed to use the cashless system and who is not.  They could require that we all submit to some sort of government-issued form of identification before being permitted to operate within the system, or it is even conceivable that a loyalty oath would be required.

Of course if you did not submit to their demands, you could not buy, sell, open a bank account or get a job without access to the cashless system.

Hopefully people can understand where this is going.  Paper money is a very important component of our freedom, and if it is taken away from us that will open the door for all sorts of abuse.

Even now, cash is slowly being “criminalized” in America.  For example, if cash is used to pay for a hotel room that is considered by federal authorities to be “suspicious activity” that should be reported to the government.  Of course it isn’t against the law to pay your hotel bill in cash just yet, but according to the government it is something that “terrorists” do so it needs to be closely watched.

It doesn’t take a whole lot of imagination to see where all of this is going.  And for those of us that understand what time it is, this is a clear indication that it is getting late in the game.

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

Radical Leftists Unleash Anti-Trump Riots Starting On March 19th

Democracy SpringMany of the exact same groups that participated in Occupy Wall Street and helped organize protest rallies in Ferguson and Baltimore are now promising to bring us “the largest civil disobedience actions in a generation”.  I recently wrote about the trouble that radical leftists have caused by attempting to disrupt Trump campaign events, but now there is a very organized effort to turn this into a national movement.  On March 19th, thousands of angry protesters will descend on Trump Tower in New York City to denounce Donald Trump’s “fascist policies”, and on April 2nd dozens of leftist organizations will join together to launch “Democracy Spring” in Philadelphia.  From there, large numbers of liberal activists will march to Washington D.C. where they will “risk arrest” during a “peaceful” sit-in at the U.S. Capitol from April 11th to April 18th.  If the radical left is this freaked out about Donald Trump now, how bad will things get if he actually becomes the Republican nominee?

I suppose that it was only a matter of time before the radical left began to specifically target Trump properties.  I hope that Trump has good security, because it will definitely be tested starting tomorrow

Left-wing demonstrators have announced their latest anti-Trump event – a march on Trump Tower in New York City to protest against The Donald’s “fascist policies”.

A Facebook page for the rally outlines the plan, organized by a group called ‘Cosmopolitan Antifascists’, to march on the building at 2pm on Saturday afternoon.

“Donald J. Trump has made headlines in recent months with his divisive rhetoric, hate speech, and extremist plans to “make America great again”. We, in fact, believe this will do the opposite to this nation. Trump’s policy threatens many of us in the Black, Latino, LGBT, Muslim, and other communities,” states the page.

According to the Facebook page for “Cosmopolitan Antifascists”, 5,000 people plan to show up and 15,000 more are “interested” in this event.

Will it turn out to be a completely peaceful protest?

Let’s certainly hope so.

Perhaps even more disturbing is what is going to happen in early April.  Dozens of far left groups have gotten behind a movement that has been officially dubbed “Democracy Spring”.

Obviously, that name was chosen to conjure up memories of the “Arab Spring”, and we all remember how “peaceful” that was.

The official website of Democracy Spring tells us the following about the goals…

This spring, in the heart of the primary season, as the national election begins to take center stage, Americans of all ages, faiths, political perspectives, and walks of life will bring the popular cry for change to Washington in a way that’s impossible to ignore: with nonviolent civil disobedience on a historic scale.

We will demand that Congress listen to the People and take immediate action to save our democracy. And we won’t leave until they do — or until they send thousands of us to jail, along with the unmistakable message that our country needs a new Congress, one that that will end the legalized corruption of our democracy and ensure that every American has an equal voice in government.

Do you understand the threat that is being made there?

They are purposely planning to break the law and get arrested.  In fact, their website says that there are already more than 2,000 people that have “pledged to risk arrest” between April 11th and April 18th…

The campaign will begin on April 2nd with a march from the Liberty Bell in Philadelphia to Washington, D.C. where thousands will gather to reclaim the US Capitol in a powerful, peaceful, and massive sit-in that no one can ignore. Over 2,000 people have already pledged to risk arrest between April 11th-18th in what will be one of the largest civil disobedience actions in a generation.

And the list of groups that are backing this movement reads like a who’s who of radical leftist organizations…

