The idea that the Obama administration has the budget deficit under control is a complete and total lie. According to the U.S. Treasury, the federal government has officially run a deficit of 589 billion dollars for the first 11 months of fiscal year 2014. But this number is just for public consumption and it relies on accounting tricks which massively understate how much debt is actually being accumulated. If you want to know what the real budget deficit is, all you have to do is go to a U.S. Treasury website which calculates the U.S. national debt to the penny. On September 30th, 2013 the U.S. national debt was sitting at $16,738,183,526,697.32. As I write this, the U.S. national debt is sitting at $17,742,108,970,073.37. That means that the U.S. national debt has actually grown by more than a trillion dollars in less than 12 months. We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation.
The chart that I have posted below shows the exponential growth of the U.S. national debt over the past several decades. Anyone that would characterize this as “under control” is lying to you…
This is the greatest government debt bubble in the history of the world, but very few people seem to have any desire to do anything about this anymore. We are literally gorging on debt, and most Americans seem to think that it is just fine and dandy.
Perhaps that it is because we have never really experienced any serious consequences for going into so much debt yet.
But when it comes to running up debt, a day of reckoning always comes eventually.
Just ask Greece.
And the absolutely insane spending policies of this administration and this Congress are hastening the day when our day of reckoning will arrive.
Consider the following facts…
-The U.S. national debt has increased by more than 7 trillion dollars since Barack Obama has been in the White House. By the time Obama’s second term is over, we will have accumulated about as much new debt under his leadership than we did under all of the other U.S. presidents in all of U.S. history combined.
-The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first established in 1913.
-If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
-Right now, the United States already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.
-In August, the average rate of interest on the government’s marketable debt was 2.028 percent. In January 2000, the average rate of interest on the government’s marketable debt was 6.620 percent. If we got back to that level today, we would be paying well over a trillion dollars a year just in interest on the national debt.
-At this point the U.S. government has accumulated more than 200 trillion dollars of unfunded liabilities that will need to be paid in future years. In other words, we have made more than 200 trillion dollars worth of promises that we do not have money for yet.
Thomas Jefferson once said that “the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
What we are doing to future generations is absolutely unconscionable. We are stealing trillions upon trillions of dollars from our children and our grandchildren, and we are willingly consigning them to a lifetime of debt slavery.
I have said this before, but it bears repeating. If future generations get the chance, they will look back and curse us for what we have done to them.
And shame on anyone that would dare to suggest that we should continue to run up more debt that future generations will be expected to repay.
But government debt is far from the only massive debt bubble that we are dealing with as a country.
40 years ago, the total amount of debt in our nation (all government debt plus all business debt plus all individual debt) was sitting at a grand total of about 2.3 trillion dollars.
Today, that total has grown to 59.4 trillion dollars.
As the chart posted below shows, our total debt bubble is now more than 25 times larger than it was just 40 years ago…
If you were to take all forms of debt in our country and divide it up equally to each person, the average family of four would owe approximately $735,000.
This is not anywhere close to being sustainable, but most Americans don’t seem to care. They just continue to recklessly run up even more debt.
However, there are signs that we are starting to hit a wall with all of this debt.
For example, an astounding 35 percent of all Americans have debts that are so overdue that they have been referred to collection agencies.
Our nation has become an ocean of red ink from sea to shining sea, and the only way to keep the bubble from bursting is for the total amount of debt to continue to grow much faster than the overall economy is growing.
Obviously this cannot happen indefinitely, and when this house of cards comes crashing down it is going to be absolutely horrific. For much more on all of this please see my previous article entitled “The United States Of Debt: Total Debt In America Hits A New Record High Of Nearly 60 Trillion Dollars“.
The big question is how long our “bubble economy” can keep going before it finally collapses.
It has gotten to the point where even some of the biggest banks in the world are admitting that what we have been doing is completely and totally unsustainable. Just consider the following excerpt from a recent article by Joshua Krause…
Recently, strategists for Deutsche Bank released a startling study in regards to government debt. They decided to investigate whether or not the bond market is currently in a bubble. What they found was, unlike previous eras, the past 20 years has seen no lag between economic booms and busts:
It has long been our view that over the last couple of decades the global economy has rolled from bubble to bubble with excesses never fully being allowed to unravel. Instead aggressive policy responses have encouraged them to roll into new bubbles.
This has arguably kept the modern financial system as we know it a going concern. Clearly there have always been bubbles formed through history but has there been a period like the last 20 years where the bursting of one bubble has consistently led directly to the formation of the next?
Essentially, our current system has been dying a very slow death. It’s running out of steam.
Sadly, most Americans have no idea that we are living in a giant debt-fueled bubble that has a limited lifespan.
Most Americans just assume that since the politicians tell them that everything is going to be okay that they don’t need to be concerned about any of this.
But every single day our debts get even larger and our long-term financial problems get even worse.
Someday this bubble is going to burst and then all hell will break loose.
It is just a matter of time.
Have you noticed that prices are going up rapidly? If so, you are certainly not alone. But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be. Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine. But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless. Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high. In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.
But you would never know that listening to Federal Reserve chair Janet Yellen. In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about…
And it is really hard to get too upset with Janet Yellen.
After all, she reminds many people of a sweet little grandmother.
