Should the federal government be spending billions of dollars to pump up Wal-Mart’s profits? I know that question sounds really bizarre, but unfortunately this is essentially what is happening. Because Wal-Mart does not pay them enough money, hundreds of thousands of Wal-Mart employees enroll in Medicaid, food stamps and other social welfare programs. Even though Wal-Mart makes enormous profits, they refuse to properly take care of their employees so the federal government has to do it. And of course this is not just a Wal-Mart problem. There are hundreds of other major corporations doing exactly the same thing. And they will keep on doing it as long as they can because relying on the federal government to take care of their employees allows them to make much larger profits. This gives these companies an enormous competitive advantage and it distorts the marketplace. If you love the free enterprise system, you should be aghast at this. Our big corporations have become the biggest “welfare queens” of all, and Wal-Mart is near the top of that list.
Does your local Wal-Mart store seem like it needs help from the federal government?
Of course not.
Wal-Marts all over the nation were absolutely packed this holiday season, but according to a recent Bloomberg article, the average amount of welfare that Wal-Mart employees receive from the government each year breaks down to about $420,000 per store…
Wal-Mart’s low wages have led to full-time employees seeking public assistance. These are not the 47 percent, lazy, unmotivated bums. Rather, these are people working physical, often difficult jobs. They receive $2.66 billion in government help each year (including $1 billion in healthcare assistance). That works out to about $5,815 per worker. And about $420,000 per store.
Does that make you angry?
Today, Wal-Mart employs approximately 1.2 million people in the United States, and it makes a yearly profit of about 17 billion dollars.
So why does it need 2.6 billion dollars of help from the U.S. government?
Wal-Mart is a colossal money-making behemoth. Just consider the following numbers…
The size of Wal-Mart is sometimes difficult to visualize. To put it into some context, consider the following: 100 million U.S. shoppers patronize Wal-Mart stores every week. Wal-Mart has twice the number employees of the U.S. Postal Service, a larger global computer network than the Pentagon, and the world’s largest fleet of trucks. Americans spend about $36 million dollars per hour at the stores. Wal-Mart now sells more food than any other company in the world, capturing one of every four dollars spent on food in the U.S. The average American family of four spends over $4,000 a year there. Each week, it has 200 million customers at more than 10,400 stores in 27 countries. If the company were an independent country, it would be the 25th largest economy in the world.
Wal-Mart does well enough to be able to pay their workers a livable wage.
And yet they refuse to do it.
Shame on them.
Meanwhile, the six heirs of Wal-Mart founder Sam Walton have as much wealth as the poorest one-third of all Americans combined.
This reminds me of something that I read in the fifth chapter of James the other day…
Come now, you rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted and your garments are moth-eaten. 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. 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. You have lived in pleasure on the earth and have been wayward. You have nourished your hearts as in a day of slaughter.
But we continue to reward this behavior, don’t we?
100 million of us continue to visit Wal-Mart every single week, and we continue to fill up our shopping carts with cheap products that are made outside this country.
We refuse to support American workers and American businesses, and this is a recipe for utter disaster. For much more on this, please see my previous article entitled “National Economic Suicide: The U.S. Trade Deficit With China Just Hit A New Record High“.
The truth is that we cannot consume our way to prosperity. When we consume far more wealth than we produce, we pile up debt and we become poorer as a nation.
And as a country we have become exceedingly cold-hearted toward our workers. If you truly love free markets and capitalism, you should be encouraging big companies to pay their workers properly. Instead, we are moving closer and closer to the slave labor model employed by China and other communist nations with each passing day. Sadly, I am becoming increasingly convinced that many prominent “pro-business” voices in America today are actually closet communists. They seem to want everything to be made in China and for American workers to be paid just like Chinese workers.
At this point, the U.S. middle class is well on the way to being destroyed. As I have written about previously, 40 percent of all American workers now make less than what a minimum wage worker made back in 1968 after you account for inflation.
How is the middle class supposed to survive in such an environment?
And for any “pro-business” people that want to defend Wal-Mart, do you actually like paying suffocating taxes to support all of the people that are being forced on to the safety net?
What is our society going to look like as millions more Americans become dependent on the federal government each year? Government dependence is already at an all-time record high. How much worse do things have to get before we admit that we have a real problem?
Unfortunately, it looks like our problems are only going to accelerate in 2015. Thanks to the stunning decline in the price of oil, we are starting to lose good paying jobs in the energy industry…
One company caught in the industry downturn is Hercules Offshore Inc. The Houston-based firm is laying off 324 employees, roughly 15% of its workforce, because oil companies aren’t renewing contracts for its offshore drilling rigs in the Gulf of Mexico while crude prices are depressed.