15 Now Philly
99Rise
100 Grannies for a Livable Future
act.tv
African American Ministers in Action
American Ethical Union
American Family Voices
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
Avaaz
Backbone Campaign
Big Apple Coffee Party
Brave New Films
Catholics United
Center for Biological Diversity
Center for the Working Poor
Citizen Action NY
Code Pink
Coffee Party USA
Columbus Campaign for Arms Control
Conscious Elders Network
Courage Campaign
Ctzn Well
Demand Progress
Democracy Chronicles
Democracy Coffee
Democracy for America
Democracy Matters
Democratic Socialists of America
Demos
Dolores Huerta Foundation
East Coast Cannabis Coalition (ECCC)
East Point Peace Academy
Elder Activists
Elders Climate Action
Every Voice
Energy Action Coalition
Food & Water Watch
Franciscan Action Network
Friends of the Earth
Get Money Out – Maryland
Human Earth Animal Liberation (HEAL)
Hightower Lowdown
Institute for Policy Studies
Interfaith Moral Action on Climate (IMAC)
Iowa Citizens for Community Improvement
Jewish Voice for Peace
Just Foreign Policy
Leadership Development Initiative
March Against Corruption
March Against Monsanto
Maryland Committee to Amend
Massachusetts Communities Action Network (MCAN)
MAYDAY.US
Money Out! People In!
MoveOn
National Organization for Women (NOW)
National LGBTQ Task Force Action Fund
National People’s Action
Network of Spiritual Progressives/ Tikkun Magazine
New Hampshire Rebellion
Occupy Catholics
Office of the Americas
Other 98%
PA United to Amend
Pay 2 Play
Peace Action
People Demanding Action
People for Bernie
People for the American Way
People Over Politics
People’s Empowerment Project
Pride at Work-New York City/Long Island
Progressive Change Campaign Committee (PCCC)
Progressive Democrats of America
Public Citizen
Retail, Wholesale, and Department Store Union (RWDSU)
ReThink Media
RootsAction
Rootskeeper.org
Rootstrikers
Shalom Center
Small Planet Institute
Social Security Works
South Central Wisconsin United To Amend
Stamp Stampede
Stop Police Terror Project DC
Sustain US
Unitarian Universalist Association
Unitarian Universalist Church of Delaware County
United Native Americans
United for Peace and Justice
United Students Against Sweatshops (USAS)
United States Student Association (USSA)
United We Dream
U.S. Climate Plan
Ursulines of Tildonk for Justice & Peace
We are Woman
We the People Massachusetts
WildEarth Guardians
WolfPAC
Women’s Promise
Working Families Party
Workmen’s Circle
World Beyond War
Yes Men
Young Democratic Socialists
Youth Jobs Coalition / We Have a Future

This is just the beginning.  The radical left has won the hearts and minds of millions of our young people, and many of these groups are preaching a message of anger, frustration and direct confrontation.

For now, let’s hope that these “protests” are at least somewhat peaceful.  But throughout history, leftist revolutions have almost always turned violent at least to a certain degree.

And let there be no confusion – the radical left very much wants a revolution.  There is a reason why Bernie Sanders uses that word so much in his applause lines.  It is a buzzword that evokes some very powerful imagery for the radical left.

America is changing, and not for the better.  From this point forward, the radical left in America is going to become much more active, and in the end that is going to have dramatic consequences for all of us.

What Will It Mean If The Potential Ebola Victim In New York City Actually Has The Virus?

Ebola In New York CityOn Monday, we learned that a “possible Ebola patient” was being treated at Mount Sinai Hospital in New York City.  We are being told that this individual recently returned from a country in Africa where there have been confirmed cases of Ebola.  So that would narrow it down to Sierra Leone, Guinea, Liberia and Nigeria.  The patient is being described as a male “with high fever and gastrointestinal symptoms“.  The hospital says that “necessary steps are being taken to ensure the safety of all patients, visitors and staff“.  But could you imagine the panic that is going to be created if there actually is a confirmed case of Ebola in the heart of New York City?  There is nothing in the post-World War II era that would even be comparable.  Certainly 9/11 created fear for a short period of time, but a full-blown Ebola outbreak would create a panic that could potentially last for months or even years.

And this comes on the heels of another Ebola scare in the United Kingdom.  According to a British news source, a seriously ill 72-year-old woman “collapsed and died” after getting off a plane from Sierra Leone at Gatwick Airport…

Airport staff tonight told of their fears of an Ebola outbreak after a passenger from Sierra Leone collapsed and died as she got off a plane at Gatwick.

Workers said they were terrified the virus could spread globally through the busy international hub from the West African country which is in the grip of the deadly epidemic.

The woman, said to be 72, became ill on the gangway after she left a Gambia Bird jet with 128 passengers on board. She died in hospital on Saturday.

Officials tell us that the plane was rapidly quarantined and that they were tracking down anyone that had been in contact with that woman.

I don’t know about you, but all of this is starting to remind me of some of the really bad Hollywood disaster movies that I have seen.

In my article yesterday, I included the following chart which shows how this Ebola outbreak is beginning to grow at an exponential pace…

Ebola Outbreak - Photo by Leopoldo Martin R

Well, today the World Health Organization says that the total number of cases has risen to 1,663 and the total number of deaths has risen to 887.  So just imagine what that chart would look like now.  Yes, it is definitely not an exaggeration to use the word “exponential” to describe what is happening.

If Ebola does start spreading inside the United States, it would be incredibly disruptive to our way of life.

In areas where there were confirmed cases of Ebola, it is inevitable that schools would be shut down and large gatherings of people such as concerts and sporting events would be cancelled.  In addition, due to fear of catching the virus, foot traffic at grocery stores and shopping malls would drop off dramatically.  If the panic lasted for multiple months, our economy would essentially grind to a halt.  Most economic activity still involves face to face interaction, and if people are afraid that if they go out in public they might catch a disease that will kill them, it would create an economic disaster of unprecedented proportions.

