If you could live in any state in America, where would you go? During troubled times like these, what is the best place in the United States to live? A lot of people are asking these kinds of questions these days. Our economy is on the verge of collapse, natural disasters are becoming more frequent and more intense, the U.S. population is becoming angrier and more frustrated by the day, our government has become incredibly oppressive and controlling, war could break out at any time and evidence that society is breaking down is all around us. As our world becomes increasingly unstable, many families are considering moving somewhere else. But what areas are best and what areas should be avoided? Is there really a “best place to live” in America? Well, the truth is that each family is facing a different set of circumstances. If you have a great support system where you live, it can be really tough to pick up and move 3000 miles away from that support system. If you have a great job where you live now, it can be really tough to move some place where there may be no job at all for you. But without a doubt there are some areas of the country that will be far better off than others in the event of a major economic collapse. This article will take a look at each of the 50 U.S. states and will list some of the pros and cons for moving to each one.
Not all of the factors listed below will be important to you, and a few have even been thrown in for humor. But if you are thinking of moving in the near future hopefully this list will give you some food for thought.
A few years ago when my wife and I were living near Washington D.C. we knew that we wanted a change and we went through this kind of a process. We literally evaluated areas from coast to coast. In the end, we found a place that is absolutely perfect for us. But different things are important to different people.
And if I gave your particular state a low rating, please don’t think that I am trashing the entire state or all of the people who live there.
For example, there are some absolutely wonderful people that live in the state of California, and there are some areas of California that I would not mind visiting at all. But for the times that are coming I am convinced that it is going to be a really bad place to live.
Not that I have all the answers either. Hopefully this article can get some debates started, and hopefully those debates will help people that are thinking of moving to another state to be more informed.
The following are some pros and cons for all 50 states….
Alabama
Pros: warm weather, southern hospitality, relatively low population density
Cons: hurricanes, tornadoes, crime, not enough jobs, multiple nuclear power plants, rampant poverty
Overall Rating: C+
Alaska
Pros: great fishing, lots of empty space, low population density, great for rugged individualists
Cons: very high cost of living, earthquakes, volcanoes, extremely cold, short growing season, too much snow, potentially cut off from supplies from the lower 48 states during an emergency situation
Overall Rating: B
Arizona
Pros: warm weather
Cons: illegal immigration, wildfires, return of dust bowl conditions, not enough jobs, not enough rain, multiple nuclear power plants, crime, gang violence, Phoenix
Overall Rating: D+
Arkansas
Pros: southern hospitality, warm weather, Ozark National Forest
Cons: tornadoes, Clintons, New Madrid fault zone, multiple nuclear power plants, crime, rampant poverty
Overall Rating: C
California
Pros: Disneyland, warm weather, Malibu
Cons: high taxes, Jerry Brown, earthquakes, mudslides, wildfires, gang violence, crime, traffic, rampant poverty, insane politicians, ridiculous regulations, bad schools, political correctness, illegal immigration, not enough jobs, air pollution, multiple nuclear power plants, possible tsunami threat along the coast, Los Angeles, San Francisco, Oakland, Stockton, Sacramento, huge drug problem, high population density, the state government is broke, many more reasons to leave California right here
Overall Rating: F
Colorado
Pros: Rocky Mountains, Colorado Springs
Cons: wildfires, illegal immigration, short growing season, not enough rain, too much snow, huge drug problem
Overall Rating: B
Connecticut
Pros: beautiful homes
Cons: high taxes, insane politicians, ridiculous regulations, political correctness, short growing season, multiple nuclear power plants, high population density
Overall Rating: C-
Delaware
Pros: good fishing
Cons: Joe Biden, political correctness, ridiculous regulations, insane politicians, crime, high population density
Overall Rating: D
Florida
Pros: University of Florida Gators, oranges, low taxes, southern hospitality, Disneyworld, Gainesville, warm weather, beautiful beaches, Daytona
Cons: hurricanes, most of the state is barely above sea level, high population density, not enough jobs, multiple nuclear power plants, crime, gang violence, illegal immigration
Overall Rating: C
Georgia
Pros: peaches, southern hospitality, warm weather
Cons: not enough jobs, multiple nuclear power plants, crime, gang violence, flesh eating disease, Atlanta
Overall Rating: B-
Hawaii
Pros: awesome beaches, warm weather, great vacation destination
Cons: vulnerable to tsunamis, very high cost of living, volcanoes, traffic, high population density, high taxes
Overall Rating: C-
Idaho
Pros: awesome people live there, great potatoes, low population density, high concentration of liberty-minded individuals, low crime, Sandpoint, Coeur d’Alene, north Idaho has plenty of water compared to the rest of the interior West, beautiful scenery
Cons: cold in the winter, wildfires, short growing season, not enough jobs
Overall Rating: A
Illinois
Pros: once you get away from Chicago things are not quite so bad
Cons: Barack Obama, drought, New Madrid fault zone, high population density, political correctness, ridiculous regulations, insane politicians, crime, gang violence, Chicago, East St. Louis, not enough jobs, multiple nuclear power plants, mob robberies, the state government is drowning in debt
Overall Rating: D-
Indiana
Pros: it is in better shape than Illinois, good farming, high Amish population
Cons: drought, tornadoes, the city of Gary, relatively high population density, near the New Madrid fault zone, a “rust belt” state
Overall Rating: C-
Iowa
Pros: low population density, low crime, good farming
Cons: drought, tornadoes, cold in the winter, multiple nuclear power plants, too much snow, very flat
Overall Rating: B-
Kansas
Pros: low population density, low crime, good farming
Pros: southern hospitality, great horses, Lexington
Cons: New Madrid fault zone, not enough jobs, rampant poverty, Louisville
Overall Rating: C
Louisiana
Pros: southern hospitality, warm weather
Cons: hurricanes, New Orleans, not enough jobs, tornadoes, multiple nuclear power plants, oil spills, crime, gang violence, rampant poverty
Overall Rating: D
Maine
Pros: low population density, low crime, polite people
Cons: extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, too much snow
Overall Rating: B-
Maryland
Pros: the Washington Redskins play there
Cons: Baltimore, borders Washington D.C., high population density, really bad traffic, political correctness, ridiculous regulations, insane politicians, multiple nuclear power plants, crime, gang violence
Overall Rating: C-
Massachusetts
Pros: beautiful homes
Cons: high taxes, political correctness, ridiculous regulations, insane politicians, high population density, short growing season, almost everything is illegal in Massachusetts
Overall Rating: D+
Michigan
Pros: once you get away from Detroit and Flint things get better
Cons: Detroit, Flint, Dearborn, extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, not enough jobs, multiple nuclear power plants, too much snow, a “rust belt” state
Overall Rating: D-
Minnesota
Pros: land of 10,000 lakes
Cons: extremely cold, short growing season, multiple nuclear power plants, too much snow, high taxes
Overall Rating: C
Mississippi
Pros: southern hospitality, relatively low population density, warm weather
Cons: hurricanes, tornadoes, not enough jobs, rampant poverty, crime
Overall Rating: C+
Missouri
Pros: good farming, Branson
Cons: drought, tornadoes, New Madrid fault zone, not enough jobs, crime
Overall Rating: C
Montana
Pros: low population density, low taxes, high concentration of liberty-minded individuals, Missoula, Kalispell
Cons: extremely cold in the winter, wildfires, short growing season, not enough rain, near Yellowstone super volcano, rampant poverty, too much snow
Overall Rating: B+
Nebraska
Pros: low population density, good farming
Cons: tornadoes, drought, multiple nuclear power plants, cold in the winter, very flat
Overall Rating: B
Nevada
Pros: low population density, lots of empty space, low taxes, warm weather
Cons: Harry Reid, Las Vegas, Reno, not enough water, not enough rain, wildfires, hard to grow food, not enough jobs, crime, gang violence, huge drug problem, Yucca Mountain
Overall Rating: D+
New Hampshire
Pros: low crime, beautiful homes
Cons: extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, too much snow
Overall Rating: C
New Jersey
Pros: anyone got something?
Cons: high population density, Camden, Newark, not enough jobs, multiple nuclear power plants, Atlantic City, crime, gang violence
Overall Rating: D-
New Mexico
Pros: low population density, warm weather
Cons: illegal immigration, wildfires, return of dust bowl conditions, not enough jobs, not enough rain, crime, gang violence, huge drug problem
Overall Rating: C-
New York
Pros: the entire state is not like New York City
Cons: New York City, Mayor Bloomberg, high taxes, cold in the winter, high population density, political correctness, ridiculous regulations, insane politicians, not enough jobs, multiple nuclear power plants, the “too big to fail” banks
Overall Rating: D
North Carolina
Pros: southern hospitality, warm weather, Great Smoky Mountains National Park
Cons: hurricanes, not enough jobs, multiple nuclear power plants
Cons: extremely cold, short growing season, too much snow
Overall Rating: B
Ohio
Pros: the Cincinnati Reds, the Pro Football Hall of Fame, high Amish population
Cons: not enough jobs, cold in the winter, multiple nuclear power plants, high population density, Toledo, Cleveland, a “rust belt” state
Overall Rating: C
Oklahoma
Pros: warm weather, good farming
Cons: drought, tornadoes, wildfires, return of dust bowl conditions, not enough rain, crime, Oklahoma City, rampant poverty
Overall Rating: C
Oregon
Pros: tremendous natural beauty
Cons: high taxes, Portland, political correctness, ridiculous regulations, insane politicians, not enough jobs, huge drug problem, possible tsunami threat along the coast
Overall Rating: C-
Pennsylvania
Pros: high Amish population
Cons: high population density, Philadelphia, Pittsburgh, not enough jobs, multiple nuclear power plants, a “rust belt” state
Overall Rating: C
Rhode Island
Pros: so small that most people don’t notice their problems
Cons: the state is flat broke, short growing season, political correctness, ridiculous regulations, insane politicians, not enough jobs, high population density
Cons: hurricanes, not enough jobs, multiple nuclear power plants, crime, gang violence, rampant poverty
Overall Rating: B
South Dakota
Pros: low population density, fun tourist traps, the Badlands, Mount Rushmore
Cons: extremely cold, short growing season, very flat, too much snow
Overall Rating: B
Tennessee
Pros: Nashville, Michael W. Smith, southern hospitality, warm weather, Gatlinburg
Cons: Memphis, New Madrid fault zone, multiple nuclear power plants, crime, gang violence, rampant poverty
Overall Rating: B-
Texas
Pros: low taxes, warm weather, Austin
Cons: drought, illegal immigration, tornadoes, wildfires, West Nile Virus, the Dallas Cowboys, return of dust bowl conditions, speed traps, not enough rain, multiple nuclear power plants, George W. Bush, crime
Overall Rating: B-
Utah
Pros: beautiful mountains, low crime, low population density
Cons: cold in the winter, wildfires, Salt Lake City, short growing season, not enough rain, illegal to collect rain
Overall Rating: B-
Vermont
Pros: low crime, beautiful homes
Cons: cold in the winter, insane politicians, ridiculous regulations, short growing season, political correctness, not enough jobs, too much snow
Overall Rating: C
Virginia
Pros: the University of Virginia, southern hospitality, Charlottesville
Cons: borders Washington D.C., high population density, multiple nuclear power plants, Richmond, really bad traffic in northern Virginia
Overall Rating: B-
Washington
Pros: the eastern half of the state is quite nice and much different from the coast
Cons: way too much rain along the coast, volcanoes, wildfires, insane politicians, ridiculous regulations, political correctness, not enough jobs, possible tsunami threat along the coast, Seattle
Overall Rating: C
West Virginia
Pros: beautiful mountains
Cons: not enough jobs, rampant poverty
Overall Rating: B
Wisconsin
Pros: cheese, the Green Bay Packers
Cons: extremely cold, short growing season, multiple nuclear power plants, too much snow,
Overall Rating: B-
Wyoming
Pros: low population density, lots of empty space, low taxes
Cons: extremely cold, too windy, too flat, wildfires, short growing season, not enough rain, Yellowstone super volcano
Overall Rating: B-
What do you think of these rankings?
