The bad news about the economy just keeps rolling in. If this is an economic recovery, what in the world is the next “recession” going to look like? Today there was another huge truckload of bad economic news. The stock market had another 400 point “correction”, applications for unemployment benefits are up again, inflation is higher than expected, home sales have dropped again and Europe is coming apart at the seams. The financial markets have been in such a state of chaos recently that days like today don’t even seem “unusual” anymore. But we should all be alarmed at what is happening. We haven’t seen anything quite like this since the darkest days of 2008 and 2009. If more bad news keeps pouring in, we may soon have a very real panic on our hands.
So now we have high unemployment and high inflation. Oh goody! All of this stagflation is almost enough to make one nostalgic for the 1970s.
*The housing market is getting even worse. According to the National Association of Realtors, sales of previously owned homes dropped 3.5 percent during July. That was the third decline in the last four months. Sales of previously owned homes are even lagging behind last year’s pathetic pace. Mortgage rates are now the lowest they have been since the 1950s, but there are very few interested buyers in the marketplace.
The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from a slightly positive reading of 3.2 in July to -30.7 in August. The index is now at its lowest level since March 2009
*Morgan Stanley now says that the U.S. and Europe are “hovering dangerously close to a recession” and that there is a good chance we could enter one at some point in the next 6 to 12 months.
All of this bad news is sending the price of gold through the roof. The price of gold soared to a brand new all-time high of $1,829.70 an ounce on Thursday morning. So far, the price of gold is up almost 30 percent in 2011.
Meanwhile, millions of average American families are deeply suffering and are desperately hoping that things won’t get even worse. Everywhere you turn, there is a tremendous amount of stress in the air.
As the economy crumbles, good paying full-time jobs are becoming increasingly scarce. People are hurting and they are looking for leadership.
Well, Barack Obama is running around the country promising that he will unveil some “solutions” very shortly.
So what are those solutions going to include? Well, the plans are still in the development stage, but the Obama administration is reportedly considering the following….
-The creation of a new government agency that will be dedicated to job creation. This will entail more government spending and more government paper pushers, but it will probably not do much to create good paying full-time jobs.
-Pushing even more free trade agreements through Congress. That way even more of our good jobs can be shipped to countries on the other side of the globe where paying slave wages to workers is still legal.
-A “reverse boot camp” that will train military veterans for civilian jobs. That sounds like a good idea, but we already have millions and millions of highly trained Americans that can’t get jobs.
-An extension of the payroll tax cut for at least another year. That will put more money into the pockets of U.S. workers, but it will also mean less revenue for the federal government. The existing payroll tax cut has not exactly resulted in a “jobs boom”, but removing that tax cut is certainly not going to help the economy either.
-An extension of long-term unemployment benefits. Yes, that will help the unemployed survive and will give them some money to spend into the economy, but it will not create many jobs for them. Plus it will put the government into even more debt.
-The creation of an infrastructure bank. Like most of the proposals above, this will entail even more government spending. I know that a “shovel-ready” joke is called for about now, but I can’t think of one at the moment.
The ironic thing is that Barack Obama is riding around on his multistate “jobs tour” in a $1.2 million bus that was made in Canada.
You just can’t make this stuff up.
Things have gotten so bad out there that even Wal-Mart is suffering now. Sales at Wal-Mart stores that have been open for at least a year have fallen for nine quarters in a row.
Not that anyone should have much sympathy for Wal-Mart, but it is a sign of just how bad things are getting out there.
So is there much hope for the future? Well, considering the fact that only 32 percent of 15-year-olds in the United States are proficient in math, things don’t look good.
Our education system is a joke, tens of thousands of factories have already closed, more are closing every day, millions of jobs have been shipped overseas and most of our politicians are either incompetent or corrupt (or both).
So you would think that with all of our problems, authorities would be focused on the big issues.
But no, time after time they just keep picking on average Americans.
For example, a woman that lives in the Salem, Oregon area that is fighting terminal bone cancer tried to raise some money for her medical bills by holding a few garage sales on the weekends.
Well, the authorities in Salem got wind of this and now they are shutting her down.
This is absolutely unbelievable. A video news report about this incident is posted below….
Massive fraud and corruption at the big banks caused a worldwide financial crisis in 2008 and yet not a single Wall Street executive has gone to prison because of it.
Yet a cancer-stricken lady tries to hold a few yard sales to pay her bills and authorities come down on her like a ton of bricks.
Does that seem fair to you?
Our world is getting crazier every day. The bad news is going to keep pouring in. Global financial markets are being held together with chicken wire and duct tape. At some point the pyramid of corruption and con games is going to come crashing down.
If you still have faith in the system, you are not very wise. We are heading for an economic collapse that will be absolutely unprecedented, and you need to be getting prepared.
How far does the stock market have to go down before we officially call it a crash? The Dow is now down more than 2,000 points in just the last 14 trading days. So can we now call this “The Stock Market Crash of 2011″? Today the Dow was down 519 points. Yesterday, an announcement by the Federal Reserve indicating that the Fed would keep interest rates near zero until mid-2013 helped the Dow surge more than 400 points, but all of those gains were wiped out today. It turns out that the Federal Reserve was only able to stabilize the financial markets for a single day. Fears about the European sovereign debt crisis and the crumbling U.S. economy continue to dominate the marketplace. With each passing day, things are looking more and more like 2008 all over again. So what is going to happen if “The Stock Market Crash of 2011″ pushes the U.S. economy into “The Recession of 2012″?
Just like in 2008, bank stocks are being hit the hardest. That was true once again today. Bank of America was down more than 10 percent, Citigroup was down more than 10 percent, Morgan Stanley was down more than 9 percent and JPMorgan Chase was down more than 5 percent.
How soon will it be before we start hearing of the need for more bailouts? After all, the “too big to fail” banks are even bigger now than they were in 2008.
All of this panic is causing the price of gold to reach unprecedented heights. Today, gold was over $1800 at one point. If the current panic continues for an extended period of time, there is no telling how high the price of gold may go.
In the United States, much of the focus has been on the fact that the U.S. government has lost its AAA credit rating, but the truth is that the European sovereign debt crisis is probably the biggest cause of the instability in world financial markets right now.
The European Central Bank has decided to start purchasing Italian and Spanish debt, and there have been rumors that French debt could be hit with a downgrade. Europe is a total financial basket case right now and unless dramatic action is taken things are going to get progressively worse.
Of course the U.S. is also certainly contributing greatly to this crisis. The federal government is on track to have a budget deficit that is over a trillion dollars for the third year in a row. The U.S national debt is a horrific nightmare, but our politicians keep putting off budget cuts.
The debt ceiling deal that was just reached basically does next to nothing to cut the budget before the next election. Unless the “Super Congress” does something dramatic, the only “budget cuts” we will see before the 2012 election will be 25 billion dollars in “savings” from spending increases that will be cancelled.