And what happens if strict travel restrictions (to prevent the spread of the disease) or plain old fear cause massive interruptions in our transportation system?  Almost all economic activity involves moving something from one location to another, and if we are not able to move stuff around because of an Ebola pandemic, that would create nightmarish problems almost immediately.  For example, the following is an excerpt from a report released by the American Trucker Associations that I discussed in a previous article

*****

A Timeline Showing the Deterioration of Major Industries Following a Truck Stoppage

The first 24 hours

• Delivery of medical supplies to the affected area will cease.
• Hospitals will run out of basic supplies such as syringes and catheters within hours. Radiopharmaceuticals will deteriorate and become unusable.
• Service stations will begin to run out of fuel.
• Manufacturers using just-in-time manufacturing will develop component shortages.
• U.S. mail and other package delivery will cease.

Within one day

• Food shortages will begin to develop.
• Automobile fuel availability and delivery will dwindle, leading to skyrocketing prices and long lines at the gas pumps.
• Without manufacturing components and trucks for product delivery,
assembly lines will shut down, putting thousands out of work.

Within two to three days

• Food shortages will escalate, especially in the face of hoarding and consumer panic.
• Supplies of essentials—such as bottled water, powdered milk, and
canned meat—at major retailers will disappear.
• ATMs will run out of cash and banks will be unable to process
transactions.
• Service stations will completely run out of fuel for autos and trucks.
• Garbage will start piling up in urban and suburban areas.
• Container ships will sit idle in ports and rail transport will be disrupted, eventually coming to a standstill.

Within a week

• Automobile travel will cease due to the lack of fuel. Without autos and busses, many people will not be able to get to work, shop for groceries, or access medical care.
• Hospitals will begin to exhaust oxygen supplies.

Within two weeks

• The nation’s clean water supply will begin to run dry.

Within four weeks

• The nation will exhaust its clean water supply and water will be safe for drinking only after boiling. As a result gastrointestinal illnesses will increase, further taxing an already weakened health care system.

This timeline presents only the primary effects of a freeze on truck travel. Secondary effects must be considered as well, such as inability to maintain telecommunications service, reduced law enforcement, increased crime, increased illness and injury, higher death rates, and likely, civil unrest.

*****

Are you starting to get the picture?

A major transportation disruption would not just result in an economic downturn.  Many Americans would start running out of food and basic supplies very rapidly.  Without the ability to constantly resupply at the grocery store, a lot of people would start giving in to panic in just a matter of days.

And needless to say, a full-blown Ebola outbreak would wreak havoc on our financial system.  The stock market would almost certainly collapse and we would witness a credit crunch that would be absolutely unprecedented.  Nobody would want to lend to anybody in the midst of an Ebola pandemic.  The flow of money through our system would come to a screeching halt, and we would be facing an economic nightmare that would make 2008 look like a Sunday picnic.

So let us hope and pray that this crisis goes away and that Ebola does not start spreading across the country.

Because if it does, it could potentially kill millions of people, destroy our economy and plunge this nation into utter madness.

21 Ways To End The Phrase ‘Americans Are So Broke…’

Coins - Public DomainDid you know that 77 million Americans have unpaid debts that are “in collections” and that Congress is actually thinking about letting post offices offer payday loans?  We live in a country where almost everyone is drowning in debt and where most people are either flat broke or very close to flat broke.  Years ago, “your Mama is so broke” jokes were all the rage, and at the rate we are going they could make a big comeback.  Some of my favorites were “your Mama is so broke she went to McDonald’s and put a milkshake on layaway” and “your Mama is so broke your family ate cereal with a fork to save milk”.  Unfortunately, the facts that I am about to share with you are not funny at all.  In fact, they are quite sobering.  Yes, things are going fairly well for the elitists that live in the good areas of New York City, Washington D.C. and San Francisco right now, but most of the country is deeply struggling as our economic fundamentals continue to crumble.  Please share these numbers with as many people as you can, because we need people to understand that there has not been an “economic recovery” for most of America.  In fact, in many ways things just continue to get even worse.  The following are 21 ways to end the phrase “Americans are so broke”…

1. Americans are so broke that about a third of them have debt collectors on their heels.  One recent study discovered that more than one out of every three adults in the United States has an unpaid debt that is “in collections“.  That is a total of 77 million people.  In other words, the debt collection business in America is absolutely booming.

2. Americans are so broke that Congress is now actually considering allowing post offices to provide payday loans and check cashing services.

3. Americans are so broke that they are keeping their vehicles longer than ever.  The average age of vehicles on America’s roads recently set a new all-time high of 11.4 years.

4. Americans are so broke that car dealers are having to go to extreme lengths to get new customers.  Last year, one out of every four auto loans in the United States was made to someone with subprime credit.

5. Americans are so broke that 52 percent of them cannot even afford the homes that they are living in right now.

6. Americans are so broke that they are falling farther behind on their student loans than ever.  The total amount of student loan debt in the U.S. has now reached a whopping 1.2 trillion dollars, and approximately seven million Americans are in default on their student loans at this point.