What do you think is the best place to live in America?
Do you have any additional pros and cons that should be added to this list?
Please feel free to post a comment with your thoughts below….
The worst drought in more than 50 years is having a devastating impact on the Mississippi River. The Mississippi has become very thin and very narrow, and if it keeps on dropping there is a very real possibility that all river traffic could get shut down. And considering the fact that approximately 60 percent of our grain, 22 percent of our oil and natural gas, and and one-fifth of our coal travel down the Mississippi River, that would be absolutely crippling for our economy. It has been estimated that if all Mississippi River traffic was stopped that it would cost the U.S. economy 300 million dollars a day. So far most of the media coverage of this historic drought has focused on the impact that it is having on farmers and ranchers, but the health of the Mississippi River is also absolutely crucial to the economic success of this nation, and right now the Mississippi is in incredibly bad shape. In some areas the river is already 20 feet below normal and the water is expected to continue to drop. If we have another 12 months of weather ahead of us similar to what we have seen over the last 12 months then the mighty Mississippi is going to be a complete and total disaster zone by this time next year.
Most Americans simply do not understand how vitally important the Mississippi River is to all of us. If the Mississippi River continues drying up to the point where commercial travel is no longer possible, it would be an absolutely devastating blow to the U.S. economy.
Unfortunately, vast stretches of the Mississippi are already dangerously low. The following is an excerpt from a transcript of a CNN report that aired on August 14th….
You might think this is some kind of desert just outside of Memphis. It’s not. I’m actually standing on the exposed bottom of the Mississippi River. That’s how dramatic the drought impact is being felt here. Hard to believe, a year ago we were talking about record flooding. Now, they are worried about a new kind of record: a record low. The river was three miles wide here, it’s now down to three tenths of a mile. And that’s causing all kinds of problems. There are some benefits, I mean, take a look over here: new beach front. In fact, some quip that now the Mississippi River has more beaches than the entire state of Florida, which would be funny if it didn’t have an impact on trade.
A lot of stuff we use goes up and down the Mississippi River. We are talking steel, coal, ore, grain. The problem is now a lot of those barges have had to lighten their loads, and even doing that, they are still running aground. There is a real fear that there could be a possibility of closing the Mississippi River. If that happens, well, all that product that used to be carried cheaply by barge is now going to be carried more expensively by truck or train. And guess who is going to pay for all of that.
You can see video footage of what is happening along the Mississippi right here.
It really is amazing that last year we were talking about historic flooding along the Mississippi and this year we are talking about the Mississippi possibly drying up.
As I mentioned earlier, there are some areas along the river that are already 20 feet below normal levels. The following is from a recent article posted on inquisitr.com….
Just outside of Memphis the river is 13 feet below normal depth while the National Weather Service says Vicksburg, Mississippi is 20 feet below normal levels. Overall the Mississippi is 13 feet below normal averages for this time of year.
The drying up river is forcing barge, tugboat and towboat operators to navigate narrower and more shallow spots in the river, slowing their speeds as they pass dangerously close to one another. In some parts of the Mississippi the river is so narrow that one-way traffic is being utilized.
A lot of barges have been forced to go with greatly reduced loads so that they will sit higher in the river, and other commercial craft have been forced to stop operating completely.
Down south, the Mississippi River has gotten so low that saltwater is actually starting to move upriver. The U.S. Army Corps of Engineers is fighting hard to keep that contained.
Other waterways in the middle part of the country are in even worse shape.
For example, a 100 mile stretch of the Platte River has already dried up. Millions of fish are dying as rivers and streams all over the country continue to get shallower and warmer as a result of the ongoing drought.
The last time the condition of the Mississippi River was this bad was back in 1988. At that time, a lot of barge traffic was stopped completely and the shipping industry lost approximately a billion dollars.
If a similar thing were to happen now, the consequences could potentially be far worse.
As I wrote about recently, a standstill along the Mississippi would cost the U.S. economy about 300 million dollars a day.
In fact, one towing company that works on the Mississippi says that it has already been losing about $500,000 a month since May.
In the end, who is going to pay for all of this?
You and I will.
In fact, this crisis could end up costing American consumers a whole lot of money….
So here’s the math. If you want to raise the average barge one inch above the water, you’ve got to take off 17-tons of cargo. To raise it a foot, you’re talking 200 tons.
And since, according to the American Waterways Operators, moving cargo by river is $11 a ton cheaper than by train or truck. The more that now has to be moved on land, well, the more the costs go up. Steven Barry says, “And, eventually, the consumer’s gonna pay that price somewhere along the line.”
And considering the fact that we are already facing a potential food crisis due to the drought, the last thing we need is for the Mississippi River to dry up.
So is there any hope on the horizon for the Mississippi?
Unfortunately, things do not look promising.
The fall and the winter are typically drier than the summer is along the Mississippi River. That means that conditions along the river could actually get even worse in the months ahead. The following is from a recent Time Magazine article….
But without significant rainfall, which isn’t in any long-range forecasts, things are likely to get worse. As summer turns to fall, the weather tends to get drier. Lower temperatures generally mean fewer thunderstorms and less rainfall.
“Take away the thunderstorm mechanism and you run into more serious problems,” says Alex Sosnowski, expert senior meteorologist for AccuWeather.com. And while droughts tend to be a temporary setback, longer-range forecasts are troublesome. Sosnowski says he is anticipating an El Niño weather pattern next year, which would mean below-normal snowfall and above-average temperatures.
Let us hope and pray that we don’t see another 12 months similar to the 12 months that we have just been through.
America absolutely loves Wal-Mart. 100 million customers visit Wal-Mart every single week in this country. But is Wal-Mart good for America? That is a question that most people never stop and ask. Most of us love shopping in big, clean stores that are packed with super cheap merchandise, but the truth is that Wal-Mart is destroying America in a lot of ways. As you will see below, Wal-Mart has destroyed tens of thousands of small businesses and countless manufacturing jobs over the past couple of decades. Wal-Mart has become a gigantic retail behemoth that sells five times more stuff than any other retailer in the United States. Unfortunately, a large percentage of all the stuff sold at Wal-Mart is made overseas. What that is costing the U.S. economy in terms of lost jobs and lost revenue is incalculable. But Wal-Mart is a perfect example of where our economic system is headed. Our economy is becoming completely and totally dominated by highly centralized monolithic predator corporations that ruthlessly crush all competition and that will stoop to just about anything in order to cut costs. In the future, will we all be working for gigantic communal entities that funnel all of the wealth and economic rewards to a very tiny elite? That sounds very much like how communist China works, and red-blooded Americans should want no part of that. America is supposed to be about free enterprise and competition and working together to build up this country, and Wal-Mart is destroying all of that.
The following are 20 facts about Wal-Mart that will absolutely shock you….
#1 The average U.S. family now spends more than $4000 a year at Wal-Mart.
#2 In 2010, Wal-Mart had revenues of 421 billion dollars. That amount was greater than the GDP of 170 different countries including Norway, Venezuela and the United Arab Emirates.
#3 If Wal-Mart was a nation, it would have the 23rd largest GDP in the world.
#4 Wal-Mart now sells more groceries than anyone else in America does. In the United States today, one out of every four grocery dollars is spent at Wal-Mart.
#10 According to the Economic Policy Institute, trade between Wal-Mart and China resulted in the loss of 133,000 manufacturing jobs in the United States between 2001 and 2006.
#11 The CEO of Wal-Mart makes more in a single hour than a full-time Wal-Mart associate makes in an entire year.
#12 Tens of thousands of Wal-Mart employees and their children are enrolled in Medicaid and are dependent on the government for healthcare.
#13 Between 2001 and 2007, the value of products that Wal-Mart imported from China grew from $9 billion to $27 billion.
#14 Amazingly, 96 percent of all Americans now live within 20 miles of a Wal-Mart.
#15 The number of “independent retailers” in the United States declined by 60,000 between 1992 and 2007.
#16 According to the Center for Responsive Politics, Wal-Mart spent 7.8 million dollars on political lobbying during 2011. That number does not even include campaign contributions.
#17 Today, Wal-Mart has five times the sales of the second largest U.S. retailer (Costco).
#18 The combined net worth of six members of the Walton family is roughly equal to the combined net worth of the poorest 30 percent of all Americans.
All over the country, independent retailers are going out of business because they cannot compete with Wal-Mart and their super cheap Chinese products. Often communities will give Wal-Mart huge tax breaks just to move in to their areas. But what many communities don’t take into account is that the introduction of a Wal-Mart is often absolutely devastating to small businesses….
A study of small and rural towns in Iowa showed lost sales for local businesses ranging from -17.2% in small towns to -61.4% in rural areas, amounting to a total dollar loss of $2.46 BILLION over a 13-year period.
When we buy stuff made by people working for slave labor wages in China, we destroy good paying American jobs and we make America poorer. This is a point that I have tried to make over and over.
Wal-Mart often tells one thing to the public and then does another thing in private. Sadly, the truth is that Wal-Mart does not care about U.S. manufacturing jobs. Wal-Mart just wants to get products as cheaply as they possibly can, and most of the time that means getting them from China.
I was president of the Southwestern Apparel Manufacturers Association. There was a meeting sometime between 1985 and 1990. Walmart had contacted our organization and asked if they could meet with us at our beautiful Apparel Mart we had here in Dallas, which has now been razed, because all the independent merchants don’t exist that used to come to it. Two people from Walmart came down and they said they were going to be sourcing goods from overseas and we would have to meet those prices for consumer products and to get ready for it—we are going to be sourcing the world. Walmart was the only company that came out and said this.
It was sort of shocking: I was selling them some merchandise at the time. On the back of their trucks it was saying “Bring it Back to America!” They had the big “keep it in America” program going at that time on the big signs in the stores. Meanwhile when I reminded the buyer of that, she told me, “that is just for domestic consumption, we’re going to buy at the cheapest we can anywhere on earth.”
