Don’t worry – even though the employment numbers are terrible the mainstream media insists that everything is going to be wonderful for the U.S. economy in the months ahead. According to the Bureau of Labor Statistics, the U.S. economy lost 33,000 jobs during September. That was the first monthly decline in seven years, and as you will see below, overall 2017 is on pace for the slowest employment growth in at least five years. But the Bureau of Labor Statistics insists that the downturn in September was due to the chaos caused by Hurricane Harvey and Hurricane Irma, and they are assuring us that happier times are right around the corner.
Economists were projecting that we would see an increase of around 80,000 jobs last month, and we need to add at least 150,000 jobs each month just to keep up with population growth. So the -33,000 number was a huge disappointment.
But even though we lost 33,000 jobs last month, the Bureau of Labor Statistics says that the unemployment rate fell from 4.4 percent to 4.2 percent.
Yes, I know that doesn’t make any sense at all, but that is what they are telling us.
Perhaps if several volcanoes go off inside this country, terrorists detonate a dirty bomb in one of our major cities and Godzilla invades the west coast next month the unemployment rate will drop all the way to zero.
Of course I am being facetious, but I just want to point out the absurdity of what we are being told. There is no way in the world that the official unemployment rate should be at “a new 16-year low”.
In the end, perhaps September will end up being a bit of an anomaly. But as I mentioned above, we have been witnessing a broader trend build for months. According to CNBC, we are on pace for “the slowest jobs growth in at least five years”…
In addition to September’s rough month, the July number was revised lower from 189,000 to 138,000 though August got a bump higher from 156,000. In all, though, 2017 thus far has seen the slowest jobs growth in at least five years.
Let that sink in for a moment.
Employment is not booming. In fact, things haven’t been this slow “in at least five years”. An economic slowdown is here, and yet most people are totally oblivious to what is happening.
And let me share something else with you. The following chart shows the average duration of unemployment since the late 1940s…
This chart shows that workers remain unemployed far longer than they did in the “good old days”, but I want you to pay special attention to the very end of the chart.
The duration of unemployment is really starting to spike up again quite dramatically, and that is a very, very troubling sign for the U.S. economy overall, because spikes in this number almost always correspond with recessions.
But the Bureau of Labor Statistics says that we don’t have anything to be concerned about. In fact, they are blaming all of the bad numbers from last month on Harvey and Irma…
Our analysis suggests that the net effect of these hurricanes was to reduce the estimate of total nonfarm payroll employment for September. There was no discernible effect on the national unemployment rate. No changes were made to either the establishment or household survey estimation procedures for the September figures. For both surveys, collection rates generally were within normal ranges, both nationally and in the affected states. In the establishment survey, employees who are not paid for the pay period that includes the 12th of the month are not counted as employed. In the household survey, persons with a job are counted as employed even if they miss work for the entire survey reference week (the week including the 12th of the month), regardless of whether or not they are paid. For both surveys, national estimates do not include Puerto Rico or the U.S. Virgin Islands.
“Despite the decline (in job gains), it’s really clear that the labor market remains in good shape,” says Joel Naroff of Naroff Economic Advisors.
The unemployment rate, which is calculated from a different survey than the headline job totals, edged lower. That’s because gains in the number of people employed outpaced an increase in the labor force, which includes people working and looking for jobs. In that survey of households, workers are counted as employed even if they were temporarily idled by the storms.
Hopefully they are right.
Hopefully happy times are here again and an economic boom is right around the corner.
We have been able to maintain our ridiculously inflated standard of living for an extended period of time by borrowing absolutely colossal mountains of money year after year. But no debt bubble lasts forever, and this one will not either.
The debt-fueled “prosperity” that we see all around us today is an enormous temporary illusion, and when the illusion collapses the economic pain is going to be greater than anything we have ever seen before in modern American history.
The ninth largest economy in the entire world is currently experiencing “its longest and deepest recession in recorded history”, and in a country right next door people are being encouraged to label their trash so that the thousands upon thousands of desperately hungry people that are digging through trash bins on the streets can find discarded food more easily. Of course the two nations that I am talking about are Brazil and Venezuela. The Brazilian economy was once the seventh largest on the globe, but after shrinking for eight consecutive quarters it has now fallen to ninth place. And in Venezuela the economic collapse has gotten so bad that more than 70 percent of the population lost weight last year due to a severe lack of food. Most of us living in the northern hemisphere don’t think that anything like this could happen to us any time soon, but the truth is that trouble signs are already starting to erupt all around us. It is just a matter of time before the things currently happening in Brazil and Venezuela start happening here, but unfortunately most people are not heeding the warnings.
Just a few years ago, the Brazilian economy was absolutely roaring and it was being hailed as a model for the rest of the world to follow. But now Brazil’s GDP has been imploding for two years in a row, and this downturn is being described as “the worst recession in recorded history” for that South American nation…
Latin America’s largest economy Brazil has contracted by 3.6 percent in 2016, shrinking for the second year in a row; statistics agency IBGE said on Tuesday. It confirmed the country is facing its longest and deepest recession in recorded history.
Data shows gross domestic product (GDP) fell for the eighth straight quarter in the three months to December, down 0.9 percent from the previous quarter. The figure was worse than the 0.5 percent decline economists had forecast and left the country’s overall GDP down 3.6 percent for the full year following a 3.8 percent drop in 2015.
“In real terms, GDP is now nine percent below its pre-recession peak,” Neil Shearing, chief emerging markets economist at Capital Economics, told the Financial Times.
“This is comfortably the worst recession in recorded history,” he added.
It had been hoped that things in Brazil would be getting better by now, but instead they just keep getting worse.
The number of bankruptcy filings has soared to an all-time record high, and the official unemployment rate has more than doubled since the end of 2013. The following comes from Wolf Richter…
In a stunning deterioration, the unemployment rate in Brazil spiked to 12.6% in the rolling three-month period through January, a record in the new data series going back to 2012, according to Brazil’s statistical agency IBGE. Up from 11.8% in the three-month period through October. Up from an already terribly high 9.5% a year ago. And more than double the 6.2% in December 2013.
Meanwhile, hordes of hungry people are rummaging through garbage cans in Venezuela in order to find something to fill their aching stomachs.