7. Young Americans are so broke that half of all college graduates are still relying on their parents financially when they are two years out of school.

8. Young Americans are so broke that only 36 percent of American adults under the age of 35 currently own a home.  That is the lowest level that has ever been recorded.

9. Americans are so broke that many of them can’t even afford to shop at Wal-Mart and dollar stores anymore

Discount stores are slowly dying.

Yesterday, Dollar Tree announced it would buy Family Dollar, a chain that is in the process of closing hundreds of stores and firing workers.

Other discount stores have been struggling as well, writes Heidi Moore at The Guardian. Fashion discounter Loehmann’s filed for bankruptcy, while Wal-Mart’s sales have declined for the past five quarters.

“There’s just not enough money deployed by American families to keep all the discount chains in business,” Moore writes.

10. Americans are so broke that they are running up record levels of debt.  Overall, U.S. households are 11.68 trillion dollars in debt right now.

11. Americans are so broke that the wealth of the “typical American household” has fallen by 36 percent over the past decade.

12. Americans are so broke that one out of every four part-time workers in America is living below the poverty line.

13. Americans are so broke that more than 37 million Americans are now being served by food pantries and soup kitchens.

14. Americans are so broke that there are 49 million Americans that are dealing with food insecurity.

15. Americans are so broke that the number of people on food stamps has increased by about 14 million while Obama has been in the White House.  Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin.  But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.

16. Americans are so broke that the U.S. government has had to spend an astounding 3.7 trillion dollars on welfare programs over the past five years.

17. Americans are so broke that more than 20 percent of all children in the U.S. are living in poverty.

18. Americans are so broke that we have a record number of kids sleeping in the streets.  In fact, we have more than a million public school children that are homeless at this point.

19. Americans are so broke that 76 percent of all Americans are living paycheck to paycheck.

20. Americans are so broke that 26 percent of Americans have absolutely no emergency savings whatsoever.

21. Americans are so broke that approximately two-thirds of all Americans do not have enough money saved up to cover six months of expenses if an emergency arose.

If things are this bad now, during the so-called “economic recovery”, how bad will things get during the next major economic downturn?

Unfortunately, most Americans have been lulled into a false sense of security.  The financial crisis of 2008 seems like ancient history to most of them now, and most people appear to believe that our leaders have “fixed” whatever was wrong the last time.

Of course that is not the case at all.  In fact, our long-term problems have just continued to grow since then.

The truth is that what we are experiencing right now is about as good as things are going to get for the U.S. economy.  When the next crisis arrives, all of the numbers in the list above are going to rapidly get a lot worse.

So enjoy the rest of this “bubble” while you still can.  It certainly will not last for too much longer.

Has The Next Recession Already Begun For America’s Middle Class?

RecessionHas the next major economic downturn already started?  The way that you would answer that question would probably depend on where you live.  If you live in New York City, or the suburbs of Washington D.C., or you work for one of the big tech firms in the San Francisco area, you would probably respond to such a question by saying of course not.  In those areas, the economy is doing great and prices for high end homes are still booming.  But in most of the rest of the nation, evidence continues to mount that the next recession has already begun for the poor and the middle class.  As you will read about below, major retailers had an absolutely dreadful start to 2014 and home sales are declining just as they did back in 2007 before the last financial crisis.  Meanwhile, the U.S. economy continues to lose more good jobs and 20 percent of all U.S. families do not have a single member that is employed at this point.  2014 is turning out to be eerily similar to 2007 in so many ways, but most people are not paying attention.

During the first quarter of 2014, earnings by major U.S. retailers missed estimates by the biggest margin in 13 years.  The “retail apocalypse” continues to escalate, and the biggest reason for this is the fact that middle class consumers in the U.S. are tapped out.  And this is not just happening to a few retailers – this is something that is happening across the board.  The following is a summary of how major U.S. retailers performed in the first quarter of 2014 that was put together by Jim Quinn

Wal-Mart Profit Plunges By $220 Million as US Store Traffic Declines by 1.4%

Target Profit Plunges by $80 Million, 16% Lower Than 2013, as Store Traffic Declines by 2.3%

Sears Loses $358 Million in First Quarter as Comparable Store Sales at Sears Plunge by 7.8% and Sales at Kmart Plunge by 5.1%

JC Penney Thrilled With Loss of Only $358 Million For the Quarter

Kohl’s Operating Income Plunges by 17% as Comparable Sales Decline by 3.4%

Costco Profit Declines by $84 Million as Comp Store Sales Only Increase by 2%

Staples Profit Plunges by 44% as Sales Collapse and Closing Hundreds of Stores

Gap Income Drops 22% as Same Store Sales Fall

American Eagle Profits Tumble 86%, Will Close 150 Stores

Aeropostale Losses $77 Million as Sales Collapse by 12%

Best Buy Sales Decline by $300 Million as Margins Decline and Comparable Store Sales Decline by 1.3%

