Could you imagine spending the holidays in a homeless shelter, in a tent city surrounded by drug addicts and prostitutes, or in a sleeping bag on the cold, hard streets of an urban jungle? Unfortunately, that is what real life looks like for an increasing number of Americans. Most of the time when we think of “homeless people”, the image that comes into our minds is one of a grizzled old man asking for some spare change, but the truth is that vast numbers of women and children in our country do not have anywhere to live. In fact, Poverty USA has reported that last year a grand total 1.6 million U.S. children stayed either in a homeless shelter or in some other form of emergency housing. And you never hear the mainstream media report this number, but the truth is that the number of homeless children in the United States has risen by 60 percent since the “end” of the last recession. For the moment the wealthy are getting wealthier, but meanwhile things have just continued to get harder and harder for those that are struggling to survive in this economy.
In Wal-Mart parking lots and campgrounds all over America tonight, you will find formerly middle class families that are living in cars, trucks and recreational vehicles during this holiday season. Most of them will never complain and will try to put on a happy face outwardly, but inside the worry and fear are eating them alive.
As the weather gets cold, many homeless Americans head for warmer climates, and this is one of the factors that is fueling the unprecedented homelessness crisis in Los Angeles. The following comes from L.A. Weekly…
By nearly every metric, Los Angeles has the worst homelessness crisis of any city in America. According to the U.S. Department of Housing and Urban Development, there are more people suffering from chronic homelessness in L.A. than anywhere in the country, and their number is growing at a faster clip than those in New York City.
One homeless man in Los Angeles has decided to do what he can to make the best of his circumstances. He has transformed a depressingly bleak area underneath a freeway underpass into his own “personal paradise”…
A homeless man who turned a freeway underpass into his personal paradise by furnishing it with a make-shift jacuzzi and four-poster bed has become a viral hit and unlikely tourist attraction.
Ceola Waddell Jr, 59, began living in the underpass in L.A.’s 110 freeway near Coliseum six months ago.
He has since foraged two porcelain toilets, discarded refrigerators, couches and two beds to transform the space into his personal refuge.
You can’t help but smile when you read what Mr. Waddell has done, but the truth is that the homelessness crisis in the state is rapidly getting way out of control. In fact, Los Angeles is swamped by so many homeless people at this point that the L.A. City Council has asked California Governor Jerry Brown to officially declare a state of emergency.
On the east coast things are getting really, really bad as well.
You may find this hard to believe, but the number of homeless people in New York City has never been higher…
The number of homeless people living in New York City has reached a record-high.
The Department of Homeless Services reported there were 60,252, up 200 in two weeks.
Now, some are saying the city’s current plan to combat homelessness isn’t working.
So why is this happening?
The stock market is at an all-time high and the mainstream media keeps telling us that things are getting better, and yet poverty just continues to rise.
Other than the very wealthy, the truth is that things are not getting any better for virtually everyone else. In fact, it has been reported that over half of all New Yorkers “are teetering on the brink of homelessness”…
More than half of all New Yorkers are teetering on the brink of homelessness — without enough cash in the bank to cover them in the event of a disaster or lost job, a troubling new study has found.
Nearly 60 percent of all New Yorkers don’t have enough emergency savings to cover at least three months’ worth of household expenses like food, housing and rent, according to a recent report from the Association for Neighborhood & Housing Development.
This is one of the reasons why I am always encouraging my readers to build up their emergency funds. Sadly, the cold, hard reality of the matter is that most of the country is only a couple of paychecks away from losing everything.
To give you an idea of how deep the suffering can be this time of the year for those that have already lost it all, I want to share with you a story of a precious little dog named Ollie…
When Ollie was found, his fur was matted and so long you couldn’t see his adorable little eyes. He was clearly in need of dire help.
A woman and her sister saw Ollie outside her apartment, shivering in the freezing cold. They brought him in and quickly called the Michigan Humane Society to help take care of the dog.
Once Ollie was brought in, it was discovered just how sick he is. Had he not been rescued, he would have suffered a very painful death alone in the streets.
Very few people could come across a hurting dog like Ollie without helping him out, but what about the countless numbers of our fellow Americans that no longer have a warm home and will spend the night shivering in the cold?
Look, the truth is that you don’t have to have a whole lot of resources in order to make a difference. In Tennessee, there is a group of elderly women that refer to themselves as “the bag ladies” that are turning old plastic bags into sleeping mats for the homeless…
It all starts with cutting plastic bags into strips, tying those strips together, and rolling them into a ball.
The Bag Ladies call it “plarn,” instead of yarn. They then crochet the “plarn” into mats.
It takes 600 bags to make an 18 square foot mat. So far, this year, they have used 52,000 bags to make 88 mats.
“This is not young ladies doing this. This is older ladies with the arthritis,” said Akin.
How marvelous is that?
A single act of kindness can make a world of difference.
In the months ahead, temperatures are only going to get colder and economic conditions are only going to get tougher for those that are already living in poverty.
I would encourage all of us to think about what we can do to make a difference for those that are deeply hurting this time of the year.
Could you survive on just $2.50 a day? According to Compassion International, approximately half of the population of the entire planet currently lives on $2.50 a day or less. Meanwhile, those hoarding wealth at the very top of the global pyramid are rapidly becoming a lot wealthier. Don’t get me wrong – I am a very big believer in working hard and contributing something of value to society, and those that work the hardest and contribute the most should be able to reap the rewards. In this article I am in no way, shape or form criticizing true capitalism, because if true capitalism were actually being practiced all over the planet we would have far, far less poverty today. Instead, our planet is dominated by a heavily socialized debt-based central banking system that systematically transfers wealth from hard working ordinary citizens to the global elite. Those at the very top of the pyramid know that they are impoverishing everyone else, and they very much intend to keep it that way.
Let’s start with some of the hard numbers. According to Zero Hedge, Credit Suisse had just released their yearly report on global wealth, and it shows that 45.6 percent of all the wealth in the world is controlled by just 0.7 percent of the people…
As Credit Suisse tantalizingly shows year after year, the number of people who control just shy of a majority of global net worth, or 45.6% of the roughly $255 trillion in household wealth, is declining progressively relative to the total population of the world, and in 2016 the number of people who are worth more than $1 million was just 33 million, roughly 0.7% of the world’s population of adults. On the other end of the pyramid, some 3.5 billion adults had a net worth of less than $10,000, accounting for just about $6 trillion in household wealth.
And since this is a yearly report, we can go back and see how things have changed over time. When Zero Hedge did this, it was discovered that the wealth of those at the very top “has nearly doubled” over the past six years, and meanwhile the poor have gotten even poorer…
Incidentally, we tracked down the first Credit Suisse report we found in this series from 2010, where the total wealth of the top “layer” in the pyramid was a modest $69.2 trillion for the world’s millionaires. It has nearly doubled in the 6 years since then. Meanwhile, the world’s poorest have gotten, you got it, poorer, as those adults who were worth less than $10,000 in 2010 had a combined net worth of $8.2 trillion, a number which has since declined to $6.1 trillion in 2016 despite a half a billion increase in the sample size.
If these trends continue at this pace, it won’t be too long before the global elite have virtually all of the wealth and the rest of us have virtually nothing.
Perhaps you are fortunate enough to still have a good job, and you live in a large home and you will sleep in a warm bed tonight.
Well, you should consider yourself to be very blessed, because that is definitely not the case for most of the rest of the world. The following 11 facts about global poverty come from dosomething.com, and I want you to really let these numbers sink in for a moment…
- Nearly 1/2 of the world’s population — more than 3 billion people — live on less than $2.50 a day. More than 1.3 billion live in extreme poverty — less than $1.25 a day.
- 1 billion children worldwide are living in poverty. According to UNICEF, 22,000 children die each day due to poverty.
- 805 million people worldwide do not have enough food to eat. Food banks are especially important in providing food for people that can’t afford it themselves. Run a food drive outside your local grocery store so people in your community have enough to eat. Sign up for Supermarket Stakeout.
- More than 750 million people lack adequate access to clean drinking water. Diarrhea caused by inadequate drinking water, sanitation, and hand hygiene kills an estimated 842,000 people every year globally, or approximately 2,300 people per day.
- In 2011, 165 million children under the age 5 were stunted (reduced rate of growth and development) due to chronic malnutrition.
- Preventable diseases like diarrhea and pneumonia take the lives of 2 million children a year who are too poor to afford proper treatment.
- As of 2013, 21.8 million children under 1 year of age worldwide had not received the three recommended doses of vaccine against diphtheria, tetanus and pertussis.
- 1/4 of all humans live without electricity — approximately 1.6 billion people.
- 80% of the world population lives on less than $10 a day.
- Oxfam estimates that it would take $60 billion annually to end extreme global poverty–that’s less than 1/4 the income of the top 100 richest billionaires.
- The World Food Programme says, “The poor are hungry and their hunger traps them in poverty.” Hunger is the number one cause of death in the world, killing more than HIV/AIDS, malaria, and tuberculosis combined.
So how did we get here?
