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14 Facts That Prove That The Number Of Children Living In Poverty This Christmas Is At A Record High

Children - Public DomainDid 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.

The Dow And S&P 500 Soar To Irrational Heights – Meanwhile The Ultra-Wealthy Rush To Buy Gold Bars

Gold Bars - Public DomainDid you know that the number of gold bars being purchased by ultra-wealthy individuals has increased by 243 percent so far this year?  If stocks are just going to keep soaring, why are they doing this?  On Thursday, the Dow Jones industrial average and the S&P 500 both closed at record highs once again.  It is a party that never seems to end, and there are a lot of really happy people on Wall Street these days.  But those that are discerning realize that we witnessed the exact same kind of bubble behavior during the dotcom boom and during the run up to the last financial crash in 2007.  The irrational exuberance that we are witnessing right now cannot go on forever.  And the bigger that this bubble gets, the more painful that it is going to be when it finally bursts.  Those that get out at the peaks of the market are the ones that usually end up making lots of money.  Those that ride stocks all the way up and all the way down are the ones that usually end up getting totally wiped out.

To get an idea of how irrational the markets have become, all one has to do is to look at Twitter.

Would you value “a horribly mismanaged company” that is less than 10 years old and that has never made a yearly profit at 31 billion dollars?

Well, that is precisely how much the financial markets say that Twitter is worth at this moment.

Even though Twitter will probably never be much more popular than it is right now, it continues to bleed money profusely.  On a GAAP (generally accepted accounting principles) basis, Twitter lost an astounding 145 million dollars during the second quarter of 2014…

Twitter’s GAAP net loss totaled $145 million, up from $42 million a year ago. On a GAAP basis, Twitter lost $0.24 per share. Investors, however, were not expecting Twitter to be profitable by GAAP measurements, so the loss isn’t too much of a drag.

Why would anyone want to invest in such a money pit?

Here are some more disturbing financial numbers about Twitter from David Stockman

Currently, Twitter (TWTR) is valued at $31 billion.That’s 18X revenue, but the catch is that the revenue in question is it’s lifetime bookings over the 18 quarters since Q1 2010.

When it comes to profits, the numbers are not nearly so promising!  For the LTM period ending in June, TWTR booked $974 million of revenue and $1.7 billion of operating expense. That why “NM” shows up in its LTM ratio of enterprise value to EBITDA. It turns out that its EBITDA was -$704 million. In fact, its R&D expense alone was 83% of revenues.

Of course the truth is that Twitter should be able to make money.

And it probably would be making money if it was being managed better.

The following is what Silicon Valley venture capitalist Peter Thiel said about Twitter on CNBC the other day…

“It’s a horribly mismanaged company — probably a lot of pot-smoking going on there.”

But because Twitter is a “hot tech stock” investors are literally throwing money at it.

And there are many other tech companies that have similar stories.  Off the top of my head, Snapchat, LinkedIn, Yelp and Pinterest come to mind.

Fueled by the quantitative easing policies of the Federal Reserve, U.S. stocks have enjoyed an unprecedented joy ride.

However, as David Stockman recently told Yahoo Finance, the subsequent crash is likely to be enormously painful…

“I think what the Fed is doing is so unprecedented, what is happening in the markets is so unnatural,” he said. “This is dangerous, combustible stuff, and I don’t know when the explosion occurs – when the collapse suddenly is upon us – but when it happens, people will be happy that they got out of the way if they did.”

The behavior that we are observing in the stock market simply does not reflect what is happening in the economy overall whatsoever.

In many ways, U.S. economic fundamentals just continue to get even worse.  Small business ownership in the United States is at an all-time low, the labor force participation rate is the lowest that it has been in 36 years, and the U.S. national debt has grown by more than a trillion dollars over the past 12 months.

But on Wall Street right now, there is very little fear that the party is going to end any time soon.

The following is how Seth Klarman recently described the market complacency that he is seeing at the moment…

To put it a bit differently, writer and investor John Mauldin is right when he says that there is “a bubble in complacency.” Fear has effectively been banished. The members of the Fed know it. Stock traders who chase the market to new highs almost daily know it. Implied volatilities (and realized volatilities) are historically low (the VIX Index recently hit a seven-year low), and falling. The Bank for International Settlements recently cautioned that financial markets are euphoric and in the grip of an aggressive search for yield. The S&P has gone over 1,000 days without a 10% decline, according to Birinyi Associates. Dutch and French 10-year government bond yields are at 500 and 250 year lows, respectively; Spain, 225 years. Spanish debt yields were recently inside of U.S. levels.