Macy’s Profit Flat as Comparable Store Sales decline by 1.4%

Dollar General Profit Plummets by 40% as Comp Store Sales Decline by 3.8%

Urban Outfitters Earnings Collapse by 20% as Sales Stagnate

McDonalds Earnings Fall by $66 Million as US Comp Sales Fall by 1.7%

Darden Profit Collapses by 30% as Same Restaurant Sales Plunge by 5.6% and Company Selling Red Lobster

TJX Misses Earnings Expectations as Sales & Earnings Flat

Dick’s Misses Earnings Expectations as Golf Store Sales Plummet

Home Depot Misses Earnings Expectations as Customer Traffic Only Rises by 2.2%

Lowes Misses Earnings Expectations as Customer Traffic was Flat

That is quite a startling list.

But plummeting retail sales are not the only sign that the U.S. middle class is really struggling right now.  Home sales have also been extremely disappointing for quite a few months.  This is how Wolf Richter described what we have been witnessing…

This is precisely what shouldn’t have happened but was destined to happen: Sales of existing homes have gotten clobbered since last fall. At first, the Fiscal Cliff and the threat of a US government default – remember those zany times? – were blamed, then polar vortices were blamed even while home sales in California, where the weather had been gorgeous all winter, plunged more than elsewhere.

Then it spread to new-home sales: in April, they dropped 4.7% from a year ago, after March’s year-over-year decline of 4.9%, and February’s 2.8%. Not a good sign: the April hit was worse than February’s, when it was the weather’s fault. Yet April should be the busiest month of the year (excellent brief video by Lee Adler on this debacle).

We have already seen that in some markets, in California for example, sales have collapsed at the lower two-thirds of the price range, with the upper third thriving. People who earn median incomes are increasingly priced out of the market, and many potential first-time buyers have little chance of getting in. In San Diego, for example, sales of homes below $200,000 plunged 46% while the upper end is doing just fine.

As Richter noted, sales of upper end homes are still doing fine in many areas.

But how long will that be able to continue if things continue to get even worse for the poor and the middle class?  Traditionally, the U.S. economy has greatly depended upon consumer spending by the middle class.  If that continues to dry up, how long can we avoid falling into a recession?  For even more numbers that seem to indicate economic trouble for the middle class, please see my previous article entitled “27 Huge Red Flags For The U.S. Economy“.

Other analysts are expressing similar concerns.  For example, check out what John Williams of shadowstats.com had to say during one recent interview

We’re turning down anew. The first quarter should revise into negative territory… and I believe the second quarter will report negative as well.

That will all happen by July 30 when you have the annual revisions to the GDP. In reality the economy is much weaker than that. Economic growth is overstated with the GDP because they understate inflation, which is used in deflating the number…

What we’re seeing now is just… we’ve been barely stagnant and bottomed out… but we’re turning down again.

The reason for this is that the consumer is strapped… doesn’t have the liquidity to fuel the growth in consumption.

Income… the median household income, net of inflation, is as low as it was in 1967. The average guy is not staying ahead of inflation…

This has been a problem now for decades… You were able to buy consumption from the future by borrowing more money, expanding your debt. Greenspan saw the problem was income, so he encouraged debt expansion.

That all blew apart in 2007/2008… the income problems have continued, but now you don’t have the ability to borrow money the way you used to. Without that and the income problems remaining, there’s no way that consumption can grow faster than inflation if income isn’t.

As a result – personal consumption is more than two thirds of the economy – there’s no way you can have positive sustainable growth in the U.S. economy without the consumer being healthy.

The key to the health of the middle class is having plenty of good jobs.

But the U.S. economy continues to lose more good paying jobs.

For example, Hewlett-Packard has just announced that it plans to eliminate 16,000 more jobs in addition to the 34,000 job cuts that have already been announced.

Today, there are 27 million more working age Americans that do not have a job than there were in 2000, and the quality of our jobs continues to decline.

This is absolutely destroying the middle class.  Unless the employment situation in this country starts to turn around, there does not seem to be much hope that the middle class will recover any time soon.

Meanwhile, there are emerging signs of trouble for the wealthy as well.

For instance, just like we witnessed back in 2007, things are starting to look a bit shaky at the “too big to fail” banks.  The following is an excerpt from a recent CNBC report

Citigroup has joined the ranks of those with trading troubles, as a high-ranking official told the Deutsche Bank 2014 Global Financial Services Investor Conference Tuesday that adjusted trading revenue probably will decline 20 percent to 25 percent in the second quarter on an annualized basis.

“People are uncertain,” Chief Financial Officer John Gerspach said of investor behavior, according to an account from the Wall Street Journal. “There just isn’t a lot of movement.”

In recent weeks, officials at JPMorgan Chase and Barclays also both reported likely drops in trading revenue. JPMorgan said it expected a decline of 20 percent of the quarter, while Barclays anticipates a 41 percent drop, prompting it to announce mass layoffs that will pare 19,000 jobs by the end of 2016.