Things have gotten so bad that one of President Maduro’s chief opponents has urged citizens to label which trash bags have food in them so that people that are searching through the garbage can find food scraps more easily…
Controversial Priest and opponent to President Nicolás Maduro’s administration Father Jose Palmar posted on social media this week about labeling discarded waste so those looking through it for food can do so more easily and “with dignity.”
Palmar called on Venezuelans to celebrate Lent by identifying bags where food has been discarded for those with no where else to turn. That way, they don’t have to dig through non-edible items to find it.
Thanks to chronically empty store shelves and severe food shortages, people in Venezuela are losing weight at an astounding pace. In the United States it would be a good thing if much of the population lost this much weight, but in Venezuela it definitely is not…
Three quarters of the country’s population lost an average of over 18 pounds over food shortages in 2016, according to a survey by Venezuelan universities and nonprofit groups. Last year, over 80 percent of foodstuffs disappeared from shelves and many had to get by with one meal a day, Foreign Policy reported.
Venezuela was once South America’s most powerful petrostate. But decades of government mismanagement sent the country into decline. Maduro’s predecessor Hugo Chavez choked the economy with heavy-handed regulations, price controls, and a campaign to nationalize major industries that chased out foreign investments.
Further north, very alarming signs are starting to pop up in Mexico.
It probably won’t happen next week or next month, but there are indications of emerging “liquidity problems” which could precipitate a major debt crisis at some point…
In Mexico foreign investors hold around $100 billion of the country’s local-currency government debt, the most for any emerging market economy. That’s almost 20 times what it was 20 years ago. They also hold billions of euros worth of corporate bonds, which are also showing signs of strain, prompting some Mexican business leaders to call for “new programs” to be implemented before the situation causes “a large-scale crisis” among Mexican companies.
The most ominous sign yet came last week when Bloomberg reported sources saying that the Bank of Mexico (or Banxico, as it is referred to) had sought a swap line from the Federal Reserve in case of “liquidity problems,” which immediately triggered furious denials from Banxico. “I can say clearly and unequivocally that we are not in the process of asking for any credit line from any authority,” said the central bank’s governor, Agustin Carstens, who has postponed by six months his departure from the bank, initially scheduled for May.
One of the biggest problems for nations such as Brazil, Venezuela and Mexico is the strength of the U.S. dollar. During the good times they went into tremendous amounts of debt, and much of that debt was denominated in U.S. dollars. So when the U.S. dollar becomes stronger, it takes more of their own local currencies to pay that debt back.
And if the Federal Reserve raises interest rates at their next meeting, that will strengthen the U.S. dollar even more and put even more pressure on emerging market economies.
Even one small interest rate increase by the Fedcould have a sweeping impact on U.S. and world economies, Komal Sri-Kumar told CNBC on Monday.
“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts. “But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the U.S. economy will feel the impact.”
The global economy is more interconnected than ever before, and pain that starts in one region can rapidly spread to others.
The biggest debt bubble that the world has ever seen is starting to burst, and over the coming years we are going to see financial pain on a scale that would be unimaginable to most of us at this moment.
But even now there are those that would suggest that this colossal debt bubble can continue growing much faster than global GDP indefinitely, and this sort of exceedingly reckless optimism is leading many astray.
Did you know that when you take the number of working age Americans that are officially unemployed (8.2 million) and add that number to the number of working age Americans that are considered to be “not in the labor force” (94.3 million), that gives us a grand total of 102.5 million working age Americans that do not have a job right now? I have written about this before, but today I want to focus just on Americans that are in their prime working years. When you look at only Americans that are from age 25 to age 54, 23.2 percent of them are unemployed right now. The following analysis and chart come from the Weekly Standard…
Here’s a chart showing those in that age group currently employed (95.6 million) and those who aren’t (28.9 million):
“There are 124.5 million Americans in their prime working years (ages 25–54). Nearly one-quarter of this group—28.9 million people, or 23.2 percent of the total—is not currently employed. They either became so discouraged that they left the labor force entirely, or they are in the labor force but unemployed. This group of non-employed individuals is more than 3.5 million larger than before the recession began in 2007,” writes the Republican side of the Senate Budget Committee.
Clearly, we have never recovered from the impact of the last recession.
But let’s try to put these numbers in context.
Below, I would like to share two charts with you. They show what has happened to the inactivity rates for men and for women in their prime working years in the United States in recent years.
In order to be considered “inactive”, you can’t have a job and you can’t be looking for a job. So this subset of people is smaller than the group that we were talking about above. The 23.2 percent of Americans in their prime working years that are unemployed right now includes those that are looking for a job and those that are not looking for a job.
These next two charts do not include anyone that has a job or that is currently looking for a job. These charts only cover “inactive” people in their prime working years that are not considered to be in the labor force.
As you can see in this first chart, the inactivity rate for men in their prime working years exploded higher during the last recession and then continued to go up even after the recession supposedly ended. At this point, it is hovering near all-time record highs. Does this look like an “economic recovery” to you?…
For women, we see a similar thing. In this next chart, you can see that the inactivity rate for women in their prime working years rose during the last recession and then just kept on rising. At this point, it remains far higher than it was during the last recession…
What are we to make of all this?
For both men and women in their prime working years, the inactivity rate is significantly higher than it was during the last recession.
All of these people neither have a job nor are they looking for one.
So what in the world is going on here?
Are they independently wealthy?
Have these people found rich spouses to marry so they don’t have to work?
And even if you have a job, that does not mean that you are on easy street. According to the Social Security Administration, 51 percent of all American workers make less than $30,000 a year.
Tens of millions of Americans are now among the ranks of “the working poor”. So many families are watching their expenses soar while their paychecks go down or stagnate. If you are in this situation right now, then you probably know how exceedingly stressful it can be.
Just look at what is happening to the cost of health insurance. The following comes from Fox News…
Health insurance premiums have increased faster than wages and inflation in recent years, rising an average of 28 percent from 2009 to 2014 despite the enactment of Obamacare, according to a report from Freedom Partners.
And I am not exactly sure where they got those numbers. Personally, I know that my health insurance rates have gone up far faster than that.
Two years ago, my health insurance company wanted to double the health insurance premiums for my family even though we never get sick. So I switched to another insurance company that offered a policy that was only about 30 percent higher than my last one. But then when it came time to renew, that insurance company wanted to raise my rate by another 50 percent.