Debt is the primary mechanism that takes wealth from ordinary people like you and me and puts it into the hands of the global elite.
In my recent article entitled “Why Donald Trump Must Shut Down The Federal Reserve And Start Issuing Debt-Free Money“, I discussed how the Federal Reserve was designed to entrap the U.S. government in an endless debt spiral from which it could never possibly escape. And that is precisely what has happened, as the U.S. national debt has gotten more than 5000 times larger since the Federal Reserve was created in 1913.
In that very same year, the federal income tax was instituted, and that is a key part of the program for the global elite. You see, the income tax is how wealth is transferred from us to the government. And then a continuously growing national debt is how that wealth is transferred from the government to the elite.
It is a very complicated system, but at the end of the day it is all about taking money from us and getting it into their pockets.
And at this point more than 99.9 percent of the population of the world lives in a country with a central bank, and almost every nation on the planet has some form of income tax.
It is a global system that is designed to create as much debt as possible, and I recently shared with my readers that the total amount of debt in the world has hit a staggering all-time record high of 152 trillion dollars.
Interestingly, the Bible actually foretells of a time when rich men would hoard wealth in the last days. The following are the first five verses of the Book of James in the Modern English Version…
Come now, you rich men, weep and howl for your miseries that shall come upon you. 2 Your riches are corrupted and your garments are moth-eaten. 3 Your gold and silver are corroded, and their corrosion will be a witness against you and will eat your flesh like fire. You have stored up treasures for the last days. 4 Indeed the wages that you kept back by fraud from the laborers who harvested your fields are crying, and the cries of those who harvested have entered into the ears of the Lord of Hosts. 5 You have lived in pleasure on the earth and have been wayward. You have nourished your hearts as in a day of slaughter.
So much of the time we focus on the other great sins that we see all around us, but the truth is that one of the greatest sins of all in our world today is the sin of greed.
The borrower is the servant of the lender, and the global elite have used various forms of debt to turn the rest of the planet into their debt slaves.
As debt levels race higher and higher all over the planet, the elite are using the magic of compound interest to grab a bigger and bigger share of the pie.
Given enough time, those at the very top would have virtually everything and the rest of us would have virtually nothing. The middle class is shrinking all over the globe, and the gap between the wealthy and the poor continues to grow at an astounding pace.
But the vast majority of people out there have no idea how money, debt, taxes and central banks really work, and so they have no idea that this is purposely being done to them.
So please share this article with as many people as you can. The truth is that we don’t have to have this much global poverty, and if we correctly identify the root causes of this poverty we can start working on some real solutions.
Did you know that about one-fourth of the entire global prison population is in the United States? Did you know that Apple has more money than the U.S. Treasury? Did you know that if you have no debt and also have 10 dollars in your wallet that you are wealthier than 25 percent of all Americans? Did you know that by the time an American child reaches the age of 18, that child will have seen approximately 40,000 murders on television? There are some things that are great about the United States, and there are definitely some things that are not so great. Once upon a time we were the most loved and most respected nation on the entire planet, but those days are long gone. We have wrecked our economy, we have lost our values and we have fumbled away our future. But if you look close enough, you can still see many of the things that once made this country a shining beacon to the rest of the world. This article includes some weird facts, some fun facts, but also some very troubling facts. It has been said that a spoonful of sugar helps the medicine go down, and hopefully as people enjoy reading the fun facts in this article they will also take note of the more serious facts. If we are ever going to change course as a nation, we need to come to grips with just how far we have fallen. The following are 33 strange facts about America that most Americans would be shocked to learn…
#1 The amount of cement that China used from 2011 to 2013 was greater than the total amount of cement that the United States used during the entire 20th century.
#2 In more than half of all U.S. states, the highest paid public employee in the state is a football coach.
#3 It costs the U.S. government 1.8 cents to mint a penny and 9.4 cents to mint a nickel.
#4 Almost half of all Americans (47 percent) do not put a single penny out of their paychecks into savings.
#5 In 2014, police in the United States killed 1,100 people. During that same year, police in Canada killed 14 people, police in China killed 12 people and police in Germany didn’t kill anyone at all.
#6 The state of Alaska is 429 times larger than the state of Rhode Island is. But Rhode Island has a significantly larger population than Alaska does.
#7 Alaska has a longer coastline than all of the other 49 U.S. states put together.
#8 The city of Juneau, Alaska is about 3,000 square miles in size. It is actually larger than the entire state of Delaware.
#9 When LBJ’s “War on Poverty” began, less than 10 percent of all U.S. children were growing up in single parent households. Today, that number has skyrocketed to 33 percent.
#10 In 1950, less than 5 percent of all babies in America were born to unmarried parents. Today, that number is over 40 percent.
#11 The poverty rate for households that are led by a married couple is 6.8 percent. For households that are led by a female single parent, the poverty rate is 37.1 percent.
#12 In 2013, women earned 60 percent of all bachelor’s degrees that were awarded that year in the United States.
#13 According to the CDC, 34.6 percent of all men in the U.S. are obese at this point.
#14 The average supermarket in the United States wastes about 3,000 pounds of food each year.
#15 Right now, more than 200 million people around the planet are officially considered to be unemployed. Meanwhile, approximately 20 percent of the garbage that goes into our landfills is food.
#16 There is a city in Bangladesh called Dhaka where workers are paid just one dollar for every 1,000 bricks that they carry. Meanwhile, the “inactivity rate” for men in their prime working years in the United States is hovering near record high levels.
#17 According to one recent survey, 81 percent of Russians now have a negative view of the United States. That is much higher than at the end of the Cold War era.
#18 Montana has three times as many cows as it does people.
#19 The grizzly bear is the official state animal of California. But no grizzly bears have been seen there since 1922.
#20 One recent survey discovered that “a steady job” is the number one thing that American women are looking for in a husband, and another survey discovered that 75 percent of women would have a serious problem dating an unemployed man.
#21 According to a study conducted by economist Carl Benedikt Frey and engineer Michael Osborne, 47 percent of the jobs in the United States could soon be lost to computers, robots and other forms of technology.
#22 The only place in the United States where coffee is grown commercially is in Hawaii.
#23 The original name of the city of Atlanta was “Terminus“.
#24 The state with the most millionaires per capita is Maryland.
#25 There are more than 4 million adult websites on the Internet, and they get more traffic than Netflix, Amazon and Twitter combined.
#26 86 percent of men include “having children” in their definition of success. For women, that number is only 73 percent.
#27 One survey of 50-year-old men in the U.S. found that only 12 percent of them said that they were “very happy”.
#28 The United States has 845 motor vehicles for every 1,000 people. Japan only has 593 for every 1,000 people, and Germany only has 540 for every 1,000 people.
#29 The average American spends more than 10 hours a day using an electronic device.
#30 48 percent of all Americans do not have any emergency supplies in their homes whatsoever.
#31 There are three towns in the United States that have the name “Santa Claus“.
#32 There is actually a town in Michigan called “Hell“.
#33 There are 60,000 miles of blood vessels in your body. If they were stretched out in a single line, they could go around the planet more than twice.
Did you know that 65 percent of all children in the United States live in a home that receives aid from the federal government? We live at a time when child poverty in America is exploding. Yes, the U.S. economy is experiencing a temporary bubble of false stability for the moment, but even during this period of false stability the gap between the wealthy and the poor continues to rapidly expand and the middle class is being systematically destroyed. And sadly, this is having a disproportionate impact on children. This is happening for a couple of reasons. First of all, poorer households tend to have more children than wealthier households. Secondly, most people tend to have children when they are in their young adult years, and right now young adults are being absolutely hammered by this economy. As a result, things just continue to get even worse for children living in this country. Here are 14 facts that show that the number of children in America living in poverty this Christmas is at an all-time record high…
#1 The National Center for Children in Poverty says that 45 percent of all U.S. children belong to low income families.
#2 According to a Census Bureau report that was released just this week, 65 percent of all children in America are living in a home that receives some form of aid from the federal government…
“Almost two-thirds (65 percent) of children,” said the Census Bureau, “lived in households that participated in at least one or more of the following government aid programs: Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Medicaid, and the National School Lunch Program.”
#3 According to a report recently released by UNICEF, almost one-third of all children in this country “live in households with an income below 60 percent of the national median income”.
#4 When it comes to child poverty, the United States ranks 36th out of the 41 “wealthy nations” that UNICEF looked at.
#5 An astounding 45 percent of all African-American children in America live in areas of “concentrated poverty”.
#6 40.9 percent of all children in the United States that are living with only one parent are living in poverty.
#7 These days, a lot of single mothers are really, really struggling to survive. A decade ago, the number of women in America that had jobs outnumbered the number of women in America on food stamps by more than a 2 to 1 margin. But now the number of women in America on food stamps actually exceeds the total number of women that have jobs.
#8 It is hard to believe, but right now 49 million Americans are dealing with food insecurity.
#9 According to a report that was released last month by the National Center on Family Homelessness, the number of homeless children in the United States has reached a new all-time high of 2.5 million.
#10 There are more than half a million homeless children in the state of California alone.