The modest spending cuts scheduled to go into effect beginning in 2013 will probably never materialize. Whenever the time comes to actually significantly cut the budget, our politicians always want to put it off for another time.
But in the end, debt is always going to have its day. Our politicians can try to kick the can down the road all they want, but eventually a day of reckoning is going to come.
In fact, if the U.S. and Europe had not piled up so much debt, we would not be facing all of the problems we are dealing with now.
Things could have been so much different.
But here we are.
The truth is that this debt crisis is just beginning. There is no magic potion that is going to make all of this debt suddenly disappear.
Most Americans have no idea how much financial pain is coming. We have been living way beyond our means for decades, and now we are going to start paying for it.
Now that long-term U.S. government debt has been downgraded, huge numbers of other securities are also going to be affected. In fact, according to a recent Bloomberg article, S&P has already been very busy slashing the ratings on hordes of municipal bonds….
Standard & Poor’s lowered the AAA ratings of thousands of municipal bonds tied to the federal government, including housing securities and debt backed by leases, following its Aug. 5 downgrade of the U.S.
That is the thing about financial markets – once the dominoes start to fall, the ripple effects can be felt for a long, long time.
So if this stock market crash gets even worse, will the Federal Reserve respond with even stronger measures?
They have already basically promised to keep interest rates near zero for the next two years. So what else can the Fed do?
Well, many now believe that there is a very good chance that we could see another round of quantitative easing.
Not that more quantitative easing is going to help much of anything. Rather than helping the economy, the last round of quantitative easing just pushed commodity prices through the roof. But the Fed is unlikely to just sit there and do nothing while financial markets struggle.
But it is not just the financial markets that are having a difficult time right now. Bad news is coming in from all over the economy. The possibility that we could soon slip into another major recession is growing by the day.
Unfortunately, our economy is so weak already that a new recession would probably hurt even more than the last recession did.
But the American people are in no mood for more economic pain. Every recent poll shows that Americans are already fed up.
For example, a brand new Reuters/Ipsos poll found that 73 percent of the American people believe that the country is “on the wrong track”.
So let’s certainly hope that the current stock market crash does not set off another major global recession. We certainly do not need things to get significantly worse than they are right now.
But whether it hits now or later, the truth is that a whole lot of economic pain is on the way. The U.S. and Europe have been making really, really bad decisions for decades, and we are not going to be able to escape the consequences of those decisions.
The global financial system is one huge mountain of leverage, risk and debt. A collapse is inevitable.
When you build a house of cards on a foundation of sand, you should not be surprised when it comes crashing down.
The next wave of the economic collapse is coming, and those that are wise will get prepared.
The Federal Reserve has saved the stock market! Well, at least for a day. That was one heck of a “dead cat bounce” that we saw on Tuesday. Normally, after the kind of dramatic decline that we saw on Monday there is some sort of a rebound, but on Tuesday the market did not begin to soar until the Federal Reserve pledged to leave interest rates near zero until mid-2013. Once the Fed made their announcement, the market went haywire. At one point the Dow was down more than 200 points, but by the end of the day it was up 430 points. It was a desperate move for the Federal Reserve to pledge not to raise interest rates for the next two years, and it has stabilized financial markets for the moment. But what is the Fed going to do to save the stock market when it starts crashing next week or next month? The underlying financial fundamentals continue to get worse and worse. Europe is a mess, Japan is a mess and the United States is a mess. The Federal Reserve can try to keep all of the balls in the air for as long as possible, but at some point the juggling act is going to end and the house of cards is going to come crashing down.
This move may calm nerves for a day or two, but there is still a tremendous amount of fear out there at the moment. Many investors are pouring money into “safe havens” right now. Huge amounts of cash are being poured into U.S. Treasuries and the price of gold is absolutely soaring. The price of gold is up about $220 in just the last 30 days alone.
So how high could the price of gold go in the coming months? Well, analysts at JP Morgan are forecasting that the price of gold could hit $2,500 by the end of this year.
Yes, that is how wild things are becoming. The Federal Reserve is painting itself into a corner. Never before has the Fed pledged to leave interest rates near zero for the next two years. The following is an excerpt from the statement that the Fed released earlier today….
To promote the ongoing economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings. The Committee will regularly review the size and composition of its securities holdings and is prepared to adjust those holdings as appropriate.
Needless to say, the rest of the world is not pleased by this nonsense from the Fed. Yes, the Fed has stabilized financial markets for the moment, but a lot of ill will is being created with the rest of the globe. The following is what Bruce Krasting had to say about how the rest of the world is going to react to this latest Fed move….
Brazil, Argentina, Korea, Indonesia are going to scream bloody murder over perpetual ZIRP. Russia is likely to get downright ugly with their rhetoric. I wouldn’t be surprised if they took this opportunity to vote with their feet and just abandon the dollar as a reserve holding. China will also make noise. They will make more calls for a new international currency to replace the dollar. The Central bankers in Japan and Switzerland are puking in the trashcan over this. Bernanke is exporting US deflation to them. Shame on the Fed for pursuing Beggar my neighbor policies. They deserve all the global criticism they are about to get.
The Federal Reserve is using up all of the ammunition it has available and the game has barely even begun.
Things are going to get a lot worse. The U.S national debt continues to pile up at lightning speed. The debt ceiling deal essentially does nothing to fix our debt problems. Thousands of businesses and millions of jobs continue to leave the United States. As a nation, we are constantly becoming poorer and we are constantly getting into more debt.
Meanwhile, Europe is on the verge of a financial meltdown and Japan has a “zombie economy” at this point.
Many fear that we could be on the verge of another major global recession. The following is how a recent Der Spiegel article described the current global financial situation….
Many economists have been pointing out that last week’s panic resembled the fear that swept financial markets after the collapse of US investment bank Lehman Brothers in September 2008.
Then as now, banks stopped lending each money. Then as now, banks’ cash deposits at the central bank doubled within days. The European Central Bank reacted by assuring banks of unlimited liquidity in the coming months. It was an emergency measure that led to short-term relief but sparked anxious questions among bankers and stock market players. How long can the central bank keep up its market-soothing liquidity operations before it finally loses its credibility, the most important asset of a central bank? Is the financial crisis about to escalate?
In the old days, the U.S. and Europe could just borrow gigantic stacks of cash in order to solve any problems. But now things are dramatically changing.
“The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone”
Not that the U.S. government and the Federal Reserve are going to suddenly give up their old habits. The U.S. government is addicted to debt and the Fed is addicted to printing money. When push comes to shove, they are going to resort to their favorite tricks.
But at some point the rest of the world is not going to play along anymore. When that moment arrives, it is going to be very interesting to see what happens.
Meanwhile, the U.S. economy continues to slowly unravel, and people in this country are getting very angry. Millions of Americans families are barely scraping by right now. Most Americans just want someone to “fix” things, but unfortunately there are no easy “fixes” to our financial problems.