Thanks to Obamacare, American families are being absolutely crippled by the cost of health care. And of course we are seeing the rising cost of living so many other places as well. Our paychecks are being squeezed harder and harder, and this is absolutely killing the middle class. In fact, the middle class in America is now a minority for the first time ever.
And now for the real bad news – this is about as good as things are ever going to get in this country. As you can see from what I have shared above, we never really had any sort of meaningful “economic recovery”, and now we have entered the early phases of the next major downturn.
So where do we go from here? Unfortunately, our debt-fueled prosperity has provided us with a massively inflated standard of living that is not even close to sustainable. As this bubble bursts, the economic pain is going to be absolutely unprecedented.
But it won’t be just economic pain that we are facing. In my new book, I detail the things that I believe that are coming to this country, and I explain why the entire planet will soon be facing incredibly challenging times. It is going to be one of the most controversial Christian books of 2016, because it directly challenges many of the things that are being taught in mainstream churches today. My book is an ominous message of warning and an inspiring message of hope, and I truly believe that it is the most important thing that I have ever written.
No matter how you may see the future, the key is that we all learn to love one another. The years ahead are going to be extremely challenging, and those that want to chase everyone else away and survive as lone wolves are going to have a very rough time. We all need each other, and those that have friends, family and communities around them are going to be in a much better position to weather the coming storms.
So let us hope for the best, but let us also prepare for the worst…
The federal government uses very carefully manipulated numbers to cover up the crushing economic depression that is going on in this nation. For the month of September, the federal government told us that 142,000 jobs were added to the economy. If that was actually true, that would barely be enough to keep up with population growth. Sadly, the truth is that the real numbers were actually far worse than that. The unadjusted numbers show that the U.S. economy actually lost 248,000 jobs in September and the government added more than a million Americans to the “not in the labor force” category. When I first saw that number I truly believed that it was inaccurate. But you can find the raw figures right here. According to the Obama administration, there are currently 7.9 million Americans that are “officially unemployed” and another 94.7 million working age Americans that are “not in the labor force”. That gives us a grand total of 102.6 million working age Americans that do not have a job right now.
That is not an economic recovery – that is an economic depression of an almost unbelievable magnitude.
This is something that my friend Mac Slavo pointed out the other day. I encourage you to read his analysis right here. If we measured unemployment the way that we did decades ago, we would all be talking about how similar Obama’s economy is to the Great Depression of the 1930s.
But instead we let the feds get away with feeding us this completely fraudulent “5.1 percent” unemployment number and most of us believe the mainstream media when they tell us that everything is just fine.
Well no, everything is not just fine. At this point, the labor force participation rate is the lowest that it has been since 1977. And the labor force participation rate for men is at the lowest level ever recorded. The only way that the federal government has been able to get the official unemployment rate to go down so much is by pretending that hundreds of thousands of Americans that have been unemployed for a very long time “leave the labor force” each month.
The chart posted below shows how our labor force participation rate has deteriorated since the year 2000. And in particular, the decline since Obama first entered the White House has been very striking. Does this look like a “healthy economy” to you?…
To me, the civilian employment-population ratio is a far more accurate measurement of the employment picture in America than the official unemployment rate is. Just prior to the last recession, approximately 63 percent of all working age Americans had a job. During that recession, that figure slipped below 59 percent and it stayed there for several years. Just recently it slipped back above 59 percent, but as you can see we are now falling once again…
The reason this number is falling is because lots of Americans have been losing jobs lately.
In fact, we are seeing layoffs at major firms at a level that we have not witnessed since 2009…
The jobs report today has been described as “ugly,” though it certainly didn’t, or shouldn’t have, come out of the blue: Layoffs in the energy, Big Tech, retail, and other sectors have recently mucked up our rosy scenario.
“The third quarter ended with a surge in job cuts,” is how Challenger Gray, which tracks these things, started out its report yesterday. In September, large US-based companies had announced 58,877 layoffs. In the third quarter, they announced 205,759 layoffs, the worst quarter since the 240,233 in the third quarter of 2009!
Year-to-date, we’re at nearly half a million job cut announcements (493,431 to be precise), up 36% from the same period last year.
Some of the companies that have recently announced layoffs include Wal-Mart, RadioShack, Delta, Sprint, ConAgra, Caterpillar, Bank of America, Halliburton, Qualcomm, Microsoft and Hewlett-Packard.
If you need to find a job or you plan to switch jobs in the near future, time is of the essence. Jobs are going to become much, much harder to find in the months ahead, and so every single day of job searching is absolutely critical at this point.
Right now, there are more than 100 million Americans that get some sort of assistance from the federal government every month. Government dependence is at a level that we have never seen before in U.S. history, and it is going to get a lot worse.
If we get to a point where the government is either unwilling or unable to take care of all of these people, we are going to have a massive societal problem on our hands. More than a third of the people living in our nation cannot independently take care of themselves, and more Americans are falling out of the middle class every single day. When the welfare state starts breaking down, the chaos that will ensue will be far worse than most people would dare to imagine.
So what do you think?
Are job losses and layoffs starting to happen in your area?
Please feel free to add to the discussion by posting a comment below…
Jim Clifton, the Chairman and CEO of Gallup, says that the percentage of Americans that are employed full-time has been hovering near record lows since the end of the last recession. But most Americans don’t realize this because the official unemployment numbers are extremely misleading. In fact, Clifton says that the official 5.6 percent unemployment rate is a “big lie”. Gallup regularly tracks the percentage of U.S. adults that are employed for 30 or more hours per week, and it is currently at 44.2 percent. It has been hovering between 42 percent and 45 percent since the end of 2009. This is extremely low. As I discussed the other day, there are 8.69 million Americans that are considered to be “officially unemployed” at this point. But there are another 92.90 million Americans that are considered to be “not in the labor force”. Millions upon millions of those Americans would work if they could. Overall, there are 101 million U.S. adults that do not have a job right now. But you won’t hear that number being discussed by the mainstream media, because it would make Barack Obama look really bad.