But as Klarman also observed, just because “investors have been seduced into feeling good” does not mean that this current bubble is any different from what we witnessed back in 2007…

It’s not hard to reach the conclusion that so many investors feel good not because things are good but because investors have been seduced into feeling good—otherwise known as “the wealth effect.” We really are far along in re-creating the markets of 2007, which felt great but were deeply unstable when shocks started to pile up. Even Janet Yellen sees “pockets of increasing risk-taking” in the markets, yet she has made clear that she won’t raise rates to fight incipient bubbles. For all of our sakes, we really wish she would.

Meanwhile, the ultra-wealthy are making moves to protect themselves from the inevitable chaos that is coming.

For example, the Telegraph recently reported that sales of gold bars to wealthy customers are up 243 percent so far in 2014…

The super-rich are looking to protect their wealth through buying record numbers of “Italian job” style gold bars, according to bullion experts.

The number of 12.5kg gold bars being bought by wealthy customers has increased 243 percent so far this year, when compared to the same period last year, said Rob Halliday-Stein founder of BullionByPost.

“These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film ‘The Italian Job’,” added David Cousins, bullion executive from London based ATS Bullion.

Do they know something that we don’t?

The ultra-wealthy are able to stay ultra-wealthy for a reason.

They are usually a step or two ahead of most of the rest of us.

And any rational person should be able to see that this financial bubble is going to end very, very badly.

85 Super Wealthy People Have More Money Than The Poorest 3.5 Billion Combined

New World OrderThe global economy is structured to systematically funnel wealth to the very top of the pyramid, and this centralization of global wealth is accelerating with each passing year.  According to the United Nations, 85 super wealthy people have more money than the poorest 3.5 billion people on the planet combined.  And 1.2 billion of those poor people live on less than $1.25 a day.  There is something deeply, deeply broken about a system that produces these kinds of results.  Seven out of every ten people on the planet live in countries where the gap between the wealthy and the poor has increased in the last 30 years.  Despite our technological advances, somewhere around a billion people go to bed hungry every single night.  And when our fundamentally flawed financial system finally does collapse, it will be the poor that will suffer the worst.

Now, let me make one thing clear at the outset.

Big government and more socialism are not the answer to anything.  Big government and more socialism almost always result in increased oppression and increased poverty.  If you want to see where that road ultimately leads to, just look at North Korea.

What we need is a system that empowers individuals and families to work hard, be creative, build businesses and to take care of themselves.

But instead, we have a system where all power and all wealth are increasingly controlled by giant banks and giant corporations that are in turn controlled by the global elite.  The “financialization” of the global economy has turned almost everyone on the planet into “deft serfs”, and the compound interest on all of that debt enables the global elite to constantly increase their giant piles of money.

As I have written about previously, the total amount of government debt in the world has increased by about 40 percent since the last recession.

And when you consider all forms of debt, the grand total for the planet is now up to a whopping 223 trillion dollars.

This enables the super wealthy to constantly become even wealthier.  It is like a giant vacuum cleaner that sucks wealth out of all of our pockets and transfers it to them.

It has been reported that the global elite have approximately 32 trillion dollars stashed in offshore banks around the globe.

But that is only what we know about.

What we don’t know about is probably far greater.

Just like most people don’t realize that men like Bill Gates and Carlos Slim are not the wealthiest men on the planet.

The people that are really at the top of the food chain are masters at hiding wealth and they absolutely do not want their names being thrown around in the media.

Meanwhile, those at the bottom of the pyramid continue to suffer.

For example, it was been widely reported that there are more people in slavery today than ever before in human history.

That is an absolutely amazing statistic.  It is hard to comprehend how that could be possible, and yet it is.  A new UN report says that there are 21 million slaves around the globe right now

Nearly 21 million people are working as modern day slaves, falling victim to trafficking, forced labor and sexual exploitation, a new UN report finds. The illicit market in exploited people generates billions of dollars in profit worldwide.

The report by the International Labour Organization (ILO), which draws on information gathered in a 2012 survey, also found that annual profits stemming from forced labor are three times higher than previous estimates.

“Put into perspective, the 21 million victims in forced labor and the more than US$150 billion in illegal profits generated by their work exceeds the population and GDP of many countries or territories around the world,” the ILO says.

This is an utter abomination, but this is actually happening all over the planet.  The following is one story that I recently came across out of India

Dialu Nial’s life changed forever when he was held down by his neck in a forest and one of his kidnappers raised an axe to strike.

He was asked if he wanted to lose his life, a leg or a hand.