As our economic problems grow even worse, frustration inside the United States is going to continue to escalate. A brand new Rasmussen survey found that only 17 percent of Americans now believe that the U.S. government has the consent of the governed.
That was a brand new all-time low.
Faith in the major institutions of our society is already dangerously low and the economy is not even that bad yet.
As horrible as things are now, the truth is that this is rip-roaring prosperity compared to what is coming.
In the months and years ahead, America is going to be greatly tested. As the recent London riots have shown, things can spiral out of control very quickly.
When the economy completely collapses will America be able to handle it?
Have you noticed that a really bad mood seems to have descended on world financial markets? Fear and pessimism are everywhere. The global economy never truly recovered from the financial crisis of 2008, and right now everyone is keeping their eyes open for the next “Lehman Brothers moment” that will send world financial markets into another tailspin. Investors have been very nervous for quite some time now, but this week things seem to be going to a whole new level. Fears about the spread of the debt crisis in Europe and about the failure of debt ceiling talks in the United States have really hammered global financial markets. On Monday, the Dow Jones Industrial Average dropped 151 points. Italian stocks fared even worse. The stock market in Italy fell more than 3 percent on Monday. The stock markets in Germany and France fell more than 2 percent each. On top of everything else, the fact that protesters have stormed the U.S. embassy in Syria is causing tensions to rise significantly in the Middle East. Everywhere you turn there seems to be more bad news and large numbers of investors are getting closer to hitting the panic button. Hopefully things will cool down soon, because if not we could soon have another full-blown financial crisis on our hands.
Even many of those that have always tried to reassure us suddenly seem to be in a really bad mood.
For example, U.S. Treasury Secretary Timothy Geithner admitted to “Meet the Press” that the U.S. economy is really struggling and that for many Americans “it’s going to feel very hard, harder than anything they’ve experienced in their lifetime now, for a long time to come.”
Does Geithner know something that we don’t?
To say that what Americans are facing will be “harder than anything they’ve experienced in their lifetime now, for a long time to come” is very, very strong language.
It certainly is not helping things that the Democrats and the Republicans still have not agreed on a deal to raise the debt ceiling. It is mid-July and Barack Obama and John Boehner continue to point fingers at each other.
Of course if they do reach a “deal” it will likely be a complete and total joke just like their last “deal” was.
But for now they are playing politics and trying to position themselves well for the 2012 election season.
Meanwhile, world financial markets are starting to get a little nervous about this situation. The newly elected head of the IMF, Christine Lagarde, has stated that she “can’t imagine for a second” that we are going to see the U.S. default on any debt. Most investors seem to agree with Lagarde for now, but if we get to August 2nd without a deal being reached things could change very quickly.
But it isn’t just the debt ceiling crisis that is causing apprehension in the United States. The truth is that there are a host of indications that the U.S. economy is continuing to struggle.
Even big Wall Street banks are laying people off. A recent Reuters article described the bad mood that has descended on Wall Street right now….
Goldman Sachs Group Inc (GS.N), Morgan Stanley (MS.N) and some other large U.S. investment banks are not just laying off weak performers and back-office employees. They are also cutting the pay of those they are keeping, scrutinizing expense reports and expecting even the most profitable workers to bring in more business for the same amount of compensation.
That is not a good sign for the U.S. economy.
If the corrupt Wall Street banks are even struggling, what does that mean for the rest of us?
But the big trouble recently has been in Europe. The sovereign debt crisis continues to get worse and worse.
As I wrote about yesterday, the emerging financial crisis in Italy has EU officials in a bit of a tizzy. If Italy requires a bailout it is going to be an unmitigated disaster.
One of the most respected financial journalists in Europe, Ambrose Evans Pritchard, says that financial tensions in the EU are rising to dangerous levels….
If the ECB’s Jean-Claude Trichet is right in claiming that Europe was on the brink of a 1930s financial cataclysm a year ago – and I think he is – it is hard see how the threat is any less serious right now.
Fall-out from Greece flattened Portugal and Ireland last week. It is engulfing Spain and Italy, countries with €6.3 trillion of public and private debt between them.
Last year it was just small countries like Greece and Ireland that were causing all the trouble.
Now Italy (the fourth largest economy in the EU) and Spain (the fifth largest economy in the EU) are making headlines.
Up to this point, the EU has had all kinds of nightmares just trying to bail countries like Greece out.
What is going to happen if Italy or Spain goes under?
At this point things with Greece have gone so badly that some EU officials are actually suggesting that Greece should just default on some of the debt.
Yes, you read the correctly.
There are news reports coming out of Europe that say that EU leaders are actually considering allowing the Greek government to default on some of their bonds. According to The Telegraph, “the move would be part of a new bail-out plan for Greece that would put the country’s overall debt levels on a sustainable footing.”
All of this chaos is causing bond yields in Europe to go soaring.
Earlier today, The Calculated Risk blog detailed some of the stunning bond yields that we are now seeing in Europe….
The Greek 2 year yield is up to a record 31.1%.
The Portuguese 2 year yield is up to a record 18.3%.
The Irish 2 year yield is up to a record 18.1%.
And the big jump … the Italian 2 year yield is up to a record 4.1%. Still much lower than Greece, Portugal and Ireland, but rising.
Could you imagine paying 31.1% interest on your credit cards?
Well, imagine what officials in the Greek government must be feeling right about now.
If these bond yields do not go down, we are going to have a full-blown financial crisis on our hands in Europe. If these bond yields keep rising, we are going to have a complete and total financial nightmare in Europe.
The only way that any of these nations that are drowning in debt can keep going is if they can borrow more money at low interest rates. There are very few nations on earth that would be able to survive very high interest rates on government debt for an extended period of time.
Pay attention to what is happening in Europe, because it will eventually happen in the United States. Right now we are only paying a little more than $400 billion in interest on the national debt each year because of the super low interest rates we are able to get.
When that changes, our interest costs are going to absolutely skyrocket.
Not that the United States needs any more economic problems.
Right now Americans are more pessimistic about the economy than they have been in ages.
*According to Gallup, the percentage of Americans that lack confidence in U.S. banks is now at an all-time high of 36%.
*According to one recent poll, 39 percent of Americans believe that the U.S. economy has now entered a “permanent decline”.
*Another recent survey found that 48 percent of Americans believe that it is likely that another great Depression will begin within the next 12 months.
The American people are in a really bad mood and investors around the world are in a really bad mood. More bad financial news seems to come out every single day now. Everyone seems to be waiting for that one “moment” that is going to set off another financial panic.
Hopefully we can get through the rest of this summer without world financial markets falling apart. But the truth is that the global economy is even more vulnerable today than it was back in 2008. None of the things that caused the financial crash of 2008 have been fixed.
We will eventually have a repeat of 2008. In fact, next time things could be even worse.
The entire world financial system is a house of cards sitting on a foundation of sand. Eventually another storm is going to come and the crash is going to be great.