As I have written about previously, the United States has lost more than 56,000 manufacturing facilities since 2001.
We are losing millions of good jobs that cannot be replaced. If you can believe it, the United States has actually lost an average of about 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
Last year, the U.S. trade deficit with China was the biggest trade deficit that one nation has had with another nation in the history of the world, and Wal-Mart played a huge role in that.
In fact, Wal-Mart has actually been forcing some U.S. manufacturers to pack up and move overseas. The following is from a recent article by Amy Traub….
Walmart’s market power is so immense that the even the largest suppliers must comply with its demands for lower and lower prices because they cannot afford to have their goods taken off its shelves. Companies that used to manufacture products in the United States, from Levi’s jeans to lock maker Master Lock, were pressured to shut their U.S. factories and moved manufacturing abroad to meet Walmart’s demand for low prices.
Unfortunately, the vast wealth that Wal-Mart is sucking out of our communities is not put back into our communities. The profits are funneled out to Wal-Mart executives and shareholders. We may enjoy the low prices, but very little of the money that we give to Wal-Mart gets recycled in our local areas.
In the old days, you could actually support a family selling electronics or running a general store. But you can’t support a family working at Wal-Mart. The vast majority of the jobs that Wal-Mart creates are very low paying. Large numbers of Wal-Mart employees are actually on welfare, and this is part of the reason why we have seen such an explosion in the number of the working poor in America.
At this point, more than 40 percent of all jobs in America are low wage jobs and the middle class is rapidly disappearing.
If we do not support American jobs and American manufacturers they will continue to go away and the welfare rolls in this country will continue to explode.
There is not going to be any prosperity in this country without jobs. Unfortunately, most Americans simply do not understand how good jobs are being systematically destroyed in America every single day.
The path that America is headed on today is only going to end in complete and total disaster. We are being transformed from a wealthy nation into a poor nation. In the end, we will be dominated by a very tiny elite and everyone else will either be among the working poor or will be totally dependent on the government.
Our system is supposed to be about open, honest competition. But that is not what Wal-Mart is about. Wal-Mart is about crushing small businesses and manufacturers here in America and getting us all to buy their super cheap Chinese-made goods.
So what do all of you think about Wal-Mart? Please feel free to post a comment with your thoughts below….
Why is the economy going to collapse? Have you ever been asked that question? If so, what did you say? Sometimes it is difficult to communicate dozens of complicated economic and financial concepts in a package that the average person on the street can easily digest. It can be very frustrating to know that something is true but not be able to explain it clearly to someone else. Hopefully many of you out there will find the list below useful. It is a list of 70 numbers that show why we are headed for a national economic nightmare. So why does the title of the article single out Barack Obama? Well, it is because right now he is the biggest cheerleader for the economy. He is attempting to convince all of us that everything is just fine and that the economy is heading in a positive direction. Well, the truth is that everything is not fine and things are about to get a whole lot worse. Certainly others should share in the blame as well. Congress has been steering the economy in the wrong direction for decades, the “too big to fail” banks have turned Wall Street into a pyramid of risk, leverage and debt, and the Federal Reserve has more power over the financial system than anyone else does. Our economy has been in decline for quite a while now, and soon we are going to smash directly into an economic brick wall. Unfortunately, a lot of Americans are in denial about this. A lot of people out there doubt that an economic collapse is coming. Well, if you know someone that believes that the U.S. economy is going to be “just fine”, just show them the list below.
The following are 70 facts that Barack Obama does not want you to see….
$3.59 – When Barack Obama entered the White House, the average price of a gallon of gasoline was $1.85. Today, it is $3.59.
22 – It is hard to believe, but today the poverty rate for children living in the United States is a whopping 22 percent.
23 – According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities permanently shut down in the United States every single day during 2010.
30 – Back in 2007, about 10 percent of all unemployed Americans had been out of work for 52 weeks or longer. Today, that number is above 30 percent.
32 – The amount of money that the federal government gives directly to Americans has increased by 32 percent since Barack Obama entered the White House.
35 – U.S. housing prices are now down a total of 35 percent from the peak of the housing bubble.
40 – The official U.S. unemployment rate has been above 8 percent for 40 months in a row.
42 – According to one survey, 42 percent of all American workers are currently living paycheck to paycheck.
48 – Shockingly, at this point 48 percent of all Americans are either considered to be “low income” or are living in poverty.
49 – Today, an astounding 49.1 percent of all Americans live in a home where at least one person receives benefits from the government.
60 – According to a recent Gallup poll, only 60 percent of all Americans say that they have enough money to live comfortably.
61 – At this point the Federal Reserve is essentially monetizing much of the U.S. national debt. For example, the Federal Reserve bought up approximately 61 percent of all government debt issued by the U.S. Treasury Department during 2011.
63 – One recent survey found that 63 percent of all Americans believe that the U.S. economic model is broken.
$6000 – If you can believe it, the median price of a home in Detroit is now just $6000.
$10,000 – According to the Employee Benefit Research Institute, 46 percent of all American workers have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
49,000 – In 2011, our trade deficit with China was more than 49,000 times larger than it was back in 1985.
50,000 – The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
56,000 – The United States has lost more than 56,000 manufacturing facilities since 2001.
$85,000 – According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.
$175,587 – The Obama administration spent $175,587 to find out if cocaine causes Japanese quail to engage in sexually risky behavior.
$328,404 – Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars. That comes to $328,404 for each and every household in the United States.
$361,330 – This is what the average banker in New York City made in 2010.
440,00 – If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to totally pay it off.
500,000 – According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
2,000,000 – Family farms are being systematically wiped out of existence in the United States. According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today.
2,600,000 – In 2010, 2.6 million more Americans fell into poverty. That was the largest increase that we have seen since the U.S. government began keeping statistics on this back in 1959.
5,400,000 – When Barack Obama first took office there were 2.7 million long-term unemployed Americans. Today there are twice as many.
16,000,000 – It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
$20,000,000 – The amount of money the U.S. government was spending to create a version of Sesame Street for children in Pakistan.
25,000,000 – Today, approximately 25 million American adults are living with their parents.
40,000,000 – According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.
46,405,204 – The number of Americans currently on food stamps. When Barack Obama first entered the White House there were only 32 million Americans on food stamps.
88,000,000 – Today there are more than 88 million working age Americans that are not employed and that are not looking for employment. That is an all-time record high.
100,000,000 – Overall, there are more than 100 million working age Americans that do not currently have jobs.
$150,000,000 – This is approximately the amount of money that the Obama administration and the U.S. Congress are stealing from future generations of Americans every single hour.
$2,000,000,000 – The amount of money that JP Morgan has admitted that it will lose from derivatives trades gone bad. Many analysts are convinced that the real number will actually end up being much higher.
$147,000,000,000 – In the U.S., medical costs related to obesity are estimated to be approximately 147 billion dollars a year.
295,500,000,000 – Our trade deficit with China in 2011 was $295.5 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.
$359,100,000,000 – During the first quarter of 2012, U.S. public debt rose by 359.1 billion dollars. U.S. GDP only rose by 142.4 billion dollars.
$454,000,000,000 – During fiscal 2011, the U.S. government spent over 454 billion dollars just on interest on the national debt.
$1,000,000,000,000 – The total amount of student loan debt in the United States recently surpassed the one trillion dollar mark.
$1,170,000,000,000 – China now holds approximately 1.17 trillion dollars of U.S. government debt. Yet the U.S. government continues to send them millions of dollars in foreign aid every year.
$1,600,000,000,000 – The amount that has been added to the U.S. national debt since the Republicans took control of the U.S. House of Representatives. This is more than the first 97 Congresses added to the national debt combined.
$5,000,000,000,000 – The U.S. national debt has risen by more than 5 trillion dollars since the day that Barack Obama first took office. In a little more than 3 years Obama has added more to the national debt than the first 41 presidents combined.
$5,000,000,000,000 – What the real U.S. budget deficit in 2011 would have been if the federal government had used generally accepted accounting principles.
$11,440,000,000,000 – The total amount of consumer debt in the United States.
$200,000,000,000,000 – Today, the 9 largest banks in the United States have a total of more than 200 trillion dollars of exposure to derivatives. When the derivatives market completely collapses there won’t be enough money in the entire world to fix it.
All over America tonight there are people that believe that their lives are over. When you do everything that you know how to do to get a job and you still can’t get one it can be absolutely soul crushing. If you have ever been unemployed for an extended period of time you know exactly what I am talking about. When you have been unemployed for month after month it can be very tempting to totally cut yourself off from society. Those that are kind will look at you with pity and those that are cruel will treat you as though you are a total loser. It doesn’t matter that America is in decline and that our economy is not producing nearly enough jobs for everyone anymore. In our society, one of the primary things that defines our lives is what we do for a living. Just think about it. When you are out in a social situation, what is one of the very first things that people ask? They want to know what you “do”. Well, if you don’t “do” anything, then you are not part of the club. But the worst part of being unemployed for many Americans is the relentless pressure from family and friends. Often they have no idea how hard it is to find a job in this economy – especially if they still have jobs. Sometimes the pressure becomes too great. Sadly, we are seeing unemployment break up a lot of marriages in America today. Things are really hard out there right now. A very large number of highly educated Americans have taken very low paying service jobs in recent years just so that they can have some money coming in even as they “look for something else”. Unfortunately, in many cases that “something else” never materializes. In the past, America was “the land of opportunity” where anything was possible. But today America has become “the land of lowered expectations” and the worst is yet to come.
We live during a time when “the American Dream” is literally being redefined. In the old days, just about anyone could get a good job that would pay enough to make it possible to buy a house, buy a nice car and raise a family.
Unfortunately, those days are long gone. The following is from a recent NPR article….
The town of Lorain, Ohio, used to embody this dream. It was a place where you could get a good job, raise a family and comfortably retire.
“Now you can see what it is. Nothing,” says John Beribak. “The shipyards are gone, the Ford plant is gone, the steel plant is gone.” His voice cracks as he describes the town he’s lived in his whole life.
“I mean, I grew up across the street from the steel plant when there was 15,000 people working there,” he says. “My dad worked there. I worked there when I got out of the Air Force. It’s just sad.”
We live in an economy that is in serious decline. In this environment no job is safe. In fact, even Goldman Sachs is laying off workers these days.
Millions of Americans are suffering from deep depression because they can’t find jobs. Many of them are sitting at home right now blankly starting at their television screens as they wonder why nobody wants to hire them. Some have been unemployed for years and have sent out thousands upon thousands of resumes. The following is from a recent article by J.D. Hicks….
I have a brilliant cousin with a $180K Syracuse education working part-time at a department store. She has literally sent out 38,000 resumes in the span of a year to no avail. I have another very bright friend with the kindest heart who is so desperate he has applied for dishwashing jobs and didn’t get them, sending him deeper into depression. I’m sure we all know people like this, or perhaps have even been there ourselves.