But the reality of the matter is that she is simply not telling us the truth. Everywhere we look, prices are aggressively moving higher.
Just the other day, the Bureau of Labor Statistics announced that the price index for meat, poultry, fish, and eggs has just soared to a new all-time high.
This is something that I have repeatedly warned would happen. Just check out this article and this article.
And it isn’t just meat prices that are going up. One of the largest coffee producers in the entire world just announced that it is going to be raising coffee prices by 9 percent…
It took the Fed long enough but finally even it succumbed to the reality of surging food prices when, as we reported previously, it hiked cafeteria prices at ground zero: the cafeteria of the Chicago Fed, stating that “prices continue to rise between 3% and 33%.” So with input costs rising across the board not just for the Fed, but certainly for food manufacturers everywhere, it was only a matter of time before the latter also threw in the towel and followed in the Fed’s footsteps. Which is what happened earlier today when J.M. Smucker Co. said it raised the prices on most of its coffee products by an average of 9% to reflect higher green-coffee costs.
Not that coffee isn’t expensive enough already. It absolutely stuns me that some people are willing to pay 3 dollars for a cup of coffee.
I still remember the days when you could get a cup of coffee for 25 cents.
Also, I can’t get over how expensive groceries are becoming these days. Earlier this month I took my wife over to the grocery store to do some shopping. We are really ramping up our food storage this summer, and so we grabbed as much stuff on sale as we could find. When we got our cart to the register, I was expecting the bill to be large, but I didn’t expect it to be over 300 dollars.
And remember, this was just for a single shopping cart and we had consciously tried to grab things that were significantly reduced from regular price.
I almost felt like asking the cashier which organ I should donate to pay the bill.
Sadly, this is just the beginning. Food prices are eventually going to go much, much higher than this.
Also, you should get ready to pay substantially more for water as well.
According to CNBC, one recent report warned that “your water bill will likely increase” in the coming months…
U.S. water utilities face a critical economic squeeze, according to a new report—and that will likely mean higher prices at the water tap for consumers.
A survey by water-engineering firm Black & Veatch of 368 water utility companies across the country shows that 66 percent of them are not generating enough revenue to cover their costs.
To make up for the financial shortfall, prices for water are heading upward, said Michael Orth, one of the co-authors of the report and senior vice president at Black & Veatch.
“People will have to pay more for water to make up the falling revenues,” he said. “And that’s likely to be more than the rate of inflation.”
Of even greater concern is what is happening to gas prices.
According to Bloomberg, the price of gasoline hasn’t been this high at this time of the year for six years…
Gasoline in the U.S. climbed this week, boosted by a surge in oil, and is expected to reach the highest level for this time of year since 2008.
The pump price averaged $3.686 a gallon yesterday, up 1.2 cents from a week earlier, data posted on the Energy Information Administration’s website late yesterday show. Oil, which accounts for two-thirds of the retail price of gasoline, gained $2.49 a barrel on the New York Mercantile Exchange in the same period and $4.88 in the month ended yesterday.
The jump in crude, driven by concern that the crisis in Iraq will disrupt supplies, may boost pump prices by 10 cents a gallon at a time when they normally drop, according to forecasts including one from the EIA.
And the conflicts in Iraq, Ukraine and elsewhere could potentially send gas prices screaming far higher.
In fact, T. Boone Pickens recently told CNBC that if Baghdad falls to ISIS that the price of a barrel of oil could potentially hit $200.
Of course the big oil companies are not exactly complaining about this. This week energy stocks are hitting record highs, and further escalation of the conflict in Iraq will probably send them even higher.
Meanwhile, a “bipartisan Senate proposal” (that means both Democrats and Republicans) would raise the gas tax by 12 cents a gallon over the next two years.
Our politicians have such good timing, don’t they?
And our electricity rates are going up too. The electricity price index just set a brand new record high and there are no signs of relief on the horizon…
The electricity price index and the average price for a kilowatthour (KWH) of electricity both hit records for May, according to data released today by the Bureau of Labor Statistics.
The average price for a KWH hit 13.6 cents during the month, up about 3.8 percent from 13.1 cents in May 2013.
The seasonally adjusted electricity price index rose from 201.431 in May 2013 to 208.655 in May 2014—an increase of about 3.6 percent.
If our paychecks were increasing at the same rate as inflation, perhaps most families would be able to weather all of this.
Unfortunately, that is not the case at all.
As I wrote about recently, median household income in the U.S. is now about 7 percent lower than it was in the year 2000 after adjusting for inflation.
And if realistic inflation numbers were used instead of the government-manipulated ones, it would look a lot worse than that.
Inflation is a hidden tax that all of us pay, and it is systematically eviscerating the middle class.
So what are prices like in your neck of the woods?
Is your family feeling the pain of inflation?
Please feel free to share your thoughts by posting a comment below…
The Obama administration and the hotheads in Congress are threatening to hit Russia with “economic sanctions” for moving troops into Crimea. Yes, those sanctions would sting a little bit, but what our politicians should be made aware of is the fact that Russian officials are promising “to respond” if economic sanctions are imposed on them. As you will read about below, one top Kremlin adviser is even suggesting that Russia could abandon the U.S. dollar and start dumping U.S. debt. In addition, he is also suggesting that if sanctions are imposed that Russian companies would not repay the debts that they owe U.S. banks. Needless to say, Russia could do far more economic damage to the United States than the United States could do to Russia. The U.S. financial system relies on the fact that the rest of the planet is going to use our currency to trade with one another and lend gigantic piles of it back to us at super low interest rates. If the rest of the world starts changing their behavior, we are going to be in a massive amount of trouble. Those that believe that the United States is “economically independent” are being quite delusional.