Most Americans just assume that the economic numbers that we are being given accurately reflect reality. That is why it is so refreshing to have men like Jim Clifton step forward and tell the truth. His recent article entitled “The Big Lie: 5.6% Unemployment” is making headlines all over America. The following is an extended excerpt from that article…
There’s another reason why the official rate is misleading. Say you’re an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 — maybe someone pays you to mow their lawn — you’re not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.
Yet another figure of importance that doesn’t get much press: those working part time but wanting full-time work. If you have a degree in chemistry or math and are working 10 hours part time because it is all you can find — in other words, you are severely underemployed — the government doesn’t count you in the 5.6%. Few Americans know this.
There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.
And it’s a lie that has consequences, because the great American dream is to have a good job, and in recent years, America has failed to deliver that dream more than it has at any time in recent memory. A good job is an individual’s primary identity, their very self-worth, their dignity — it establishes the relationship they have with their friends, community and country. When we fail to deliver a good job that fits a citizen’s talents, training and experience, we are failing the great American dream.
Gallup defines a good job as 30+ hours per week for an organization that provides a regular paycheck. Right now, the U.S. is delivering at a staggeringly low rate of 44%, which is the number of full-time jobs as a percent of the adult population, 18 years and older.
And Gallup is being extremely generous.
I certainly would not define a 30 hour a week job at minimum wage as a “good job”, but Gallup does.
So the truth is that the percentage of U.S. adults that do have “good jobs” is actually far lower than 44 percent.
In the video that I have posted below, there is much more from Clifton about our current employment crisis…
Pretty strong stuff.
But Clifton also understands that there is danger in speaking out like this.
For example, just check out what he told CNBC during one recent interview…
“I think that the number that comes out of BLS [Bureau of Labor Statistics] and the Department of Labor is very, very accurate. I need to make that very, very clear so that I don’t suddenly disappear. I need to make it home tonight.”
So why are there so few good jobs for Americans?
Well, for one thing, our control freak politicians have absolutely murdered job creation in the United States.
Traditionally, small businesses have been the primary engine of job growth for the U.S. economy. But for each of the past six years, the number of new businesses being created has been lower than the number of businesses that have died.
Prior to 2008, we had never seen this happen before in all of U.S. history.
A confluence of factors are coming together to create a perfect storm that is going to be extremely bitter for American workers.
Spending our wealth is not a path to prosperity. We have got to create wealth in order to be a prosperous nation.
But instead, we continue to buy far, far more from the rest of the world than they buy from us. We just learned that the trade deficit increased to 46.6 billion dollars in December, and the total trade deficit for the year was more than half a trillion dollars.
This is complete and utter insanity, but at this point the trade deficit is not even a political issue for either major political party anymore.
And the really bad news is that this is about as good as things are going to get for the U.S. economy. The next major economic downturn is right around the corner, and our employment crisis is going to get much, much worse once that strikes.
Already, layoffs in January were 17.6 percent higher than they were in January a year ago and businesses all over the country are shutting down following a very disappointing holiday season.
In addition, the Baltic Dry Index has dropped to stunningly low levels. In fact, it is already lower than it was at any point during the last recession. The following is an excerpt from a recent article by Mac Slavo…
The Baltic Dry Index (BDI) is used by economists and stock traders alike as a leading economic indicator because it predicts future economic activity. The index tracks in US dollars and measures global supply and demand for commodity shipments among bulk carriers including raw materials like lumber, coal, metallic ores, and grains. What makes this particular measurement so distinct from others, according to economic Howard Simmons, is that the BDI “is totally devoid of speculative content” because “people don’t book freighters unless they have cargo to move.”
On Thursday, the Baltic Dry Index was sitting at 564, That is not too far above the record low level of 554 that was established in July 1986.
So don’t be fooled by all the happy talk from the mainstream media and from politicians like Barack Obama.
They are lying to you, and their lies will soon be evident for all the world to see.
If you want to know what the future of America is going to be like, just look at the city of Detroit. Once upon a time it was a symbol of everything that America was doing right, but today it has been transformed into a rotting, decaying, post-apocalyptic hellhole. Detroit was once the fourth-largest city in the United States, and in 1960 Detroit had the highest per-capita income in the entire nation. It was the greatest manufacturing city the world had ever seen, and the rest of the globe looked at Detroit with a sense of awe and wonder. But now the city of Detroit has become a bad joke to the rest of the world. Unemployment is rampant, 60 percent of the children are living in poverty and the city government is on the verge of bankruptcy. They say that Detroit is just a matter of “weeks or months” away from running out of cash, and when Detroit does declare bankruptcy it will be the largest municipal bankruptcy in the history of the United States. But don’t look down on Detroit, because the truth is that Detroit is really a metaphor for what is happening to America as a whole. In the United States today, our manufacturing infrastructure has been gutted, poverty is absolutely exploding and we are rapidly approaching national bankruptcy. Detroit may have gotten there first, but the rest of the country will follow soon enough.
Back during the boom years, Detroit was known for making great cars. Today, it is known for scenes of desolation and decay. It is full of vandalized homes, abandoned schools and empty factories. The following description of what Detroit looks like at this point is from an article by Barry Yeoman…
It’s hard to describe the city’s physical landscape without producing what Detroiters call “ruin porn.” Brick houses with bays and turrets sit windowless or boarded up. Whole blocks, even clusters of blocks, have been bulldozed. Retail strips have been reduced to a dollar store here, a storefront church there, and a whole lot of plywood in between. Not a single chain supermarket remains.
So what caused the downfall of one of the greatest cities on earth?
When you are a manufacturing area, and you lose half of your manufacturing jobs over the course of a single decade, of course things are going to get really, really bad.
So just how bad have things gotten in Detroit?
The following are 24 facts about the city of Detroit that will shock you…
#1 Detroit was once the fourth-largest city in the United States, and it was once home to close to 2 million people. But over the last several decades people have been fleeing in droves. According to the 2010 census, only 713,000 people now live in Detroit, and city officials admit that the population has probably slipped under 700,000 at this point.
#2 The population of Detroit has declined by about 25 percent over the past decade. The last time the population of Detroit was this low was all the way back in 1910.
#3 Today, Detroit is only the 18th-largest city in America. It is now smaller than Austin, Texas and Charlotte, North Carolina.
