Corporations, individuals and the federal government continue to rack up debt at a rate that is far faster than the overall rate of economic growth. We are literally drowning in red ink from sea to shining sea, and yet we just can’t help ourselves. Consumer credit has doubled since the year 2000. Student loan debt has doubled over the course of the past decade. Business debt has doubled since 2006. And of course the debt of the federal government has doubled since 2007. Anyone that believes that this is “sustainable” in any way, shape or form is crazy. We have accumulated the greatest mountain of debt that the world has ever seen, and yet despite all of the warnings we just continue to race forward into financial oblivion. There is no possible way that this is going to end well.
Just the other day, a financial story that USA Today posted really got my attention. It contained charts and graphs that showed that business debt in the U.S. had doubled since 2006. I knew that things were bad, but I didn’t know that they were this bad. Back in 2006, just prior to the last major economic downturn, U.S. nonfinancial companies had a total of about 2.6 trillion dollars of debt. Now, that total has skyrocketed to 5.8 trillion…
Companies are sitting on a record $1.82 trillion in cash. That might sound impressive until you hear companies owe three times more – $5.8 trillion, according to a new report from Standard & Poor’s Ratings Services.
Debt levels are soaring at U.S. non-financial companies so quickly – total debt outstanding rose $650 billion in 2014, which is six times faster than the $100 billion in added cash.
So are we in better condition to handle an economic crisis than we were the last time, or are we in worse shape?
Let’s look at another category of debt. According to new data that just came out, the total amount of student loan debt in the U.S. is up to a staggering 1.2 trillion dollars. That total has more than doubled over the past decade…
New data released by The Associated Press shows student loan debt is over $1.2 trillion, which is more than double the amount of a decade ago.
Students are facing an average of $35,000 in debt, that’s the highest of any graduating class in U.S. history. A senior at University of Colorado, Colorado Springs, Jon Cheek, knows the struggle first hand.
“It’s been a pretty big concern, I work while I go to school. I applied for a bunch of scholarships and done everything I can to try and keep it low,” said Cheek.
And of course it isn’t just student loan debt. American consumers have had a love affair with debt that stretches back for decades. As the chart below demonstrates, overall consumer credit has more than doubled since the year 2000…
If our paychecks were increasing at this same pace, that would be one thing. But they aren’t. In fact, real median household income is actually lower today than it was just prior to the last economic crisis.
So American households should actually be cutting back on debt. But instead, they are just piling on more debt, and the financial predators are becoming even more creative. In a previous article, I discussed how many auto loans are now being stretched out for seven years. At this point, the number of auto loans that exceed 72 months is at an all-time high…
The average new car loan has reached a record 67 months, reports Experian, the Ireland-based information-services company. The percentage of loans with terms of 73 to 84 months also reached a new high of 29.5% in the first quarter of 2015, up from 24.9% a year earlier.
Long-term used-vehicle loans also broke records with loan terms of 73 to 84 months reaching 16% in the first quarter 2015, up from 12.94% — also the highest on record.
When will we learn?
The crash of 2008 should have been a wake up call.
We should have acknowledged our mistakes and we should have started doing things very differently.
But instead, we just kept on making the exact same mistakes. In fact, our long-term financial problems have continued to accelerate since the last recession. Just look at what has happened to our national debt. Just prior to the last recession, the U.S. national debt was sitting at approximately 9 trillion dollars. Today, it is over 18 trillion dollars…
Our debt has grown so large that we will never be able to get out from under it. This is something that I covered in my recent article entitled “It Is Mathematically Impossible To Pay Off All Of Our Debt“. Because of our recklessness, our children, our grandchildren and all future generations of Americans are consigned to a lifetime of debt slavery. What we have done to them is beyond criminal. If we lived in a just society, a whole bunch of people would be going to prison for the rest of their lives over this.
During fiscal year 2014, the debt of the federal government increased by more than a trillion dollars. But in addition to that, the federal government has more than seven trillion dollars of debt that must be “rolled over” every year. In other words, the government must issue more than seven trillion dollars of new debt just to pay off old debts that are coming due.
As long as the rest of the world continues to lend us enormous mountains of money at ridiculously low interest rates, we can continue to keep our heads above the water. But this can change at any time. And once it does, interest rates will rise. If the average rate of interest on U.S. government debt was to return to the long-term average, we would very quickly find ourselves spending more than a trillion dollars a year just on interest on the national debt.
The debt-fueled prosperity that we are enjoying now is not real. It is a false prosperity that has been purchased by selling future generations into debt slavery. We have mortgaged the future to make our own lives better.
We are addicts. We are addicted to debt, and no matter how many warnings we receive, we just can’t help ourselves.
Shame on you America.