In order for U.S. economic sanctions against Russia to be effective, Europe would also have to get on board.
But that simply is not going to happen.
As I noted yesterday, Russia is the largest exporter of natural gas on the planet. And Russia is also Europe’s largest supplier of energy.
There is no way that Europe could risk having Russia cut off the gas, especially considering the economic condition that Europe is currently in.
To get an idea of just how incredibly dependent the rest of Europe is on Russian natural gas, check out the chart in this article. A whole bunch of European nations get more than half their natural gas from Russia.
And according to the Telegraph, even the UK has already completely ruled out economic sanctions…
Europe would be pushed back into recession, Russia into financial meltdown. This is not the sort of self harm Europe is prepared to contemplate right now. Indeed, thanks to the indiscretion of a UK official, who was snapped going into Downing Street with his briefing documents on display for all the world to see, we know this to be the case. Trade and financial sanctions have already been ruled out.
So the U.S. can do whatever it wants, but Europe is not going to be any help. Perhaps Canada will stand with the U.S., but that will be about it.
On the flip side, the Russian Foreign Ministry is promising “to respond” if the United States does impose economic sanctions…
Russia said on Tuesday that it would retaliate if the United States imposed sanctions over Moscow’s actions in Ukraine.
“We will have to respond,” Foreign Ministry spokesman Alexander Lukashevich said in a statement. “As always in such situations, provoked by rash and irresponsible actions by Washington, we stress: this is not our choice.”
So what would the response look like?
Lukashevich did not say, but top Kremlin adviser Sergei Glazyev is suggesting that Russia could abandon the U.S. dollar and refuse to pay back loans to U.S. banks…
“In the instance of sanctions being applied to stated institutions, we will have to declare the impossibility of returning those loans which were given to Russian institutions by U.S. banks,” RIA quoted Glazyev as saying.
“We will have to move into other currencies, create our own settlement system.”
He added: “We have excellent trade and economic relations with our partners in the east and south and we will find a way to reduce to nothing our financial dependence on the United States but even get out of the sanctions with a big profit to ourselves.”
Glazyev also stated that Russia could start dumping U.S. debt and encourage other nations to start doing the same. The following comes from a Russian news source…
“We hold a decent amount of treasury bonds – more than $200 billion – and if the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner,” he said. “We will encourage everybody to dump US Treasury bonds, get rid of dollars as an unreliable currency and leave the US market.“
Clearly Russian officials understand the economic leverage that they potentially have. In fact, Glazyev seems fully convinced that Russia could cause “a crash for the financial system of the United States”…
“An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system.”
On that last point Glazyev is perhaps overstating things.
On their own, the Russians could do a considerable amount of damage to the U.S. financial system, but I doubt that they could completely crash it.
However, if much of the rest of the world started following Russia’s lead, then things could get very interesting.
Just yesterday, I wrote about how China has chosen to publicly stand in agreement with Russia on the Ukrainian crisis.
If China also decided to abandon the U.S. dollar and start dumping U.S. debt, it would be an absolute nightmare for the U.S. financial system.
And keep in mind that the Chinese were already starting to dump a bit of U.S. debt even before this latest crisis. In fact, China dumped nearly 50 billion dollars of U.S. debt in December alone.
The only way that the current bubble of debt-fueled false prosperity in the U.S. can continue is if the rest of the world continues to lend us trillions of dollars at ridiculously low interest rates that are way below the real rate of inflation.
If the rest of the world stops behaving in such an irrational manner, interest rates on U.S. government debt would rise dramatically and that would also mean that interest rates on virtually all other loans throughout our financial system would rise dramatically.
And if that happened, it would be a complete and utter nightmare for our economy.
Unfortunately, most Americans have no understanding of these things. They just assume that we are “the greatest economy in the world” and that nothing is ever going to threaten that.
Well, the truth is that we are rapidly approaching a “turning point”, and after this bubble of false prosperity pops things will never be the same in the United States again.
Why is the Obama administration so determined to have the U.S. military help al-Qaeda win the civil war in Syria? Why are we being told that the U.S. has “no choice” but to help rabid jihadist terrorists that are slaughtering entire Christian villages, brutally raping Christian women and joyfully beheading Christian prisoners? If you are a Christian, you should not want anything to do with these genocidal lunatics. Jabhat al-Nusra is a radical Sunni terror organization affiliated with al-Qaeda that is leading the fight against the Assad regime. If they win, life will be absolute hell for the approximately two million Christians in Syria and other religious minorities. According to Wikipedia, Jabhat al-Nusra intends “to create a Pan-Islamic state under sharia law and aims to reinstate the Islamic Caliphate.” As you will see below, many members of the U.S. military understand this, and they absolutely do not want to fight on the side of al-Qaeda.
Not that we should be supporting Assad either. Assad is horrible. He should be rotting in prison somewhere. But just because a country has a bad leader does not mean that we have justification to attack them.