#11 One recent survey found that about 22 percent of all Americans have had to turn to a church food panty for assistance.
#12 This year, almost one out of every five households in the United States will go through the holiday season on food stamps.
#13 One of the primary reasons why kids are suffering so much is because their parents are simply not making enough money. This is especially true for parents of young children. For example, check out the following numbers from the Atlantic…
Since the Great Recession struck in 2007, the median wage for people between the ages of 25 and 34, adjusted for inflation, has fallen in every major industry except for health care.
These numbers come from an analysis of the Census Current Population Survey by Konrad Mugglestone, an economist with Young Invincibles.
In retail, wholesale, leisure, and hospitality—which together employ more than one quarter of this age group—real wages have fallen more than 10 percent since 2007. To be clear, this doesn’t mean that most of this cohort are seeing their pay slashed, year after year. Instead it suggests that wage growth is failing to keep up with inflation, and that, as twentysomethings pass into their thirties, they are earning less than their older peers did before the recession.
#14 Overall, the quality of the jobs in America continues to decline. At this point, most Americans do not bring home enough income to support a middle class lifestyle for their families. Below I have shared an excerpt from an article that I published a while back…
The following are some statistics about wages in the U.S. from a Social Security Administration report that was recently released…
-39 percent of American workers made less than $20,000 last year.
-52 percent of American workers made less than $30,000 last year.
-63 percent of American workers made less than $40,000 last year.
-72 percent of American workers made less than $50,000 last year.
In addition to all of these numbers, there is also a lot of anecdotal evidence that families with children are really struggling right now.
For example, McDonald’s has traditionally been a place where poor and middle class families have taken their children for a cheap meal. But the restaurant chain just released the worst sales numbers that we have seen in more than a decade.
And the really bad news is that this is just the beginning of the economic pain for families with children. The U.S. economy is in a bubble period right now, and the authorities have been trying with all of their might to keep the bubble inflated.
Just imagine a bodybuilder that is pressing with all of his might to do one more rep on the bench press. That is essentially where we are at. In a recent piece, Brian Pretti summarized some of the extraordinary measures that global central banks have taken to keep the economic bubble inflated…
Since early 2009, central banks globally have printed more than $13 trillion. In addition, governments across the planet have increased their borrowings at historic proportions (the US just crossed $18T – another new high!), all in an effort to stimulate economies and avoid deflationary pressures. Total US Federal debt has more than doubled in five years, an increase of $9.5 trillion and counting.
Despite all of these efforts, the best that we have achieved is economic stagnation.
And now it is becoming clear that the overwhelming deflationary forces around the globe are starting to win the battle. The central banks have used up their ammunition and they still have not turned things around. In fact, as Ambrose Evans-Pritchard so eloquently put it recently, what we see all around us is “evidence of a 1930s-style depression, albeit one that is still contained”…
What is clear is that the world has become addicted to central bank stimulus. Bank of America said 56pc of global GDP is currently supported by zero interest rates, and so are 83pc of the free-floating equities on global bourses. Half of all government bonds in the world yield less that 1pc. Roughly 1.4bn people are experiencing negative rates in one form or another.
These are astonishing figures, evidence of a 1930s-style depression, albeit one that is still contained. Nobody knows what will happen as the Fed tries to break out of the stimulus trap, including Fed officials themselves.
But will it still be contained once the next major financial crash strikes?
As I discussed yesterday, there has never been a time when conditions have been more ideal for a financial crisis since the last one happened in 2008.
So as bad as things are for the children of America right now, they are only going to get worse.
In the years ahead may we all have great compassion for these victims of our incredibly foolish economic mistakes.
If you want to live the high life, you don’t have to become a rap star, a professional athlete or a Wall Street banker. All it really takes is winning an election. Right now, more than half of all the members of Congress are millionaires, and most of them leave “public service” far wealthier than when they entered it. Since most of them have so much money, you would think that they would be willing to do a little “belt-tightening” for the sake of the American people. After all, things are supposedly “extremely tight” in Washington D.C. right now. In fact, just the other day Nancy Pelosi insisted that there were “no more cuts to make” to the federal budget. But even as they claim that things are so tough right now, our politicians continue to live the high life at the expense of U.S. taxpayers. The statistics that I am about to share with you are very disturbing. Please share them with everyone that you know. The American people deserve the truth.
According to the Weekly Standard, an absolutely insane amount of money is being spent on the “hair care needs” of U.S. Senators…
Senate Hair Care Services has cost taxpayers about $5.25 million over 15 years. They foot the bill of more than $40,000 for the shoeshine attendant last fiscal year. Six barbers took in more than $40,000 each, including nearly $80,000 for the head barber.
Keep in mind that there are only 100 U.S. Senators, and many of them don’t have much hair left at this point.
But hair care is just the tip of the iceberg. The following are 21 other ways that our politicians are living the high life at your expense…
#1 According to Roll Call’s annual survey of Congressional wealth, the super wealthy in Congress just continue to get much wealthier even though they are supposedly dedicating their lives to “public service”…
Rep. Michael McCaul (R-Texas) is the richest Member of Congress for the second year in a row, reporting a vast fortune that in 2011 had a minimum net worth surpassing $300 million for the first time.
McCaul is followed by Sen. John Kerry (D-Mass.), who reported a minimum net worth of $198.65 million, and Rep. Darrell Issa (R-Calif.), who reported a minimum net worth of $140.55 million. The two lawmakers swapped places since last year’s list.
The lawmakers who round out the top five, Sens. Mark Warner (D-Va.) and Jay Rockefeller (D-W.Va.), also flipped positions from 2010 to 2011, with Warner’s reported minimum worth rising about $9 million to $85.81 million and Rockefeller’s minimum worth rising slightly to $83.08 million.
#2 Amazingly, the 50th most wealthy member of Congress has a net worth of 6.14 million dollars.
#3 At this point, more than half of those “serving the American people” in Congress are millionaires.
#4 In one recent year, an average of $4,005,900 of U.S. taxpayer money was spent on “personal” and “office” expenses per U.S. Senator.
#5 Once they leave Washington, former members of Congress continue to collect huge checks for the rest of their lives…
In 2011, 280 former lawmakers who retired under a former government pension system received average annual pensions of $70,620, according to a Congressional Research Service report. They averaged around 20 years of service. At the same time, another 215 retirees (elected in 1984 or later with an average of 15 years of service) received average annual checks of roughly $40,000 a year.
#6 Speaker of the House John Boehner would bring home a yearly pension of close to $85,000 if he left Congress when his current term ends in 2014.
#7 At this point, quite a few former lawmakers are collecting federal pensions for life worth at least $100,000 annually. That list includes such notable names as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.
#8 The U.S. government is spending approximately 3.6 million dollars a year to support the lavish lifestyles of former presidents such as George W. Bush and Bill Clinton.
#9 Nearly 500,000 federal employees now make at least $100,000 a year.
#10 During one recent year, the average federal employee in the Washington D.C. area received total compensation worth more than $126,000.
#11 During one recent year, compensation for federal employees came to a grand total of approximately 447 billion dollars.
#12 If you can believe it, there are 77,000 federal workers that make more than the governors of their own states do.
#13 When Joe Biden and his staff took a trip to London, the hotel bill cost U.S. taxpayers $459,388.65.
#14 Joe Biden and his staff also stopped in Paris for one night. The hotel bill for that one night came to $585,000.50.
#15 When Biden and his staff visited Moscow for two days in 2011, the total hotel bill came to $665,445.00.
#16 During 2012, the salaries of Barack Obama’s three climate change advisers combined came to a grand total of more than $370,000.
#17 Overall, 139 different White House staffers were making at least $100,000 during 2012, and there were 20 staffers that made the maximum of $172,200.
#18 It is estimated that the trip that the Obamas took to Africa cost U.S. taxpayers about 100 million dollars.
#19 The Obamas only have one dog named “Bo”, but the White House “dog handler” reportedly makes $102,000 per year and sometimes he is even flown to where the Obamas are vacationing so that he can take care of the dog.
#20 There is always at least one projectionist at the White House 24 hours a day just in case there is someone that wants to watch a movie. Apparently turning on a DVD player is too much to ask.
#21 In one recent year, more than 1.4 billion dollars was spent on the Obamas. Meanwhile, British taxpayers only spent about 58 million dollars on the entire royal family.
So who pays for all of this extravagance?
The American people do of course.
Unfortunately, what most of our politicians fail to understand is that most families are struggling tremendously right now.
This week, Yahoo featured the story of a 77-year-old former executive that is now flipping burgers and serving drinks to make ends meet. He says that he now earns in a week what he once earned in a single hour, but he is thankful to have a job in this economic environment…
It seems like another life. At the height of his corporate career, Tom Palome was pulling in a salary in the low six-figures and flying first class on business trips to Europe.
Today, the 77-year-old former vice president of marketing for Oral-B juggles two part-time jobs: one as a $10-an-hour food demonstrator at Sam’s Club, the other flipping burgers and serving drinks at a golf club grill for slightly more than minimum wage.