Six days earlier, Nial had been among 12 young men being taken against their will to make bricks on the outskirts of one of India’s biggest cities, Hyderabad.

During the journey, they got a chance to escape and ran for it – but Nial and a friend were caught and this was their punishment.

And yes, he did end up losing his hand.

Fortunately, most of us are not facing that kind of oppression.

But that doesn’t mean that we aren’t slaves.  The borrower is the servant of the lender, and over the past four decades the total amount of debt in America has gone from about 2.2 trillion dollars to nearly 60 trillion dollars.  Many of us work as “debt serfs” our entire lives, and we never even know the names or the faces of those that we are making rich as we slowly pay off our debts.

And all of this debt is one of the primary factors destroying the middle class in America.  Just this past week, the New York Times reported that the wealth of “the typical household” in the United States has declined by 36 percent over the past decade…

The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.

The Russell Sage study also examined net worth at the 95th percentile. (For households at that level, 94 percent of the population had less wealth and 4 percent had more.) It found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Other research, by economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest 1 percent of households.

Does that upset you when you read that?

It should.

And the outlook for the next generation is even worse.  Most of our young adults are absolutely drowning in student loan debt and other forms of debt, and wages for new college graduates are terrible.

Sadly, most people don’t even realize how the global financial system works or why the gap between the super wealthy and the rest of us continues to grow so rapidly.

It has been estimated that the wealthiest one percent currently have 110 trillion dollars.

That is 65 times more wealth than the bottom half of the global population combined.

They are hoarding wealth as we approach some of the most unstable days in all of human history.

So how do you think all of this will play out?  Please feel free to share your thoughts by posting a comment below…

Greed Is Good? Where Will America’s Sick Obsession With Wealth And Money End?

Greed - Photo by J. Solana from Madrid, SpainEverywhere you look, Americans appear to be extremely obsessed with wealth and money.  These days, networks such as CNN endlessly run “news stories” with titles such as “Best cars for the super rich“.  We have television shows where people proudly show off how wealthy they are, and it seems like Hollywood is putting out an endless parade of movies that glorify the lifestyles of the elite.  We have hordes of motivational speakers and “life coaches” that will teach you how to be “more successful” in life, and every small movement in the stock market is carefully monitored by the mainstream news media.  Even in the world of faith, we have an entire class of ministers known as “prosperity preachers”, and many of those ministers wear that label quite proudly.  Yes, those that grew up in the 1980s may have been the “greed is good” generation, but the truth is that they didn’t have anything on us.  As a society we love money, and we are not ashamed to admit it.  In fact, there are times we absolutely revel in it.  For example, Time Magazine published an article this year entitled “Science Proves It: Greed Is Good” and hardly anyone even raised an eyebrow.  But where will America’s sick obsession with wealth and money end?  Could it end up destroying us?

I got the idea for this article when I was browsing through CNN’s website.  The following are eight “news stories” about wealth that were featured on CNN just on Thursday alone…

#1 “The richest Americans in history

#2 “How much do you need to be happy?

#3 “Where are the super rich?

#4 “From broke to billionaire

#5 “Homes: What $25 million buys around the world

#6 “Best cars for the super rich

#7 “America’s homes are bigger than ever

#8 “Mega yacht with a movie theater

This is what passes for news these days?

It has been said that we tend to talk about the things that we are obsessed with.

And CNN is clearly obsessed with wealth.

Not that there is anything wrong with having money.

If none of us had any money, we would all be homeless and starving.  So the truth is that money can be very useful.  But when it becomes an idol, that is when it becomes a problem.

And because we have taught entire generations of Americans that becoming wealthy is one of the primary goals in life, it is creating a tremendous amount of envy, jealousy, frustration and anger among those that have not been able to become wealthy.

In recent years, the level of bitterness and resentment that the rest of the nation has toward the very wealthy has risen to an unprecedented level.  It has become exceedingly apparent that the system is designed to funnel wealth to the very top of the food chain, and many of those at the bottom of the food chain are starting to become extremely upset about this.

Since the last financial crisis, almost all of the income gains have gone to the top one percent of all income earners.  The following comes from a recent Huffington Post article

Economic statistics show that incomes for the top 1 percent of U.S. households soared 31 percent from 2009 through 2012, after adjusting for inflation, yet inched up an average of 0.4 percent for those making less. Many economists are sounding alarms that the income gap, greater now than at any time since the Depression, is hurting the economy by limiting growth in consumer spending.