From the dawn of history, elites have always attempted to enslave humanity. Yes, there have certainly been times when those in power have slaughtered vast numbers of people, but normally those in power find it much more beneficial to profit from the labor of those that they are able to subjugate. If you are forced to build a pyramid, or pay a third of your crops in tribute, or hand over nearly half of your paycheck in taxes, that enriches those in power at your expense. You become a “human resource” that is being exploited to serve the interests of others. Today, some forms of slavery have been outlawed, but one of the most insidious forms is more pervasive than ever. It is called debt, and virtually every major decision of our lives involves more of it. For example, at the very beginning of our adult lives we are pushed to go to college, and Americans have piled up more than 1.2 trillion dollars of student loan debt at this point. When we buy homes, most Americans get mortgages that they can barely afford, and when we buy vehicles most Americans now stretch their loans out over five or six years. When we get married, that often means even more debt. And of course no society on Earth has ever piled up more credit card debt than we have. Almost all of us are in bondage to debt at this point, and as we slowly pay off that debt over the years we will greatly enrich the elitists that tricked us into going into so much debt in the first place. At the apex of this debt enslavement system is the Federal Reserve. As you will see below, it is an institution that is designed to produce as much debt as possible.
There are many people out there that believe that the Federal Reserve is an “agency” of the federal government. But that is not true at all. The Federal Reserve is an unelected, unaccountable central banking cartel, and it has argued in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act. The 12 regional Federal Reserve banks are organized “much like private corporations“, and they actually issue shares of stock to the “member banks” that own them. 100 percent of the shareholders of the Federal Reserve are private banks. The U.S. government owns zero shares.
Many people also assume that the federal government “issues money”, but that is not true at all either. Under our current system, what the federal government actually does is borrow money that the Federal Reserve creates out of thin air. The big banks, the ultra-wealthy and other countries purchase the debt that is created, and we end up as debt servants to them. For a detailed explanation of how this works, please see my previous article entitled “Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand“. When it is all said and done, the elite end up holding the debt instruments and we end up being collectively responsible for the endlessly growing mountain of debt. Our politicians always promise to get the debt under control, but there is never enough money to both fund the government and pay the interest on the constantly expanding debt. So it always becomes necessary to borrow even more money. When it was created back in 1913, the Federal Reserve system was designed to create a perpetual government debt spiral from which it would never be possible to escape, and that is precisely what has happened.
Just look at the chart that I have posted below. Forty years ago, the U.S. national debt was less than half a trillion dollars. Today, it has exploded up to nearly 18 trillion dollars…
But the national debt is only part of the story. The big banks which control the Federal Reserve also seek to individually dominate our lives with debt. We have become a “buy now, pay later” society and the results have been absolutely catastrophic. 40 years ago, the total amount of debt in our system was just a shade over 2 trillion dollars. Today it is over 57 trillion dollars…
The big banks do not loan you money because they want to help you achieve “the American Dream”. The elitists loan you money because it will make them wealthier. For example, if you only make the minimum payment on a credit card each month, you will end up paying back several times as much money as you originally borrowed. It is a very insidious form of debt enslavement that most Americans simply do not understand.
Meanwhile, the Federal Reserve is also systematically destroying the wealth that you already have. If you try to buck the system and actually save money, the purchasing power of that money is continually being eroded by the Federal Reserve’s inflationary policies. The following chart comes directly from the Federal Reserve and it shows how the value of the U.S. dollar has plummeted over the past 40 years…
Overall, the U.S. dollar has lost approximately 98 percent of its value since the Fed was first established in 1913.
Most people seem to assume that if we could just send the “right politicians” to Washington D.C. that we could get our economy back on the right track.
What those people do not understand is that our system is fundamentally broken. We are trapped in a perpetual debt spiral that is destined to end in a horrifying collapse. Just “tweaking” a few things here or there and adjusting tax rates a bit is not going to fix anything. The vast majority of the “economic solutions” that our politicians talk about are basically equivalent to rearranging the deck chairs on the Titanic.
And of course the elite don’t want the rest of us to truly understand what is going on. Just think about it. Even though the Federal Reserve is one of the most important institutions in our society, and even though it is at the very heart of our economic system, our kids are taught next to nothing about the Fed in school. The vast majority of them have absolutely no idea where money comes from.
Isn’t that pathetic?
But the elite know that if we did understand what they were doing to us that most of us would start to get very upset. Henry Ford, the founder of Ford Motor Company, once said the following…
“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.”
Please share this article with as many people as you can. The truth sets people free, so let us do what we can to wake our fellow Americans up to this insidious debt enslavement system which dominates our society.
Are you thinking of going to college? If so, please consider that decision very carefully. You probably have lots of people telling you that an “education” is the key to your future and that you will never be able to get a “good job” unless you go to college. And it is true that those that go to college do earn more on average than those that do not. However, there is also a downside. At most U.S. colleges, the quality of the education that you will receive is a joke, the goal of most colleges is to extract as much money from you and your parents as they possibly can, and there is a very good chance that there will not be a “good job” waiting for you once you graduate. And unless you have someone that is willing to pay your tuition bills, you will probably be facing a lifetime of crippling student loan debt payments once you get out into the real world. So is college a waste of time and money? In the end, it really pays to listen to both sides of the debate.