The U.S. military should only be put into action when there is a compelling national interest at stake. And getting involved in a bloody civil war between Assad and al-Qaeda does not qualify.
For the moment, we have a little bit of time to educate the American people about this because the Obama administration has decided to try to get the approval of Congress before striking Syria. Hopefully cooler heads will prevail.
Unfortunately, some members of the U.S. Congress are actually trying to push Obama into even stronger action. In fact, some Senators are now saying that they will not support military intervention in Syria unless it is a part of an “overall strategy” to remove Assad from power.
If the U.S. does try to remove Assad, it will unleash hell in the Middle East. Syria has already threatened to attack Israel if the U.S. tries to remove Assad and so has Hezbollah.
As I mentioned the other day, right now there are 70,000 Hezbollah rockets aimed at Israel.
When Hezbollah and Syria start sending rockets into the heart of Tel Aviv, Israel will respond with even greater force.
And if a single one of those rockets that land in Tel Aviv have an unconventional warhead, Israel will respond by absolutely flattening Damascus.
When I say that, what I mean is that a city of 1.7 million people will be gone permanently.
Do our politicians have any idea of the hell that they are about to unleash?
Do our leaders actually want Israel to be attacked?
Do our leaders actually want major cities in the Middle East to be completely wiped out?
Do our leaders actually want millions of precious people to die?
As I mentioned above, those serving in the U.S. military understand these things better than most people, and right now many of them are expressing a very strong desire to stay out of this conflict.
According to a tweet from U.S. Representative Justin Amash, he has heard from numerous members of the U.S. military that are urging him to vote against an attack on Syria…
“I’ve been hearing a lot from members of our Armed Forces. The message I consistently hear: Please vote no on military action against .”
Journalist Paul Szoldra says that he has also heard from a lot of service members that want nothing to do with this conflict…
I’ve reached out to my own sources who are either veterans or currently on active duty in the military, and asked them to share their thoughts on whether we should, or should not, intervene in the two-year-old Syrian civil war. Most have responded with a resounding no.
The following is what a Marine Corps infantry veteran with three deployments to Iraq named Jack Mandaville wrote to Szoldra…
The worst part about this Syria debacle, among many things, is how closely it resembles Iraq. Those Vietnam veterans who warned us about disastrous results in Iraq were doing so based off their experience in a war that, contrary to popular belief, was vastly different from our war and was separated by at least two decades. Many veterans of Iraq are still in their twenties and have a firsthand understanding of Arab political issues. The complicated things we faced with Syria’s next door neighbors is freshly ingrained in our memories. How quickly the American people and our political leaders forget.
Our involvement in Syria is so dangerous on so many levels, and the 21st century American vet is more keen to this than anybody. It boggles my mind that we are being ignored. My anger over this issue has actually made me seriously comment on our foreign policy for the first time since 2006 when I was honorably discharged after three stints in Iraq and subsequently watched it continue for nearly another six years. I’m sickened that we’re putting ourselves in a position for another prolonged war where the American people will quickly forget about the people fighting it.
And even an establishment mouthpiece like the Washington Post is admitting that top U.S. military officials are expressing “serious reservations” about a war with Syria…
The Obama administration’s plan to launch a military strike against Syria is being received with serious reservations by many in the U.S. military, which is coping with the scars of two lengthy wars and a rapidly contracting budget, according to current and former officers.
Having assumed for months that the United States was unlikely to intervene militarily in Syria, the Defense Department has been thrust onto a war footing that has made many in the armed services uneasy, according to interviews with more than a dozen military officers ranging from captains to a four-star general.
One officer even told the Post that he “can’t believe” that Obama is even considering a conflict with Syria…
“I can’t believe the president is even considering it,” said [one] officer, who like most officers interviewed for this story agreed to speak only on the condition of anonymity because military personnel are reluctant to criticize policymakers while military campaigns are being planned.
What Obama wants to do is utter insanity.
Why would we want to enter a war on the side of Christian killers?
In areas of Syria that are controlled by the rebels, Christians are being treated brutally. The following is from eyewitness testimony from a Christian missionary who recently visited the region…
“The Christian residents were offered four choices: 1. renounce the ‘idolatry’ of Christianity and convert to Islam; 2. pay a heavy tribute to the Muslims for the privilege of keeping their heads and their Christian faith (this tribute is known as jizya); 3. be killed; 4. flee for their lives, leaving all their belongings behind.”
How would you like to be faced with those choices?
In other instances, Christians are not even given any choices. Instead, they are being summarily executed for their faith.
For example, the following is one incident that made news back in December…
Syrian rebels beheaded a Christian man and fed his body to dogs, according to a nun who says the West is ignoring atrocities committed by Islamic extremists.
The nun said taxi driver Andrei Arbashe, 38, was kidnapped after his brother was heard complaining that fighters against the ruling regime behaved like bandits.
She said his headless corpse was found by the side of the road, surrounded by hungry dogs. He had recently married and was soon to be a father.
How would you feel if a member of your family was beheaded and fed to the dogs?
And the rebels have continued to slaughter Christians even though they know the world is watching. The following is from an NBC News report on August 18th…
Syrian rebels killed at least 11 people, including civilians, in an attack on a checkpoint west of the city of Homs on Saturday that official state media described as a massacre.
Most of those killed were Christians, activists and residents said.