And income inequality has become such a hot topic that it has even produced a New York Times bestseller by a French economist named Thomas Piketty.  This is what CBS News recently had to say about his book…

His book has landed on that debate like a bomb. Piketty’s thesis: that the rate of return on capital, such as real estate, dividends and other financial assets, is racing away from the rate of growth required to maintain a healthy economy. If that trend continues for an extended period of time — if wealth becomes ever more concentrated in the hands of a few — then inequality is likely to get worse, says Piketty, 43, who started his academic career as an assistant professor at the Massachusetts Institute of Technology and who now teaches at the Paris School of Economics.

Another reason “Capital” has caught the public’s attention is that inequality is evident in what are by now a host of familiar symptoms. Stagnant pay, except among the super-rich. Soaring health care and education costs. The diminished expectations commonly found in young, especially those lacking college degrees, and old alike, as retirement becomes something to endure rather than to enjoy.

It would be foolish to deny that the gap between the rich and the poor is growing.  Even as the stock market reaches unprecedented heights, the middle class is dying and one out of every five children in America is living in poverty.

On a global scale, the wealthiest one percent now have 65 times more wealth than the entire poorest half of the global population does.

That is an astounding figure.

Most people don’t realize this, but the ultra-wealthy have approximately 32 trillion dollars (that we know about) stashed in offshore banks around the planet.  That amount of money would almost be about enough to pay off the entire U.S. national debt and buy every good and service produced in the United States for an entire year.

Meanwhile, the poorest half of the world’s population only owns about 1 percent of all global wealth, and about a billion people throughout the world go to bed hungry every night.

If greed was going to save the world, it would have done it by now.  At this point, the wealthy have accumulated more wealth than they ever have before.  For example, according to Zero Hedge the total amount of wealth in the U.S. has just hit a brand new record high…

Earlier today the Fed released its latest Flow of Funds report, which showed that in the first quarter household net worth rose from last quarter’s $80.3 trillion to a new record high of $81.8 trillion, driven by a $1.5 trillion increase in total assets while household liabilities were virtually unchanged in the quarter. And since the Fed is onboarding all the liabilities why should households bother with debt: that’s what the central bank balance sheet is for.

As for the proceeds, they go to the mega rich: of the $81.8 trillion in net worth, 70.4% of the total amount or $67.2 trillion, was in financial assets: the higest it has ever been courtesy of just one person: Ben Bernanke, and to a far lesser extent Janet Yellen who however is tasked with picking up Bernanke’s pieces.

But of course most people who are rich are only rich on paper.

As noted above, 67.2 trillion dollars of the total of 81.8 trillion dollars of wealth in this nation is made up of financial assets.

So what happens if there is a major financial crisis (such as the derivatives bubble bursting) which causes the total amount of financial wealth in the United States to drop by 50% or more?

What would such an event do to our country?

We are so obsessed with wealth and money that it is truly frightening to think about how we would react as a society if it was taken away.

But this current financial bubble will not last forever.

At some point it will come to an end.

When it does, will our society throw a massive temper tantrum?

Top 1% Has 65 Times More Wealth Than The Bottom Half And The Global Elite Like It That Way

85 Richest People - Photo by OxfamDid you know that the 85 richest people in the world have about as much wealth as the poorest 50% of the entire global population does?  In other words, 85 extremely wealthy individuals have about as much wealth as the poorest 3,500,000,000 do.  This shocking statistic comes from a new report on global poverty by Oxfam.  And actually Oxfam’s report probably significantly underestimates the true scope of the problem, because Oxfam relies on publicly reported numbers.  At the very top of the food chain, the global elite are masters at hiding their wealth.  In fact, as I have written about previously, the global elite have approximately 32 trillion dollars (that we know about) stashed in offshore banks around the world.  That would be about enough to pay off the entire U.S. national debt and buy every good and service produced in the United States for an entire year.  These elitists live on an entirely different planet than the rest of us do.  In fact, according to Oxfam, the richest one percent of the global population has 65 times more wealth than the bottom half of the global population combined.

There is certainly nothing wrong with making money.  In fact, the founders of the United States intended for this nation to be a place where free markets thrived and where everyone could pursue their dreams.  Unfortunately, this country (along with the rest of the world) has moved very much in the opposite direction.  Today, we have a debt-based global financial system which is dominated by gigantic predator corporations and big banks.  Working together with national governments, these corporations and banks have constructed a system that I like to call “Corporatism” in which the percentage of all global wealth that is being funneled to the very top of the pyramid steadily grows over time.