Personally, I spent eight years at U.S. public universities, and I really enjoyed those times.
But would I trade my degrees today for the time and money that I spent to get them?
Right now, Americans owe more than a trillion dollars on their student loans, and more than 124 billion dollars of that total is more than 90 days delinquent.
It is a student loan debt bubble unlike anything that we have ever seen before, and now even those that make their living from this system are urging reform. For example, consider what a law professor at the University of Tennessee recently wrote for the Wall Street Journal…
In the field of higher education, reality is outrunning parody. A recent feature on the satire website the Onion proclaimed, “30-Year-Old Has Earned $11 More Than He Would Have Without College Education.” Allowing for tuition, interest on student loans, and four years of foregone income while in school, the fictional student “Patrick Moorhouse” wasn’t much better off. His years of stress and study, the article japed, “have been more or less a financial wash.”
“Patrick” shouldn’t feel too bad. Many college graduates would be happy to be $11 ahead instead of thousands, or hundreds of thousands, behind. The credit-driven higher education bubble of the past several decades has left legions of students deep in debt without improving their job prospects. To make college a good value again, today’s parents and students need to be skeptical, frugal and demanding.
When a lot of young Americans graduate from college and can’t find a decent job, they are told that if they really want to “be successful” that what they really need is a graduate degree.
That means more years of education, and in most cases, even more debt.
But by the time many of these young achievers get through college and graduate school, the debt loads can be absolutely overwhelming…
The typical debt load of borrowers leaving school with a master’s, medical, law or doctoral degree jumped an inflation-adjusted 43% between 2004 and 2012, according to a new report by the New America Foundation, a left-leaning Washington think tank. That translated into a median debt load—the point at which half of borrowers owed more and half owed less—of $57,600 in 2012.
The increases were sharper for those pursuing advanced degrees in the social sciences and humanities, versus professional degrees such as M.B.A.s or medical degrees that tend to yield greater long-term returns. The typical debt load of those earning a master’s in education showed some of the largest increases, rising 66% to $50,879. It climbed 54% to $58,539 for those earning a master of arts.
In particular, many are questioning the value of a law school education these days. Law schools are aggressively recruiting students even though they know that there are way, way too many lawyers already. There is no way that the legal field can produce enough jobs for the huge flood of new law school graduates that are hitting the streets each year.
The criticism has become so harsh that even mainstream news outlets are writing about this. For instance, the following comes from a recent CNN article…
For the past three years, the media has picked up the attacks with relish. The New York Times, in an article on a graduate with $250,000 in loans, put it this way: “Is Law School a Losing Game?” Referring to the graduate, the Times wrote, “His secret, if that’s the right word, is to pretty much ignore all the calls and letters that he receives every day from the dozen or so creditors now hounding him for cash,” writes the author. Or consider this blunt headline from a recent Business Insider article: “‘I Consider Law School A Waste Of My Life And An Extraordinary Waste Of Money.’” Even though the graduate profiled in the piece had a degree from a Top 20 law school, he’s now bitterly mired in debt. “Because I went to law school, I don’t see myself having a family, earning a comfortable wage, or having an enjoyable lifestyle,” he writes. “I wouldn’t wish my law school experience on my enemy.”
In America today, approximately two-thirds of all college students graduate with student loan debt, and the average debt level has been steadily rising. In fact, one study found that “70 percent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.”
That would be bad enough if most of these students were getting decent jobs that enabled them to service that debt.
But unfortunately, that is often not the case. It has been estimated that about half of all recent college graduates are working jobs that do not even require a college degree.
Could you imagine that?
Could you imagine investing four or five years and tens of thousands of dollars in a college degree and then working a job that does not even require a degree?
And the really sick thing is that the quality of the education that most college students are receiving is quite pathetic.
Recently, a film crew went down to American University and asked students some really basic questions about our country. The results were absolutely stunning…
When asked if they could name a SINGLE U.S. senator, the students blanked. Also, very few knew that each state has two senators. The guesses were all over the map, with some crediting each state with twelve, thirteen, and five senators.
I have posted the YouTube video below. How in the world is it possible that college students in America cannot name a single U.S. senator?…
These are the leaders of tomorrow?
That is a frightening thought.
If parents only knew what their children were being taught at college, in most instances they would be absolutely horrified.
The following is a list of actual college courses that have been taught at U.S. colleges in recent years…
-“What If Harry Potter Is Real?”
-“Lady Gaga and the Sociology of Fame”
-“Philosophy And Star Trek”
-“Invented Languages: Klingon and Beyond”
-“Learning From YouTube”
-“How To Watch Television”
-“Sport For The Spectator”
-“Oh, Look, a Chicken!”
That last one is my favorite.
The truth is that many of these colleges don’t really care if your sons and daughters learn much at all. They just want the money to keep rolling in.