Sometimes these psychotic Syrian rebels actually round up Christian women and children and gun them down. The following is from a report about what the rebels did to the Christian village of al-Duvair when they took control…
Images obtained exclusively by Infowars show the aftermath of an alleged massacre of a Christian village in Syria during which men, women and children were slaughtered and churches desecrated by Obama-backed FSA rebels.
The photos, which were provided by a source inside the village of al-Duvair in Syria’s Western province of Homs, show ruined homes, ransacked churches as well as the burned remains of what looks like an infant.
According to the Assyrian International News Agency (AINA) on May 29, “The armed rebels affiliated to the Free Syrian Army (FSA) raided the Christian-populated al-Duvair village in Reef (outskirts of) Homs near the border with Lebanon….and massacred all its civilian residents, including women and children.”
But sometimes women are not killed by the rebels. If they are young and lovely, they are often systematically raped. What happened to one 15-year-old Christian girl from Qusair named Mariam is a total abomination…
The commander of the battalion “Jabhat al-Nusra” in Qusair took Mariam, married and raped her. Then he repudiated her. The next day the young woman was forced to marry another Islamic militant. He also raped her and then repudiated her. The same trend was repeated for 15 days, and Mariam was raped by 15 different men. This psychologically destabilized her and made her insane. Mariam, became mentally unstable and was eventually killed.
This is who Obama wants to help?
We are going to shed American blood to help those monsters take over Syria?
Are we insane?
Of course one of the most prominent examples of rebel brutality was even reported on by CNN…
The ghastly video shows how barbaric the Syrian civil war can be.
A man, said to be a well-known rebel fighter, carves into the body of a government soldier and cuts out his heart and liver.
“I swear to God we will eat your hearts out, you soldiers of Bashar. You dogs. God is greater!” the man says. “Heroes of Baba Amr … we will take out their hearts to eat them.”
He then puts the heart in his mouth and takes a bite.
After reading that, can anyone out there possibly justify helping the Syrian rebels?
But the Obama administration insists that we “must” attack Syria because Assad supposedly used chemical weapons against his own people.
Secretary of State John Kerry says that samples taken by UN inspectors have tested positive for the nerve agent sarin, and therefore what we must do is clear.
But is it really?
According to Reuters, the UN has had evidence that Syrian rebels have been using sarin gas against Assad forces since May…
U.N. human rights investigators have gathered testimony from casualties of Syria’s civil war and medical staff indicating that rebel forces have used the nerve agent sarin, one of the lead investigators said on Sunday.
And as I discussed the other day, Syrian rebels have admitted to an Associated Press reporter that they were the ones that used sarin gas during the incident that the Obama administration is so concerned about.
The chemical weapons were supplied to the rebels by Saudi Arabia, but the Obama administration will never, ever admit this. If the U.S. called the Saudis out on this, it would potentially endanger the status of the petrodollar.
Instead, the U.S. government is going to end up doing exactly what the Saudis want, which is to attack Syria.
But people all around the world are seeing through this charade. For example, the following is a statement that Pat Buchanan made during a recent interview with Newsmax…
“I would not understand or comprehend that Bashar al-Assad, no matter how bad a man he may be, would be so stupid as to order a chemical weapons attack on civilians in his own country when the immediate consequence of which might be that he would be at war with the United States. So this reeks of a false flag operation.”
Sadly, it doesn’t really seem to matter what any of us think. According to James Rosen of Fox News, the Obama administration has apparently made the decision to go ahead with an attack on Syria no matter what Congress decides…
A senior State Department official tells Fox News the president’s decision to take military action in Syria still stands, and will indeed be carried out, regardless of whether Congress votes next week to approve the use of such force.
The official said that every major player on the National Security Council – including the commander-in-chief – was in accord last night on the need for military action, and that the president’s decision to seek a congressional debate and vote was a surprise to most if not all of them. However, the aide insisted the request for Congress to vote did not supplant the president’s earlier decision to use force in Syria, only delayed its implementation.
“That’s going to happen, anyway,” the source told me, adding that that was why the president, in his rose Garden remarks, was careful to establish that he believes he has the authority to launch such strikes even without congressional authorization.
Very soon, the U.S. military will be embroiled in a vicious civil war between a brutal dictator and absolutely psychotic Christian-killing jihadists.
Should American blood be spilled in such a conflict?
Of course not.
Is it worth potentially starting World War III just to teach Assad a “lesson”?
Of course not.
Hopefully this war will not happen, because if it does I fear that it is going to be very, very bloody.
How would America ever survive without the central planners in the Obama administration and at the Federal Reserve? What in the world would we do if there was no income tax and no IRS? Could the U.S. economy possibly keep from collapsing under such circumstances? The mainstream media would have us believe that unless we have someone “to pull the levers” our economy would descend into utter chaos, but the truth is that the best period of economic growth in U.S. history occurred during a time when there was no income tax and no Federal Reserve. Between the Civil War and 1913, the U.S. economy experienced absolutely explosive growth. The free market system thrived and the rest of the world looked at us with envy. The federal government was very limited in size, there was no income tax for most of that time and there was no central bank. To many Americans, it would be absolutely unthinkable to have such a society today, but it actually worked very, very well. Without the inventions and innovations that came out of that period, the world would be a far different place today.