Today there are two very different Americas. In one America, the stock market is soaring, huge bonuses are taken for granted, the good times are rolling and people are spending money as if they will be able to “live the dream” for the rest of their lives. In the other America, the one where most of the rest of us live, unemployment is rampant, a million families were kicked out of their homes last year and hordes of American families are drowning in debt. The gap between the rich and the poor is bigger today than it ever has been before. In fact, this article is not so much about “rich vs poor” as it is about “the rich vs the rest of us”. Barack Obama and Ben Bernanke keep touting an “economic recovery”, but the truth is that the only ones that seem to be benefiting from this recovery are those at the very top of the economic food chain.
Below you will find 14 funny statistics about this economic recovery and 14 not so funny statistics about this economic recovery. Actually, if you find yourself deeply struggling in this economy you will probably not find any of the statistics funny. In fact, you will probably find most of them infuriating. After all, there are very few people that actually enjoy hearing about how well the rich are doing when they are barely able to pay the mortgage and put food on the table.
In any event, the 28 statistics below show the stark contrast between the “two Americas” that share this nation today. Many liberals will likely try to use these statistics as an example of why we should tax the rich. But handing more money to the government is not going to magically create more jobs for the poor. What the American people desperately need are good jobs, and many liberals don’t seem to understand that. Many conservatives will likely try to use these statistics as evidence that “capitalism” is working. But the truth is that what we have in the United States today is not capitalism. Rather, it is more aptly described as “corporatism”, because money and power is increasingly becoming concentrated in the hands of gigantic corporations that individuals and small businesses simply cannot compete with. The truth is that when wealth is concentrated at the very top it does not “trickle down” to the rest of us. In the old days the wealthy at least were forced to hire the rest of us to run their factories and their businesses, but with the advent of globalism that isn’t even true anymore. Now they can just move their factories and businesses overseas to places where they can legally pay slave labor wages to their employees.
Very large concentrations of money and power are almost always bad for the prosperity of average citizens. Our founding fathers never intended for our central government to have so much power and they never intended for giant corporations to have so much power. But we have abandoned the principles of our founding fathers.
When large concentrations of power (whether governmental or corporate) are allowed to flourish, it almost becomes inevitable that the gap between the rich and the poor will grow. We are seeing this happen all over the world today.
Unfortunately, it does not appear that any of this is going to change any time soon. In the United States, both the federal government and multinational corporations are constantly attempting to grab even more power. It has gotten to the point where individual Americans really don’t have much power left at all.
In any event, hopefully you will find the following statistics informative or at least entertaining. The wealthy are most definitely enjoying an “economic recovery” while most of the rest of us are still really struggling….
Funny – Who said that the titans of Wall Street couldn’t look hot? According to the American Society of Plastic Surgeons, facelifts for men jumped 14 percent last year.
Not Funny – According to the U.S. Labor Department, unemployment actually increased in 351 of the 372 largest U.S. cities during the month of January.
Funny – The average bonus for a worker on Wall Street in 2010 was only $128,530. It appears that more Wall Street bailouts may be needed.
Not Funny – During this most recent economic downturn, employee compensation in the United States has been the lowest that it has been relative to gross domestic product in over 50 years.
Funny – According to DataQuick Information Systems, the sale of million dollars homes rose an average of 18.6 percent in the top 20 major metro areas in the U.S. in 2010. But is spending a million dollars on one house really worth it? After all, over the past several years there have been times when you could buy a house in some bad areas of Detroit for just one dollar.
Not Funny – In 2010, for the first time ever more than a million U.S. families lost their homes to foreclosure, and that number is expected to go even higher in 2011.
Funny – According to Moody’s Analytics, the wealthiest 5% of households in the United States now account for approximately 37% of all consumer spending. Most of the rest of us don’t have much discretionary income to spend these days, but at least we have Justin Bieber, American Idol and Dancing with the Stars to keep us entertained.
Not Funny – According to Gallup, the U.S. unemployment rate in mid-March was 10.2%, which was virtually unchanged from the 10.3% figure that it was sitting at exactly one year ago.
Sales of private jumbo jets are so strong that Airbus and Boeing now have special sales forces devoted to potentates and the hyper-rich.
Not Funny – There are now over 6.4 million Americans that have given up looking for work completely. That number has increased by about 30 percent since the economic downturn began.
Funny – Porsche recently reported that sales increased by 29 percent during 2010. Even Porsche jokes are coming back into style….
Question: Why did the blonde try and steal a police car?
Answer: She saw “911” on the back and thought it was a Porsche.
Funny – Cadillac recently reported that sales increased by 36 percent during 2010.
Not Funny – According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.
Funny – Rolls-Royce recently reported that sales increased by 171 percent during 2010.
Not Funny – According to a new study by America’s Research Group, approximately 75 percent of all Americans are doing less shopping because of rising gasoline prices.
Funny – According to the New York Post, Barack Obama enjoyed a total of 10 separate vacations that stretched over a total of 90 vacation days during the years of 2009 and 2010. Apparently Barack Obama was not talking about himself when he told the American people the following….
“If you’re a family trying to cut back, you might skip going out to dinner, or you might put off a vacation.”
Not Funny – When 2007 began, 26 million Americans were on food stamps. Today, an all-time record 44 million Americans are on food stamps.
Funny – Ralph Lauren reported a 24 percent increase in revenue in the fourth quarter of 2010. It is good to know that preppies are thriving in this economy.
Not Funny – The Ivex Packaging Paper plant in Joliet, Illinois is shutting down for good after 97 years in business. 79 good jobs will be lost. Meanwhile, China has become the number one producer of paper products in the entire world.
Funny – Luxury jewelry retailer Tiffany & Co. recently announced that their profits increased by 29 percent in the 4th quarter of 2010. All of the men that did not buy their women jewelry during the holidays are trying to keep this particular news item from getting passed around.
Funny – In 2009, only 18,288 vehicles with a price tag of $100,000 or more were sold in the United States. In 2010, 32,144 such vehicles were sold. It appears that “showing off for chicks” is now very much back in style.
Not Funny – The U.S. economy now has 10 percent fewer “middle class jobs” than it did just ten years ago.
Funny – Porsche has announced that they will soon be taking orders for their first hybrid sports car, the 918 Spyder. The price tag on one of these puppies will only be $845,000.
Not Funny – The average CEO now makes approximately 185 times more money than the average American worker.
Funny – Barack Obama recently played only his 61st round of golf since moving into the White House. Many are now concerned that Obama is simply not getting enough free time.
Not Funny – According to one recent study, 21 percent of all children in the United States were living below the poverty line during 2010.