While Palome worked hard his entire career, paid off his mortgage and put his kids through college, like most Americans he didn’t save enough for retirement. Even many affluent baby boomers who are approaching the end of their careers haven’t come close to saving the 10 to 20 times their annual working income that investment experts say they’ll need to maintain their standard of living in old age.
So many Americans are barely making it from month to month at this point. Most people work very, very hard for their money, and it is very discouraging to see our politicians waste our hard-earned tax dollars so frivolously.
Fortunately, there are signs that the American people are starting to get fed up with all of this. According to a stunning new Gallup survey, more Americans than ever before (60 percent) believe that the federal government has too much power.
So what do you think?
Do you think that the government is too big and too wasteful?
Please feel free to share what you think by posting a comment below…
Reckless money printing by Federal Reserve Chairman Ben Bernanke has pumped up the Dow to a brand new all-time high. So what comes next? Will the Dow go even higher? Hopefully it will. In fact, it would be great if the Dow was able to hit 15,000 before it finally came crashing down. That would give all of us some more time to prepare for the nightmarish economic crisis that is rapidly approaching. As you will see below, the U.S. economy is in far, far worse shape than it was the last time the Dow reached a record high back in 2007. In addition, all of the long-term trends that are ripping our economy to shreds just continue to get even worse and our debt just continues to explode. Unfortunately, the Dow has become completely divorced from economic reality in recent years because of Fed manipulation. All of this funny money that the Federal Reserve has been cranking out has made the wealthy even wealthier, but this bubble will not last for too much longer. What goes up must come down. And remember, a bubble is always biggest right before it bursts.
Fortunately, it looks like an increasing number of people out there are starting to recognize that the primary reason why stocks have been going up is because of the Fed. Just check out this excerpt from a recent article by the USA Today editorial board…
The Federal Reserve’s purchases have driven interest rates to near zero. This has stimulated the economy but not without cost. Savers, particularly older ones trying to live on income from their investments, are starved for safe options. They’ve been forced into stocks, which is one reason the market has been acting as if it’s on steroids. Further, with borrowing costs low, Congress and the White House have less incentive to rein in the national debt. Rock-bottom interest rates have also distorted markets.
The best indication that the Fed’s bond-buying purchases are pushing stocks up artificially is that investors run for cover whenever there is a hint that the Fed might change course, as happened recently. On Monday, billionaire superinvestor Berkshire Hathaway CEO Warren Buffett told CNBC that markets are on a “hair trigger” waiting for signs of change from the Fed. The market is “hooked on the drug” of easy money, Dallas Fed President Richard Fisher told Reuters.
Fisher’s comparison of Fed policies to a drug is apt. Markets might not like the idea of the drug being withdrawn now, when the Fed holds a portfolio of $3 trillion. But the withdrawal symptoms will be a lot worse once the portfolio grows to $4 trillion, or more.
Those sentiments were echoed by Gordon Charlop, a trader at Rosenblatt Securities, during a recent appearance on CNBC…
“The Wizard of the Fed, Ben [Bernanke], has done a great job propping up the market, but the question is how does the wizard move the pin from the balloon without blowing the whole thing up?” said Charlop. “This is getting out of balance and he’s got to figure out a way to justify the levels that we’ve gotten to and draw back on some of the stimulus.”
Of course, in the end, the bursting of this bubble is going to be very messy.
The Fed has dramatically distorted the market in an attempt to make things look good, but now the financial markets are completely and totally addicted to easy money. Is there any chance that the Fed will be able to take away that easy money without causing disaster?
There are only a few ways that this current scenario can play out. The following is what Stanley Druckenmiller recently told CNBC…
“I don’t know when it’s going to end, but my guess is, it’s going to end very badly; and it’s going to end very badly because, again, when you get the biggest price in the world, interest rates, being manipulated you get a misallocation of resources and this is going to end in one of two ways – with a malinvestment bust which we got in ’07-’08 (we didn’t get inflation). We got a malinvestment bust because of the bubble that was created in housing. Or it could end with just monetizing the debt and off we go in inflation. So that’s a very binary outcome – they’re both bad.”
What the Fed has done to the money supply in recent years has been absolutely unprecedented. Just check out how our money supply has skyrocketed since the last financial crisis…
So what happens when the amount of money in an economy rises rapidly?
Well, if I remember Econ 101 correctly, that would mean that prices should go up.
And that is exactly what has happened. And since most of the money that the Fed has created has gone into the financial system first, it should not be a surprise that we have seen a bubble in financial assets.
In a previous article that I wrote last September, I warned that QE3 would cause stocks to go up…
So what have the previous rounds of quantitative easing accomplished? Well, they have driven up the prices of financial assets. Those that own stocks have done very well the past couple of years. So who owns stocks? The wealthy do. In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans. Those that have invested in commodities have also done very nicely in recent years. We have seen gold, silver, oil and agricultural commodities all do very well. But that also means that average Americans are paying more for basic necessities such as food and gasoline. So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us. Is there any reason to believe that QE3 will be any different?
Of course not.
So will stocks continue to go up indefinitely?
As I have also written about previously, the money printing that the Fed is doing right now is not nearly enough to stop the mammoth derivatives crisis that is coming.
A derivatives crisis was one of the primary reasons for the financial crash of 2008, but most Americans still have no idea what derivatives are.
They can be very complex, but I think that it is easiest just to think of them as side bets.
When someone buys a derivative, they are not buying anything real. They are simply betting that something will or will not happen.
For example, if you bet $100 that the Chicago Cubs will win the World Series this year, would you be “investing” in anything real?
Of course not.
Well, it is the same with most derivatives.
Today, Wall Street has become the biggest casino in the entire world and trillions of dollars of very reckless bets have been made.
In fact, most Americans would be absolutely shocked to learn how exposed to derivatives some of our largest financial institutions are. The following is an excerpt from one of my previous articles entitled “The Coming Derivatives Panic That Will Destroy Global Financial Markets“…
It would be hard to overstate the recklessness of these banks. The numbers that you are about to see are absolutely jaw-dropping. According to the Comptroller of the Currency, four of the largest U.S. banks are walking a tightrope of risk, leverage and debt when it comes to derivatives. Just check out how exposed they are…
Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)
Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)
Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)
Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)
Bank Of America
Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)
Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)
Total Assets: $114,693,000,000 (a bit more than 114 billion dollars – yes, you read that correctly)
Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)
That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.
When the derivatives crash happens, there won’t be enough money in the entire world to fix it.
So enjoy this little stock market bubble while you can.
It will end soon enough.
And of course stocks should not be this high in the first place. The underlying economic fundamentals do not justify these kinds of stock prices whatsoever.
A recent CNN article noted that the last time the Dow hit a record high that unemployment in the U.S. was much lower…
Consider this. When the Dow hit its now old record high back in October 2007, the economy was still in good shape — although it was just a few months away from the beginning of the Great Recession.
The unemployment rate in October 2007 was 4.7%. In January of this year, the unemployment rate was 7.9%.
And that same article also pointed out that GDP growth and housing prices were also much stronger back in 2007…
Gross domestic product grew 3% in the third quarter of 2007. Revised figures from the government last week showed that GDP in the fourth quarter of 2012 rose a scant 0.1%. But I guess that’s good news considering the first estimate showed a 0.1% decline.
And despite all the hoopla about the steady recovery in the housing market over the past year, real estate is still in a bear market. The most recent level of the S&P Case-Shiller 20-City Home Price Index, one of the most widely watched gauges of the health of housing, is still 24% below where it was in October 2007.
We have never even come close to recovering from the last economic crisis. Most Americans seem to have forgotten how good things were back then, but a recent Zero Hedge article included some more points of comparison between October 2007 and today…
- Dow Jones Industrial Average: Then 14164.5; Now 14164.5
- Regular Gas Price: Then $2.75; Now $3.73
- GDP Growth: Then +2.5%; Now +1.6%
- Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
- Americans On Food Stamps: Then 26.9 million; Now 47.69 million
- Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
- US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
- US Deficit (LTM): Then $97 billion; Now $975.6 billion
- Total US Debt Oustanding: Then $9.008 trillion; Now $16.43 trillion
- US Household Debt: Then $13.5 trillion; Now 12.87 trillion
- Labor Force Particpation Rate: Then 65.8%; Now 63.6%
- Consumer Confidence: Then 99.5; Now 69.6
And of course anyone that reads my site regularly knows that the U.S. economy has been in a state of persistent decline over the past several years.
Just consider the following data points…
-The percentage of the civilian labor force in the United States that is actually employed has been steadily declining every single year since 2006.
-In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
-According to one study, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
-Median household income in America has fallen for four consecutive years. Overall, it has declined by more than $4000 during that time span.
-At this point, an astounding 53 percent of all American workers make less than $30,000 a year.
That is the other side of the Fed’s insidious money printing. Incomes in the United States are going down, but the cost of living is skyrocketing. This is squeezing millions of Americans out of the middle class…
When Debbie Bruister buys a gallon of milk at her local Kroger supermarket, she pays $3.69, up 70 cents from what she paid last year.