It is amazing what can happen when the government just gets out of the way. Check out all of the wonderful things that Wikipedia says happened for the U.S. economy during those years…
The rapid economic development following the Civil War laid the groundwork for the modern U.S. industrial economy. By 1890, the USA leaped ahead of Britain for first place in manufacturing output.
An explosion of new discoveries and inventions took place, a process called the “Second Industrial Revolution.” Railroads greatly expanded the mileage and built stronger tracks and bridges that handled heavier cars and locomotives, carrying far more goods and people at lower rates. Refrigeration railroad cars came into use. The telephone, phonograph, typewriter and electric light were invented. By the dawn of the 20th century, cars had begun to replace horse-drawn carriages.
Parallel to these achievements was the development of the nation’s industrial infrastructure. Coal was found in abundance in the Appalachian Mountains from Pennsylvania south to Kentucky. Oil was discovered in western Pennsylvania; it was mainly used for lubricants and for kerosene for lamps. Large iron ore mines opened in the Lake Superior region of the upper Midwest. Steel mills thrived in places where these coal and iron ore could be brought together to produce steel. Large copper and silver mines opened, followed by lead mines and cement factories.
In 1913 Henry Ford introduced the assembly line, a step in the process that became known as mass-production.
When hard working, industrious people are given freedom to pursue their dreams, great things tend to happen. The truth is that we were all designed to create, to invent, to build, and to trade with one another. We all have something that we can contribute to society, and when families are strong and the invisible hand of the free market is allowed to work, societies tend to prosper.
It is not a coincidence that the greatest period of economic growth in U.S. history was between the Civil War and 1913. The following information comes from Wikipedia…
The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873. The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled.
Wouldn’t you like U.S. GDP to double over the course of a decade now?
So why don’t we go back to a system like that?
In 1913, the Federal Reserve and a permanent national income tax were introduced. Today, the unelected central planners at the Federal Reserve totally run our financial system and the U.S. tax code is about 13 miles long. The value of our currency has declined by more than 96 percent since 1913, and the size of our national debt has gotten more than 5000 times larger.
Meanwhile, control freak bureaucrats seemingly run everything. Almost every business decision is heavily influenced either by taxes or by the millions of laws, rules and regulations that are sucking the life out of our economic system.
My favorite example of how suffocating red tape in America has become is the magician out in Missouri that was forced by the Obama administration to submit a 32 page “disaster plan” for the rabbit that he uses during his magic shows for kids.
It is no wonder why we don’t have any economic growth. The central planners in the federal government are killing our economy.
And the central planners over at the Federal Reserve are killing our financial system. In school we are taught that the Fed was created to bring stability to our financial system, but the truth is that they have been responsible for financial bubble after financial bubble, and now Federal Reserve Chairman Ben Bernanke has created the largest bond bubble in the history of the world. When that thing bursts, and it will, we are going to see financial carnage on an unprecedented scale.
Unfortunately, the truth is that the Federal Reserve never has been looking out for the interests of the American people. It was created by the big banks and it has always worked very hard to benefit the big banks. During the Fed era, the big banks have become the most powerful economic entities on the entire planet. Our entire economy is now based on debt, and the big banks are at the very center of this debt spiral. The following is an excerpt from a recent article by Paul B. Farrell…
Today’s world includes four Wall Street banks each with assets over $1 trillion, each more than Goldman. Plus eight other big global banks each have over $2 trillion total assets, including, among the 100 largest, Barclays, HSBC, Deutsche, ICB-China and Japan’s Mitsubishi.
Yes, this new world is changing fast. Back in 2008 the world’s financial banks were in ruins. Wall Street sunk into virtually bankruptcy. Goldman and its Wall Street too-big-to-fail co-conspirators had trashed the global economy, triggered a virtual depression, and Wall Street’s casinos lost over $10 trillion of Main Street retirement funds.
And as we saw back in 2008, the Federal Reserve is going to do whatever is necessary to prop up Wall Street. Most Americans never even heard about this, but during the last financial crisis the Fed secretly loaned 16 trillion dollars to the big banks. Those loans were nearly interest-free and those banks knew that they could get basically as much nearly interest-free money as they wanted from the Fed.
So how much nearly interest-free money did the Fed loan to normal Americans?
Not a single penny.
That would be bad enough, but it is also important to remember that since 2008 the Fed has actually been paying banks NOT to lend money to the rest of us.
What is it going to take for the American people to start demanding that the Fed be abolished? They are absolutely destroying our financial system.
Meanwhile, the central planners in the Obama administration have been doing their part as well. During the second quarter of this year, the number of Americans working between 30 and 34 hours per week fell by 146,500. During that same time period, the number of Americans working between 25 and 29 hours rose by 119,000.
Why is this happening?
Well, the Obamacare employer mandate will apply to workers that work at least 30 hours each week, so employers are starting to cut back on the hours their employees are getting in order to comply with the law.
But this is just one example out of thousands, and most Americans already know that the U.S. economy has been crumbling for many years.
In fact, things have gotten so bad that even 53 percent of all Democrats believe that the American Dream is dead even though Barack Obama is residing in the White House.
But this is just the beginning. Things are going to get much, much worse. We are going down the same path that Greece has gone, and the unemployment rate in Greece has just hit a new all-time record high of 27.6 percent.