Global financial markets are in turmoil as the situation in Japan continues to deteriorate. Stock markets are plunging all over the world as investors flock to investments that are considered to be safer. The 9.0 earthquake and the unprecedented tsunami in Japan would have been more than enough to spook investors and unleash chaos on world financial markets, but now the unfolding nightmare at the Fukushima Dai-ichi nuclear facility is really starting to cause panic. Right now there is a mass exodus out of the city of Tokyo. But not everyone can leave the city. There are over 30 million people living in and around Tokyo. So where in the world could you possibly put 30 million refugees? Sadly, the truth is that millions of Japanese are going to stay in Tokyo no matter how high the radiation gets. Let us hope that Japanese authorities can get the situation at the Fukushima Dai-ichi nuclear facility under control, but the fact that they have resorted to dropping water from helicopters and shooting water cannons at these nuclear reactors is not comforting.
World financial markets are certainly not expressing a lot of confidence right now. This week alone, $300 billion in U.S. stock values have been wiped out. The Dow Jones industrial average lost about 2 percent of its total value on Wednesday. The Nikkei 225 stock index has lost about 10 percent of its total value since the beginning of this crisis. At one point it was down more than 16 percent, but a gigantic monetary injection from the Bank of Japan has helped to stabilize things at least for now. There are also some that believe that the Japanese government is now directly buying up stocks to keep them from falling even further.
In Europe, the FTSE 100 index of leading British shares closed down 97.05 points, or 1.7% at 5,598.23 while France’s CAC-40 fell 84.29 points, or 2.2%, to 3,696.56. Germany’s DAX ended 133.82 points, or 2%, lower at 6,513.84.
The financial ripples from this crisis are going to be felt for a long, long time.
In order to rebuild Japan, the Japanese government is somehow going to have to borrow massive amounts of money. But the Japanese national debt was already projected to reach 228 percent of GDP this year.
The Japanese government has become an incredibly bad credit risk, but lowering their credit rating right now would seem to be in very bad taste. So far, all three major credit rating agencies are taking a “wait and see” approach when it comes to Japan.
Unfortunately, the crisis in Japan is far from over.
The situation at the Fukushima Dai-ichi nuclear facility just seems to grow more dire with each passing day. Right now, the primary concern is the 40 years of spent fuel rods that are stored throughout the complex.
Ed Lyman, a physicist at the Union of Concerned Scientists, recently explained why the pools that store the spent fuel rods are the biggest problem at this point….
“For the time being, the greatest concern is the spent fuel pools because there is a clear pathway for release of radioactivity from the pools into the environment.”
The phrase “spent fuel rods” may make it sound like they should no longer be a threat, but the truth is that these fuel rods remain extremely hot and extremely radioactive for years after they are done being used. For some reason, someone thought that it would be a good idea to store these spent fuel rods in huge pools of water near the top of each of the nuclear reactor buildings at the Fukushima Dai-ichi complex.
These spent fuel rod pools are not housed in the same kind of containment vessels that the nuclear reactors are. Therefore there is a much greater danger that radiation from these spent fuel rods could be released into the surrounding environment.
The Fukushima Daiichi plant has seven pools dedicated to spent fuel rods. These are located at the top of six reactor buildings – or were until explosions and fires ravaged the plant. On the ground level there is a common pool in a separate building that was critically damaged by the tsunami. Each reactor building pool holds 3,450 fuel rod assemblies and the common pool holds 6,291 fuel rod assemblies. Each assembly holds sixty-three fuel rods. In short, the Fukushima Daiichi plant contains over 600,000 spent fuel rods – a massive amount of radiation that will soon be released into the atmosphere.
Each of these 600,000 spent fuel rods is a potential “dirty bomb”.
Are you starting to grasp just how serious this all is?
It is absolutely critical that all of these spent fuel rods remain submerged in water.
If the water drops in the spent fuel pools there will be nothing to keep the spent fuel rods cool and they will start to degrade very, very quickly.
Unfortunately, things don’t look good right now. U.S. authorities today expressed their belief that the spent fuel rods in unit 4 are now exposed and that a great deal of radiation is being released. In fact, Gregory Jaczko, the chairman of the Nuclear Regulatory Commission, stated during Congressional testimony today that he believes that an extremely high level of radiation is being released by exposed spent fuel rods at the Fukushima Dai-ichi nuclear facility at this point….
We believe that radiation levels are extremely high, which could possibly impact the ability to take corrective measures.
It would be hard to understate the courage of those that are working inside the Fukushima Dai-ichi nuclear facility right now. They all likely realize that they are all going to die very quickly. They are laying down their lives in an effort to save their countrymen. According to a recent report from CBS News these workers say that they are not afraid to die….
Although communication with the workers inside the nuclear plant is nearly impossible, a CBS News consultant spoke to a Japanese official who made contact with one of the workers inside the control center.
The official said that his friend told him that he was not afraid to die, that that was his job.
Would all of us respond the same way?
Even the media that are reporting on this disaster in Japan are starting to be affected by this radiation. Lester Holt revealed this morning that his entire crew had tested positive for radiation after returning from an assignment.
Meanwhile, Barack Obama is acting as if all of this stuff going on in Japan is no big deal. In fact, as Keith Koffler recently observed, Obama seems to be really enjoying himself in the midst of this crisis….
This morning, as Japan’s nuclear crisis enters a potentially catastrophic phase, we are told that Obama is videotaping his NCAA tournament picks and that we’ll be able to tune into ESPN Wednesday to find out who he likes.
Saturday, he made his 61st outing to the golf course as president, and got back to the White House with just enough time for a quick shower before heading out to party with Washington’s elite journalists at the annual Gridiron Dinner.
This weekend, the Obamas are headed down to Brazil. According to an article in Forbes, the Obama plan to do a good bit of sightseeing while they are there….
The Obama family will also take in the sights in Rio. A trip to Corcovado mountain, where the Christ the Redeemer statue stands (France gave us Lady Liberty, gave Brazil Jesus) is supposedly on the itinerary. What trip to Rio would be complete without it?
Isn’t it great to see Obama acting like a true leader in the midst of one of the greatest moments of crisis that the world has seen since World War 2?
What in the world is Obama possibly thinking?
One thing about a major crisis is that it reveals the true character of those affected by it. Many are responding to this crisis in Japan with great acts of courage and heroism.
Others are not rising to the occasion.
Let us just hope and pray that the Japanese figure out a way to get the situation at the Fukushima Dai-ichi nuclear complex under control. If a “worst case scenario” happens we could soon be facing an unprecedented nuclear nightmare.
When Barack Obama, the Federal Reserve and the mainstream media tell us that we are in the middle of an economic recovery, is that supposed to be some kind of sick joke? According to newly released numbers, over 44 million Americans are now on food stamps. That is a new all-time record and that number is 13.1% higher than it was just one year ago. So how many Americans have to go on food stamps before we can all finally agree that the U.S. economy is dying? 50 million? 60 million? All of us? The food stamp program is the modern equivalent of the old bread lines. More than one out of every seven Americans now depends on the federal government for food. Oh, but haven’t you heard? The economy is showing dramatic improvement. Corporate profits are up. The stock market is soaring. Happy days are here again.