#21 At one point, 100 bus drivers in Detroit refused to drive their routes because they were afraid of being attacked out on the streets in broad daylight. The head of the bus drivers union, Henry Gaffney, said that the drivers were literally “scared for their lives“….
“Our drivers are scared, they’re scared for their lives. This has been an ongoing situation about security. I think yesterday kind of just topped it off, when one of my drivers was beat up by some teenagers down in the middle of Rosa Parks and it took the police almost 30 minutes to get there, in downtown Detroit,” said Gaffney.
#22 There have been reports that gangs of young men with AK-47s have been terrorizing gas stations all over Detroit.
#23 Detroit was once known for making some of the greatest cars in the world. Now, it is known around the world as a dumping ground for the dead…
From the street, the two decomposing bodies were nearly invisible, concealed in an overgrown lot alongside worn-out car tires and a moldy sofa. The teenagers had been shot, stripped to their underwear and left on a deserted block.
They were just the latest victims of foul play whose remains went undiscovered for days after being hidden deep inside Detroit’s vast urban wilderness — a crumbling wasteland rarely visited by outsiders and infrequently patrolled by police.
#24 Detroit’s public schools are an absolute nightmare. The following is from one of my readers that actually attended one of the “best” public schools in Detroit…
The school was a new seven story building just a couple of years old. The bathrooms would often lack toilet paper & soap beyond the second floor (the main floor), the bathroom sinks would often not work. The water fountains on north side of the building on from the third floor & up did not work. The elevators would constantly break down. I even got stuck on the elevator before. I almost tripped down a half a flight of stairs because the elastic seal (it was the metal bar at the front of a treader of I don’t know the name of it.) the stairs was not properly installed.
Students would often have sex on the stairs & throughout the school. Parents actually called the school many times & reported kids having sex on the stairs because all of them had glass windows 270 degrees.
Even over in Europe they write stories about the dramatic decline of Detroit. For example, the following is how one British reporter described his visit to Detroit…
Much of Detroit is horribly dangerous for its own residents, who in many cases only stay because they have nowhere else to go. Property crime is double the American average, violent crime triple. The isolated, peeling homes, the flooded roads, the clunky, rusted old cars and the neglected front yards amid trees and groin-high grassland make you think you are in rural Alabama, not in one of the greatest industrial cities that ever existed.
For those that want to read even more about the horrifying downfall of Detroit, there are some amazing charts that graphically show the decline of Detroit right here.
So what is the solution?
How can we fix Detroit?
Well, why don’t we just build a monorail! Of course that sounds ridiculous, but the federal government has actually committed $25 million to construct “a streetcar line” that nobody really wants and that very few people would probably actually use. Perhaps they could be excused for wasting so much money on a bad idea if there had not already been 24 failed attempts to develop a successful public transit system in Detroit over the past four decades.
Well, why don’t we just build a bunch of theme parks instead? After all, tourists would just flock to Detroit, right?
Actually, a much better idea would have been to not allow millions of our good paying manufacturing jobs to be shipped to the other side of the world, but it is too late for that at this point.
But once again, please do not look down on the city of Detroit. Instead, let the city of Detroit serve as a warning for the rest of us.
The truth is that the entire U.S. economy is in an advanced state of decline…
-The percentage of the civilian labor force in the United States that is employed has been steadily declining every single year since 2006.
-An astounding 53 percent of all American workers make less than $30,000 a year.
-Amazingly, there are hundreds of thousands of Americans with either Master’s degrees or Ph.D.s that are enrolled in the food stamp program at this point.
We are a nation that consumes far more wealth than we produce, we are a nation that is constantly bleeding jobs, businesses and wealth, and we are a nation that is going deeper into debt with each passing day.
Yes, Detroit may have gone over the edge into economic oblivion first, but the rest of the nation is steamrolling down the exact same path that Detroit has gone.
Is it too late for us to change direction?
Please feel free to share your thoughts on that question by leaving a comment below…
The decay of society is so much harder to quantify than economic decline is. The government keeps lots of statistics on things like unemployment and inflation, but it really does not keep track of how sick and twisted people are becoming. Most of us recognize that the character of the American people has changed dramatically over the decades, but unlike the national debt, you can’t easily point to a chart or a graph to show exactly how bad things are getting. In this article, my approach will be to point you to various “signs” of social decay. Signs tell us where we are at now and where we are headed. Some of the signs that I will use will be statistics while others will simply consist of anecdotal evidence. Yes, anecdotal evidence is not perfect, but when you put enough of it together it starts to paint a pretty clear picture of what is going on out there. America is becoming a truly frightening place. Our cities our decaying, thieves are becoming bolder, you never know who you can trust and everyone seems depressed. America is decomposing right in front of our eyes, and it is time that we all admitted it.
In the old days, if you met a stranger out on the streets you knew that you could almost certainly trust that person. But these days if you let your child wander one aisle over while you are shopping at Wal-Mart there is a chance that someone will try to abduct her.
Something has changed.
In our major cities, if you walk up to someone at random there is a decent chance that person will be a pervert or a sicko, and most Americans know that this is true at a gut level. Almost everyone is very leery of “strangers” these days. It has gotten to the point where we are all afraid of one another.
Just try this some time….
In a major U.S. city, walk right up to people on the street, look them in the eyes and try to introduce yourself.
What will happen when you do that?
In many instances, people will literally run away from you.
We are scared to death to interact with people that we do not know, and the reality is that those fears are way too often justified.
The character of the American people is decaying at a rapid pace, and the evidence of this is all around us.
The following are 10 signs that America is decomposing right in front of our eyes….
#1 As the economy crumbles, in many U.S. cities desperate people are increasingly resorting to violent acts in an attempt to survive. So far this year, violent crime in Washington D.C. has risen by 40 percent. Robberies at gunpoint have more than doubled compared to the same time period last year.
And as I wrote about recently, justifiable homicide in Detroit rose by a staggering 79 percent during 2011, and the rate of self-defense killings in Detroit is now 2200% above the national average.
#2 But it is not just in the cities where you will find crazies. A recent Daily Mail article described a very disturbing incident which took place recently in North Dakota. Two crack-fueled perverts abducted and murdered a 43-year-old math teacher named Sherry Arnold….
Spell and Waters had left Colorado days before the crime claiming they wanted work in eastern Montana and western North Dakota’s oil fields.