And our college students are discovering that when they do graduate that they are woefully unprepared for life on the outside. In fact, one survey found that 70% of all college graduates wish that they had spent more time preparing for the “real world” while they were still in college.
In America today, there are more than 300,000 waitresses that have college degrees, and close to three out of every ten adults in the United States under the age of 35 are still living at home with Mom and Dad.
Our system of higher education is not working, and it is crippling an entire generation of Americans.
So what do you think?
Do you believe that college is a waste of time and money?
Please feel free to share your thoughts by posting a comment below…
Why are so many young adults in America living with their parents? According to a stunning Gallup survey that was recently released, nearly three out of every ten adults in the United States under the age of 35 are still living at home with Mom and Dad. This closely lines up with a Pew Research Center analysis of Census data that looked at a younger sample of Americans which found that 36 percent of Americans 18 to 31 years old were still living with their parents. That was the highest level that had ever been recorded. Overall, approximately 25 million U.S. adults are currently living at home with their parents according to Time Magazine. So what is causing all of this? Well, there are certainly a lot of factors. Overwhelming student loan debt, a depressing lack of jobs and the high cost of living are all definitely playing a role. But many would argue that what we are witnessing goes far beyond temporary economic conditions. There are many that believe that we have fundamentally failed our young people and have neglected to equip them with the skills and values that they need to be successful in the real world.
More Americans than ever before seem to be living in a state of “perpetual adolescence”. As Gallup noted, one of the keys to adulthood is to be able to establish independence from your parents…
An important milestone in adulthood is establishing independence from one’s parents, including finding a job, a place to live and, for most, a spouse or partner, and starting one’s own family. However, there are potential roadblocks on the path to independence that may force young adults to live with their parents longer, including a weak job market, the high cost of living, significant college debt, and helping care for an elderly or disabled parent.
Unfortunately, it is becoming increasingly difficult for young people to become financially independent. While they are in high school, we endlessly pound into their heads the need to go to college. Then we urge them to take out whatever loans that they will need to pay for it, ensuring them that they will be able to get “good jobs” which will enable them to pay off those loans when they graduate.
Of course a very large percentage of them find that there aren’t any “good jobs” waiting for them when they graduate. But because of the crippling loans that they have accumulated, they quickly realize that they have decades of debt slavery ahead of them.
Just consider the following numbers about the growth of student loan debt in the United States…
-The total amount of student loan debt in the United States has risen to a brand new all-time record of 1.08 trillion dollars.
-Student loan debt accounted for 3.1 percent of all consumer debt in 2003. Today, it accounts for 9.4 percent of all consumer debt.
-In the third quarter of 2007, the student loan delinquency rate was 7.6 percent. Today, it is up to 11.5 percent.
This is a student loan debt bubble unlike anything that we have ever seen before, and it seems to get worse with each passing year.
So when is the bubble going to finally burst?
Meanwhile, our young adults are still really struggling to find jobs.
For those in the 18 to 29-year-old age bracket, it is getting even harder to find full-time employment. In June 2012, 47 percent of those in that entire age group had a full-time job. One year later, in June 2013, only 43.6 percent of that entire age group had a full-time job.
And in many ways, things are far tougher for those that didn’t finish college than for those that did. In fact, the unemployment rate for 27-year-old college dropouts is nearly three times as high as the unemployment rate for those that finished college.
In addition, since Barack Obama has been president close to 40 percent of all 27-year-olds have spent at least some time unemployed.
So it should be no surprise that 27-year-olds are really struggling financially. Only about one out of every five 27-year-olds owns a home at this point, and an astounding 80 percent of all 27-year-olds are in debt.
Even if a young adult is able to find a job, that does not mean that it will be enough to survive on. The quality of jobs in America continues to go downhill and so do wages.
The ratio of what men in the 18 to 29-year-old age bracket are earning compared to what the general population is earning is at an all-time low, and American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
No wonder so many young people are living at home. Trying to survive in the real world is not easy.
Many of those that are trying to make it on their own are really struggling to do so. Just consider the case of Kevin Burgos. He earns $10.50 an hour working as an assistant manager at a Dunkin Donuts location in Hartford, Connecticut. According to CNN, he can’t seem to make enough to support his family no matter how hard he works…
He works 35 hours each week to support his family of three young children. All told, Burgos makes about $1,800 each month.
But his bills for basic necessities, including rent for his two-bedroom apartment, gas for his car, diapers and visits to the doctor, add up to $2,400. To cover these expenses without falling short, Burgos would need to make at least $17 per hour.
“I am always worried about what I’m going to do for tomorrow,” Burgos said.
There are millions of young people out there that are pounding their heads against the wall month after month trying to work hard and do the right thing. Sometimes they get so frustrated that they snap. Just consider the following example…
Health officials have temporarily shut down a southern West Virginia pizza restaurant after a district manager was caught on surveillance video urinating into a sink.
Local media reported that the Mingo County health department ordered the Pizza Hut in Kermit, about 85 miles southwest of Charleston, to shut down.