Getting to the store costs more, too. Gas in Corinth, Miss., her hometown, costs $3.51 a gallon now, compared to less than three bucks in 2012. That really hurts, considering her husband’s 112-mile daily round-trip commute to his job as a pharmacist.
Perhaps you can identify with this. Perhaps your paychecks are about the same as they used to be back in 2007 but the cost of living has gone up dramatically since then.
I wish I could tell you that things were going to get better, but unfortunately there are all kinds of indications that things are about to get even worse for the U.S. economy. If you doubt this, just read this article and this article.
Yes, the Dow is at an all-time high. But do you want to know what else has hit an all-time high up in New York?
The following is from a recent report in the New York Times…
An average of more than 50,000 people slept each night in New York City’s homeless shelters for the first time in January, a record that underscores an unsettling national trend: a rising number of families without permanent housing.
And apparently families and children have been hit particularly hard over the past year…
More than 21,000 children—an unprecedented 1% of the city’s youth—slept each night in a city shelter in January, an increase of 22% in the past year, the report said, while homeless families now spend more than a year in a shelter, on average, for the first time since 1987. In January, an average of 11,984 homeless families slept in shelters each night, a rise of 18% from a year earlier.
Of course New York is far from alone. There has been a surge in homelessness all over the United States. In fact, at this point more than a million public school students in the United States are homeless. This is the first time that has ever happened in U.S. history.
But the Dow just hit a record high so we should all be wildly happy, right?
Hopefully we can get more Americans to understand that the “prosperity” that we are enjoying right now is just an illusion. It isn’t real. It is a bubble created by reckless money printing by the Fed and reckless borrowing by the U.S. government. If you can believe it, the U.S. government borrowed another 253 billion dollars during the month of February alone.
The Fed and the U.S. government will continue to engage in this kind of reckless behavior until the bubble eventually bursts.
So what should all the rest of us do?
We should be feverishly preparing for the hard times that are coming. As Daisy Luther recently wrote about, one of the most important things to do is to create an emergency fund. Instead of going out and blowing your money on the latest toys and gadgets, set some money aside so that you will have something to live on if the economy crashes and you suddenly lose your income.
Just remember what happened back in 2008. Millions of Americans suddenly lost their jobs, and because many of them had no financial reserves, a lot of Americans suddenly could not pay their mortgages and they lost their homes.
So put some money away in a place where it will be safe – and that does not mean the stock market.
Jim Cramer of CNBC and a lot of the other talking heads on the financial news channels are trying to encourage ordinary Americans to jump into “the bull market” right now and make some money, and many people will take their advice.
But the truth is that a bubble is always biggest right before it bursts.
This bubble is awfully big right now, and I don’t know how much larger it can possibly get.
Does a shadowy group of obscenely wealthy elitists control the world? Do men and women with enormous amounts of money really run the world from behind the scenes? The answer might surprise you. Most of us tend to think of money as a convenient way to conduct transactions, but the truth is that it also represents power and control. And today we live in a neo-fuedalist system in which the super rich pull all the strings. When I am talking about the ultra-wealthy, I am not just talking about people that have a few million dollars. As you will see later in this article, the ultra-wealthy have enough money sitting in offshore banks to buy all of the goods and services produced in the United States during the course of an entire year and still be able to pay off the entire U.S. national debt. That is an amount of money so large that it is almost incomprehensible. Under this ne0-feudalist system, all the rest of us are debt slaves, including our own governments. Just look around – everyone is drowning in debt, and all of that debt is making the ultra-wealthy even wealthier. But the ultra-wealthy don’t just sit on all of that wealth. They use some of it to dominate the affairs of the nations. The ultra-wealthy own virtually every major bank and every major corporation on the planet. They use a vast network of secret societies, think tanks and charitable organizations to advance their agendas and to keep their members in line. They control how we view the world through their ownership of the media and their dominance over our education system. They fund the campaigns of most of our politicians and they exert a tremendous amount of influence over international organizations such as the United Nations, the IMF, the World Bank and the WTO. When you step back and take a look at the big picture, there is little doubt about who runs the world. It is just that most people don’t want to admit the truth.
The ultra-wealthy don’t run down and put their money in the local bank like you and I do. Instead, they tend to stash their assets in places where they won’t be taxed such as the Cayman Islands. According to a report that was released last summer, the global elite have up to 32 TRILLION dollars stashed in offshore banks around the globe.
U.S. GDP for 2011 was about 15 trillion dollars, and the U.S. national debt is sitting at about 16 trillion dollars, so you could add them both together and you still wouldn’t hit 32 trillion dollars.
And of course that does not even count the money that is stashed in other locations that the study did not account for, and it does not count all of the wealth that the global elite have in hard assets such as real estate, precious metals, art, yachts, etc.
The global elite have really hoarded an incredible amount of wealth in these troubled times. The following is from an article on the Huffington Post website…
Rich individuals and their families have as much as $32 trillion of hidden financial assets in offshore tax havens, representing up to $280 billion in lost income tax revenues, according to research published on Sunday.
The study estimating the extent of global private financial wealth held in offshore accounts – excluding non-financial assets such as real estate, gold, yachts and racehorses – puts the sum at between $21 and $32 trillion.
The research was carried out for pressure group Tax Justice Network, which campaigns against tax havens, by James Henry, former chief economist at consultants McKinsey & Co.
He used data from the World Bank, International Monetary Fund, United Nations and central banks.
But as I mentioned previously, the global elite just don’t have a lot of money. They also basically own just about every major bank and every major corporation on the entire planet.
According to an outstanding NewScientist article, a study of more than 40,000 transnational corporations conducted by the Swiss Federal Institute of Technology in Zurich discovered that a very small core group of huge banks and giant predator corporations dominate the entire global economic system…
An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.
The researchers found that this core group consists of just 147 very tightly knit companies…
When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
The following are the top 25 banks and corporations at the heart of this “super-entity”. You will recognize many of the names on the list…
1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
The ultra-wealthy elite often hide behind layers and layers of ownership, but the truth is that thanks to interlocking corporate relationships, the elite basically control almost every Fortune 500 corporation.
The amount of power and control that this gives them is hard to describe.
Unfortunately, this same group of people have been running things for a very long time. For example, New York City Mayor John F. Hylan said the following during a speech all the way back in 1922…
The real menace of our Republic is the invisible government, which like a giant octopus sprawls its slimy legs over our cities, states and nation. To depart from mere generalizations, let me say that at the head of this octopus are the Rockefeller-Standard Oil interests and a small group of powerful banking houses generally referred to as the international bankers. The little coterie of powerful international bankers virtually run the United States government for their own selfish purposes.
They practically control both parties, write political platforms, make catspaws of party leaders, use the leading men of private organizations, and resort to every device to place in nomination for high public office only such candidates as will be amenable to the dictates of corrupt big business.
These international bankers and Rockefeller-Standard Oil interests control the majority of the newspapers and magazines in this country. They use the columns of these papers to club into submission or drive out of office public officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible government. It operates under cover of a self-created screen [and] seizes our executive officers, legislative bodies, schools, courts, newspapers and every agency created for the public protection.
These international bankers created the central banks of the world (including the Federal Reserve), and they use those central banks to get the governments of the world ensnared in endless cycles of debt from which there is no escape. Government debt is a way to “legitimately” take money from all of us, transfer it to the government, and then transfer it into the pockets of the ultra-wealthy.
Today, Barack Obama and almost all members of Congress absolutely refuse to criticize the Fed, but in the past there have been some brave members of Congress that have been willing to take a stand. For example, the following quote is from a speech that Congressman Louis T. McFadden delivered to the U.S. House of Representatives on June 10, 1932…
Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. The depredations and iniquities of the Federal Reserve Board has cost this country enough money to pay the national debt several times over. This evil institution has impoverished and ruined the people of the United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.
Sadly, most Americans still believe that the Federal Reserve is a “federal agency”, but that is simply not correct. The following comes from factcheck.org…
The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. These include all national banks (chartered by the federal government) and those state-chartered banks that wish to join and meet certain requirements. About 38 percent of the nation’s more than 8,000 banks are members of the system, and thus own the Fed banks.
According to researchers that have looked into the ownership of the big Wall Street banks that dominate the Fed, the same names keep coming up over and over: the Rockefellers, the Rothschilds, the Warburgs, the Lazards, the Schiffs and the royal families of Europe.
But ultra-wealthy international bankers have not just done this kind of thing in the United States. Their goal was to create a global financial system that they would dominate and control. Just check out what Georgetown University history professor Carroll Quigley once wrote…
[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.
Sadly, most Americans have never even heard of the Bank for International Settlements, but it is at the very heart of the global financial system. The following is from Wikipedia…
As an organization of central banks, the BIS seeks to make monetary policy more predictable and transparent among its 58 member central banks. While monetary policy is determined by each sovereign nation, it is subject to central and private banking scrutiny and potentially to speculation that affects foreign exchange rates and especially the fate of export economies. Failures to keep monetary policy in line with reality and make monetary reforms in time, preferably as a simultaneous policy among all 58 member banks and also involving the International Monetary Fund, have historically led to losses in the billions as banks try to maintain a policy using open market methods that have proven to be based on unrealistic assumptions.