The Founding Fathers were very correct to be very suspicious of large concentrations of power.  In the early days of the United States, the federal government was very small and the size and scope of corporations was greatly limited.  Our nation thrived and a huge middle class blossomed.

Sadly, over the past several decades the pendulum has completely swung in the other direction.  Today, our society is completely and totally dominated by big banks, big corporations and big government.

And of course this is also happening in virtually every other nation on the face of the planet.  The global elite have rigged the game to send just about all of the rewards their way, and it is working.  The following are facts taken directly from Oxfam’s latest report

•Almost half of the world’s wealth is now owned by just one percent of the population.

•The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.

•The bottom half of the world’s population owns the same as the richest 85 people in the world.

•Seven out of ten people live in countries where economic inequality has increased in the last 30 years.

•The richest one percent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012.

•In the US, the wealthiest one percent captured 95 percent of post-financial crisis growth since 2009, while the bottom 90 percent became poorer.

Starting on Wednesday, several thousand members of the global elite will gather for the World Economic Forum meetings in Davos, Switzerland.  The following is how USA Today described this conference.

For several days at the end of January, presidents, prime ministers, monarchs and corporate titans jostle with actors, rock stars and major influencers for top billing at the annual meeting of the World Economic Forum. The confab takes place in the Alpine village of Davos, about 90 miles southeast of Zurich, and for a brief spell each year the pristine ski resort half-sheds its Graubünden roots and becomes a ground zero for the political and business elite.

Unless you are independently wealthy, you can forget about going to this conference.  A ticket to Davos is going to cost you about $30,000, and that is on top of the $55,000 that it costs to join the organization.

Needless to say, it is an organization of the elite, by the elite and for the elite.

This year, the theme of the meeting is “The Reshaping of the World: Consequences for Society, Politics and Business“.  And the founder of the World Economic Forum says that the time has come to press the “reset” button for the global economy…

It’s time to press the “reset” button on the world, the founder of the World Economic Forum said Wednesday, addressing media ahead of the WEF’s much ballyhooed annual meeting in Davos-Klosters, Switzerland, that gets underway in a week’s time.

“The world is complex, it’s fast-moving, it’s interconnected, and we in Davos want to provide a mirror to the world as it is. It is not a meeting devoted to one set of issues. It’s a meeting that address the complexity of our world,” said Klaus Schwab, the WEF’s founder and executive chairman.

At first glance, that sounds pretty good.

Personally, I would love to hit a “reset” button for the global economy.

But what the elite mean by “reset” is much different from what most of the rest of us would mean.

The following is an excerpt from the executive summary for the agenda for the 2014 World Economic Forum…

“At an international level, the formal architecture for global governance was not designed for the interdisciplinary challenges and collective action problems of today. As a result, international cooperation has yet to fully enter the information age and capture its associated productivity gains.”

For the global elite, the answers to our problems always involve more centralization and more “global governance”.  In other words, the answers to our problems always involve giving them more control and more power.

The elite never actually want the pendulum to swing back in the direction of the “little guy”.  The elite are generally pleased with how the game is being played because they are winning.

Most people don’t even realize that they are participants in a debt-based neo-feudalist system in which money is being used as a form of social control.

As I have written about previously, there is about 190 trillion dollars of debt in the world, but global GDP is only about 70 trillion dollars.

There is no way that all of this debt could ever be paid off at one time.  It is mathematically impossible.  Over time, all of this debt transfers the wealth of the planet away from us and to the global elite.  If this game was allowed to go on long enough, eventually they would have nearly all of it.

And some would argue that we are already getting close to that point.  A study by the World Institute for Development Economics Research discovered that the bottom half of the global population only owns approximately 1 percent of all wealth, and at this point about a billion people throughout the world go to bed hungry every night.

This is one of the reasons why I am so adamant about the fact that the Federal Reserve needs to be shut down.  It is at the very heart of the debt-based system that we have in the United States, and over the past 100 years it has brought us to the brink of economic Armageddon.

Sadly, most Americans do not understand any of these things.  They just assume that the debt-fueled prosperity that we have been enjoying will be able to go on indefinitely.

So is there any hope for the “little guy”?

Well, you could try to win the one billion dollar NCAA tournament bracket contest that Warren Buffett is backing.

Or you could go out and try to win the lottery or try to date a famous professional athlete.

But the odds of any of those things actually happening are so low that they aren’t even worth mentioning.

Personally, I would rather spend my time trying to wake people up and help them understand how our global system really works.

I believe that a “great awakening” is coming.

I believe that millions of people are going to start breaking out of the “matrix of control” that has such a tight grip on their lives and are going to start thinking for themselves.