But as I mentioned earlier, instead of blaming young people for their failures, perhaps we need to take a good, long look at how we have raised them.
The truth is that our public schools are a joke, SAT scores are at an all-time low, and we have pushed nearly all discussion of morality, values and faith out of the public square.
No wonder most of our young people are dumb as a rock and seem to have no moral compass.
Or could it be possible that I am being too hard on them?
Please feel free to share what you think by posting a comment below…
Why are young people in America so frustrated these days? You are about to find out. Most young adults started out having faith in the system. They worked hard, they got good grades, they stayed out of trouble and many of them went on to college. But when their educations where over, they discovered that the good jobs that they had been promised were not waiting for them at the end of the rainbow. Even in the midst of this so-called “economic recovery”, the full-time employment rate for Americans under the age of 30 continues to fall. And incomes for that age group continue to fall as well. At the same time, young adults are dealing with record levels of student loan debt. As a result, more young Americans than ever are putting off getting married and having families, and more of them than ever are moving back in with their parents.
It can be absolutely soul crushing when you discover that the “bright future” that the system had been promising you for so many years turns out to be a lie. A lot of young people ultimately give up on the system and many of them end up just kind of drifting aimlessly through life. The following is an example from a recent Wall Street Journal article…
James Roy, 26, has spent the past six years paying off $14,000 in student loans for two years of college by skating from job to job. Now working as a supervisor for a coffee shop in the Chicago suburb of St. Charles, Ill., Mr. Roy describes his outlook as “kind of grim.”
“It seems to me that if you went to college and took on student debt, there used to be greater assurance that you could pay it off with a good job,” said the Colorado native, who majored in English before dropping out. “But now, for people living in this economy and in our age group, it’s a rough deal.”
Young adults as a group have been experiencing a tremendous amount of economic pain in recent years. The following are 30 statistics about Americans under the age of 30 that will blow your mind…
#1 The labor force participation rate for men in the 18 to 24 year old age bracket is at an all-time low.
#2 The ratio of what men in the 18 to 29 year old age bracket are earning compared to the general population is at an all-time low.
#3 Only about a third of all adults in their early 20s are working a full-time job.
#4 For the entire 18 to 29 year old age bracket, the full-time employment rate continues to fall. In June 2012, 47 percent of that entire age group had a full-time job. One year later, in June 2013, only 43.6 percent of that entire age group had a full-time job.
#5 Back in the year 2000, 80 percent of men in their late 20s had a full-time job. Today, only 65 percent do.
#6 In 2007, the unemployment rate for the 20 to 29 year old age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
#7 American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
#8 During 2012, young adults under the age of 30 accounted for 23 percent of the workforce, but they accounted for a whopping 36 percent of the unemployed.
#9 During 2011, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed.
#10 At this point about half of all recent college graduates are working jobs that do not even require a college degree.
#11 The number of Americans in the 16 to 29 year old age bracket with a job declined by 18 percent between 2000 and 2010.
#12 According to one survey, 82 percent of all Americans believe that it is harder for young adults to find jobs today than it was for their parents to find jobs.
#13 Incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation since the year 2000.
#14 In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger. Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger.
#15 In 2011, SAT scores for young men were the worst that they had been in 40 years.
#16 Incredibly, approximately two-thirds of all college students graduate with student loans.
#17 According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003.
#18 In America today, 40 percent of all households that are led by someone under the age of 35 are paying off student loan debt. Back in 1989, that figure was below 20 percent.
#19 The total amount of student loan debt in the United States now exceeds the total amount of credit card debt in the United States.
#20 According to the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent.
#21 The student loan default rate in the United States has nearly doubled since 2005.
#22 One survey found that 70% of all college graduates wish that they had spent more time preparing for the “real world” while they were still in college.
#23 In the United States today, there are more than 100,000 janitors that have college degrees.
#24 In the United States today, 317,000 waiters and waitresses have college degrees.
#25 Today, an all-time low 44.2 percent of all Americans between the ages of 25 and 34 are married.
#26 According to the Pew Research Center, 57 percent of all Americans in the 18 to 24 year old age bracket lived with their parents during 2012.
#27 One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents.
#28 Young men are nearly twice as likely to live with their parents as young women the same age are.
#29 Overall, approximately 25 million American adults are living with their parents according to Time Magazine.
#30 Young Americans are becoming increasingly frustrated that previous generations have saddled them with a nearly 17 trillion dollar national debt that they are expected to make payments on for the rest of their lives.
And this trend is not just limited to the United States. As I have written about frequently, unemployment rates for young adults throughout Europe have been soaring to unprecedented heights. For example, the unemployment rate for those under the age of 25 in Italy has now reached 40.1 percent.
Simon Black of the Sovereign Man blog discussed this global trend in a recent article on his website…
Youth unemployment rates in these countries are upwards of 40% to nearly 70%. The most recent figures published by the Italian government show yet another record high in youth unemployment.
An entire generation is now coming of age without being able to leave the nest or have any prospect of earning a decent wage in their home country.