It just seems inconceivable that anyone can claim that the economy is improving when the number of Americans on food stamps continues to set a brand new record every single month. But the food stamp program is not the only indicator that the economy is still having massive problems. The following are 10 more reasons why the U.S. economy is simply not getting any better….
#1 Some recent statistics actually indicate that the number of unemployed Americans is still going up. According to Gallup, unemployment in the United States rose to 10.3% at the end of February. That is the highest number Gallup has reported since early last year.
#2 The housing industry is still a complete and total disaster. In fact, new home sales in the U.S. in January were 11.2% lower than they were in December. Not only that, the number of new home sales in January was 18.6% lower than the number of new home sales in January 2010. That is not a sign of improvement.
#3 There wouldn’t even be much of a housing industry at all at this point if it was not for the U.S. government. Right now the U.S. government is either writing or guaranteeing well over 90 percent of all mortgages in the United States. So what would the housing market look like in 2011 if the government was not in the picture?
#4 In 2010, more than a million U.S. families lost their homes to foreclosure for the first time ever, and that number is expected to go even higher in 2011.
#5 Due to rampant economic decay and record numbers of foreclosures there are areas in most of our major cities that now look like “war zones”. For example, the Huffington Post is reporting that there are now approximately 15,000 vacant buildings in the city of Chicago and there are approximately 60,000 vacant houses and apartments in the city of Las Vegas.
#6 According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier. This represented 8.5% of median monthly income. So what is going to happen when gas prices go even higher? Sadly, the average price of gasoline in the U.S. has risen another 4 cents since yesterday and it is likely to go much higher from here.
#7 The U.S. trade deficit continues to grow. The trade deficit was about 33 percent larger in 2010 than it was in 2009, and the 2011 trade deficit is expected to be even bigger.
#8 The CredAbility Consumer Distress Index, which measures the average financial condition of U.S. households, declined in every single quarter in 2010.
#9 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.
#10 The U.S. national debt is growing faster than ever. The Obama administration is projecting that the federal budget deficit for this fiscal year will be a new all-time record 1.65 trillion dollars. It is hard to even imagine how much money that is. If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars. Long ago the U.S. government should have been getting these deficits under control, but instead they are just getting even larger.
So in light of the statistics above, can anyone really claim that we are in the middle of an economic recovery?
The truth is that there is no sign that any of the long-term trends that are destroying the U.S. economy are even slowing down.
Millions of jobs continue to be shipped overseas.
The U.S. dollar continues to be devalued.
The federal government continues to go into more debt.
State and local governments continue to go into more debt.
Our trade deficit continues to grow.
Our cities continue to be transformed into wastelands as they are being systematically deindustrialized.
The number of Americans that are dependent on the government continues to soar.
The U.S. middle class continues to shrink.
I know that I harp on these themes over and over, but it is vitally important that everyone understands that the mainstream media is lying to us.
The U.S. economy is dying a very painful death and there is no hope on the horizon.
Things are not going to be getting better. Well, they may get a bit better for the boys down on Wall Street, but for the rest of us our standards of living are going to continue to decline.
The best days for the U.S. economy are already behind us. What lies ahead is a whole lot of pain.
We are going to pay the price for decades of corruption and incompetence.
An economic collapse is coming and you had better get ready.
Have you heard the news? The stock market is absolutely soaring and according to the U.S. government and the Federal Reserve we are in the beginning stages of a robust economic recovery. Yippee! The S&P 500 is up 6.8 percent so far in 2011, and the stock market recently hit a two and a half year high. So shouldn’t we all be celebrating? Well, if stock market performance was an accurate measure of economic health, then Zimbabwe would have had one of the healthiest economies on the entire globe during the last decade. But just like Zimbabwe’s stock market was artificially pumped up with “funny money” that was rapidly being devalued, so is ours. All of the “quantitative easing” that the Federal Reserve has been doing is pumping plenty of money into the financial markets and is helping to inflate a false stock market bubble, but it is doing very little to alleviate the suffering of the U.S. middle class. In fact, when you take a closer look at the numbers you quickly find out that the suffering of the middle class is getting even worse.
According to Gallup, the unemployment rate is now over 10%. The number of Americans that have given up looking for work recently set a new all-time record. The number of mortgages in foreclosure tied a record high during the fourth quarter of 2010. Gas and food prices are rising rapidly. The number of Americans on food stamps continues to increase every single month.
Yes, right now the economic situation is not in free fall like it was a couple years ago. We should be thankful for that. Periods of relative stability such as we are enjoying now will be few and far between in the years ahead. This “bubble” of economic calm is a great opportunity that we should all be taking advantage of.
However, those that are hoping that this is an economic “turning point” and that things will soon be back to “normal” are going to be greatly disappointed. This is about as “normal” as things are going to be ever again.
Even during this time of relative economic stability, the U.S. middle class is still being ripped to shreds. If there are those among your family and friends that are somehow convinced that the U.S. economy is recovering nicely, you might want want to show them the following 18 very sobering facts….
#1 According to Gallup, the U.S. unemployment rate is currently 10.3 percent. When you add in part-time American workers that want full-time employment, that number rises to 20.2 percent.
#2 According to the U.S. Bureau of Labor Statistics, the number of job openings in the United States declined for a second straight month during December.
#4 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.
#5 Gasoline prices in the United States recently hit a 28-month high.
#6 During the 4th quarter of 2010, 4.63 percent of all U.S. home loans were in foreclosure. That matched the all-time high, and it was up significantly from 4.39 percent in the 3rd quarter.
#7 It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.
#8Almost 14 percent of all credit card accounts in the United States are currently 90 days or more delinquent.
#9 The average credit card rate in the United States had increased to a whopping 13.44 percent at the end of 2010.
#10 Americans now owe more than $890 billion on student loans, which is even more than they owe on credit cards.
#11 Average household debt in the United States has now reached a level of 136% of average household income. In China, average household debt is only 17% of average household income.
#18One out of every six elderly Americans now lives below the federal poverty line.
You know things are bad when articles start popping up in the mainstream news instructing us how to interact socially with the hordes of unemployed Americans that are out there today. A recent USA Today article entitled “What not to say to someone who is unemployed” listed some of the things that you should not say to someone that does not have a job. The following are some of their suggestions on what NOT to say….
“Hey, have you found anything yet?”
“How’s the search going?”
“You just have to pound the pavement.”
“Something will turn up.”
“It’s tough out there.”
“Other people are going through the same thing.”
“Maybe you’re asking for too much money.”
“Maybe you should go back to school.”
“There are plenty of jobs out there.”
I am sure most of us have heard things like this at one time or another. It can be a soul-crushing thing to have others like at you in pity because you don’t have a job and you can’t pay the mortgage and feed your family.
Most unemployed Americans are not lazy. The vast majority of them desperately want jobs. But the U.S. economy is not producing nearly enough jobs today. As noted above, the U.S. economy currently has about 3 million job openings, but approximately 20 percent of the workforce wants to find a full-time job. The demand for jobs is far, far, far greater than the supply.