Remember, very few people expected a recession the last time around either.  In fact, Federal Reserve Chairman Ben Bernanke repeatedly promised us that we would not have a recession and then we went on to experience the worst economic downturn since the Great Depression.

It will be the same this time as well.  Just like in 2007, we will continue to get an endless supply of “hopetimism” from our politicians and the mainstream media, and they will continue to fill our heads with visions of rainbows, unicorns and economic prosperity for as far as the eyes can see.

But then the next recession will strike and most Americans will be completely blindsided by it.

The Most Homeless Children In New York City Since The Great Depression

Child Crying - Photo by D Sharon PruittAt a time when Wall Street is absolutely swimming in wealth, New York City is experiencing an epidemic of homelessness.  According to the New York Times, the last time there was this many homeless children in New York City was during the days of the Great Depression.  And the number of homeless children in the United States overall recently set a new all-time record.  As I mentioned yesterday, there are now 1.2 million public school kids in America that are homeless, and that number has gone up by about 72 percent since the start of the last recession.  As Americans, we like to think of ourselves as “the wealthiest nation on the planet”, and yet the number of young kids that don’t even have a roof over their heads at night just keeps skyrocketing.  There truly are “two Americas” today, and unfortunately most Americans that live in “good America” don’t seem to really care too much about the extreme suffering that is going on in “bad America”.  In the end, what kind of price will we all pay for neglecting the most vulnerable members of our society?

If you live in “good America”, I very much encourage you to read an excellent piece about homelessness in New York City that was just published in the New York Times.  What some young kids have to go through on a nightly basis should break all of our hearts…

She wakes to the sound of breathing. The smaller children lie tangled beside her, their chests rising and falling under winter coats and wool blankets. A few feet away, their mother and father sleep near the mop bucket they use as a toilet. Two other children share a mattress by the rotting wall where the mice live, opposite the baby, whose crib is warmed by a hair dryer perched on a milk crate.

Could you imagine having your own family live like that?  The name of the little girl in the story is Dasani, and every night her family sleeps in a city-run homeless shelter that sounds like it is straight out of a horror movie…

Her family lives in the Auburn Family Residence, a decrepit city-run shelter for the homeless. It is a place where mold creeps up walls and roaches swarm, where feces and vomit plug communal toilets, where sexual predators have roamed and small children stand guard for their single mothers outside filthy showers.

It is no place for children. Yet Dasani is among 280 children at the shelter. Beyond its walls, she belongs to a vast and invisible tribe of more than 22,000 homeless children in New York, the highest number since the Great Depression, in the most unequal metropolis in America.

You can read the rest of that excellent article right here.  Sadly, there are countless other children just like Dasani that live like this day after day, month after month, year after year.

Shouldn’t we be able to do better than this as a society?  After all, the stock market has been hovering near record highs lately, and Wall Street is absolutely drenched with wealth for the moment.

With so much wealth floating around, why are New York City subways being “overrun with homeless” right now?

Something has gone horribly wrong.

I think that a recent editorial by David Simon, the creator of the Wire, summarized things pretty well.  We are not “one America” anymore, and most of the people that live in “good America” don’t really care much about those living in “bad America”…

America is a country that is now utterly divided when it comes to its society, its economy, its politics. There are definitely two Americas. I live in one, on one block in Baltimore that is part of the viable America, the America that is connected to its own economy, where there is a plausible future for the people born into it. About 20 blocks away is another America entirely. It’s astonishing how little we have to do with each other, and yet we are living in such proximity.

There’s no barbed wire around West Baltimore or around East Baltimore, around Pimlico, the areas in my city that have been utterly divorced from the American experience that I know. But there might as well be.

Once upon a time, things were different in America.  Nobody resented businessmen for building strong businesses and making lots of money.  And successful businessmen such as Henry Ford hired large numbers of American workers and paid them very well.  He felt that his workers should make enough money to buy the cars that they were building.  In those days, businessmen were loyal to their workers and workers were loyal to those that employed them.

Unfortunately, those days are long gone.  Today, in business schools all over America students are taught that the sole purpose of a corporation is to make as much money as possible for the stockholders.  Not that there is anything wrong with making money.  But at this point we have elevated greed above all other economic goals.  Taking care of one another isn’t even a consideration anymore.

In the old days, big businesses actually needed our labor.  But that is now no longer the case.  Today, corporations are shipping millions of our jobs overseas and they are replacing as many of us with technology as they possibly can.  The value of the labor of the working man is declining with each passing day.

As a result, the fortunes of big business and American workers are increasingly diverging.  For example, the disconnect between employment levels and stock prices has never been greater in this country.  If you doubt this, just check out this chart.

And instead of fixing things, Barack Obama is negotiating a secret treaty which will result in millions more American jobs being shipped overseas.  The following is a brief excerpt about this secret treaty from an Australian news source

The government has refused the Senate access to the secret text of the trade deal it is negotiating in Singapore, saying it will only be made public after it has been signed.