Society has trained us to believe that we are worthless without a job. Indeed, we feel worthless when we are unemployed with few prospects of making money. Family, friends, and peers constantly remind us in subtle and not-so-subtle ways that we “need” a job.
Have you ever been unemployed?
How did it make you feel?
How were you treated by your family and friends?
In the old days, a college education was almost a guaranteed ticket to the middle class.
But these days, a college education guarantees you absolutely nothing.
As a recent article by Jed Graham detailed, most young unemployed workers in America today have at least some college education….
For the first time in history, the number of jobless workers age 25 and up who have attended some college now exceeds the ranks of those who settled for a high school diploma or less.
Out of 9 million unemployed in April, 4.7 million had gone to college or graduated and 4.3 million had not, seasonally adjusted Labor Department data show.
Overall, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed last year.
It is tough to tell young college graduates with their whole lives ahead of them that they need to lower their expectations because America is in decline.
So where did all the jobs go?
Well, one place they went is overseas. Over the past couple of decades, millions upon millions of good jobs have left the United States and have gone over to the other side of the world.
That is why you see gleaming new factories going up all over China even while our once great manufacturing cities are turning into crime-infested warzones.
But as a recent WND article reported, the WTO has a solution. They plan to replace “Made in China” labels with “Made in the World” labels so that we don’t feel so bad about losing our jobs and our economic infrastructure…
The World Trade Organization is moving closer to eliminating country-of-origin labels and replacing them with “Made in the World” initiative labels because they say we need to “reduce public opposition to free trade” and “re-engineer global governance.”
As the number of middle class jobs has steadily declined in recent years, the number of low paying service jobs has increased.
Today, you can find hordes of very smart, very talented Americans flipping burgers, waiting tables and welcoming people to Wal-Mart.
Sadly, the United States now has a higher percentage of workers doing low wage work than any other major industrialized nation does.
Perhaps we should applaud our leaders for doing such a great job of destroying the American Dream.
Because so many Americans are working crappy jobs, a very large percentage of them have absolutely no savings to speak of.
According to one survey, 42 percent of all American workers live paycheck to paycheck.
I am constantly encouraging people to save up an “emergency fund” that will enable them to pay their bills for at least 6 months if they suddenly become unemployed.
Unfortunately, for many Americans that is simply not possible. Way too many families are just barely scraping by from month to month.
Another area of the economy where Americans are facing lowered expectations is in housing.
In the old days, most Americans dreamed of owning their own homes.
Steve and Jodi Jacobson bought their Phoenix-area “dream home” in 2005. They built flagstone steps to the front door. They tiled the kitchen and bathroom. They entertained often, enjoying their mountain views.
“We put our soul into that house,” says Steve Jacobson, 37.
Then, home prices tanked more than 50%. Steve, a software quality assurance engineer, suffered pay cuts. In 2010, foreclosure claimed the home and their $100,000 down payment.
The Jacobsons didn’t lose their desire to live in a single-family home, however. They now rent one, like many other former homeowners displaced by foreclosure.
Is that what we are supposed to tell future generations of Americans?
“Listen Johnny and Suzie, if you work really, really hard at your minimum wage jobs perhaps someday you will be able to rent a home that has been foreclosed by a big, greedy bank”.
It is so sad to watch what is happening to this country.
These days many Americans are scratching and clawing and doing everything that they can to make it, but they still find themselves short on money at the end of the month.
Many are turning to debt in an attempt to bridge the gap. According to CNN, 40 percent of “low- and middle-income households” are using credit cards to pay for basic living expenses.
As the economy has declined, a lot of families have completely given up trying to make it on their own and have turned to the U.S. government for financial help. Today, an astounding 49.1 percent of all Americans live in a home where at least one person receives government benefits.
Just think about that number for a while. It is one of the clearest signs that America is in deep, deep decline.
Unfortunately, things are about to get even worse. The next wave of the financial crisis is unfolding in Europe and we will all be talking about another “major global recession” very soon.
That means that unemployment in the United States is going to get a lot worse.
For the millions upon millions of Americans that are already suffering through the horror of unemployment, that is really bad news.
Posted below is a trailer for a new HBO documentary entitled “Hard Times: Lost on Long Island”. Please take a few minutes to watch this video, because I think it does a good job of showing the soul crushing despair that many unemployed Americans are going through right now….
So do any of you have any stories of lowered expectations to share? Please feel free to post a comment with your thoughts below….
Most Americans have no idea how much economic trouble is heading our way. Most of them just assume that everything will eventually “return to normal” just like it always has before and that those running our economy “know what they are doing” and that we should trust them to do their jobs. Unfortunately, these beliefs are being reinforced by the bubble of false hope that we are experiencing right now. For example, it is being reported that weekly unemployment claims in the United States have fallen to a four-year low. That is a very good thing. Let us hope that unemployment claims go even lower and that the current period of stability lasts for as long as possible. We should enjoy these last fleeing moments of tremendous prosperity for as long as we can, because when they are gone they won’t be coming back. As I noted the other day, all of this false prosperity in the United States has been financed by the 15 trillion dollar party that we have been enjoying. We are adding about 150 million dollars to our debt every single hour so that we can continue to enjoy an inflated standard of living. Unfortunately, nobody in the history of the world has ever been able to keep a debt spiral going indefinitely, and our debt bubble will burst eventually as well.
Sadly, when you attempt to end (or even slow down) a debt spiral the consequences can be extremely painful. Just look at what is happening in Greece. Several waves of austerity measures have been implemented, the Greek economy has been plunged into a full-blown depression and Greek debt is still going up.
The rest of the nations of the eurozone are also now implementing austerity measures, and most of them are also starting to fall into recession. The economic pain in Europe is just beginning and it will go on for quite a long time.
And eventually the United States is going to join the pain. Right now the U.S. government can still borrow trillions of dollars at super low interest rates thanks to games being played by the Federal Reserve. But it is simply not possible for this Ponzi scheme to last too much longer. When it ends, the pain will be extremely great.
And even in the short-term there are some extremely troubling signs for the U.S. economy.
The following are 19 signs of very serious economic trouble on the horizon….
#1 According to one new survey, approximately one-third of all Americans are not paying their bills on time at this point.
#2 The U.S. housing industry is bracing for another huge wave of foreclosures in 2012. The following is from a recent Reuters article….
“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.
#3 The Citigroup Economic Surprise Index, a key indicator watched by many economists, is on the verge of heading into negative territory.
#4 We are supposed to be in the middle of an economic recovery in the United States, but bad news just keeps pouring in from major companies. For example, Yahoo is firing thousands of workers and Best Buy is closing dozens of stores.
#5 Richard Russell says that the “big money” is starting to quietly exit from the financial markets….
“My guess is that this is the big money that has been holding off as long as it decently can — and then dumping their goods just before the close. I don’t think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can.”
#6 Goldman Sachs is projecting that the S&P 500 will fall by about 11 percent by the end of 2012.
#7 All over the country, local governments are going into default and we have not even entered the next recession yet.
#8 The U.S. government will add more to the national debt in 2012 than it did from the time that George Washington became president to the time that Ronald Reagan became president.
#9 The Federal Reserve is desperately trying to control interest rates. The Fed purchased approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011. This is the only thing that is keeping interest rates in the United States from soaring dramatically.
#16 In the aftermath of a 77-year-old retiree killing himself in front of the Greek parliament in protest over pension cuts, the economic rioting in Greece has flared back up dramatically.
#17 At this point, Greece is experiencing an economic depression with no end in sight. Some of the statistics coming out of Greece are really hard to believe. For example, one port town in Greece now has an unemployment rate of approximately 60 percent.
#19 At this point, even some of our top scientists are projecting economic trouble. For example, researchers at MIT are projecting a “global economic collapse” by the year 2030 if current trends continue.
But the truth is that we will experience a “global economic collapse” long before 2030 comes rolling around.
Let us hope that we still have at least several more months of economic prosperity in the United States before things really fall apart.
The truth is that the vast majority of Americans need more time to prepare for what is coming.
Sadly, most Americans are not preparing. Most Americans have blind faith that those in positions of power are going to fix everything and set us on the path to even greater prosperity than ever before.
Unfortunately, all Federal Reserve Chairman Ben Bernanke and Barack Obama have been doing is kicking the can down the road and making our eventual collapse much worse.
As many of us have painfully learned, you can run from debt for a while, but you can’t hide from it forever. Eventually debt catches up with you, and when it does it can be very cruel.
The 15 trillion dollar party is coming to an end, and the consequences of decades of very foolish decisions are going to fall on this generation.
Any financial system that is based on debt is doomed to fail. Today, we are living in the greatest debt bubble that the world has ever seen, and if all of a sudden people could not use credit to buy things our economy would immediately ground to a halt. Unfortunately, no debt bubble can last forever. When this current debt bubble finally bursts, faith in the financial system is going to disappear, credit is going to freeze up and there is going to be a massive wave of bank failures. Right now, Greece is a warning sign for the world. Nobody wants to lend money to Greece, the Greek banking system is dying, one out of every four businesses has already shut down, unemployment is soaring and the Greek economy has now been in recession for five years in a row. Sadly, the economic implosion in Greece is rapidly accelerating. The Greek economy shrunk at a 7 percent annual rate during the 4th quarter of 2011. That wasn’t supposed to happen. Things were supposed to be getting better in Greece by now. But instead the Greek depression is getting even worse, and very soon the rest of the world is going to be going through what Greece is currently experiencing.
Unfortunately, most in the mainstream media are treating what is happening in Greece as an “isolated incident” rather than as a very serious warning sign for the world.
Thankfully, there are at least a few reporters out there that are realizing the gravity of the situation. The following is how one reporter from the New York Times recently described what life is like in Greece now….
By many indicators, Greece is devolving into something unprecedented in modern Western experience. A quarter of all Greek companies have gone out of business since 2009, and half of all small businesses in the country say they are unable to meet payroll. The suicide rate increased by 40 percent in the first half of 2011. A barter economy has sprung up, as people try to work around a broken financial system. Nearly half the population under 25 is unemployed. Last September, organizers of a government-sponsored seminar on emigrating to Australia, an event that drew 42 people a year earlier, were overwhelmed when 12,000 people signed up. Greek bankers told me that people had taken about one-third of their money out of their accounts; many, it seems, were keeping what savings they had under their beds or buried in their backyards. One banker, part of whose job these days is persuading people to keep their money in the bank, said to me, “Who would trust a Greek bank?”
Can you imagine?
Greece is experiencing a full-blown economic collapse and nobody can see a light at the end of the tunnel at this point.
As I have written about previously, the overall rate of unemployment in Greece has now risen above 20 percent and the youth unemployment rate in Greece has soared to an astounding 48 percent.
Deleveraging can be an extremely painful process. Greece has been forced to try to reduce the size of its budget deficit, but every time it cuts government spending that causes economic activity (and thus government revenues) to slow down as well.