That is where the U.S. is headed eventually. Decades of very foolish decisions are catching up with us.
The primary reason why all of this is happening is debt. As a society, we simply have way, way, way too much debt.
The biggest offender, of course, is the federal government. Since 1970, federal spending has grown nearly 12 times as rapidly as median household income has, and since the year 2000 the size of the U.S. national debt has grown by more than 11 trillion dollars.
When government debt gets too large, it has a profoundly negative effect on an economy. The following is an excerpt from an outstanding article by Lacy H. Hunt, a Ph.D. economist…
Here are the studies, starting with the one with the broadest implications:
- “Government Size and Growth: A Survey and Interpretation of the Evidence,” from Journal of Economic Surveys. Published in April 2011, Swedish economists Andreas Bergh and Magnus Henrekson (both of the Research Institute of Industrial Economics at Lund University) found a “significant negative correlation” between size of government and economic growth. Specifically, “an increase in government size by 10 percentage points is associated with a 0.5% to 1% lower annual growth rate.”
- “The Impact of High and Growing Government Debt on Economic Growth: An Empirical Investigation for the Euro Area,” in European Central Bank working paper, Number 1237, August 2010. Cristina Checherita and Philipp Rother found that a government-debt-to-GDP ratio above the threshold of 90-100% has a “deleterious” impact on long-term growth. Additionally, the impact of debt on growth is nonlinear – as the government debt rises to higher and higher levels, the adverse growth consequences accelerate.
- The Real Effects of Debt, published by the Bank for International Settlements (BIS) in Basel, Switzerland in August 2011. Stephen G. Cecchetti, M. S.Mohanty, and Fabrizio Zampolli determined that “beyond a certain level, debt is bad for growth. For government debt, the number is about 85% of GDP.”
- “Public Debt Overhangs: Advanced-Economy Episodes Since 1800,”by Carmen M. Reinhart, Vincent R. Reinhart, Kenneth S. Rogoff, Journal of Economic Perspectives, Volume 26, Number 3, Summer 2012, pages 69-86. The authors identified 26 cases of “debt overhangs,” which they define as public-debt-to-GDP levels exceeding 90% for at least five years. In spite of the many idiosyncratic differences in these situations, economic growth fell in all but three of the 26 cases. All of the instances, which lasted an average of 23 years, are included in the paper. They found that average annual growth is 1.2% lower for countries with a debt overhang than for countries without. The long duration of such episodes means that cumulative shortfall from the debt excess—i.e., several years in a row of subpar economic growth—is potentially massive.
But it isn’t just federal government debt that is the problem. The rest of us have way too much debt as well.
If you can believe it, the ratio of private debt to GDP was 273.3% for the twelve months ending in the first quarter of 2013.
That is an astounding figure.
And as Hunt explained, having too much private debt is also very bad for an economy…
In Too Much Finance, published by the United Nations Conference on Trade and Development (UNCTAD) in March 2011, Jean Louis Arcand, Enrico Berkes, and Ugo Panizza found a negative effect on output growth when credit to the private sector reaches 104-110% of GDP. The strongest adverse effects are for credit over 160% of GDP.
The second is the 2011 BIS study authored by Cecchetti, Mohanty, and Zampolli. They found that private debt levels become “cancerous” (in BIS economic advisor Cecchetti’s own words) at 175% (90% for corporations and 85% for households)—just slightly more than the UNCTAD study.
When you add our private debt to GDP ratio of 273 percent to our federal debt to GDP ratio of 101 percent, you get a grand total of 384 percent.
This is how we have funded the false prosperity of the past couple of decades. Essentially, we have been putting our good times on a credit card.
And as anyone that has ever tried to live on credit knows, the good times eventually run out.
But this is what the Federal Reserve was designed to do. It was designed to get the U.S. government trapped in a debt spiral from which there would never be any escape.
It is not an accident that our national debt has gotten more than 5000 times larger than it was when the Fed was originally created. This is what the bankers wanted the system to do.
They wanted a system that would extract wealth from all of us through taxes, transfer it to the government, and then transfer it to them through interest payments.
We never needed a central bank, we never needed the IRS and we never needed an income tax. America would be doing just fine without any of them.
But instead, America chose to go down the path of collectivization and central planning, and now we are heading toward the biggest economic disaster in the history of mankind.
How can the mainstream media claim that the U.S. economy is “improving” when it is painfully obvious to anyone with a brain that the middle class is being absolutely eviscerated? According to numbers that were just released, the number of Americans on food stamps rose by more than 600,000 in a single month to an all-time record high of 47.7 million. Youth unemployment in the U.S. is at a post-World War II high and large companies have announced the elimination of more than 100,000 jobs since Barack Obama won the election. Consumer debt just hit a new record high and the federal government is accumulating debt at a much faster pace than it was at this time last year. So where is the evidence that the economy is getting better? The mainstream media says that the decline of the unemployment rate to “7.7 percent” is evidence that things are improving, but I showed how fraudulent that number is yesterday. The percentage of working age Americans with a job today is exactly where it was back in September 2009 in the midst of the last major economic crisis. The mainstream media is desperate for any shred of evidence that it can use to make people feel good and show that the Obama administration has our economy on the right track, and so they jump on any number that even looks remotely promising and they ignore mountains of evidence to the contrary. They don’t seem to care that poverty is absolutely exploding and that the number of Americans on food stamps has risen by nearly 50 percent while Obama has been in the White House. They don’t seem to care that the U.S. share of global GDP has fallen from 31.8 percent in 2001 to 21.6 percent in 2011. They don’t seem to care that more good paying jobs are being shipped overseas with each passing day. They don’t seem to care that formerly great U.S. cities that were once the envy of the entire globe are now crime-infested hellholes. All they seem to care about is putting out news that makes people feel warm and fuzzy and making sure that Obama looks good. Unfortunately, the truth is that the U.S. economy is steadily getting worse, and 2013 is not looking very promising at all right now. Hopefully at some point the mainstream media will take a break from coverage of the royal pregnancy and the latest celebrity scandals to report on the real problems that we are facing right now.