As the final round of ministerial talks on the Trans-Pacific Partnership resumed on Sunday, Nobel prize-winning economist Joseph Stiglitz wrote to each of the 12 participating nations warning that the deal and the secrecy surrounding it presented ”grave risks”.

So why aren’t we hearing much about this secret treaty from U.S. news sources?

If this is going to affect millions of American jobs, shouldn’t the mainstream media be making a big deal out of this?

And even if we weren’t losing millions of jobs to the other side of the planet, we would still be losing millions of jobs to advancements in technology.  In fact, a CNBC article that was posted earlier this week seems to look forward to the day when nobody will have to worry about the low pay that fast food workers get anymore because they will all be replaced by droids…

Maybe so, but as fast food workers protest low wages and the president of the United States equates hard work with the right to decent pay, the rise of technology once again proves to be no stunt, or laughing matter. McDonald’s, where food production is already about as mechanized as food science allows, stopped updating the famous number “served” figure at its restaurants back in 1994—just short of 100 billion—but how long will it be before trillions are served their burgers and fries by a drone, after being cooked by a droid? Those machines work for cheap, and the best thing is, they have no concept of hard work, or dignity, or the foresight to consider whether or not the “cool” things they can do ultimately contribute, or detract, from a strong, consumer-dependent economy.

So what is the solution to all of this?

Where will the millions of desperately needed jobs for “bad America” come from?

Well, it appears that good ideas are in short supply these days.  In fact, some of the ideas being promoted by our “leaders” are absolutely insane.  For example, one prominent entrepreneur recently suggested that the solution to our employment crisis is for Congress to pass an immigration bill which would bring in 30 million more low-skilled workers over the next ten years…

Middle class Americans face a tough future because robots and machinery are eliminating their jobs, according to Steve Case, an entrepreneur who earned roughly $1 billion by creating the first successful internet firm, America Online.

But Congress could help the situation by passing an immigration bill that would import some foreign entrepreneurs and almost 30 million low-skilled workers over the next decade, Case told an audience of D.C. lobbyists and lawyers gathered on Tuesday by the business-backed Bipartisan Policy Center.

Exactly how would this improve the employment situation in this country?

I still cannot figure that one out.

But there are people out there that actually believe this stuff.

Meanwhile, many parts of Europe are suffering through similar things.

The unemployment rate in the eurozone recently hit a new all-time high, and the number of people living in poverty in Europe just continues to grow

Over 124 million people in the European Union – or almost a quarter of its entire population – live under the threat of poverty or social exclusion, a report by EU’s statistical office has revealed.

Last year, 124.5 million people, or 24.8 percent of Europe’s population were at risk of poverty or social exclusion, compared to 24.3 percent in 2011 and 23.7 percent in 2008, the Eurostat said in a document published earlier in the week.

So what is going to fix this?

Where are the good jobs for workers in North America and Europe going to come from in the years ahead?

If you have a potential solution, please feel free to share it below…

29 Incredible Facts Which Prove That Poverty In America Is Absolutely Exploding

Poverty In America - Photo by C.G.P. GreyDid you know that the number of Americans on welfare is higher than the number of Americans that have full-time jobs?  Did you know that 1.2 million public school students in the U.S. are currently homeless?  Anyone that uses the term “economic recovery” to describe what is happening in the United States today is being deeply insulting to the nearly 150 million Americans that are considered to be either “poor” or “low income” at this point.  Yes, things are great in New York City, Washington D.C. and San Francisco, but almost everywhere else economic conditions continue to steadily get worse.  The gap between the wealthy and the poor is at a level that America has never seen before, and this is beginning to create a “Robin Hood mentality” that could cause a tremendous amount of social chaos in the years ahead.  Anger at the “haves” in America continues to rise at a very alarming pace, and the “have nots” are becoming increasingly desperate.  At some point all of this anger is going to boil over, and you won’t want to be anywhere around major population centers when that happens.  Despite unprecedented borrowing by the federal government in recent years, and despite unprecedented money printing by the Federal Reserve, poverty in the United States keeps getting worse with each passing year. The following are 29 incredible facts which prove that poverty in America is absolutely exploding…

1. What can you say about a nation that has more people getting handouts from the federal government than working full-time?  According to the latest numbers from the U.S. Census Bureau, the number of people receiving means-tested welfare benefits is greater than the number of full-time workers in the United States.

2. New numbers have just been released, and they show that the number of public school students in this country that are homeless is at an all-time record high.  It is hard to believe, but right now 1.2 million students that attend public schools in America are homeless.  That number has risen by 72 percent since the start of the last recession.

3. When I was growing up, it seemed like almost everyone was from a middle class home.  But now that has all changed.  One recent study discovered that nearly half of all public students in the United States come from low income homes.

4. How can anyone deny that we are a socialist nation when half the people are getting money from the federal government each month?  According to the most recent numbers from the U.S. Census Bureau, 49.2 percent of all Americans are receiving benefits from at least one government program.

5. Signs of increasing poverty are even showing up in the wealthiest areas of the nation.  According to the New York Post, New York subways are being “overrun with homeless“.