Now the EU and the IMF are demanding that even more very painful austerity measures be implemented in Greece even though Greece is already experiencing a full-blown depression.
The EU and the IMF are demanding that Greece fire 15,000 more government workers immediately and a total of 150,000 government workers by 2015.
The EU and the IMF are demanding that wages for government workers be cut by another 20 percent.
The EU and the IMF are demanding that the minimum wage be slashed by more than 20 percent.
The EU and the IMF are also demanding significant reductions in unemployment benefits and pension benefits.
Of course all of those cuts are going to make the short-term economic conditions in Greece even worse.
The rioting, looting and burning of buildings that we are witnessing right now in Greece is likely to continue for quite some time as exasperated citizens attempt to express their frustrations to politicians that simply do not seem to care.
According to the National Confederation of Greek Commerce, recent rioting resulted in damage to 153 businesses in Athens. 45 of those businesses were totally destroyed.
You can view some stunning footage of the current rioting in Greece right here.
Despite all of the austerity measures that have already been implemented, the truth is that Greece is very likely to default soon anyway.
There is a very good chance that the new austerity agreement that the Greek parliament just approved will never be implemented. There are new elections scheduled for April and the current party in power is polling in the single digits.
The new Greek government is likely to look much different from the current one, and nobody knows for sure if the new government will follow through on any of the promises being made by the current government.
In addition, the German parliament must approve this new deal with Greece, and the German parliament is not scheduled to vote on it until February 27th. Considering the mood in Germany right now, approval is not guaranteed.
So there are all kinds of things that could go wrong with the “deals” that are currently being discussed. The truth is that a Greek default in the coming months seems to become more likely by the day.
Some in the financial world almost seem eager for a Greek default. The following is what Jon Moulton, the chairman of Better Capital, recently told CNBC….
“If I was Greek, I wouldn’t be going for these measures, I’d be going for default and getting it over with. Would you like two to three years of pain or 20?”
But a disorderly Greek default would not be a pleasant thing for the global economy at all. A recent article in the Guardian detailed what some of the consequences of a Greek default and exit from the eurozone might be….
But default and “re-drachmatisation” would be a costly and chaotic process. In the long term the euro might be strengthened if some of its weaker members headed for the door. But in the short term banks across the eurozone might have to be closed to prevent a run on the single currency as investors speculated about which country might be next. A new wave of bank nationalisations would be likely to follow as lenders counted their losses on now worthless Greek debt.
Capital controls would have to be imposed and borders shut to stop money flooding out of Greece. Portugal, Italy and Spain would come under intense pressure from investors wary about the risk of another victim. Banks everywhere, already reluctant to lend, would cut back hard, nervous about their exposure to the bonds of all Europe’s crisis-hit states.
And the financial crisis in Europe is going to continue to spread well beyond Greece. Moody’s Investors Service just downgraded the credit ratings of six European nations. The following is how Bloomberg described the downgrades….
Spain was downgraded to A3 from A1 with a negative outlook, Italy was downgraded to A3 from A2 with a negative outlook and Portugal was downgraded to Ba3 from Ba2 with a negative outlook, Moody’s said. It also reduced the ratings of Slovakia, Slovenia and Malta.
Countries such as Italy, Spain, Portugal, Ireland and Hungary are heading down the exact same road that Greece has gone. Greece was the first one to experience a full-blown depression, but soon Greece will have a lot of company.
Greece is most definitely a warning sign for the world. If you keep recklessly piling up debt, eventually a day of reckoning comes. It is inevitable.
But Barack Obama does not seem to understand this. He continues to pile another 150 million dollars on to our national debt every single hour. He knows that cutting spending significantly right now would hurt the economy and that would significantly hurt his chances for another term.
Needless to say, Barack Obama is not likely to do anything that is going to significantly hurt his chances for another four years in the White House.
So we continue to roll on toward disaster.
The U.S. financial system is like a car with no brakes that is heading straight toward a 5,000 foot drop at 100 miles an hour.
It is all going to seem like fun and games to some people until we hit the canyon floor.
What would happen if the Federal Reserve was shut down permanently? That is a question that CNBC asked recently, but unfortunately most Americans don’t really think about the Fed much. Most Americans are content with believing that the Federal Reserve is just another stuffy government agency that sets our interest rates and that is watching out for the best interests of the American people. But that is not the case at all. The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt. During this election year, the economy is the number one issue that voters are concerned about. But instead of endlessly blaming both political parties, the truth is that most of the blame should be placed at the feet of the Federal Reserve. The Federal Reserve has more power over the performance of the U.S. economy than anyone else does. The Federal Reserve controls the money supply, the Federal Reserve sets the interest rates and the Federal Reserve hands out bailouts to the big banks that absolutely dwarf anything that Congress ever did. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.
The following are 10 things that every American should know about the Federal Reserve….
#1 The Federal Reserve System Is A Privately Owned Banking Cartel
The Federal Reserve is not a government agency.
The truth is that it is a privately owned central bank. It is owned by the banks that are members of the Federal Reserve system. We do not know how much of the system each bank owns, because that has never been disclosed to the American people.
The Federal Reserve openly admits that it is privately owned. When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.
In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website….
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.
Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. So it would be accurate to say that the Federal Reserve is partially foreign-owned.
But until the exact ownership shares of the Federal Reserve are revealed, we will never know to what extent the Fed is foreign-owned.
#2 The Federal Reserve System Is A Perpetual Debt Machine
As long as the Federal Reserve System exists, U.S. government debt will continue to go up and up and up.
This runs contrary to the conventional wisdom that Democrats and Republicans would have us believe, but unfortunately it is true.
The way our system works, whenever more money is created more debt is created as well.
For example, whenever the U.S. government wants to spend more money than it takes in (which happens constantly), it has to go ask the Federal Reserve for it. The federal government gives U.S. Treasury bonds to the Federal Reserve, and the Federal Reserve gives the U.S. government “Federal Reserve Notes” in return. Usually this is just done electronically.
So where does the Federal Reserve get the Federal Reserve Notes?
It just creates them out of thin air.
Wouldn’t you like to be able to create money out of thin air?
Instead of issuing money directly, the U.S. government lets the Federal Reserve create it out of thin air and then the U.S. government borrows it.
Talk about stupid.
When this new debt is created, the amount of interest that the U.S. government will eventually pay on that debt is not also created.
So where will that money come from?
Well, eventually the U.S. government will have to go back to the Federal Reserve to get even more money to finance the ever expanding debt that it has gotten itself trapped into.
It is a debt spiral that is designed to go on perpetually.
You see, the reality is that the money supply is designed to constantly expand under the Federal Reserve system. That is why we have all become accustomed to thinking of inflation as “normal”.
So what does the Federal Reserve do with the U.S. Treasury bonds that it gets from the U.S. government?
Well, it sells them off to others. There are lots of people out there that have made a ton of money by holding U.S. government debt.
In fiscal 2011, the U.S. government paid out 454 billion dollars just in interest on the national debt.
That is 454 billion dollars that was taken out of our pockets and put into the pockets of wealthy individuals and foreign governments around the globe.
The truth is that our current debt-based monetary system was designed by greedy bankers that wanted to make enormous profits by using the Federal Reserve as a tool to create money out of thin air and lend it to the U.S. government at interest.
And that plan is working quite well.
Most Americans today don’t understand how any of this works, but many prominent Americans in the past did understand it.
For example, Thomas Edison was once quoted in the New York Times as saying the following….
That is to say, under the old way any time we wish to add to the national wealth we are compelled to add to the national debt.
Now, that is what Henry Ford wants to prevent. He thinks it is stupid, and so do I, that for the loan of $30,000,000 of their own money the people of the United States should be compelled to pay $66,000,000 — that is what it amounts to, with interest. People who will not turn a shovelful of dirt nor contribute a pound of material will collect more money from the United States than will the people who supply the material and do the work. That is the terrible thing about interest. In all our great bond issues the interest is always greater than the principal. All of the great public works cost more than twice the actual cost, on that account. Under the present system of doing business we simply add 120 to 150 per cent, to the stated cost.
But here is the point: If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good.
We should have listened to men like Edison and Ford.
But we didn’t.
And so we pay the price.
On July 1, 1914 (a few months after the Fed was created) the U.S. national debt was 2.9 billion dollars.
Today, it is more than more than 5000 times larger.
Yes, the perpetual debt machine is working quite well, and most Americans do not even realize what is happening.
#3 The Federal Reserve Has Destroyed More Than 96% Of The Value Of The U.S. Dollar
Did you know that the U.S. dollar has lost 96.2 percent of its value since 1900? Of course almost all of that decline has happened since the Federal Reserve was created in 1913.
Because the money supply is designed to expand constantly, it is guaranteed that all of our dollars will constantly lose value.
Inflation is a “hidden tax” that continually robs us all of our wealth. The Federal Reserve always says that it is “committed” to controlling inflation, but that never seems to work out so well.
And current Federal Reserve Chairman Ben Bernanke says that it is actually a good thing to have a little bit of inflation. He plans to try to keep the inflation rate at about 2 percent in the coming years.
So what is so bad about 2 percent? That doesn’t sound so bad, does it?
Well, just consider the following excerpt from a recent Forbes article….
The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.
#4 The Federal Reserve Can Bail Out Whoever It Wants To With No Accountability
The American people got so upset about the bailouts that Congress gave to the Wall Street banks and to the big automakers, but did you know that the biggest bailouts of all were given out by the Federal Reserve?
Thanks to a very limited audit of the Federal Reserve that Congress approved a while back, we learned that the Fed made trillions of dollars in secret bailout loans to the big Wall Street banks during the last financial crisis. They even secretly loaned out hundreds of billions of dollars to foreign banks.
According to the results of the limited Fed audit mentioned above, a total of $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010.
The following is a list of loan recipients that was taken directly from page 131 of the audit report….
Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion
So why haven’t we heard more about this?
This is scandalous.
In addition, it turns out that the Fed paid enormous sums of money to the big Wall Street banks to help “administer” these nearly interest-free loans….
Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the “too big to fail” banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in “fees” to the very financial institutions which caused the financial crisis in the first place.
Does reading that make you angry?
It should.
#5 The Federal Reserve Is Paying Banks Not To Lend Money
Did you know that the Federal Reserve is actually paying banks not to make loans?
It is true.
Section 128 of the Emergency Economic Stabilization Act of 2008 allows the Federal Reserve to pay interest on “excess reserves” that U.S. banks park at the Fed.
So the banks can just send their cash to the Fed and watch the money come rolling in risk-free.
So are many banks taking advantage of this?
You tell me. Just check out the chart below. The amount of “excess reserves” parked at the Fed has gone from nearly nothing to about 1.5 trillion dollars since 2008….
But shouldn’t the banks be lending the money to us so that we can start businesses and buy homes?
You would think that is how it is supposed to work.
Unfortunately, the Federal Reserve is not working for us.
The Federal Reserve is working for the big banks.
Sadly, most Americans have no idea what is going on.