After smoking crack cocaine over the entire trip, Waters allegedly told Spell the drug ‘brought the devil out in him’ and began talking about kidnapping and killing a female, AP reports.
After they spotted Arnold, Spell claims that Waters told him to ‘grab the lady’ and pull her into their Ford Explorer as she jogged by.
After they got Arnold into the car, they choked her to death and then buried her body in a shallow grave in North Dakota.
Why would anyone do something like that?
#3 Unfortunately, sickos will even be found working for the government. Just as so many of us feared, TSA workers are actually purposely selecting attractive women to go through the body scanners so that they can admire their naked bodies. The following are actual quotations from official TSA complaints….
-“I feel I was targeted by the TSA employee to go through the see-you-naked machine because I am a semi-attractive female.”
-“The screener appeared to enjoy the process of picking someone rather than doing true random screening. I felt this was inappropriate. A woman behind me was also “randomly selected.”
-“TSA staff ‘trolling’ the lines looking for people to pull out was unprofessional.”
-“I know he went to that room to see my naked body through the machine with the other guy.”
-“When I looked around, I saw that there were only women that were “told” to go through this machine. There were no men.”
One woman was recently forced to go through the body scanner three times because the TSA workers wanted to get a really good look at her “cute figure“.
Isn’t about time that we admitted that the TSA is a massive failure?
#4 The American people seem more depressed than ever. So are we the most depressed nation in the entire world? The U.S. has the highest percentage of women taking antidepressants of any country in the world, and kids in the U.S. are three times more likely to be prescribed antidepressants than kids in Europe are.
#5 The gang problem in the United States has never been worse. According to the FBI, the number of gang members in the United States has risen by 40 percent since 2009 and there are now a total of 1.4 million gang members living inside this country.
#6 Millions of other young people are not able to find jobs once they finish school and end up financially dependent on their parents. Today, record numbers of young adults are living at home. Many of these young people end up very disillusioned and very frustrated. Right now, more than 30 percent of all Americans in the 18 to 34 age bracket are currently living at home with their parents. That is not good news for the future of this country.
#7 All over America, criminals are becoming bolder and more desperate. The following is a report about one serial home invader from the Washington Post….
A housekeeper was tied up and sexually assaulted and a mother and teenage son were tied up during a home invasion in Bethesda early Wednesday morning that Montgomery County police say involves the same suspect as in a home invasion Tuesday in Wheaton.
As the economy gets even worse, home invasions will become even more common. You might want to learn how to defend yourself.
#8 These days thieves will steal literally anything. Each night in cities all over the nation more street lights are going out as thieves strip the copper wiring right out of them. In the San Francisco area, one very ambitious group of thieves actually swiped a copper bell that weighs 2.7 tons.
#9 One of the clearest signs that America is decomposing is the stunning decline of major cities such as Detroit. In response to my recent article about the death of Detroit, a reader identified as Bill posted the following….
Seeing what is happening to Detroit makes me want to cry AND scream.
I’m a native Detroiter myself – born in Harper Hospital on the east side & was one of those 2 million plus counted in the 1950 Census. I left Detroit in the early 70s for work reasons and had not gone back there since 1984.
When I drove through there on my way to Port Huron last September I “made a lap” around the city – got off I-75 downtown, made a loop around the downtown area (the 2 new stadiums look nice as does the RenCen) then went out Michigan Avenue to 12th and up through the 1967 Riot area to Grand River and out to the northwestern part of town where I grew up and went to school.
What a depressing trip. All my old haunts are gone, boarded up or burnt to the ground. The car dealer where I bought my first car (the old “Redford Rambler” on Grand River just west of Evergreen) is nothing but a slab. All the car dealers along the Grand River strip from Evergreen to McNicoles (6 Mile Rd.) are gone, the 16th Precinct Police Station at GR & Mc Nicholes is abandoned and the high school where my cousin graduated is all boarded up (Redford High School, across Grand River from the old police station). My old house on Lasher just north of Grand River is there but the stores in the area are all gone. One would think space aliens had come and taken all the life out of the area.
On that same article, another reader identified as “Disappointed” shared his thoughts on the decline of that once great city….
I worked in Detroit for a few years a while back. I was fascinated by the crumbling ruins, drove around to see a lot of them after work (a couple of times I drove through neighborhoods that I can tell you now I would not go near, even in the daytime). It was sad and fascinating at the same time. I would not even THINK of doing that now, it would be highly dangerous. I would not even work in Detroit now.
#10 But it isn’t just Detroit that is falling apart. This kind of thing is happening all over the country. A reader identified as Golden Child recently left the following comment on my website….
Much of America is like Detroit. America is rotting from California to West Virginia to Baltimore. It’s the same song across the United States. High unemployment, falling rent and or house prices, massive police lay-offs, giant spikes in crime accompanied by a rising cost of living and fewer job opportunities. Vallejo and Oakland, California are very much like Detroit. Vallejo ranked as the ninth most miserable city in America according to Forbes. Oakland and Vallejo have laid off nearly half of their police forces. You can get an apartment in Vallejo or Oakland for $200-600 a month although the median monthly rent in California is well over a thousand dollars with Bay Area rent being generally higher. There is a reason why rent is so comparably dirt cheap in those cities. San Francisco-Oakland-Vallejo collectively make up the car-theft capital of the United States. Northern CA cities like Oakland, Richmond and Stockton are regulars on the top ten most dangerous cities in America list. Baltimore, MD is also very much like Detroit with its thousands of abandoned rowhomes, high concentration of Black poverty, drugs and violence. Camden, NJ, East St. Louis, Gary Indiana are all no different from the D. Even large sections of wealthy world class cities like DC, NYC and San Francisco are impoverished quasi-third world hellholes. Southeast DC has the highest unemployment rate of anywhere in America despite the fact that DC is the richest city and metro in America. NYC has the widest income inequality gap of any metro area. Massive swaths of NYC are dangerous towering project buildings packed with working poor minorities. SF is home to some of the most sub-standard public housing in America in neighborhoods like Hunter’s Point, Sunnydale and Potrero Hill. America has been rotting from the core since at least the 70′s.
Sadly, this is just the beginning.
As the economic decline of this nation accelerates, people are going to become much more desperate.