The following are 15 signs that the economy is rapidly getting worse as we head into 2013…
#1 According to numbers that were just released, the number of Americans on food stamps has risen to a new all-time record of 47.71 million. That is a huge increase of more than 600,000 over the previous reading of 47.10 million. After about a year of slow growth, it looks like the number of Americans on food stamps is starting to skyrocket once again. Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, about one out of every 6.5 Americans is on food stamps.
#2 Youth unemployment in the United States is now at the highest level that we have seen since World War II.
#3 According to Gallup, unemployment in the United States shot up very sharply during the month of November.
#4 It looks like the unemployment numbers are likely to get even worse. Since the election, dozens of large companies have announced major layoffs. Overall, large companies have announced the elimination of more than 100,000 jobs since November 6th.
#5 According to the Wall Street Journal, of the 40 biggest publicly traded corporate spenders, half of them plan to reduce capital expenditures over the coming months.
#6 Small business owners all over America are declaring that Obamacare is going to force them to start replacing full-time workers with part-time workers during 2013.
#7 One recent survey discovered that 40 percent of all Americans have $500 or less in savings.
#8 A different recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies.
#9 62 percent of middle class Americans say that they have had to reduce household spending over the past year.
#10 Many Americans are trying to make ends meet for their families by going into more debt. Consumer borrowing hit another brand new record high in October. It looks like the American people have not learned from their past mistakes and have decided to roll up consumer debt at a faster pace than ever before.
#11 Median household income in America has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
#12 Wall Street bankers are expecting “the worst bonus season” since 2008. Not a lot of people are going to shed tears over this one, but this is a sign that there is trouble in the financial world.
#13 Food banks all over America are reporting that more needy families than ever before are showing up to get food.
#14 As I wrote about yesterday, the federal government has run a deficit of $292 billion dollars during the first two months of fiscal 2013. That figure is $57 billion higher than it was during the same period last year. Government debt continues to soar wildly out of control and at some point all of that debt is absolutely going to crush us.
#15 I have written previously about how the once great city of Detroit has become a symbol of the downfall of the U.S. economy. Well, now the state of Michigan is laying the groundwork for a “managed bankruptcy” of Detroit. Sadly, many other large U.S. cities will likely follow suit over the next couple of years.
We should truly mourn for what is happening to Detroit. At one time, it was one of the most beautiful cities on earth. But now it is on the cutting edge of America’s economic decline. You can see some amazing before and after pictures of an abandoned Detroit school right here. Sadly, what is happening to Detroit will soon be happening to the rest of the country.
A similar thing is happening over in Europe. Greece is on the cutting edge of Europe’s economic decline, and people over there are becoming very desperate. The following is an excerpt from a Financial Post article about how the Greek middle class is turning to crime as the depression in that nation gets even worse…
In the once stable neighborhood of Kordelio, the unemployed and drug users gather in the parks, scaring away mothers and children, and crimes like chain snatching are on the rise. Many long-time residents have left, moving abroad or to their families’ villages, leaving behind empty houses, said Evangelia Rombou, 58, who has lived in Kordelio for 22 years.
But it is not just Greece that is grappling with these kinds of issues. Now even countries that had been thought to be “stable” are experiencing significant problems. For example, a massive crime wave has broken out in France. The crime wave in France is being blamed on “austerity”, but the government of France still spends far more than it brings in.
So how bad would things get in France if the French government actually did go to a balanced budget?
And how bad would things get in the United States if the federal government was not stealing more than 100 million dollars an hour from our children and our grandchildren?
Even in the midst of our debt-fueled prosperity we are starting to see glimpses of how desperate people will become when our country is someday forced to live within its means. For example, the following is from a report about an incident that happened in Columbus, Ohio the other day…
Columbus Police sprayed Mace on several people in a crowd that had gathered to sign up for a list to get subsidized housing at a northwest Columbus apartment complex.
Police said the crowd started to gather Friday night for the Saturday morning event at The Heritage apartment complex on Gatewood Road near Sunbury Road in northeast Columbus.
Authorities said that its highest number, the crowd reached 2,000 people.
Our entire economy is a giant mirage. Our prosperity has been purchased by stealing from the future. A few people have been warning that we have completely destroyed our future in the process, but both major political parties just continue to do it and the mainstream media just continues to cheer them on.
At some point this con game will end and this economic mirage will disappear. When that happens, millions of people all over this country are going to become very angry and very desperate.
I hope that you have a plan for what you will do when that happens.