Another example of this is the government debt carry trade.
Here is how it works. The Federal Reserve lends gigantic piles of nearly interest-free cash to the big Wall Street banks, and in turn those banks use the money to buy up huge amounts of government debt. Since the return on government debt is higher, the banks are able to make large profits very easily and with very little risk.
This scam was also explained in a recent article in the Guardian….
Consider this: we pretend that banks are private businesses that should be allowed to run their own affairs. But they are the biggest scroungers of public money of our time. Banks are lent vast sums of money by central banks at near-zero interest. They lend that money to us or back to the government at higher rates and rake in the difference by the billion. They don’t even have to make clever investments to make huge profits.
That is a pretty good little scam they have got going, wouldn’t you say?
#6 The Federal Reserve Creates Artificial Economic Bubbles That Are Extremely Damaging
By allowing a centralized authority such as the Federal Reserve to dictate interest rates, it creates an environment where financial bubbles can be created very easily.
Over the past several decades, we have seen bubble after bubble. Most of these have been the result of the Federal Reserve keeping interest rates artificially low. If the free market had been setting interest rates all this time, things would have never gotten so far out of hand.
For example, the housing crash would have never been so horrific if the Federal Reserve had not created such ideal conditions for a housing bubble in the first place. But we allow the Fed to continue to make the same mistakes.
Right now, the Federal Reserve continues to set interest rates much, much lower than they should be. This is causing a tremendous misallocation of economic resources, and there will be massive consequences for that down the line.
#7 The Federal Reserve System Is Dominated By The Big Wall Street Banks
Even since it was created, the Federal Reserve system has been dominated by the big Wall Street banks.
The New York representative is the only permanent member of the Federal Open Market Committee, while other regional banks rotate in 2 and 3 year intervals. The former head of the New York Fed, Timothy Geithner, is now U.S. Treasury Secretary. The truth is that the Federal Reserve Bank of New York has always been the most important of the regional Fed banks by far, and in turn the Federal Reserve Bank of New York has always been dominated by Wall Street and the major New York banks.
#8 It Is Not An Accident That We Saw The Personal Income Tax And The Federal Reserve System Both Come Into Existence In 1913
On February 3rd, 1913 the 16th Amendment to the U.S. Constitution was ratified. Later that year, the United States Revenue Act of 1913 imposed a personal income tax on the American people and we have had one ever since.
Without a personal income tax, it is hard to have a central bank. It takes a lot of money to finance all of the government debt that a central banking system creates.
It is no accident that the 16th Amendment was ratified in 1913 and the Federal Reserve system was also created in 1913.
They have a symbiotic relationship and they are designed to work together.
We could fill Congress with people that are committed to ending this oppressive system, but so far we have chosen not to do that.
So our children and our grandchildren will face a lifetime of debt slavery because of us.
I am sure they will be thankful for that.
#9 The Current Federal Reserve Chairman, Ben Bernanke, Has A Nightmarish Track Record Of Incompetence
The mainstream media portrays Federal Reserve Chairman Ben Bernanke as a brilliant economist, but is that really the case?
In 2005, Bernanke said that we shouldn’t worry because housing prices had never declined on a nationwide basis before and he said that he believed that the U.S. would continue to experience close to “full employment”….
“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”
In 2005, Bernanke also said that he believed that derivatives were perfectly safe and posed no danger to financial markets….
“With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”
In 2006, Bernanke said that housing prices would probably keep rising….
“Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”
In 2007, Bernanke insisted that there was not a problem with subprime mortgages….
“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”
In 2008, Bernanke said that a recession was not coming….
“The Federal Reserve is not currently forecasting a recession.”
A few months before Fannie Mae and Freddie Mac collapsed, Bernanke insisted that they were totally secure….
“The GSEs are adequately capitalized. They are in no danger of failing.”
For many more examples that demonstrate the absolutely nightmarish track record of Federal Reserve Chairman Ben Bernanke, please see the following articles….
But after being wrong over and over and over, Barack Obama still nominated Ben Bernanke for another term as Chairman of the Fed.
———-
#10 The Federal Reserve Has Become Way Too Powerful
The Federal Reserve is the most undemocratic institution in America.
The Federal Reserve has become so powerful that it is now known as “the fourth branch of government”, but there are less checks and balances on the Fed than there are on the other three branches.
The Federal Reserve runs the U.S. economy but it is not accountable to the American people. We can’t vote those that run the Fed out of office if we do not like what they do.
Yes, the president appoints those that run the Fed, but he also knows that if he does not tread lightly he won’t get the money from the big Wall Street banks that he needs for his next election.
Thankfully, there are a few members of Congress that are complaining about how much power the Fed has. For example, Ron Paul once told MSNBC that he believes that the Federal Reserve is now actually more powerful than Congress…..
“The regulations should be on the Federal Reserve. We should have transparency of the Federal Reserve. They can create trillions of dollars to bail out their friends, and we don’t even have any transparency of this. They’re more powerful than the Congress.”
As members of Congress such as Ron Paul have started to shed some light on the activities of the Federal Reserve, that has caused many in the mainstream media to come to the defense of the Fed.
For example, a recent CNBC article entitled “If The Federal Reserve Is Abolished, What Then?” makes it sound like there is absolutely no other rational alternative to having the Federal Reserve run our economy.
But this is not what our founders intended.
The founders did not intend for a private banking cartel to issue our money and set our interest rates for us.
According to Article I, Section 8 of the U.S. Constitution, the U.S. Congress has been given the responsibility to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
So why is the Federal Reserve doing it?
But the CNBC article mentioned above makes it sound like the sky would fall if control of the currency was handed back over to the American people.
At one point, the article asks the following question….
“How would the U.S. economy then function? Something has to take its place, right?”
No, the truth is that we don’t need anyone to “manage” our economy.
The U.S. Treasury could be in charge of issuing our currency and the free market could set our interest rates.
We don’t need to have a centrally-planned economy.
We aren’t China.
And it goes against everything that our founders believed to be running up so much government debt.
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.
Oh, how things would have been different if we had only listened to Thomas Jefferson.
Please share this article with as many people as you can. These are things that every American should know about the Federal Reserve, and we need to educate the American people about the Fed while there is still time.
Barack Obama is a man without a plan. When you are young, they often tell you to “fake it until you make it”, but Barack Obama is taking this to ridiculous extremes. Barack Obama has absolutely no idea what he is doing when it comes to the economy, and yet he continues to give speeches in which he declares that he is the man for the job. The State of the Union speech the other night was just abysmal. The federal government is spending way too much money, and yet Barack Obama is proposing even more government spending. Entrepreneurs and small businesses are being taxed into oblivion and yet Barack Obama is proposing even higher taxes. Our economy is being strangled to death by crippling regulations, and yet Barack Obama is proposing a vast array of new regulations. Barack Obama always gives a nice speech, but it has become appallingly evident that he is totally out of ideas. So our country will continue to drift aimlessly along without a direction and without a plan until the next financial tsunami comes along and makes things even worse.
And the American people are starting to clue in to the fact that Obama does not have a plan and does not have anything new to say. Just check out how the audiences for his State of the Union addresses have declined each year….
2009: 52.3 million
2010: 48 million
2011: 42.8 million
2012: 37.8 million
His ratings are falling almost as fast as the ratings for American Idol are.
It is amazing how Barack Obama can use so many words to say so very little.
He always tickles our ears but then he never delivers the goods. Toward the beginning of his speech the other night, he made the following statement….
“Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last—an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values”
Well, that sounds pretty good. Except for the fact that everything he has done for the past 3 years has been the exact opposite of that.
It is almost as if he woke up that morning and decided that he would try the whole “do the opposite” thing once made famous by George Costanza on Seinfeld.
Obama says that our employment situation is getting better, but that is not really true. The only way that the federal government can claim that there is an 8.5 percent unemployment rate is because they have decided that millions of Americans that have been unemployed for a long time should not be considered “part of the workforce” any longer.
If the number of Americans that were considered to be part of the workforce was the same today as it was back in 2007, the “official” unemployment rate put out by the U.S. government would be up to approximately 11 percent.
Sadly, the number of Americans that are dependent on the government continues to soar even higher.
Since Barack Obama took office, the number of Americans on food stamps has actually increased by 14 million.
Things have not gotten better for average Americans.
They have gotten worse.
In fact, 10 million more Americans have fallen below the poverty line since 2006. And in 2010, more Americans fell into poverty than ever before.
A lot of people out there are really hurting, and the American people deserve some real answers.
But instead, Obama was saying stuff like this the other night….
“I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place”
Oh really?
What is Obama actually doing about the things that caused the last financial crisis?
The “financial reform” bill was a complete and total joke. Obama has been shamefully soft on the big Wall Street banks that caused the last crisis.
Today, the “too big to fail” banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.
So now they are more of a danger to the financial system than ever.
And not a single Wall Street executive has gone to jail for what they did during the last financial crisis.
Thanks Obama.
But of course Obama was never going to seriously go after Wall Street.
After all, they are the ones that fund his campaigns.
Most Americans don’t realize this, but 3 of the top 7 donors to Obama’s campaign in 2008 were “too big to fail” banks.
And the Obama administration has been absolutely packed with ex-Wall Street bankers. Last year, Michael Brenner wrote the following about the composition of the Obama administration….
Wall Street’s takeover of the Obama administration is now complete. The mega-banks and their corporate allies control every economic policy position of consequence. Mr. Obama has moved rapidly since the November debacle to install business people where it counts most. Mr.William Daley from JP Morgan Chase as White House Chief of Staff. Mr. Gene Sperling from the Goldman Sachs payroll to be director of the National Economic Council. Eileen Rominger from Goldman Sachs named director of the SEC’s Investment Management division. Even the National Security Advisor, Thomas Donilon, was executive vice president for law and policy at the disgraced Fannie Mae after serving as a corporate lobbyist with O’Melveny & Roberts. The keystone of the business friendly team was put in place on Friday. General Electric Chairman and CEO Jeffrey Immelt will serve as chair of the president’s Council on Jobs and Competitiveness.
During his State of the Union address, Obama also promised to bring manufacturing jobs back to America….
“Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs”
That sounds great, except for the fact that Obama has been doing everything he can to get more American jobs shipped out of the country.
The Obama administration has been aggressively pushing new “free trade” agreements with Panama, South Korea and Colombia. The Obama administration has also made the Trans-Pacific Partnership (“the NAFTA of the Pacific“) an extremely high priority.
And of course we have all seen how wonderfully the first NAFTA worked out.
Our “free trade” policies have been an absolute nightmare for the American worker.
We are bleeding jobs at a pace that is hard to believe.
Amazingly, the United States has lost an average of 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
Yet Obama promises more of the same and that is supposed to help?
During his speech, Obama correctly noted that many foreign manufacturers are heavily subsidized….
“It’s not fair when foreign manufacturers have a leg up on ours, only because they’re heavily subsidized”
So are we going to deeply penalize those that have been cheating?