The ultra-wealthy have also played a major role in establishing other important international institutions such as the United Nations, the IMF, the World Bank and the WTO. In fact, the land for the United Nations headquarters in New York City was purchased and donated by John D. Rockefeller.
The international bankers are “internationalists” and they are very proud of that fact.
The elite also dominate the education system in the United States. Over the years, the Rockefeller Foundation and other elitist organizations have poured massive amounts of money into Ivy League schools. Today, Ivy League schools are considered to be the standard against which all other colleges and universities in America are measured, and the last four U.S. presidents were educated at Ivy League schools.
The elite also exert a tremendous amount of influence through various secret societies (Skull and Bones, the Freemasons, etc.), through some very powerful think tanks and social clubs (the Council on Foreign Relations, the Trilateral Commission, the Bilderberg Group, the Bohemian Grove, Chatham House, etc.), and through a vast network of charities and non-governmental organizations (the Rockefeller Foundation, the Ford Foundation, the World Wildlife Fund, etc.).
But for a moment, I want to focus on the power the elite have over the media. In a previous article, I detailed how just six monolithic corporate giants control most of what we watch, hear and read every single day. These giant corporations own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, music labels and even many of our favorite websites.
Considering the fact that the average American watches 153 hours of television a month, the influence of these six giant corporations should not be underestimated. The following are just some of the media companies that these corporate giants own…
Home Box Office (HBO)
Turner Broadcasting System, Inc.
Warner Bros. Entertainment Inc.
CW Network (partial ownership)
New Line Cinema
Time Warner Cable
ABC Television Network
Buena Vista Home Entertainment
Buena Vista Theatrical Productions
Buena Vista Records
Walt Disney Pictures
Pixar Animation Studios
Buena Vista Games
Paramount Home Entertainment
Black Entertainment Television (BET)
Country Music Television (CMT)
Nick at Nite
The Movie Channel
Dow Jones & Company, Inc.
Fox Television Stations
The New York Post
Fox Searchlight Pictures
Fox Business Network
Fox Kids Europe
Fox News Channel
Fox Sports Net
Fox Television Network
My Network TV
News Limited News
Phoenix InfoNews Channel
Phoenix Movies Channel
STAR TV India
STAR TV Taiwan
Times Higher Education Supplement Magazine
Times Literary Supplement Magazine
Times of London
20th Century Fox Home Entertainment
20th Century Fox International
20th Century Fox Studios
20th Century Fox Television
The Wall Street Journal
Fox Broadcasting Company
Fox Interactive Media
The National Geographic Channel
National Rugby League
Sky Radio Denmark
Sky Radio Germany
Sky Radio Netherlands
CBS Television Network
CBS Radio Inc. (130 stations)
CBS Consumer Products
CW Network (50% ownership)
Simon & Schuster (Pocket Books, Scribner)
Westwood One Radio Network
NBC Television Network
Syfy (Sci Fi Channel)
NBC Universal Television Distribution
NBC Universal Television Studio
Paxson Communications (partial ownership)
Universal Parks & Resorts
Universal Studio Home Video
And of course the elite own most of our politicians as well. The following is a quote from journalist Lewis Lapham…
“The shaping of the will of Congress and the choosing of the American president has become a privilege reserved to the country’s equestrian classes, a.k.a. the 20% of the population that holds 93% of the wealth, the happy few who run the corporations and the banks, own and operate the news and entertainment media, compose the laws and govern the universities, control the philanthropic foundations, the policy institutes, the casinos, and the sports arenas.”
Have you ever wondered why things never seem to change in Washington D.C. no matter who we vote for?
Well, it is because both parties are owned by the establishment.
It would be nice to think that the American people are in control of who runs things in the U.S., but that is not how it works in the real world.
In the real world, the politician that raises more money wins more than 80 percent of the time in national races.
Our politicians are not stupid – they are going to be very good to the people that can give them the giant piles of money that they need for their campaigns. And the people that can do that are the ultra-wealthy and the giant corporations that the ultra-wealthy control.
Are you starting to get the picture?
There is a reason why the ultra-wealthy are referred to as “the establishment”. They have set up a system that greatly benefits them and that allows them to pull the strings.
So who runs the world?
They do. In fact, they even admit as much.
David Rockefeller wrote the following in his 2003 book entitled “Memoirs”…
“For more than a century, ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will. If that is the charge, I stand guilty, and I am proud of it.”
There is so much more that could be said about all of this. In fact, an entire library of books could be written about the power and the influence of the ultra-wealthy international bankers that run the world.
But hopefully this is enough to at least get some conversations started.
So what do you think about all of this? Please feel free to post a comment with your thoughts below…
The mainstream media is hailing QE3 as a great victory for the U.S. economy. On nearly every news broadcast, the “talking heads” are declaring that Ben Bernanke’s decision to pump 40 billion dollars a month into our financial system is definitely going to help solve our economic problems. The money for QE3 is being created out of thin air and this round of quantitative easing is going to be “open-ended” which means that the Federal Reserve is going to keep doing it for as long as they feel like it. But is this really good for the average American on the street? No way. Despite two previous rounds of quantitative easing, median household income has still fallen for four years in a row, the employment rate has not bounced back since the end of the last recession, and new home sales have remained near record lows. So what have the previous rounds of quantitative easing accomplished? Well, they have driven up the prices of financial assets. Those that own stocks have done very well the past couple of years. So who owns stocks? The wealthy do. In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans. Those that have invested in commodities have also done very nicely in recent years. We have seen gold, silver, oil and agricultural commodities all do very well. But that also means that average Americans are paying more for basic necessities such as food and gasoline. So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us. Is there any reason to believe that QE3 will be any different?
Of course not.
This time the Federal Reserve is focused on buying mortgage-backed securities. Yes, the same financial garbage that helped cause the last crisis. The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.
But will the Fed pay true market value for those mortgage-backed securities? If you believe that, I have a bridge to sell you.
So this is going to be a huge windfall for some people, and that does not include us.
Not a single penny of this 40 billion dollars a month will go directly into our hands. The theory is that it will “filter down” to us eventually.
But that hasn’t happened with previous rounds of quantitative easing.
So where does the money go?
A recent CNBC article discussed a very interesting report from the Bank of England about the effects of quantitative easing….
It said that the Bank of England’s policies of quantitative easing – similar to the Fed’s – had benefited mainly the wealthy.
Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.
Many said the BOE’s easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that “QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it.”
Who benefits from quantitative easing?
According to the Bank of England, it is “mainly the wealthy” who benefit.
As I noted the other day, Donald Trump said essentially the same thing when he told CNBC the following….
“People like me will benefit from this.”
As I already discussed above, a lot of quantitative easing money gets into the financial markets where it pumps up the prices of financial assets.
But not all of it goes there.
We were told that the whole idea behind quantitative easing was that it was supposed to get banks lending again, but this has not happened. Instead, banks are sitting on unprecedented amounts of money. Just look at how the first two rounds of quantitative easing have caused excess reserves being held by banks to explode from close to zero to over 1.5 trillion dollars….
Of course one of the biggest problems is that the Federal Reserve is still paying banks not to lend money.
Yes, you read that correctly.
The Federal Reserve is paying banks to park money with them. So instead of risking their money by lending it out to us, the banks can just park it at the Fed and make risk-free profits for as long as they want.
Must be nice.
If the Federal Reserve really wanted banks to start lending again, all the Fed has to do is to stop paying banks not to lend money.
But of course if more than 1.5 trillion dollars suddenly started flooding into our economy (especially after you consider the multiplier effect) we would be dealing with nightmarish inflation unlike anything we have ever seen before.
So if you want to know why inflation was not even worse after QE1 and QE2 it is because more than a trillion and a half dollars is being parked with the Fed.
So did QE1 and QE2 do any good for average Americans?
Let’s go to the charts.
This first chart shows that the percentage of working age Americans with a job has stayed extremely flat since the end of the last recession.
Does it look like QE1 and QE2 made a difference to you? I don’t see any difference….
Okay, but what about new home sales?
Did QE1 and QE2 help them?
But the mainstream media is still buying the baloney the Fed is pushing.
The mainstream media is promising us that home sales will soon rise and that lots of new jobs are on the way.
Sadly, the truth is that things have steadily gotten worse for average Americans over the past 4 years despite all of the money printing the Fed has been doing. If you doubt this, just read this article.
But this is all that Ben Bernanke seems to have left. When printing money doesn’t work, his answer is to print even more money.
QE3 is likely to cause agricultural commodities and the price of oil to rise even further.
So unless you can convince your employer to give you a corresponding raise, this is going to mean that your paychecks are not going to go as far as they did before.
And so that means a lower standard of living.
In a recent article, Bruce Krasting issued an ominous warning….
Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on “stuff”. Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.