Unfortunately, this is the legacy of decades of bad economic decision-making. The U.S. economy should be able to provide work for every single person that wants it, but because of the choices that have been made that will never be the case again.
The middle class in America is being ripped to shreds right in front of our eyes and very little is being done to stop it. Desperation is rising across the nation. More Americans slip into poverty every single day. It is almost as if a cloud of gloom and despair has descended upon the U.S. economy and every single month the situation only seems to get darker.
So what about you? How has this economy affected you and your family? Please feel free to leave a comment with your thoughts below….
Did you see Ben Bernanke’s testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true. Bernanke insists that the economy is getting much better, that quantitative easing will lower long-term interest rates, that all of this money printing by the Federal Reserve is not causing inflation and that the Fed knows exactly what needs to be done to dramatically reduce unemployment inside the United States. So is anyone out there still actually buying what Bernanke is selling? Sure, a handful of people in the mainstream media still have complete faith in Bernanke. But for the rest of us, it is becoming increasingly clear that there is something really “off” about Bernanke. So just what is going on with him? Is he lying to all of us on purpose? Could he be insane? Is he just completely and totally incompetent?
Bernanke’s track record of failure is absolutely stunning. Before discussing some of his most recent comments, let’s review some of the pearls of wisdom that Bernanke has shared with us in recent years….
2005: “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”
2005: “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.”
2006: “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.”
2007: “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.”
2007: “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”
2008: “The Federal Reserve is not currently forecasting a recession.”
So should we believe anything that Bernanke is saying now?
Of course not.
Obviously Bernanke has been feeding us all a whole bunch of nonsense for a very long time.
So what conclusion should we come to about Bernanke at this point?
Well, as I see it, there are three primary alternatives….
1 – Bernanke knows that what he is telling us is wrong and he is purposely trying to deceive us. That would make him a liar.
2 – Bernanke actually believes what he is saying because he is completely delusional. That would make him a lunatic.
3– Bernanke actually believes what he is saying because he simply does not understand economics. This would make him completely and totally incompetent.
In any event, someone with Bernanke’s track record should not still have such a high level job. He should have been asked to resign long, long ago.
But instead, Obama nominated him for another term and he was approved by our incompetent Congress.
It is a crazy world in which we live.
So what is Bernanke saying now?
Let’s take a look at some of his main points…..
Bernanke Says That One Of The Main Goals Of Quantitative Easing Is To Reduce Long-Term Interest Rates
During one interview about QE2, Bernanke made the following statement….
“The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.”
In fact, Bernanke elaborated on that point during his remarks on Wednesday….
Conventional monetary policy easing works by lowering market expectations for the future path of short-term interest rates … By comparison, the Federal Reserve’s purchases of longer-term securities do not affect very short-term interest rates, which remain close to zero, but instead put downward pressure directly on longer-term interest rates. With the Fed funds rate at the zero bound, the Fed had to resort to unconventional policy to provide further accommodation.
So how is all that working out?
Terribly.
The yield on 10-year U.S. Treasury notes has risen from 2.49 percent back in November to 3.65 percent at the close of business on Wednesday.
Oops.
Long-term interest rates were supposed to go down as a result of quantitative easing, but instead they have increased substantially.
Looks like Bernanke was wrong about another one.
Bernanke Says That Quantitative Easing Is Not Going To Cause Inflation
The price of wheat has roughly doubled since last summer, the price of corn has roughly doubled since last summer and the price of oil is marching up towards $100 a barrel.
But oh, there is no inflation so there is no need to worry according to Bernanke.
Food riots are breaking out around the globe, but Bernanke says that the inflation in those countries is being caused by their own central banks.
Bernanke says that the Federal Reserve has nothing to do with international inflation even though the U.S. dollar is the primary reserve currency of the world.
Bernanke says that even though consumers are seeing huge price increases in the supermarket and at the gas pump that we aren’t really seeing any real inflation because the fraudulent U.S. consumer price index says so.
It is a wonder that anyone still considers this guy to be credible.
Bernanke Says That Quantitative Easing Is Helping The Economy Recover And Is Reducing Unemployment
During his remarks on Wednesday, Bernanke said that the recent decline in the U.S. unemployment rate was “grounds for optimism”.
And, of course, he is glad to take part of the credit for the “recovery”.
Oh really?
Things are getting better?
As I wrote about a few days ago, the “decline” in the U.S. unemployment rate during January to 9.0% is no reason to celebrate.
First of all, the U.S. economy must add 150,000 jobs each month just to keep up with population growth.
During January, the U.S. economy only added 36,000 jobs.
So why did the unemployment rate go down?
Well, the U.S. government said that 504,000 American workers “dropped out of the labor force” in January.
Well, isn’t that convenient.
Let’s just pretend a half million unemployed workers are not even there.
Yeah, that will make the numbers look better!
Sadly, the number of Americans that are “not in the labor force” but that would like a job right now has hit an all-time record high. If you add all of those people into the official unemployment figure it would jump to 12.8%.
The truth is that the employment situation in America is not getting any better. In fact, according to Gallup, the unemployment rate actually increased to 9.8% at the end of January.
Perhaps Bernanke should reconsider how much “better” things are really getting.
Bernanke Says That Now Is Not The Time To Reduce The Deficit
When it comes to the national debt, Ben Bernanke is constantly talking out of both sides of his mouth.
Bernanke is constantly saying that the exploding U.S. national debt is very dangerous (and he is very right about that point), but Bernanke also says that now is definitely not the time to do anything about it.
In fact, recently Bernanke has been purposely stepping into the partisan debate about whether to raise the debt ceiling or not.
Bernanke says that Republicans should stand down and that now is not the time to be playing political games with the debt ceiling. Bernanke has been warning that the consequences for not raising the debt ceiling could be catastrophic….
“We do not want to default on our debts. It would be very destructive.”
Over and over Bernanke has been saying that the economic recovery is still fragile and that now is not the time be cutting deeply into the federal budget.
So when is the right time?
Well, with these central bankers it seems like it is never time to address all of this debt. It seems like they always want us to “have a long-term plan” to tackle the debt in the future but to keep borrowing and spending in the present.
Well, it looks like that is exactly what the Obama administration plans to keep doing. This year it is being projected that the U.S. government will have the biggest budget deficit ever recorded – approximately 1.5 trillion dollars.
Keep in mind that the total U.S. national debt did not surpass 1.5 trillion dollars until the mid-1980s.
That means that this year we will accumulate more debt than we did for over the first 200 years that this nation was in existence.
Oh, but according to Bernanke we better not do anything to address our out of control debt because that would “harm the economic recovery”.
In the end, all of this government debt is going to become so monstrous that it is going to swallow us whole. We can try to keep running from it, but we can’t hide. Someday the gigantic debt monster that we have created is going to catch up with us.
So, yes, there are a whole lot of reasons to be really upset with Ben Bernanke.