Are we going to warn them that we will stop trading with them unless they stop?
Of course not.
Obama is going to do next to nothing to stop what China and other predatory nations are doing to us.
Today, the United States spends approximately 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States, and the U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.
But the Obama administration doesn’t seem to care much about these things.
In fact, just check out what U.S. Trade Representative Ron Kirk told Tim Robertson of the Huffington Post about the Obama administration’s attitude toward keeping manufacturing jobs in America….
Let’s increase our competitiveness… the reality is about half of our imports, our trade deficit is because of how much oil [we import], so you take that out of the equation, you look at what percentage of it are things that frankly, we don’t want to make in America, you know, cheaper products, low-skill jobs that frankly college kids that are graduating from, you know, UC Cal and Hastings [don’t want], but what we do want is to capture those next generation jobs and build on our investments in our young people, our education infrastructure.
Oh, but Obama now says that he is going to toughen up on trade….
“I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China. There will be more inspections”
Oh boy – “inspections” – yeah, that is really going to have the Chinese shaking in their boots.
Meanwhile, the Chinese just keep hitting us with new tariffs. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States will now cost about $85,000 in China thanks to these new tariffs.
So is Obama going to hit China with tough new tariffs in return?
Of course not.
Meanwhile, our economy continues to bleed businesses and jobs. According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.
But if you listen to Obama, he makes it seem like many of our industries are in better shape than ever….
“We bet on American ingenuity, and tonight the American auto industry is back.”
Yes, the American auto industry is no longer on the brink of bankruptcy, but it is not “back”. Just consider the following stats….
*In 1970, General Motors had about a 60 percent share of the U.S. automobile market. Today, that figure is down to about 20 percent.
*Back in 2000, about 17 million new automobiles were sold in the United States. During 2011, less than 13 million new automobiles were sold in the United States.
*Japan builds more cars than anyone else on the globe. Japan now manufactures about 5 million more automobiles than the United States does.
*Since Alan Mulally became CEO of Ford, the company has reduced its North American workforce by nearly half.
*In the year 2000, the U.S. auto industry employed more than 1.3 million Americans. Today, the U.S. auto industry employs about 698,000 people.
Obama bailed out the auto industry, and they responded by sending even more of our jobs overseas.
During his speech, Obama declared that there will be no more bailouts….
“No bailouts, no handouts, and no copouts.”
That is kind of funny because Obama is basically the all-time champion of handing out bailouts.
And once Obama became president, there was a seemingly endless parade of bailouts and “stimulus packages”.
So what do you honestly think he will do when the next financial crisis happens? Do you think he would actually be able to resist the temptation for more bailouts?
Obama also says that he wants to spend more money on training for American workers….
“Join me in a national commitment to train two million Americans with skills that will lead directly to a job.”
But the American people already have enough training. There are tons of college-educated Americans that are among the ranks of the unemployed right now.
What the American people need are jobs.
Unfortunately, jobs are leaving this country at an unprecedented pace.
Back in the year 2000, more than 20 percent of all jobs in America were manufacturing jobs. Today, about 5 percent of all jobs in America are manufacturing jobs.
Not only that, but our incomes are also going down. Because U.S. workers now have to compete for jobs with workers that make slave labor wages on the other side of the globe, pay in this country continues to decline.
A recent White House reported entitled “Investing in America: Building an Economy That Lasts” actually bragged that our trade policies have driven wages in America down. The following chart is from that report….
The Obama administration has been very good for the largest corporations.
For the rest of us, not so much.
But Obama now says that he wants America to be a place that encourages entrepreneurs and small businesses to thrive….
“It means we should support everyone who’s willing to work; and every risk-taker and entrepreneur who aspires to become the next Steve Jobs.”
Unfortunately, the reality is that the federal government is strangling entrepreneurs and small businesses to death with taxes and crippling regulations.
According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million.
That is not a good trend.
And right now small businesses are extremely hesitant to bring on new workers.
One recent survey found that 77 percent of all U.S. small businesses do not plan to hire any more workers in the coming year.
So obviously what the Obama administration is doing is not working.
During his speech, Obama also spoke of developing our own energy resources….
“A future where we are in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world.”
Hopefully most of those watching laughed when they heard this, because this had to have been a joke.
America is absolutely swimming in oil and natural gas, and yet the Obama administration has blocked the development of those resources at every turn.
Instead, Obama has been very busy trying to push green energy companies on us, but they have had a nasty habit of going bankrupt.
During his speech, Obama also spoke of the need for “comprehensive immigration reform”.
But apparently Obama’s idea of “immigration reform” is to grant “backdoor amnesty” to the vast majority of the illegal immigrants in the United States and to continue to leave our borders completely wide open.
The consequences of such a policy are very serious. As I wrote about the other day, there are now 1.4 million gang members living inside the United States, and that number has risen by an astounding 40 percent since 2009.
The last thing we need is more “immigration reform” from Barack Obama.
Of course the “class warfare” part was the centerpiece of Obama’s speech the other night.
Referring to it as the “defining issue of our time”, Obama said that now is the time to hit the wealthy with higher taxes….
“We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.”
This is going to be what Barack Obama is going to base his entire 2012 campaign on. He is going to try to tap into the economic frustrations of the poor and the middle class and he is going to try to get them to blame the rich and the “party of the rich” (the Republicans).
But taxing the rich is not going to solve our problems. If Bill Gates donated his entire fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
The truth is that the ultra-wealthy are always several steps ahead of the U.S. government. The global elite are hiding 18 trillion dollars in offshore banks, and they are absolute experts at avoiding taxes.
No, the people that always get hit when taxes are raised are small business owners that try to do things “by the book” and middle class families that are barely scraping by.
What we need to do is to get rid of the income tax system entirely. It is deeply corrupt and it is full of thousands of loopholes.
Trust me, I know. I used to study this stuff.
But Obama seems to think that taxing the rich is the solution to all of our problems….
“We don’t begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it’s not because they envy the rich. It’s because they understand that when I get tax breaks I don’t need and the country can’t afford, it either adds to the deficit, or somebody else has to make up the difference – like a senior on a fixed income; or a student trying to get through school; or a family trying to make ends meet. That’s not right. Americans know it’s not right. They know that this generation’s success is only possible because past generations felt a responsibility to each other, and to their country’s future, and they know our way of life will only endure if we feel that same sense of shared responsibility. That’s how we’ll reduce our deficit.”
Oh really?
If we just accept Obama’s plan the deficit will be fixed?
That worked out so well during his first term. During the first three years of the Obama administration, the U.S. government accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
The truth is that Obama does not plan to fix anything. Barack Obama’s proposed 2012 budget projects that the national debt will rise to 26 trillion dollars a decade from now. And his budget numbers are ridiculously optimistic.
Not that our tax system does not need reform.
If we are going to have an income tax system (which we should not), then it should at least be fair.
There is no way in the world that General Electric and Mitt Romney should pay a lower tax rate than you and I do.
In a previous article, I noted some of the big corporations that have made enormous profits and yet have paid less than zero in taxes in recent years….
What U.S. corporations are able to get away with is absolutely amazing.
During those three years, all of the corporations below made a lot of money. Yet all of them paid net taxes that were below zero for those three years combined.
How is that possible? Well, it turns out that instead of paying in taxes to the federal government, they were actually getting money back.
So for these corporations, their rate of taxation was actually below zero.
If you have not seen these before, you are going to have a hard time believing some of these statistics…..
*Honeywell*
Profits: $4.9 billion
Taxes: -$34 million
*Fed Ex*
Profits: $3 billion
Taxes: -$23 million
*Wells Fargo*
Profits: $49.37 billion
Taxes: -$681 million
*Boeing*
Profits: $9.7 billion
Taxes: -$178 million
*Verizon*
Profits: $32.5 billion
Taxes: -$951 million
*Dupont*
Profits: $2.1 billion
Taxes -$72 million
*American Electric Power*
Profits: $5.89 billion
Taxes -$545 million
*General Electric*
Profits: $7.7 billion
Taxes: -$4.7 billion
Are you starting to get the picture?
Hopefully we can all agree that there is something seriously wrong with those numbers.
But fixing holes in the tax system is one thing – blaming America’s economic ills on the wealthy is another.
During his speech, Obama made the following statement….
“You can call this class warfare all you want”
And yes, we will hear the term “class warfare” over and over again for the rest of 2012.
Obama actually believes that “blaming the 1%” can get him sent back to the White House again.
But that isn’t going to solve any of our problems.
Instead, we should be focusing on the root causes of our economic problems.
I would love to see a president get up during a State of the Union address and declare that we need to shut down the Federal Reserve.
Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power.
Since the Federal Reserve was created in 1913, the U.S. national debt has gotten more than 5000 times larger.
Thanks to the debt-based Federal Reserve system, we are going into debt at a pace that is unlike anything the world has ever seen.
Right now, the federal government is stealing 150 million dollars an hour from our children and our grandchildren.
But Barack Obama loves the Federal Reserve.
In fact, he actually nominated Ben Bernanke for a second term as Federal Reserve Chairman even though Bernanke has a track record of incompetence that is legendary.
So no, nobody should be applauding Barack Obama for his absolutely abysmal speech the other night.
He is a man without a plan and he has been an absolute disaster for America.
The worst drought in more than 50 years is having a devastating impact on the Mississippi River. The Mississippi has become very thin and very narrow, and if it keeps on dropping there is a very real possibility that all river traffic could get shut down. And considering the fact that approximately 60 percent of our grain, 22 percent of our oil and natural gas, and and one-fifth of our coal travel down the Mississippi River, that would be absolutely crippling for our economy. It has been estimated that if all Mississippi River traffic was stopped that it would cost the U.S. economy 300 million dollars a day. So far most of the media coverage of this historic drought has focused on the impact that it is having on farmers and ranchers, but the health of the Mississippi River is also absolutely crucial to the economic success of this nation, and right now the Mississippi is in incredibly bad shape. In some areas the river is already 20 feet below normal and the water is expected to continue to drop. If we have another 12 months of weather ahead of us similar to what we have seen over the last 12 months then the mighty Mississippi is going to be a complete and total disaster zone by this time next year.
What Is The Best Place To Live In America? Pros And Cons For All 50 States
Not all of the factors listed below will be important to you, and a few have even been thrown in for humor. But if you are thinking of moving in the near future hopefully this list will give you some food for thought.
A few years ago when my wife and I were living near Washington D.C. we knew that we wanted a change and we went through this kind of a process. We literally evaluated areas from coast to coast. In the end, we found a place that is absolutely perfect for us. But different things are important to different people.
And if I gave your particular state a low rating, please don’t think that I am trashing the entire state or all of the people who live there.
For example, there are some absolutely wonderful people that live in the state of California, and there are some areas of California that I would not mind visiting at all. But for the times that are coming I am convinced that it is going to be a really bad place to live.
Not that I have all the answers either. Hopefully this article can get some debates started, and hopefully those debates will help people that are thinking of moving to another state to be more informed.