And desperate people do desperate things.
So where do all of you think America is headed? Please feel free to post a comment with your opinion below….
I wanted to post a couple of new comments from the readers. These are more firsthand examples of what life is like on the streets of America today….
—Comment By “Bean”—
This evening I had to pick my daughter up from work,a fast food restaurant in the heart of downtown Fort Wayne, Indiana. My daughter came out later than expected so I had to sit in the car for about forty minutes waiting. While waiting a man walked up to my car and reached for the door handle, thankfully I had the doors locked, he started tapping on the window, I drove off went around the block and parked again to wait for my daughter. A little while later an elderly man with a cane, who appeared to be homeless, shuffled along the sidewalk, he saw me sitting in the car and he came up and tapped on the window, fortunately at that moment my daughter came out of work so I pulled up and picked her up and we got out of town. It was creepy, this was downtown Fort Wayne, Indiana, a city with a population of around 300,000, I was shocked! I do not want my daughter coming out of work at night into this kind of environment, I will be contacting the owner of the business to let them know that it is not a safe environment for young people to have to walk to their cars after dark.
—Comment By Madsr—
My wife and I were discussing this exact thing. A young girl in our quiet Arkansas town met a local guy off the internet she ended up dead on his family farm in a 55 gal drum…..Who does this? We live in a town of 4000 where we all know each other, a man walked into a little shop 3 weeks ago and raped the woman behind the counter. My wife and I consider where we live very safe compared to most of America. Yet we never go anywhere that we are not both carrying a pistol. That is what is so different between todays depression and the great depression. Most people would not hurt or kill you for food or goods. They were more apt to suffer quietly or sneak and get a chicken. It is just the opposite today they are being told everyday they are owed food and goods. The only reason they don’t have them is because the rich have it all, so you should take it from them. I guess that makes most of us that have worked 60 hours a week for the last 25 or 30 years the rich evil people. This is not going to get better regardless of the President both sides have supported the moral decay. God help us!
In the United States today, unemployment among those age 18 to age 34 is at epidemic levels and the number of young adults that are now living at home with Mom and Dad is at an all-time high. So why are so many of our young adults jobless? Why are record numbers of them unable or unwilling to move out on their own? Well, there are quite a few factors at work. Number one, our education system has completely and totally failed them. As I have written about previously, our education system is a joke and most high school graduates these days are simply not prepared to function at even a very basic level in our society. In addition, college education in the United States has become a giant money making scam that leaves scores of college graduates absolutely drowning in debt. Many young adults end up moving back in with Mom and Dad because they are drowning in so much debt that there are no other options. Thirdly, the number of good jobs continues to decline and this is hitting younger Americans the hardest. Millions of young people enter the workforce excited about the future only to find that there are hordes of applicants for the very limited number of decent jobs that are actually available. So all of this is creating an environment where more young adults are financially dependent on their parents that ever before in modern American history.
Since the start of the recession, the percentage of young adults in America that are employed has dropped like a rock. In 2007, the employment rate for Americans between the ages of 18 and 24 was 62.4 percent. Today, it is down to 54.3 percent.
Yes, there are certainly many out there that are lazy, but the truth is that most of them would like to work if they could. It is just that it is much harder to find a job these days.
And it isn’t just young people that think that the job market has gotten tougher. According to one recent 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.
But if they cannot get jobs, then young adults cannot financially support themselves. So more of them than ever are heading back home to live with Mom and Dad.
In the year 2000, 8.3 percent of all American women between the ages of 25 and 34 were living at home with their parents. Today, that figure is up to 9.7 percent.
In the year 2000, 12.9 percent of all American men between the ages of 25 and 34 were living at home with their parents. Today, that figure is up to an astounding 18.6 percent.
Take a moment and let those statistics sink in.
Nearly one out of every five American men from age 25 to age 34 are living at home with Mommy and Daddy.
When you look at Americans age 18 to age 24, it is even worse. Among Americans age 18 to age 24, 50 percent of all women and 59 percent of all men still live with their parents.
Those are very frightening numbers.
Part of this has to do with a fundamental cultural shift. An increasing number of parents these days expect that they will have to take care of their own children beyond the age of 22. The following is from a recent article by Pew Research….
When asked in a 1993 survey what age children should be financially independent from their parents, 80% of parents said children have to be self-reliant by age 22. In the current survey, only 67% of parents say children have to be financially independent by age 22—a drop of 13 percentage points.
But what accounts for the tremendous gender disparity that we see in the figures above?
Well, one major factor is that young women are now far more likely to pursue a college education than young men are. According to an article in the New York Times, women now account for approximately 57 percent of all enrollments at U.S. colleges and universities.
The less education you have, the more likely you are to be unemployed in America today. So that is certainly a significant factor.
But many that have gone on to college are also moving back home. When you are a young adult with no job and no prospects and you are swamped with tens of thousands of dollars of student loan debt, it can be incredibly difficult to be financially independent.
After adjusting for inflation, U.S. college students are now borrowing about twice as much money as they did a decade ago. Many students that go on to graduate school end up with more than $100,000 in total student loan debt.
It means that there are millions upon millions of angry, disillusioned and frustrated young adults out there today. A recent USA Today article told the story of 32-year-old Dennis Hansen….
After a year without work, Hansen, 32, was hired to monitor Lake Michigan and Lake Superior water for the state and federal governments over two summers. He also had short stints as a census worker and as an extra post office hand during one holiday crush.
It hasn’t been enough: Hansen says he has a $13,000 credit card debt and that’s just for basics — his $600 monthly mortgage, heat and food.
“It’s definitely a roller coaster,” Hansen says, with the ups coming when he’s done well in a job interview and the downs when there’s a rejection: “That’s when I’m frustrated, angry and wondering why I went to college for 10 years.”
If the economy was humming along on all cylinders, it would be easy to blame our young adults for being too lazy.
But these days most young adults have to scramble like crazy just to get a really low paying job. Large numbers of very talented young adults are waiting tables, flipping burgers or stocking shelves at Wal-Mart.
And this reality is reflected in the overall economic statistics. Since the year 2000, 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.
The “wealth gap” between younger Americans and older Americans is also growing and recently hit a new all-time high. U.S. households led by someone 65 years of age or older are now 47 times wealthier than U.S. households led by someone 35 years of age or younger.