In addition, the policy of the Federal Reserve of keeping interest rates as low as possible is absolutely crippling the finances of many retirees. Even the former president of the Federal Reserve Bank of Atlanta, William F. Ford, recognizes this….
One of the overlooked consequences of the Federal Reserve’s recent rounds of monetary stimulus is the adverse impact those policies have had on the interest income of savers. The prolonged and abnormally low interest-rate structure put in place by the Fed has made life particularly difficult for retirees and others who depend on conservative interest-sensitive investments. But the negative effects do not stop there. They spillover into the overall performance of the economy.
Just about everything that the Federal Reserve does these days is bad for ordinary Americans.
But the Fed is not going to stop. The Fed is addicted to money printing now, and as a recent article by Peter Schiff explained, the Fed is just going to “up the dosage” until it gets what it wants….
The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, Bernanke will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve.
This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.
Economist Marc Faber believes that Ben Bernanke should resign, and I agree with him….
“If I had messed up as badly as Bernanke I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous — it doesn’t work that way. It’s a temporary boost followed by a crash.”
And yes, a crash is coming.
Bernanke can try to put it off for a while, but every action he takes is just making the eventual crash even worse.
And some in the financial community clearly recognize this. For example, credit rating agency Egan-Jones downgraded the credit rating of the United States to AA- on Friday.
The primary reason they gave for the downgrade was QE3.
Ben Bernanke and the Federal Reserve are destroying the U.S. dollar and destroying our financial system for a short-term economic sugar high.
It is utter insanity.
That is why we desperately need to get the American people educated about the Federal Reserve system. It is at the very heart of our economic problems and yet neither major political party is willing to blame the Fed for the problems that it is causing.
A bunch of unelected bankers that are not accountable to the American people are running our economy into the ground and the American people do not even realize what is happening.
Please share this article with as many people as you can. Hopefully we can get the American people to understand that more money printing is definitely not the solution to our problems.
It has been said that there are two ways to conquer and enslave a nation. One way is by using the sword, and the other is by using debt. Fortunately, America is not in danger of being conquered by the sword right now, but America is being conquered by debt. The borrower is the servant of the lender, and today we owe China more than a trillion dollars. By running a gigantic trade deficit with us, China has been able to become incredibly wealthy. We have begged them to lend us back some of the money that we have sent them and this has made them even wealthier. Now China is gobbling up U.S. real estate and U.S. assets at an astounding pace. In fact, some cities are in danger of becoming completely dominated by Chinese ownership. One of those cities is Toledo, Ohio. In many “rust belt” areas, real estate can be had for a song, and the Chinese are taking full advantage of this. America was once the wealthiest nation on earth, but now we are drowning in debt and we are being sold off in chunks to the highest bidder. Is this the legacy that we are going to leave for future generations?
According to a recent Fortune article, Chinese investors have been very busy purchasing distressed commercial real estate in Toledo lately….
In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city’s Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.
Toledo is being promoted to Chinese investors as a “5-star logistics region“. From Toledo it is very easy to get to Chicago, Detroit, Cleveland, Pittsburgh, Columbus and Indianapolis.
With a population of 287,000, Toledo is only the fourth largest city in Ohio, but it lies at the junction of two important highways — I-75 and I-80/90. “My vision is to make Toledo a true international city,” Toledo’s Mayor Mike Bell told the Toledo Blade.
For some reason the Chinese seem to be very interested in that area of the country. Last month, I wrote about how one Chinese group plans to develop a 200 acre “China city” just 40 minutes away from Toledo….
A Chinese group known as “Sino-Michigan Properties LLC” has bought up 200 acres of land near the town of Milan, Michigan. Their plan is to construct a “China City” with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens. Essentially, it would be a little slice of communist China dropped right into the heartland of America. This “China City” would be located about 40 minutes from both Detroit and Toledo, and it would be marketed to Chinese business people that want to start businesses in the United States.
But it is not just the rust belt that is being bought up by the Chinese. A recent Forbes article documented several of the huge real estate deals that the Chinese are doing in New York right now….
According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.
In addition to real estate, the Chinese are also buying up businesses and natural resources all over the United States.
For example, the Dalian Wanda Group recently bought U.S. movie theater chain AMC Entertainment for 2.6 billion dollars.
Also, the Obama administration has been allowing companies owned by the Chinese government to gobble up U.S. oil and gas deposits worth billions of dollars.
On top of all that, the Federal Reserve recently announced that it will now allow Chinese banks to start buying up American banks.
So how in the world did we come to be so completely and totally dominated by China?
Well, the key to all of this is the trade deficit.
Most Americans can’t even tell you what a trade deficit is, but it is at the very heart of our economic problems.
Basically, we buy far, far more from other countries than they buy from us.
Most Americans don’t realize this, but the truth is that the United States has a trade imbalance that is more than 5 times larger than any other nation on earth has.
Overall, the U.S. has run a trade deficit of more than 8 trillion dollars with the rest of the globe since 1975.
If you go into a Wal-Mart of a dollar store today and you start looking at product labels, you will notice that hundreds of products say “made in China” and very few of them say that they were made in this country.
Every single month, China sends us gigantic mountains of plastic crap to sell in our stores and we send them gigantic mountains of our money.
The U.S. trade deficit with China during 2011 was $295.4 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.
Sadly, so far our trade deficit with China in 2012 is about 12 percent larger than it was last year.
So things are getting even worse.
To get an idea of how far things have come, let us take a look back at the 1980s for a moment.
Back in 1985, the U.S. trade deficit with China was only 6 million dollars for the entire year.
All of this imbalanced trade is absolutely killing us.
Today, the United States spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.
So why doesn’t China buy more stuff from us?
Well, there are a whole lot of reasons. One of the main reasons is that they slap huge tariffs on many American-made goods.
For example, according to the New York Times a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.
So why do we allow China to keep doing this to us?
That is a very good question.
Meanwhile, China is continually getting wealthier and we are continually getting poorer.
All of the money that is leaving this country and going to China could be going to U.S. businesses and U.S. workers instead. In turn, those businesses and workers would pay taxes on that money to support the government.
Instead, we have to go beg China to lend us the money that we just sent to them.
At this point, China now holds approximately 1.17 trillion dollars of U.S. government debt.
None of this ever had to happen.
But it did happen because we were stupid.
Now China has mountains of money to literally buy us up.
But China is not the only country that we have an imbalanced trading relationship with.
For example, the new “free trade agreement” between the United States and South Korea that Barack Obama has been touting went into full effect on March 15, 2012.
So how has that “free trade agreement” turned out so far? The following is from a recent article by Pat Buchanan….
The U.S. trade deficit with Korea tripled in one month. Imports from South Korea jumped 15 percent to $5.5 billion in April, while U.S. exports to South Korea fell 12 percent to $3.7 billion. Suddenly, the U.S. trade deficit with Seoul surged to an annual rate of $22 billion.
Shades of NAFTA. When it passed in 1993, we had a $1.6 billion trade surplus with Mexico. By 2010, our trade deficit with Mexico had reached $61.6 billion.
The truth is that these free trade agreements are not fair and balanced.
U.S. workers end up competing for jobs with workers in countries where it is legal to pay slave labor wages. And other countries often have far fewer rules and regulations to follow as well. In his recent article, Buchanan described why all Americans should be economic nationalists….
Global free trade means U.S. workers compete with Asian and Latin American workers whose wages are a fraction of our own and whose benefits may be nonexistent. Global free trade means U.S factories that relocate to Indonesia or India need not observe U.S. laws on health, safety, pollution or paying a minimum wage.
Global free trade means that companies that move factories outside the United States can send their products back to the United States free of charge and undercut businessmen who retain their American workers and live within American laws.
Free trade makes suckers and fools out of patriots.
Unfortunately, both major political parties in the United States are absolutely married to the one world economic agenda that the elite are pushing.
So we will continue to bleed wealth, businesses and jobs at an astounding pace.
You can get a really good idea of the horrific manufacturing job losses in the United States over the past 40 years by checking out this map right here.
Overall, the United States has lost a total of more than 56,000 manufacturing facilities since 2001.
According to the Economic Policy Institute, since 2001 America has lost approximately 2.8 million jobs due to our trade deficit with China alone.
There seems to be absolutely no concern with protecting American jobs these days.
If you can believe it, Chinese corporations are even building our bridges. The following is a brief excerpt from a recent ABC News article….
In New York there is a $400 million renovation project on the Alexander Hamilton Bridge.
In California, there is a $7.2 billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.
In Alaska, there is a proposal for a $190 million bridge project.
These projects sound like steps in the right direction, but much of the work is going to Chinese government-owned firms.
“When we subsidize jobs in China, we’re not creating any wealth in the United States,” said Scott Paul, executive director for the Alliance for American Manufacturing.
Americans need to start understanding that our trade deficit is causing us to lose massive numbers of businesses and jobs and that this is making us poorer as a nation.
As I wrote about the other day, the median net worth of families in the United States declined “from $126,400 in 2007 to $77,300 in 2010” according to the Federal Reserve.
Even if you take away the effect of the housing collapse, household net worth still declined by 25 percent between 2005 and 2010.