I believe that as the darkness gets even darker that the light is going to get even brighter.  I believe that we are going to see “renewal” on a whole bunch of different levels.

Yes, a great economic collapse is coming.

Yes, there is going to be a tremendous amount of pain.

But it won’t all be bad news.

The times ahead are going to be full of adventure and excitement for those who are willing to embrace it.

So what do you think about what is coming in the years ahead?  Please feel free to share your thoughts by posting a comment below…

85 Richest People - Photo by Oxfam

Meet One Of The Victims Of Obama’s “Economic Recovery”

Barack Obama speaking into a microphone and pointing to the right - Photo by Pat HawksHave you ever cried yourself to sleep because you had no idea how you were going to pay the bills even though you were working as hard as you possibly could?  You are about to hear from a single mother that has been there.  Her name is Yolanda Vestal and she is another victim of Obama’s “economic recovery”.  Yes, things have never been better for the top 0.01 percent of ultra-wealthy Americans that have got millions of dollars invested in the stock market.  But for most of the rest of the country, things are very hard right now.  At this point, more than 102 million working age Americans do not have a job, and 40 percent of those that are actually working earn less than $20,000 a year in wages.  If we actually are experiencing an “economic recovery”, then why is the federal government spending nearly a trillion dollars a year on welfare?  And that does not even include entitlement programs such as Social Security and Medicare.  We live in a nation where poverty is exploding and the middle class is shrinking with each passing day.  But nothing is ever going to get fixed if we all stick our heads in the sand and pretend that everything is “just fine”.

What you are about to read is an open letter to Barack Obama that has gone absolutely viral on the Internet in recent days.  It is a letter that a single mother named Yolanda Vestal posted on her Facebook page, and it has really struck a nerve because countless other young parents can clearly identify with what she is going through.  The following is the text of her letter…

Dear President Obama,

I wanted to take a moment to say thank you for all you have done and are doing. You see I am a single Mom located in the very small town of Palmer, Texas. I live in a small rental house with my two children. I drive an older car that I pray daily runs just a little longer. I work at a mediocre job bringing home a much lower paycheck than you or your wife could even imagine living on. I have a lot of concerns about the new “Obamacare” along with the taxes being forced on us Americans and debts you are adding to our country. I have a few questions for you Mr. President.

Have you ever struggled to pay your bills? I have.

Have you ever sat and watched your children eat and you eat what was left on their plates when they were done, because there wasn’t enough for you to eat to? I have.

Have you ever had to rob Peter to pay Paul, and it still not be enough? I have.

Have you ever been so sick that you needed to see a doctor and get medicine, but had no health insurance because it was too expensive? I have.

Have you ever had to tell your children no, when they asked for something they needed? I have.

Have you ever patched holes in pants, glued shoes, replaced zippers, because it was cheaper than buying new? I have.

Have you ever had to put an item or two back at the grocery store, because you didn’t have enough money? I have.

Have you ever cried yourself to sleep, because you had no clue how you were going to make ends meet? I have.

My questions could go on and on. I don’t believe you have a clue what Americans are actually going through and honestly, I don’t believe you care. Not everyone lives extravagantly. While your family takes expensive trips that cost more than most of us make in two-four years, there are so many of us that suffer. Yet, you are doing all you can to add to the suffering. I think you are a very selfish and cold hearted man, who does not care what is best for the people he was elected by (not by me) to represent, but more so out for the glory of your name attached to history. So thank you Mr. President, thank you for pushing those of us that are barely staying afloat completely under water and driving America into the ground. You have made your mark in history, as the absolute worst and most hated president of the United States. God have mercy on your soul!

Sincerely,

Yolanda Vestal

Average American

These are the kinds of emotions that millions of American parents are wrestling with on a daily basis.  Many of them are working as hard as they possibly can and yet still find themselves unable to adequately provide for their families.

And now that food stamps are being cut back, more of them than ever are going to be forced to turn to food banks for help.  The following is what the head of a large food bank in Casper, Wyoming told one local newspaper about the increase in demand that he is witnessing in his area…

Across the state, food banks and other related programs aiming to feed the needy are worried the supply to meet the uptick in need during the holiday season won’t meet the growing demand for food caused by the expiration of SNAP benefits.

“People are scared to death of the lack of food availability,” Martin said.

Martin called Joshua’s Storehouse a reliable barometer for measuring the rate of need in Casper. The number of people using the food bank skyrocketed before the reduction in SNAP, he said.

Fewer than 2,000 people used the food bank in October 2012. Last month 2,500 people went there for help.