This underscores an important point that I’ve been writing about for a long time: young people in particular get the sharp end of the stick.
They’re the last to be hired, the first to be fired, the first to be sent off to fight and die in foreign lands, and the first to have their benefits cut.
And if they’re ever lucky enough to find meaningful employment, they can count on working their entire lives to pay down the debts of previous generations through higher and higher taxes.
But when it comes time to collect… finally… those benefits won’t be there for them.
Meanwhile, the overall economy continues to get even weaker.
In the United States, Gallup’s daily economic confidence index is now the lowest that it has been in more than a year.
For young people that are in high school or college right now, the future does not look bright. In fact, this is probably as good as the U.S. economy is going to get. It is probably only going to be downhill from here.
The system is failing, and young people are going to become even angrier and even more frustrated.
So what will that mean for our future?
Please feel free to share what you think by posting a comment below…
Would you like to know what America’s young people are actually learning while they are away at college? It isn’t pretty. Yes, there are some very highly technical fields where students are being taught some very important skills, but for the most part U.S. college students are learning very little that they will actually use out in the real world when they graduate. Some of the college courses listed below are funny, others are truly bizarre, others are just plain outrageous, but all of them are a waste of money. If we are going to continue to have a system where we insist that our young people invest several years of their lives and tens of thousands of dollars getting a “college education”, they might as well be learning some useful skills in the process. This is especially true considering how much student loan debt many of our young people are piling up. Sadly, the truth is that right now college education in the United States is a total joke. I know – I spent eight years in the system. Most college courses are so easy that they could be passed by the family dog, and many of these courses “study” some of the most absurd things imaginable.
Listed below are 20 completely ridiculous college courses being offered at U.S. universities. The description following each course title either comes directly from the official course description or from a news story about the course…
1. “What If Harry Potter Is Real?” (Appalachian State University) – This course will engage students with questions about the very nature of history. Who decides what history is? Who decides how it is used or mis-used? How does this use or misuse affect us? How can the historical imagination inform literature and fantasy? How can fantasy reshape how we look at history? The Harry Potter novels and films are fertile ground for exploring all of these deeper questions. By looking at the actual geography of the novels, real and imagined historical events portrayed in the novels, the reactions of scholars in all the social sciences to the novels, and the world-wide frenzy inspired by them, students will examine issues of race, class, gender, time, place, the uses of space and movement, the role of multiculturalism in history as well as how to read a novel and how to read scholarly essays to get the most out of them.
2. “God, Sex, Chocolate: Desire and the Spiritual Path” (UC San Diego) – Who shapes our desire? Who suffers for it? Do we control our desire or does desire control us? When we yield to desire, do we become more fully ourselves or must we deny it to find an authentic identity beneath? How have religious & philosophical approaches dealt with the problem of desire?
3. “GaGa for Gaga: Sex, Gender, and Identity” (The University Of Virginia) – In Graduate Arts & Sciences student Christa Romanosky’s ongoing ENWR 1510 class, “GaGa for Gaga: Sex, Gender, and Identity,” students analyze how the musician pushes social boundaries with her work. For this introductory course to argumentative essay writing, Romanosky chose the Lady Gaga theme to establish an engaging framework for critical analysis.
4. “Lady Gaga and the Sociology of Fame” (The University Of South Carolina) – Lady Gaga may not have much class but now there is a class on her. The University of South Carolina is offering a class called Lady Gaga and the Sociology of Fame. Mathieu Deflem, the professor teaching the course describes it as aiming to “unravel some of the sociologically relevant dimensions of the fame of Lady Gaga with respect to her music, videos, fashion, and other artistic endeavours.”
5. “Philosophy And Star Trek” (Georgetown) – Star Trek is very philosophical. What better way, then, to learn philosophy, than to watch Star Trek, read philosophy, and hash it all out in class? That’s the plan. This course is basically an introduction to certain topics in metaphysics and epistemology philosophy, centered around major philosophical questions that come up again and again in Star Trek. In conjunction with watching Star Trek, we will read excerpts from the writings of great philosophers, extract key concepts and arguments and then analyze those arguments.
6. “Invented Languages: Klingon and Beyond” (The University Of Texas) – Why would anyone want to learn Klingon?
7. “The Science Of Superheroes” (UC Irvine) – Have you ever wondered if Superman could really bend steel bars? Would a “gamma ray” accident turn you into the Hulk? What is a “spidey-sense”? And just who did think of all these superheroes and their powers? In this seminar, we discuss the science (or lack of science) behind many of the most famous superheroes. Even more amazing, we will discuss what kind of superheroes might be imagined using our current scientific understanding.
8. “Learning From YouTube” (Pitzer College) – About 35 students meet in a classroom but work mostly online, where they view YouTube content and post their comments. Class lessons also are posted and students are encouraged to post videos. One class member, for instance, posted a 1:36-minute video of himself juggling.