But this is not good for our society. When there is civil unrest, it is not those 65 and older that take to the streets.
We desperately need our economy to get healthy again so that our young adults can get good jobs, get married, set up households, raise families and be productive members of society.
Instead, the percentage of young adults that have jobs is near an all-time low, the percentage of young adults living with their parents is at an all-time high, the proportion of adults in the United States that are married is at an all-time low and we have hordes of angry, frustrated young adults with plenty of time on their hands.
You don’t have to be a genius to see trouble on the horizon.
What is going to happen when the next major financial crisis comes and the economy gets significantly worse than it is now?
In the end, we are going to reap what we have sown. We have fundamentally failed our young adults, and those failures are going to produce some very bitter fruit.
Are you ready for an economy that has high inflation and high unemployment at the same time? Well, welcome to “Stagflation 2011”. Stagflation exists when inflation and unemployment are both at high levels at the same time. Of course we all know about the high unemployment situation already. Gallup’s daily tracking poll says that the U.S. unemployment rate has been hovering around 10 percent all year so far. But now thanks to rapidly rising food prices and the exploding price of oil, rampant inflation is being added to the equation. Normally inflation is a sign of increased economic activity, but when the basic commodities that we depend on to run our economy (such as oil) go up in price it actually causes a slowdown in economy activity. When the price of oil goes up high enough, it fundamentally changes the behavior of individuals and businesses. Suddenly certain types of economic activities that were feasible when oil was very cheap are not profitable any longer. When the price of oil rises to a new level and it stays there, essentially what is happening is that more “blood” is being drained out of our economy. Our economy will continue to function when there are higher oil prices, it will just be a lot more sluggish.
In some way, shape or form the price of oil factors into the production of most of our goods and services and it also factors into the transportation of most of our goods and services. A significant rise in the price of oil changes the economic equation for almost every business in the United States.
Today, the price of WTI crude soared past 100 dollars a barrel before closing at $98.10. The price of Brent crude increased 5.3 percent to $111.25. The protests in Libya are certainly causing a lot of the price activity that we have seen over the past few days, but the truth is that oil has been going up for a number of months. Right now we are only seeing an acceleration of the long-term trend.
Things are likely to get far worse if the “day of rage” planned for Saudi Arabia next month turns into a full-blown revolution. Up to this point, the revolutions that have been sweeping the Middle East have been organized largely on Facebook, and now there are calls all over Facebook for the “Saudi revolution” to start on March 20th.
That date is less than 4 weeks away. If Saudi Arabia plunges into chaos, the price of oil is going to go through the roof.
A rapidly rising price for oil is really bad news for the U.S. economy, because it is going to mean lots of inflation. Unfortunately, this also comes at a time when the economy is also feeling the inflationary effects of more quantitative easing by the Federal Reserve.
So if rising oil prices are going to cause more inflation and if rising oil prices are also going to cause our economy to become even more sluggish, what does all of that add up to?
It adds up to stagflation.
Wikipedia defines stagflation in the following manner….
In economics, stagflation is the situation when both the inflation rate and the unemployment rate are persistently high.
This is going to rapidly become the “new normal” for America. High oil prices are going to cause the cost of just about everything to go up, and high oil prices are also going to cause the economy to slow down thus making the unemployment numbers even worse.
It is going to be just like the 1970s all over again.
Economists differ as to how much rising oil prices affect U.S. GDP, but almost all of them agree that rising oil prices do cause a decline in U.S. GDP at least to some extent.
If American families have to spend $10 or $20 more each time they visit a gas station, that means that they are going to have less discretionary income. They won’t be able to spend as much at the stores.
Not only that, but since the price of oil affects the price of almost everything else, Americans will find that their dollars have reduced purchasing power.
An oil crisis would force American families to stretch their already overburdened budgets even farther.
So where is the price of gasoline going from here? Well, the average price of gasoline in the United States is rapidly sneaking up on the $3.20 a gallon mark. Almost everyone believes that it is going to be going significantly higher.
Tom Kloza, the chief analyst for the Oil Price Information Service, was recently quoted in USA Today as saying that he believes that the average price for gasoline in the United States will reach somewhere between $3.50 and $3.75 a gallon by April.
As I wrote about yesterday, there are other analysts that believe that we are going to see $4.00 gasoline in the United States by the end of the year, and there are some that believe that we could see $5.00 gasoline if revolution sweeps Saudi Arabia.
If gasoline becomes that expensive and it stays there for a while, it is going to seriously start affecting the behavior of American businesses and American consumers.
Just remember what happened back in 2008. Andrew Busch of BMO Capital Markets recently told CNBC the following….
“Remember when oil was last at $140 (a barrel), Americans reacted and cut the amount of miles they drove.”
Can you imagine what it would do to the economy if millions of Americans start sitting in their homes instead of doing their normal amounts of driving and flying?
In addition, one of the biggest problems with a higher price for oil is that it would cause our trade deficit to explode. According to the U.S. government, more than half of the oil that we use is imported. So every month we send the rest of the world billions and billions of our dollars and they send us massive amounts of oil. We rapidly consume all of the oil they send us and we continually need more. So we keep sending larger and larger amounts of money overseas and they keep sending us larger amounts of oil. In the process, our national wealth is being drained at an astounding rate. It is one of the greatest transfers of wealth the world has ever seen.
When the price of oil rises substantially, the transfer of wealth accelerates. This is a very bad thing for the U.S. economy. For example, when oil prices were above $100 a barrel back in 2008 our trade deficit for the year was almost 700 billion dollars.
It would be great if the Middle East would settle down and oil prices would start declining because that would really help out the U.S. economy. Unfortunately, it does not look like that is going to happen. Instead, it appears that we are steamrolling directly towards stagflation. Anyone that lived through the stagflation of the 1970s knows that it is not a lot of fun.
The cold, hard reality of the matter is that without cheap oil our lifestyles are going to change. Our economy was not set up to run on expensive oil. If oil moves well above $100 a barrel and it stays there it is going to bring about significant societal changes.
For the rest of 2011, the price of oil will be the number one economic indicator to watch. If it gets too high it is going to be an absolute disaster for the U.S. economy.