And of course this is not just happening in rural areas either.  Margarette Purvis, the head of the largest food bank organization in New York City, says that she is anticipating a huge surge in demand and that veterans are being hit particularly hard

“On this Veterans Day, when we’re waving our flags — I need every New Yorker to know — 40 percent of New York City veterans are relying on soup kitchens and pantries.”

Purvis says that there are 95,000 vets relying on food banks in New York City alone.

That is a lot of people.

And while Barack Obama may trot out a few vets on national holidays and promise that “we will never forget” them, the truth is that most of the time the federal government treats our military veterans like human garbage.  If you doubt this, please see my previous article entitled “25 Signs That Military Veterans Are Being Treated Like Absolute Trash Under The Obama Administration“.

Meanwhile, anger and frustration with the economy are starting to rise to very dangerous levels in this nation.

In a previous article, I noted that violent crime in America rose by 15 percent last year.  One of the primary reasons for this is the economic despair that we see in our streets.

As the economy gets even worse, people will become even more desperate.  We will start to see even more flash mob crimes like we saw in Chicago recently.  Posted below is a video news report that shows footage of a flash mob in Chicago dragging entire racks of merchandise out of a Sports Authority store…

When you watch stuff like this, it helps to explain why demand for armored vehicles among the ultra-wealthy in America is skyrocketing.

Unfortunately, most Americans cannot afford armored vehicles and walled vacation homes in the middle of nowhere.

Most Americans are going to have to live right in the middle of all of this as it happens.

A volcano of anger, frustration and despair is simmering just below the surface in America.

When that volcano finally erupts, it is going to be a very frightening thing to behold.

29 Incredible Facts Which Prove That Poverty In America Is Absolutely Exploding

Poverty In America - Photo by C.G.P. GreyDid you know that the number of Americans on welfare is higher than the number of Americans that have full-time jobs?  Did you know that 1.2 million public school students in the U.S. are currently homeless?  Anyone that uses the term “economic recovery” to describe what is happening in the United States today is being deeply insulting to the nearly 150 million Americans that are considered to be either “poor” or “low income” at this point.  Yes, things are great in New York City, Washington D.C. and San Francisco, but almost everywhere else economic conditions continue to steadily get worse.  The gap between the wealthy and the poor is at a level that America has never seen before, and this is beginning to create a “Robin Hood mentality” that could cause a tremendous amount of social chaos in the years ahead.  Anger at the “haves” in America continues to rise at a very alarming pace, and the “have nots” are becoming increasingly desperate.  At some point all of this anger is going to boil over, and you won’t want to be anywhere around major population centers when that happens.  Despite unprecedented borrowing by the federal government in recent years, and despite unprecedented money printing by the Federal Reserve, poverty in the United States keeps getting worse with each passing year. The following are 29 incredible facts which prove that poverty in America is absolutely exploding…

1. What can you say about a nation that has more people getting handouts from the federal government than working full-time?  According to the latest numbers from the U.S. Census Bureau, the number of people receiving means-tested welfare benefits is greater than the number of full-time workers in the United States.

2. New numbers have just been released, and they show that the number of public school students in this country that are homeless is at an all-time record high.  It is hard to believe, but right now 1.2 million students that attend public schools in America are homeless.  That number has risen by 72 percent since the start of the last recession.

3. When I was growing up, it seemed like almost everyone was from a middle class home.  But now that has all changed.  One recent study discovered that nearly half of all public students in the United States come from low income homes.

4. How can anyone deny that we are a socialist nation when half the people are getting money from the federal government each month?  According to the most recent numbers from the U.S. Census Bureau, 49.2 percent of all Americans are receiving benefits from at least one government program.

5. Signs of increasing poverty are even showing up in the wealthiest areas of the nation.  According to the New York Post, New York subways are being “overrun with homeless“.

6. According to the U.S. Census Bureau, approximately one out of every six Americans is now living in poverty.  The number of Americans living in poverty is now at a level not seen since the 1960s.

7. The gap between the rich and the poor in the United States is at an all-time record high.  The wealthy may not consider this to be much of a problem, but those at the other end of the spectrum are very aware of this.

8. The “working poor” is one of the fastest growing segments of the U.S. population.  At this point, approximately one out of every four part-time workers in America is living below the poverty line.