A lot of that decline in wealth was due to the recent recession, but the point I am trying to make is that we are getting poorer as a nation.
A decade ago, the United States was ranked number one in average wealth per adult. By 2010, the United States had fallen to seventh.
And when you factor in our debts, we are a complete and total mess. U.S. consumers are more than 11 trillion dollars in debt and the federal government is nearly 16 trillion dollars in debt.
We are getting deeper in debt at the same time that our ability to service that debt is declining.
The reality is that our economy is completely falling apart and it no longer produces enough jobs for everyone.
In fact, it isn’t even close.
Right now there are about 3.7 workers that are “officially” unemployed for every single job opening.
So what we are doing right now is clearly not working.
We need to fundamentally change direction as a nation.
Unfortunately, that is not going to happen any time soon.
So where do we go from here?
The way that we tax people in the United States is fundamentally broken and should be completely discarded. The U.S. tax code is absolutely riddled with loopholes that allow the super rich to legally avoid taxes while many of the rest of us are being taxed into oblivion. In our system of taxation, middle class families that work hard and try to play by the rules are deeply penalized while those that are willing to abuse the system make out like bandits. There is something fundamentally wrong with a system that enables wealthy politicians such as Barack Obama and Mitt Romney to pay a smaller percentage of their incomes in taxes than millions of middle class families. Mitt Romney has millions of dollars parked down in the Cayman Islands and in other tax havens. He does this to avoid taxes. Unfortunately, most Americans do not have the resources to funnel money through offshore tax havens. Most Americans just automatically have their paychecks shredded by taxes and then try to live on whatever is left over. Most Americans are just trying to survive financially from one month to the next. But the super rich have options. Thanks to technology, they can live almost anywhere they want and they can run their companies and manage their investments from anywhere in the world. The truth is that the wealthier you are the easier it is to avoid taxes. But even as the ultra-wealthy do their best to avoid taxes, many of them still feel free to demand that the rest of us be taxed more.
So what are some of the ways that the super rich avoid taxes?
Well, let’s start with those that are just “somewhat wealthy”. Many millionaires still want or need to be U.S. citizens, so they are subject to the U.S. tax code. Fortunately for them, their tax lawyers know of thousands of loopholes that have been designed to help the rich avoid taxes.
The following is from a recent article by Jen Talley….
Some of the richest people in the country pay the least, relatively speaking, in taxes. How is this possible? Answer: Through the clever manipulation of the U.S. tax code’s loopholes. And it works: as income rises, effective tax rates rise as well, but only up to a point. IRS data shows that the effective income tax rate flattens out at just over 24 percent for those making over a million dollars. As income exceeds $1.5 million, the rate begins to decline; those with incomes above $10 million pay an average income tax rate of around 19 percent. So, how do they do it?
You could write an entire series of books on the technical details of how this gets done. Trust me, I studied tax law when I was in law school.
If you are interested in digging into some of the technical details of tax avoidance, a recent Businessweek article detailed 10 ways that the wealthy use our current tax code to avoid paying billions of dollars in taxes. It is an article worth reading if you have the time.
Sadly, tax avoidance by the wealthy is not just something that happens in the United States. The truth is that the exact same kind of thing happens in the UK as well.
There is not an easy fix to this problem. Our politicians have had decades to try to come up with a fair tax system and they have completely failed. The wealthy are always several steps ahead of them.
But federal taxes are not the only taxes that can be avoided. The vast difference in state tax rates creates another opportunity.
One advantage that wealthy Americans have is that they are far more mobile than most other Americans are. So if they don’t like the tax system in one state they can simply pick up and move to another state.
According to the Tax Foundation, 3.4 million Americans left New York state between 2000 and 2010.
So where did they go?
The following is from a recent CNS News article….
Where are they escaping to? The Tax Foundation found that more than 600,000 New York residents moved to Florida over the decade – opting perhaps for the Sunshine State’s more lenient tax system – taking nearly $20 billion in adjusted growth income with them.
There is no state income tax in Florida. So moving from New York to Florida can end up saving you a bundle.
The same kind of migration is happening out west as well. According to that same CNS article, hundreds of thousands of people have been moving from California (a high tax state) to Texas (no state income tax)….
Between 2000 and 2010, the most recent data available, 551,914 people left California for Texas, taking $14.3 billion in income. Texas has no state income tax or estate tax.
A total of 48,877 people moved to Texas from California between 2009 and 2010 alone, totaling $1.2 billion in income. Another 28,088 from California relocated to Nevada and 30,663 to Arizona, a loss of $699.1 million and $707.8 million in income respectively.
Not that anyone really needs much of an excuse to move away from California. It is rapidly decaying right in front of our eyes.
But a lot of families do not have the same options that wealthy people do. Unfortunately, most average Americans are tied to their jobs and it would be much more difficult for them to pick up and move across the country. In this economy it can be economic suicide to give up a good job.
The reality is that most of us simply do not have the resources to play the same kinds of games that the wealthy play.
Sadly, even our most prominent politicians avoid taxes.
Just look at Massachusetts Senator John Kerry. He has avoided approximately $500,000 in taxes by docking his yacht in Rhode Island rather than in Massachusetts.
Yet Kerry sure does love to call for more taxes on the rest of us, doesn’t he?
Now let’s talk about the “super rich” and the “ultra-wealthy”. For many people that are worth billions of dollars, tax avoidance has become an art from.
Facebook co-founder Eduardo Saverin made national headlines recently when he gave up his U.S. citizenship, but the truth is that his case is small potatoes compared to the global elite and the shadow banking system that supports them.
According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banks.
That amount is more than the GDP of the United States for an entire year.
So what do I mean by “offshore banks”? I defined the term in a previous article….
Well, the term originally developed because the banks on the Channel Islands were “offshore” from the United Kingdom. Most “offshore banks” are still located on islands today. The Cayman Islands, Bermuda, the Bahamas, and the Isle of Man are examples of this. Other “offshore banking centers” such as Monaco are actually not “offshore” at all, but the term applies to them anyway.
Traditionally, these offshore banking centers have been very attractive to both criminals and to the global elite because they would not tell anyone (including governments) about the money that anyone had parked there.
It has been reported that 80 percent of all international banking transactions involve offshore banks. A whopping 1.4 trillion dollars is being held in offshore banks in the Cayman Islands alone.
An article that appeared in the Guardian estimated that a third of all the wealth on the entire planet is being kept in offshore banks. One of the primary reasons for this is tax avoidance.
A lot of wealthy individuals never even visit these tax havens and yet reap the benefits anyway. The truth is that tax avoidance has become way too easy. The following example is from a recent Politico article….
A plausible scenario plays out like this: I hire an accountant. Doing her job, my accountant tells me that if I sign a few legal documents and route my money through a small Caribbean island, I could keep more of my paycheck and pay a lower tax rate. I may have earned my money in the United States, but legally I can claim that it was, in fact, earned in a tax haven.
Are you disgusted yet?
You should be.
But even though they avoid taxes like the plague, many of these elitists have the gall to call for higher taxes on all the rest of us.
For example, let’s review what the managing director of the IMF, Christine Lagarde, said in a recent interview….
“Do you know what? As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time. All these people in Greece who are trying to escape tax.”
Even more than she thinks about all those now struggling to survive without jobs or public services? “I think of them equally. And I think they should also help themselves collectively.” How? “By all paying their tax. Yeah.”
It sounds as if she’s essentially saying to the Greeks and others in Europe, you’ve had a nice time and now it’s payback time.
“That’s right.” She nods calmly. “Yeah.”
And what about their children, who can’t conceivably be held responsible? “Well, hey, parents are responsible, right? So parents have to pay their tax.”
Well, it turns out that she doesn’t pay any income taxes at all on her own income….
The IMF chief Christine Lagarde was accused of hypocrisy yesterday after it emerged that she pays no income tax – just days after blaming the Greeks for causing their financial peril by dodging their own bills.
The managing director of the International Monetary Fund is paid a salary of $467,940 (£298,675), automatically increased every year according to inflation. On top of that she receives an allowance of $83,760 – payable without “justification” – and additional expenses for entertainment, making her total package worth more than the amount received by US President Barack Obama according to reports last night.
Her “diplomatic status” allows her to escape all income taxes.
So perhaps she should pay her “fair share” before pointing the finger at anyone else.
But she is not the only one being hypocritical.
The super rich claim that they should pay lower taxes on investment income for the good of our “capitalist system”, but when their banks are about to go under they are more than happy to have those losses be socialized.
As I wrote about yesterday, the stage is already set for another massive round of bailouts when the next great financial crisis strikes. Once again our taxes will pay for the mistakes of the ultra-wealthy.
The truth is that our system is fundamentally broken.
We need to abolish the income tax and shut down the IRS.
Those two steps alone would do wonders for our economic system.
We also need to shut down the Federal Reserve and break up the too big to fail banks.
Unfortunately, the vast majority of our politicians are not even willing to consider any of those solutions.
So our fundamentally broken system will continue to chug along.
It really is sad.