6. According to the U.S. Census Bureau, approximately one out of every six Americans is now living in poverty.  The number of Americans living in poverty is now at a level not seen since the 1960s.

7. The gap between the rich and the poor in the United States is at an all-time record high.  The wealthy may not consider this to be much of a problem, but those at the other end of the spectrum are very aware of this.

8. The “working poor” is one of the fastest growing segments of the U.S. population.  At this point, approximately one out of every four part-time workers in America is living below the poverty line.

9. According to numbers provided by Wal-Mart, more than half of their hourly workers make less than $25,000 a year.

10. A recent Businessweek article mentioned a study that discovered that 300 employees at one Wal-Mart in Wisconsin receive a combined total of nearly a million dollars a year in public assistance…

“A decent wage is their demand—a livable wage, of all things,” said Representative George Miller (D-Calif.). The problem with companies like Wal-Mart is their “unwillingness, not their inability, to pay that wage,” he said. “They hand off the difference to taxpayers.” Miller was referring to a congressional report (PDF) released in May that calculated how much Walmart workers rely on public assistance. The study found that the 300 employees at one Supercenter in Wisconsin required some $900,000 worth of public assistance a year.

11. The stock market may be doing great (for the moment), but incomes for average Americans continue to decline.  In fact, median household income in the United States has fallen for five years in a row.

12. The quality of the jobs in America has been steadily dropping for years.  At this point, one out of every four American workers has a job that pays $10 an hour or less.

13. According to a Gallup poll that was recently released, 20.0% of all Americans did not have enough money to buy food that they or their families needed at some point over the past year.  That is just under the record of 20.4% that was set back in November 2008.

14. Young adults are particularly feeling the sting of poverty these days.  American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

15. As I wrote about a few weeks ago, one out of every five households in the United States is on food stamps.  Back in the 1970s, about one out of every 50 Americans was on food stamps.

16. The number of Americans on food stamps now exceeds the entire population of Spain.

17. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

18. We are told that we live in the “wealthiest nation” on the planet, and yet more than one out of every four children in the United States is enrolled in the food stamp program.

19. The average food stamp benefit breaks down to approximately $4 per person per day.

20. It is being projected that approximately 50 percent of all U.S. children will be on food stamps before they reach the age of 18.

21. Today, approximately 17 million children in the United States are facing food insecurity.  In other words, that means that “one in four children in the country is living without consistent access to enough nutritious food to live a healthy life.”

22. It may be hard to believe, but approximately 57 percent of all children in the United States are currently living in homes that are considered to be either “low income” or impoverished.

23. The number of children living on $2.00 a day or less in the United States has grown to 2.8 million.  That number has increased by 130 percent since 1996.

24. In Miami, 45 percent of all children are living in poverty.

25. In Cleveland, more than 50 percent of all children are living in poverty.

26. According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.

27. According to a Feeding America hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.

28. The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

29. It has been reported that 4 out of every 5 adults in the United States “struggle with joblessness, near-poverty or reliance on welfare for at least parts of their lives”.

These poverty numbers keep getting worse year after year no matter what our politicians do.

So is there anyone out there that would still like to argue that we are in an “economic recovery”?

And as I mentioned above, the “have nots” are becoming increasingly angry at the “haves”.  For example, just check out the following excerpt from a recent New York Post article

The maniac who butchered a Brooklyn mom and her four young kids confessed that he did it because he was jealous of their way of life, a police source told The Post on Sunday.

The family had too much. Their income (and) lifestyle was better than his,” the source said.

The bloody suspect was caught holding the kitchen knife he used during the Saturday night rampage inside the Sunset Park apartment where he had been staying with the victims, the source added.

Sadly, this was not an isolated incident.  All over the western world, a “Robin Hood mentality” is growing.  This is something that I am so concerned about that I made it a big part of my new book.  At this point, even wealthy Hollywood-types such as actor Russell Brand are calling for a socialist-style “revolution” and a “massive redistribution of wealth“.

Perhaps Brand does not understand that what he is calling for would mean redistributing most of his own wealth away from him.

When the next major wave of the economic collapse strikes, I fear that all of this anger and frustration that are growing among the poor will boil over in some very frightening ways.  I believe that we will see a huge spike in crime and that we will eventually see communities all over America looted and burning.

But I am not the only one that is thinking along these lines.  A new National Geographic Channel movie entitled “American Blackout” attempts to portray the social chaos that could erupt in the event of an extended national power failure

American Blackout, National Geographic Channel’s two-hour, edge-of-your-seat movie event imagines the story of a national power failure in the United States caused by a cyberattack — told in real time, over 10 days, by those who kept filming on cameras and phones. You’ll learn what it means to be absolutely powerless.

You can view a clip of the film that was made available by NatGeo for the SHTFplan.com community right here.

What would you do if something like that happened to you?

How would you handle desperate, hungry people at your fence asking for food?

And what if those people were armed and were not “asking nicely” for your food?

Don’t ignore what is happening in America right now.  It is setting the stage for some very chaotic times.

Get ready while you still can.

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