9. “Arguing with Judge Judy” (UC Berkeley) – TV “Judge” shows have become extremely popular in the last 3-5 years. A fascinating aspect of these shows from a rhetorical point of view is the number of arguments made by the litigants that are utterly illogical, or perversions of standard logic, and yet are used over and over again. For example, when asked “Did you hit the plaintiff?” respondents often say, “If I woulda hit him, he’d be dead!” This reply avoids answering “yes” or “no” by presenting a perverted form of the logical strategy called “a fortiori” argument [“from the stronger”] in Latin. The seminar will be concerned with identifying such apparently popular logical fallacies on “Judge Judy” and “The People’s Court” and discussing why such strategies are so widespread. It is NOT a course about law or “legal reasoning.” Students who are interested in logic, argument, TV, and American popular culture will probably be interested in this course. I emphasize that it is NOT about the application of law or the operations of the court system in general.
10. “Elvis As Anthology” (The University Of Iowa) – The class, “Elvis as Anthology,” focuses on Presley’s relationship to African American history, social change, and aesthetics. It focuses not just on Elvis, but on other artists who inspired him and whom he inspired.
11. “The Feminist Critique Of Christianity” (The University Of Pennsylvania) – An overview of the past decades of feminist scholarship about Christian and post-Christian historians and theologians who offer a feminist perspective on traditional Christian theology and practice. This course is a critical overview of this material, presented with a summary of Christian biblical studies, history and theology, and with a special interest in constructive attempts at creating a spiritual tradition with women’s experience at the center.
12. “Zombies In Popular Media” (Columbia College) – This course explores the history, significance, and representation of the zombie as a figure in horror and fantasy texts. Instruction follows an intense schedule, using critical theory and source media (literature, comics, and films) to spur discussion and exploration of the figure’s many incarnations. Daily assignments focus on reflection and commentary, while final projects foster thoughtful connections between student disciplines and the figure of the zombie.
13. “Far Side Entomology” (Oregon State) – For the last 20 years, a scientist at Oregon State University has used Gary Larson’s cartoons as a teaching tool. The result has been a generation of students learning — and laughing — about insects.
14. “Interrogating Gender: Centuries of Dramatic Cross-Dressing” (Swarthmore) – Do clothes make the man? Or the woman? Do men make better women? Or women better men? Is gender a costume we put on and take off? Are we really all always in drag? Does gender-bending lead to transcendence or chaos? These questions and their ramifications for liminalities of race, nationality and sexuality will be our focus in a course that examines dramatic works from The Bacchae to M. Butterfly.
15. “Oh, Look, a Chicken!” Embracing Distraction as a Way of Knowing (Belmont University) – Students must write papers using their personal research on the five senses. Entsminger reads aloud illustrated books The Simple People and Toby’s Toe to teach lessons about what to value by being alive. Students listen to music while doodling in class. Another project requires students to put themselves in situations where they will be distracted and write a reflection tracking how they got back to their original intent.
16. “The Textual Appeal of Tupac Shakur” (University of Washington) – The UW is not the first college with a class dedicated to Shakur — classes on the rapper have been offered at the University of California Berkeley and Harvard — but it is the first to relate Shakur’s work to literature.
17. “Cyberporn And Society” (State University of New York at Buffalo) – With classwork like this, who needs to play? Undergraduates taking Cyberporn and Society at the State University of New York at Buffalo survey Internet porn sites.
18. “Sport For The Spectator” (The Ohio State University) – Develop an appreciation of sport as a spectacle, social event, recreational pursuit, business, and entertainment. Develop the ability to identify issues that affect the sport and spectator behavior.
19. “Getting Dressed” (Princeton) – Jenna Weissman Joselit looks over the roomful of freshmen in front of her and asks them to perform a warm-up exercise: Chart the major moments of your lives through clothes. “If you pop open your closet, can you recall your lives?” she posits on the first day of the freshman seminar “Getting Dressed.”
20. “How To Watch Television” (Montclair) – This course, open to both broadcasting majors and non-majors, is about analyzing television in the ways and to the extent to which it needs to be understood by its audience. The aim is for students to critically evaluate the role and impact of television in their lives as well as in the life of the culture. The means to achieve this aim is an approach that combines media theory and criticism with media education.
Are you starting to understand why our college graduates can’t function effectively when they graduate and go out into the real world?
All of this would be completely hilarious if not for the fact that we have millions of young people going into enormous amounts of debt to pay to go to these colleges.