9. According to numbers provided by Wal-Mart, more than half of their hourly workers make less than $25,000 a year.

10. A recent Businessweek article mentioned a study that discovered that 300 employees at one Wal-Mart in Wisconsin receive a combined total of nearly a million dollars a year in public assistance…

“A decent wage is their demand—a livable wage, of all things,” said Representative George Miller (D-Calif.). The problem with companies like Wal-Mart is their “unwillingness, not their inability, to pay that wage,” he said. “They hand off the difference to taxpayers.” Miller was referring to a congressional report (PDF) released in May that calculated how much Walmart workers rely on public assistance. The study found that the 300 employees at one Supercenter in Wisconsin required some $900,000 worth of public assistance a year.

11. The stock market may be doing great (for the moment), but incomes for average Americans continue to decline.  In fact, median household income in the United States has fallen for five years in a row.

12. The quality of the jobs in America has been steadily dropping for years.  At this point, one out of every four American workers has a job that pays $10 an hour or less.

13. According to a Gallup poll that was recently released, 20.0% of all Americans did not have enough money to buy food that they or their families needed at some point over the past year.  That is just under the record of 20.4% that was set back in November 2008.

14. Young adults are particularly feeling the sting of poverty these days.  American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

15. As I wrote about a few weeks ago, one out of every five households in the United States is on food stamps.  Back in the 1970s, about one out of every 50 Americans was on food stamps.

16. The number of Americans on food stamps now exceeds the entire population of Spain.

17. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

18. We are told that we live in the “wealthiest nation” on the planet, and yet more than one out of every four children in the United States is enrolled in the food stamp program.

19. The average food stamp benefit breaks down to approximately $4 per person per day.

20. It is being projected that approximately 50 percent of all U.S. children will be on food stamps before they reach the age of 18.

21. Today, approximately 17 million children in the United States are facing food insecurity.  In other words, that means that “one in four children in the country is living without consistent access to enough nutritious food to live a healthy life.”

22. It may be hard to believe, but approximately 57 percent of all children in the United States are currently living in homes that are considered to be either “low income” or impoverished.

23. The number of children living on $2.00 a day or less in the United States has grown to 2.8 million.  That number has increased by 130 percent since 1996.

24. In Miami, 45 percent of all children are living in poverty.

25. In Cleveland, more than 50 percent of all children are living in poverty.

26. According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.

27. According to a Feeding America hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.

28. The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

29. It has been reported that 4 out of every 5 adults in the United States “struggle with joblessness, near-poverty or reliance on welfare for at least parts of their lives”.

These poverty numbers keep getting worse year after year no matter what our politicians do.

So is there anyone out there that would still like to argue that we are in an “economic recovery”?

And as I mentioned above, the “have nots” are becoming increasingly angry at the “haves”.  For example, just check out the following excerpt from a recent New York Post article

The maniac who butchered a Brooklyn mom and her four young kids confessed that he did it because he was jealous of their way of life, a police source told The Post on Sunday.

The family had too much. Their income (and) lifestyle was better than his,” the source said.

The bloody suspect was caught holding the kitchen knife he used during the Saturday night rampage inside the Sunset Park apartment where he had been staying with the victims, the source added.

Sadly, this was not an isolated incident.  All over the western world, a “Robin Hood mentality” is growing.  This is something that I am so concerned about that I made it a big part of my new book.  At this point, even wealthy Hollywood-types such as actor Russell Brand are calling for a socialist-style “revolution” and a “massive redistribution of wealth“.

Perhaps Brand does not understand that what he is calling for would mean redistributing most of his own wealth away from him.

When the next major wave of the economic collapse strikes, I fear that all of this anger and frustration that are growing among the poor will boil over in some very frightening ways.  I believe that we will see a huge spike in crime and that we will eventually see communities all over America looted and burning.

But I am not the only one that is thinking along these lines.  A new National Geographic Channel movie entitled “American Blackout” attempts to portray the social chaos that could erupt in the event of an extended national power failure

American Blackout, National Geographic Channel’s two-hour, edge-of-your-seat movie event imagines the story of a national power failure in the United States caused by a cyberattack — told in real time, over 10 days, by those who kept filming on cameras and phones. You’ll learn what it means to be absolutely powerless.

You can view a clip of the film that was made available by NatGeo for the SHTFplan.com community right here.

What would you do if something like that happened to you?

How would you handle desperate, hungry people at your fence asking for food?

And what if those people were armed and were not “asking nicely” for your food?

Don’t ignore what is happening in America right now.  It is setting the stage for some very chaotic times.

Get ready while you still can.

$5.25 Million For Senate Hair Care And 21 Other Ways Politicians Are Living The High Life At Your Expense

Barack Obama John Boehner Nancy Pelosi Harry Reid Mitch McConnellIf 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…

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