Perhaps he would be a fun guy to sit down and talk to at a backyard barbecue, but he isn’t the type of person that you would want to entrust with any real responsibility, and he most definitely is not someone that should be running the largest economy in the history of the planet.
The bad news about the economy just keeps rolling in. If this is an economic recovery, what in the world is the next “recession” going to look like? Today there was another huge truckload of bad economic news. The stock market had another 400 point “correction”, applications for unemployment benefits are up again, inflation is higher than expected, home sales have dropped again and Europe is coming apart at the seams. The financial markets have been in such a state of chaos recently that days like today don’t even seem “unusual” anymore. But we should all be alarmed at what is happening. We haven’t seen anything quite like this since the darkest days of 2008 and 2009. If more bad news keeps pouring in, we may soon have a very real panic on our hands.
Rich vs Poor: 14 Funny Statistics And 14 Not So Funny Statistics About This “Economic Recovery”
Below you will find 14 funny statistics about this economic recovery and 14 not so funny statistics about this economic recovery. Actually, if you find yourself deeply struggling in this economy you will probably not find any of the statistics funny. In fact, you will probably find most of them infuriating. After all, there are very few people that actually enjoy hearing about how well the rich are doing when they are barely able to pay the mortgage and put food on the table.
In any event, the 28 statistics below show the stark contrast between the “two Americas” that share this nation today. Many liberals will likely try to use these statistics as an example of why we should tax the rich. But handing more money to the government is not going to magically create more jobs for the poor. What the American people desperately need are good jobs, and many liberals don’t seem to understand that. Many conservatives will likely try to use these statistics as evidence that “capitalism” is working. But the truth is that what we have in the United States today is not capitalism. Rather, it is more aptly described as “corporatism”, because money and power is increasingly becoming concentrated in the hands of gigantic corporations that individuals and small businesses simply cannot compete with. The truth is that when wealth is concentrated at the very top it does not “trickle down” to the rest of us. In the old days the wealthy at least were forced to hire the rest of us to run their factories and their businesses, but with the advent of globalism that isn’t even true anymore. Now they can just move their factories and businesses overseas to places where they can legally pay slave labor wages to their employees.
Very large concentrations of money and power are almost always bad for the prosperity of average citizens. Our founding fathers never intended for our central government to have so much power and they never intended for giant corporations to have so much power. But we have abandoned the principles of our founding fathers.
When large concentrations of power (whether governmental or corporate) are allowed to flourish, it almost becomes inevitable that the gap between the rich and the poor will grow. We are seeing this happen all over the world today.
Unfortunately, it does not appear that any of this is going to change any time soon. In the United States, both the federal government and multinational corporations are constantly attempting to grab even more power. It has gotten to the point where individual Americans really don’t have much power left at all.
In any event, hopefully you will find the following statistics informative or at least entertaining. The wealthy are most definitely enjoying an “economic recovery” while most of the rest of us are still really struggling….
Funny – Who said that the titans of Wall Street couldn’t look hot? According to the American Society of Plastic Surgeons, facelifts for men jumped 14 percent last year.
Not Funny – According to the U.S. Labor Department, unemployment actually increased in 351 of the 372 largest U.S. cities during the month of January.
Funny – The average bonus for a worker on Wall Street in 2010 was only $128,530. It appears that more Wall Street bailouts may be needed.
Not Funny – During this most recent economic downturn, employee compensation in the United States has been the lowest that it has been relative to gross domestic product in over 50 years.
Funny – According to DataQuick Information Systems, the sale of million dollars homes rose an average of 18.6 percent in the top 20 major metro areas in the U.S. in 2010. But is spending a million dollars on one house really worth it? After all, over the past several years there have been times when you could buy a house in some bad areas of Detroit for just one dollar.
Not Funny – In 2010, for the first time ever more than a million U.S. families lost their homes to foreclosure, and that number is expected to go even higher in 2011.
Funny – According to Moody’s Analytics, the wealthiest 5% of households in the United States now account for approximately 37% of all consumer spending. Most of the rest of us don’t have much discretionary income to spend these days, but at least we have Justin Bieber, American Idol and Dancing with the Stars to keep us entertained.
Not Funny – According to Gallup, the U.S. unemployment rate in mid-March was 10.2%, which was virtually unchanged from the 10.3% figure that it was sitting at exactly one year ago.
Funny – According to the Wall Street Journal, sales of private jumbo jets to the ultra-wealthy are absolutely soaring….
Not Funny – There are now over 6.4 million Americans that have given up looking for work completely. That number has increased by about 30 percent since the economic downturn began.
Funny – Porsche recently reported that sales increased by 29 percent during 2010. Even Porsche jokes are coming back into style….
Question: Why did the blonde try and steal a police car?
Answer: She saw “911” on the back and thought it was a Porsche.
Not Funny – Approximately half of all American workers make $25,000 a year or less.
Funny – Cadillac recently reported that sales increased by 36 percent during 2010.
Not Funny – According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.
Funny – Rolls-Royce recently reported that sales increased by 171 percent during 2010.
Not Funny – According to a new study by America’s Research Group, approximately 75 percent of all Americans are doing less shopping because of rising gasoline prices.
Funny – According to the New York Post, Barack Obama enjoyed a total of 10 separate vacations that stretched over a total of 90 vacation days during the years of 2009 and 2010. Apparently Barack Obama was not talking about himself when he told the American people the following….
Not Funny – When 2007 began, 26 million Americans were on food stamps. Today, an all-time record 44 million Americans are on food stamps.
Funny – Ralph Lauren reported a 24 percent increase in revenue in the fourth quarter of 2010. It is good to know that preppies are thriving in this economy.
Not Funny – The Ivex Packaging Paper plant in Joliet, Illinois is shutting down for good after 97 years in business. 79 good jobs will be lost. Meanwhile, China has become the number one producer of paper products in the entire world.
Funny – Luxury jewelry retailer Tiffany & Co. recently announced that their profits increased by 29 percent in the 4th quarter of 2010. All of the men that did not buy their women jewelry during the holidays are trying to keep this particular news item from getting passed around.
Not Funny – Average household debt in the United States has now reached a level of 136% of average household income.
Funny – In 2009, only 18,288 vehicles with a price tag of $100,000 or more were sold in the United States. In 2010, 32,144 such vehicles were sold. It appears that “showing off for chicks” is now very much back in style.
Not Funny – The U.S. economy now has 10 percent fewer “middle class jobs” than it did just ten years ago.
Funny – Porsche has announced that they will soon be taking orders for their first hybrid sports car, the 918 Spyder. The price tag on one of these puppies will only be $845,000.
Not Funny – The average CEO now makes approximately 185 times more money than the average American worker.
Funny – Barack Obama recently played only his 61st round of golf since moving into the White House. Many are now concerned that Obama is simply not getting enough free time.
Not Funny – According to one recent study, 21 percent of all children in the United States were living below the poverty line during 2010.