In America today, college education has become a giant money making scam. We have a system that absolutely throws money at our young people, but we never warn them about the consequences of all of these loans. The following is an excerpt from an email that one reader sent me recently about the student loan industry…
For example, one woman told me that her and her husband sat down and thought of every possible expense they could when they were applying for parent/student loan for their daughter. When the approval came back, they were approved for 7k more than they asked for…how about ****! Of course at 7%, why not! Funny thing is they kept the 7k, because she’s in wealth management and said she could “easily” get more than 7% in the stock market……awesome! I have another example of a younger friend of mine who graduated law school from Vanderbilt with 210k in student loans. I asked if tuition was that much there. She said kind of, but they kept offering more than the actual tuition, so she took it and used it for a better lifestyle. Now 20% of her income goes to pay those loans, and it’s still not enough to touch one dollar of the principal…so all she is doing is paying interest, and building on principal…like a revers amortizing mortgage. To make it worse, she was able to save 25k, so she is going to buy a house somehow. Having explained to her that the best investment in the world is to pay off a high interest loan, she said I’m tired of waiting to have a life.
In a recent article entitled “The Student Loan Delinquency Rate In The United States Has Hit A Brand New Record High” I detailed how nightmarish our student loan debt bubble is becoming. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003, and it just continues to soar.
A college education can be a wonderful thing, but right now we have got a system that is deeply, deeply broken.
So what do you think about our system of higher education?
Please feel free to express your opinion by posting a comment below…
37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before. According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. That is a brand new record high, and it is almost double the rate of a decade ago. Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages. The student loan debt bubble has been growing particularly rapidly in recent years. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. That is a staggering figure. Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens. Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt.
So why is this happening? Well, a big part of the problem is that the cost of college tuition has gotten wildly out of control. Since 1978, the cost of college tuition has risen even more rapidly then the cost of medical care has. Tuition costs at public universities have risen by 27 percent over the past five years, and there appears to be no end in sight.
We keep encouraging our young people to take out all of the loans that are necessary to pay for college, because a college education is supposedly the “key” to their futures.
But is that really the case?
Sadly, the reality of the matter is that millions of young Americans are graduating from college only to discover that the jobs that they were promised simply do not exist.
In fact, at this point about half of all college graduates are working jobs that do not even require a college degree.
This is leading to mass disillusionment with the system. One survey found that 70% of all college graduates wish that they had spent more time preparing for the “real world” while they were still in college.
And because so many of them cannot get decent jobs, more college graduates then ever are finding that they cannot pay back the huge student loans that they were encouraged to sign up for. The following is from a recent Bloomberg article.
Eleven percent of student loans were seriously delinquent — at least 90 days past due — in the third quarter of 2012, compared with 6 percent in the first quarter of 2003, according to the report by the U.S. Education Department. Almost 30 percent of 20- to 24-year-olds aren’t employed or in school, the study found.
Everyone agrees that we are now dealing with an unprecedented student loan debt bubble, but none of our leaders seem to have any solutions.
The two charts posted below come from a recent Zero Hedge article, and they are very illuminating. The first chart shows how the amount of student loan debt owned by the federal government has absolutely exploded in recent years, and the second chart shows how the percentage of student loan debt that is at least 90 days delinquent has risen to a brand new record high…
How is the economy ever going to recover if an increasingly large percentage of our young college graduates are financially crippled by student loan debt?
And things are about to get even worse.
If Congress takes no action, the interest rate on federal student loans is going to double to 6.8 percent on July 1st. That rate increase would affect more than 7 million students.
And debt burdens just continue to increase in size. In fact, according to one recent study, “70 per cent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.”
This is one reason why there is so much poverty among young adults in America today. As I mentioned in a previous article, families that have a head of household that is under the age of 30 have a poverty rate of 37 percent. For much more on the student loan debt bubble and how it is crippling an entire generation of Americans, please see my recent article entitled “29 Shocking Facts That Prove That College Education In America Is A Giant Money Making Scam“.
And of course delinquency rates remain very high on other forms of debt as well. For example, delinquency rates on home mortgages have typically been around 2 to 3 percent historically. But as you can see from the chart below, the delinquency rate on single-family residential mortgages is currently close to 10 percent…
So are we really having an “economic recovery”?
Of course not.
Things are good for those that have lots of money in the stock market (for now), but for the vast majority of Americans things continue to get worse.
And we continue to forget the lessons that we should have learned from the financial crisis of 2008. Right now, we are seeing a resurgence of cash out financing. But this time, people are leveraging their inflated stock portfolios instead of their home equity. The following is from a CNN report…
The recent run-up in the market, financial advisers say, has led to a resurgence of the type of loan not seen since the end of the housing boom — cash out financing. But this time, though, people aren’t tapping their inflated house for money. These days stock portfolios appear to be the well of choice.
Financial planners say in recent months clients have taken out so-called margin loans to buy real estate, fund small business acquisitions, or to provide gap financing before a traditional loan could be secured from a bank.
“No one wants to be out of the market for 90 days,” says Mark Brown, a financial planner for Brown Tedstron in Denver. “People just don’t want to sell right now.”
We are a nation that is absolutely addicted to debt. We know that it is wrong, but we just can’t help ourselves.
We are like the 900 pound man that recently died. He knew that he was eating himself to death, but he just couldn’t stop.
In the end, we are going to pay a great price for our gluttony. Everyone in the world can see that we are killing the greatest economy that ever existed, but we simply do not have the self-discipline to do anything about it.