The following are some pros and cons for all 50 states….
Alabama
Pros: warm weather, southern hospitality, relatively low population density
Cons: hurricanes, tornadoes, crime, not enough jobs, multiple nuclear power plants, rampant poverty
Overall Rating: C+
Alaska
Pros: great fishing, lots of empty space, low population density, great for rugged individualists
Cons: very high cost of living, earthquakes, volcanoes, extremely cold, short growing season, too much snow, potentially cut off from supplies from the lower 48 states during an emergency situation
Overall Rating: B
Arizona
Pros: warm weather
Cons: illegal immigration, wildfires, return of dust bowl conditions, not enough jobs, not enough rain, multiple nuclear power plants, crime, gang violence, Phoenix
Overall Rating: D+
Arkansas
Pros: southern hospitality, warm weather, Ozark National Forest
Cons: tornadoes, Clintons, New Madrid fault zone, multiple nuclear power plants, crime, rampant poverty
Overall Rating: C
California
Pros: Disneyland, warm weather, Malibu
Cons: high taxes, Jerry Brown, earthquakes, mudslides, wildfires, gang violence, crime, traffic, rampant poverty, insane politicians, ridiculous regulations, bad schools, political correctness, illegal immigration, not enough jobs, air pollution, multiple nuclear power plants, possible tsunami threat along the coast, Los Angeles, San Francisco, Oakland, Stockton, Sacramento, huge drug problem, high population density, the state government is broke, many more reasons to leave California right here
Overall Rating: F
Colorado
Pros: Rocky Mountains, Colorado Springs
Cons: wildfires, illegal immigration, short growing season, not enough rain, too much snow, huge drug problem
Overall Rating: B
Connecticut
Pros: beautiful homes
Cons: high taxes, insane politicians, ridiculous regulations, political correctness, short growing season, multiple nuclear power plants, high population density
Overall Rating: C-
Delaware
Pros: good fishing
Cons: Joe Biden, political correctness, ridiculous regulations, insane politicians, crime, high population density
Overall Rating: D
Florida
Pros: University of Florida Gators, oranges, low taxes, southern hospitality, Disneyworld, Gainesville, warm weather, beautiful beaches, Daytona
Cons: hurricanes, most of the state is barely above sea level, high population density, not enough jobs, multiple nuclear power plants, crime, gang violence, illegal immigration
Overall Rating: C
Georgia
Pros: peaches, southern hospitality, warm weather
Cons: not enough jobs, multiple nuclear power plants, crime, gang violence, flesh eating disease, Atlanta
Overall Rating: B-
Hawaii
Pros: awesome beaches, warm weather, great vacation destination
Cons: vulnerable to tsunamis, very high cost of living, volcanoes, traffic, high population density, high taxes
Overall Rating: C-
Idaho
Pros: awesome people live there, great potatoes, low population density, high concentration of liberty-minded individuals, low crime, Sandpoint, Coeur d’Alene, north Idaho has plenty of water compared to the rest of the interior West, beautiful scenery
Cons: cold in the winter, wildfires, short growing season, not enough jobs
Overall Rating: A
Illinois
Pros: once you get away from Chicago things are not quite so bad
Cons: Barack Obama, drought, New Madrid fault zone, high population density, political correctness, ridiculous regulations, insane politicians, crime, gang violence, Chicago, East St. Louis, not enough jobs, multiple nuclear power plants, mob robberies, the state government is drowning in debt
Overall Rating: D-
Indiana
Pros: it is in better shape than Illinois, good farming, high Amish population
Cons: drought, tornadoes, the city of Gary, relatively high population density, near the New Madrid fault zone, a “rust belt” state
Overall Rating: C-
Iowa
Pros: low population density, low crime, good farming
Cons: drought, tornadoes, cold in the winter, multiple nuclear power plants, too much snow, very flat
Overall Rating: B-
Kansas
Pros: low population density, low crime, good farming
Cons: drought, tornadoes, return of dust bowl conditions, very flat
Overall Rating: B
Kentucky
Pros: southern hospitality, great horses, Lexington
Cons: New Madrid fault zone, not enough jobs, rampant poverty, Louisville
Overall Rating: C
Louisiana
Pros: southern hospitality, warm weather
Cons: hurricanes, New Orleans, not enough jobs, tornadoes, multiple nuclear power plants, oil spills, crime, gang violence, rampant poverty
Overall Rating: D
Maine
Pros: low population density, low crime, polite people
Cons: extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, too much snow
Overall Rating: B-
Maryland
Pros: the Washington Redskins play there
Cons: Baltimore, borders Washington D.C., high population density, really bad traffic, political correctness, ridiculous regulations, insane politicians, multiple nuclear power plants, crime, gang violence
Overall Rating: C-
Massachusetts
Pros: beautiful homes
Cons: high taxes, political correctness, ridiculous regulations, insane politicians, high population density, short growing season, almost everything is illegal in Massachusetts
Overall Rating: D+
Michigan
Pros: once you get away from Detroit and Flint things get better
Cons: Detroit, Flint, Dearborn, extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, not enough jobs, multiple nuclear power plants, too much snow, a “rust belt” state
Overall Rating: D-
Minnesota
Pros: land of 10,000 lakes
Cons: extremely cold, short growing season, multiple nuclear power plants, too much snow, high taxes
Overall Rating: C
Mississippi
Pros: southern hospitality, relatively low population density, warm weather
Cons: hurricanes, tornadoes, not enough jobs, rampant poverty, crime
Overall Rating: C+
Missouri
Pros: good farming, Branson
Cons: drought, tornadoes, New Madrid fault zone, not enough jobs, crime
Overall Rating: C
Montana
Pros: low population density, low taxes, high concentration of liberty-minded individuals, Missoula, Kalispell
Cons: extremely cold in the winter, wildfires, short growing season, not enough rain, near Yellowstone super volcano, rampant poverty, too much snow
Overall Rating: B+
Nebraska
Pros: low population density, good farming
Cons: tornadoes, drought, multiple nuclear power plants, cold in the winter, very flat
Overall Rating: B
Nevada
Pros: low population density, lots of empty space, low taxes, warm weather
Cons: Harry Reid, Las Vegas, Reno, not enough water, not enough rain, wildfires, hard to grow food, not enough jobs, crime, gang violence, huge drug problem, Yucca Mountain
Overall Rating: D+
New Hampshire
Pros: low crime, beautiful homes
Cons: extremely cold, short growing season, political correctness, ridiculous regulations, insane politicians, too much snow
Overall Rating: C
New Jersey
Pros: anyone got something?
Cons: high population density, Camden, Newark, not enough jobs, multiple nuclear power plants, Atlantic City, crime, gang violence
Overall Rating: D-
New Mexico
Pros: low population density, warm weather
Cons: illegal immigration, wildfires, return of dust bowl conditions, not enough jobs, not enough rain, crime, gang violence, huge drug problem
Overall Rating: C-
New York
Pros: the entire state is not like New York City
Cons: New York City, Mayor Bloomberg, high taxes, cold in the winter, high population density, political correctness, ridiculous regulations, insane politicians, not enough jobs, multiple nuclear power plants, the “too big to fail” banks
Overall Rating: D
North Carolina
Pros: southern hospitality, warm weather, Great Smoky Mountains National Park
Cons: hurricanes, not enough jobs, multiple nuclear power plants
Overall Rating: B
North Dakota
Pros: low crime, lots of oil-related jobs, low population density
Cons: extremely cold, short growing season, too much snow
Overall Rating: B
Ohio
Pros: the Cincinnati Reds, the Pro Football Hall of Fame, high Amish population
Cons: not enough jobs, cold in the winter, multiple nuclear power plants, high population density, Toledo, Cleveland, a “rust belt” state
Overall Rating: C
Oklahoma
Pros: warm weather, good farming
Cons: drought, tornadoes, wildfires, return of dust bowl conditions, not enough rain, crime, Oklahoma City, rampant poverty
Overall Rating: C
Oregon
Pros: tremendous natural beauty
Cons: high taxes, Portland, political correctness, ridiculous regulations, insane politicians, not enough jobs, huge drug problem, possible tsunami threat along the coast
Overall Rating: C-
Pennsylvania
Pros: high Amish population
Cons: high population density, Philadelphia, Pittsburgh, not enough jobs, multiple nuclear power plants, a “rust belt” state
Overall Rating: C
Rhode Island
Pros: so small that most people don’t notice their problems
Cons: the state is flat broke, short growing season, political correctness, ridiculous regulations, insane politicians, not enough jobs, high population density
Overall Rating: D+
South Carolina
Pros: southern hospitality, warm weather, Myrtle Beach
Cons: hurricanes, not enough jobs, multiple nuclear power plants, crime, gang violence, rampant poverty
Overall Rating: B
South Dakota
Pros: low population density, fun tourist traps, the Badlands, Mount Rushmore
Cons: extremely cold, short growing season, very flat, too much snow
Overall Rating: B
Tennessee
Pros: Nashville, Michael W. Smith, southern hospitality, warm weather, Gatlinburg
Cons: Memphis, New Madrid fault zone, multiple nuclear power plants, crime, gang violence, rampant poverty
Overall Rating: B-
Texas
Pros: low taxes, warm weather, Austin
Cons: drought, illegal immigration, tornadoes, wildfires, West Nile Virus, the Dallas Cowboys, return of dust bowl conditions, speed traps, not enough rain, multiple nuclear power plants, George W. Bush, crime
Overall Rating: B-
Utah
Pros: beautiful mountains, low crime, low population density
Cons: cold in the winter, wildfires, Salt Lake City, short growing season, not enough rain, illegal to collect rain
Overall Rating: B-
Vermont
Pros: low crime, beautiful homes
Cons: cold in the winter, insane politicians, ridiculous regulations, short growing season, political correctness, not enough jobs, too much snow
Overall Rating: C
Virginia
Pros: the University of Virginia, southern hospitality, Charlottesville
Cons: borders Washington D.C., high population density, multiple nuclear power plants, Richmond, really bad traffic in northern Virginia
Overall Rating: B-
Washington
Pros: the eastern half of the state is quite nice and much different from the coast
Cons: way too much rain along the coast, volcanoes, wildfires, insane politicians, ridiculous regulations, political correctness, not enough jobs, possible tsunami threat along the coast, Seattle
Overall Rating: C
West Virginia
Pros: beautiful mountains
Cons: not enough jobs, rampant poverty
Overall Rating: B
Wisconsin
Pros: cheese, the Green Bay Packers
Cons: extremely cold, short growing season, multiple nuclear power plants, too much snow,
Overall Rating: B-
Wyoming
Pros: low population density, lots of empty space, low taxes
Cons: extremely cold, too windy, too flat, wildfires, short growing season, not enough rain, Yellowstone super volcano
Overall Rating: B-
What do you think of these rankings?
What do you think is the best place to live in America?
Do you have any additional pros and cons that should be added to this list?
Please feel free to post a comment with your thoughts below….