“It’s been breathtaking,” said Jim Noe, executive vice president of Hercules, which was founded in 2004. “We’ve never seen this glut of supply and dislocation in oil markets. So we’re not surprised to see a significant decline in demand for our services.”
These are jobs that we cannot afford to lose.
Since the end of the last recession, the energy industry has been the leading creator of good paying jobs in America.
But now as the U.S. energy boom goes bust, it might lead the way in job losses.
In order to have a middle class, we have got to have middle class jobs.
Unfortunately, those kinds of jobs are disappearing and the entire U.S. economy is moving toward the Wal-Mart model.
In the end, we will all pay a great price for such foolishness.
For years, the Obama administration has been making it abundantly clear that it is a friend of illegal immigrants. Border security is a joke, the federal government refuses to go after “sanctuary cities” even though they are breaking federal law, there is a website that instructs immigrants how to sign up for welfare programs once they arrive in the United States, and the Obama administration has distributed flyers that tell illegal immigrants that their immigration status will not be checked when they apply for food stamps. And Obama has even instructed officials to use “prosecutorial discretion” in deportation cases involving non-criminals. In other words, Obama has been flashing a huge green light to illegal immigrants, and so of course our borders were going to be inundated with them.
Apologists for the Obama administration will debate you all day about what Obama “intended” and what he didn’t “intend”, but there is no doubt about what message immigrants from Central America have been receiving.
For example, one young mother recently told the press that she heard that if you “go to America with your child, you won’t be turned away“.
And you can view video of a little boy from Central America telling an investigate reporter that he believes that Barack Obama has “given permission” for him to live in the United States right here.
It isn’t an accident that our southern border is literally being flooded with illegal immigrants right now. Newspapers in El Salvador and Honduras have been publicizing how easy illegal immigration has become, and even the President of Honduras has said that people are coming to the United States for “Obama’s amnesty”.
When they arrive, thousands upon thousands of these illegal immigrants are using rehearsed answers that border patrol agents are hearing over and over again. Word has spread that if illegal immigrants claim that they are “fleeing gang violence” that it is more likely that they will be allowed to stay.
What we are witnessing down on the southern border is really unprecedented. It has been estimated that twelve times as many kids are crossing our borders illegally now compared to just a few years ago.
And they just keep on coming.
This is utter madness.
Now, please don’t think that I am anti-immigrant. I am all for legal immigration. This is a nation of immigrants and we will always need immigration. But everyone should be required to come in through the front door. Encouraging illegal immigration is simply a recipe for disaster.
If we keep the back door wide open, the truth is that we have absolutely no idea who is coming into our country. Do we really want countless numbers of criminals, welfare parasites, drug dealers and gang members pouring into our cities? According to the FBI, there are now approximately 1.4 million gang members living in the United States, and it has been estimated that illegal immigrants make up approximately 30 percent of the total population in federal, state and local prisons.
And why in the world would we not want to control the diseases coming into this country? Over the past several weeks, it has been documented that some of the illegal immigrants that have been apprehended have scabies and tuberculosis.
But instead of sending them right back out of the country, U.S. officials are setting up camps for this tsunami of illegal immigrants. In other cases, the federal government is simply putting them on buses and planes and shipping them all over the country. The illegal immigrants are released into their new communities and are given papers which order them to eventually appear in court, but of course the vast majority of them never show up. You can see a map that documents areas where the federal government has been shipping illegal immigrants right here.
The rational thing to do would be to secure our borders and to send a very clear message that illegal immigration is not welcome in the United States.
But instead of doing that, the Obama administration is actually bringing in a riot squad to deal with anti-immigration protesters.
During normal times all of this would be crazy enough, but right now we are at a point where we cannot even take care of millions upon millions of our own citizens.
We are told that illegal immigrants do the jobs “that Americans don’t want to do”, but is that really accurate?
In this day and age, there is intense competition for just about any kind of a job. Despite what the mainstream media says, the truth is that there hasn’t been a significant employment recovery in the United States. As you can see from the chart posted below, the percentage of the working age population that is actually working is still far, far below where it was just prior to the last recession…
Yes, there has been a very slight bump in the numbers in recent months, but it is certainly no reason for celebration. When the mainstream media declares that unemployment in America has been steadily going down, they are simply being disingenuous. Right now things are only slightly better than they were during the worst times of the past several years.
And according to shadowstats.com, the broadest measure of unemployment is still well over 20 percent and has been steadily rising since the end of the last recession.
So no, there aren’t nearly enough jobs in the United States.
And thanks to competition from immigrant labor and thanks to the fact that millions of good jobs have been shipped overseas, the quality of our jobs continues to decline as well. For much more on that trend, please see this article.
Needless to say, now is not the time to open up the floodgates to millions of immigrants that will need jobs to support themselves. Many of our major cities are already so economically depressed that they look like war zones. In fact, things have gotten so bad in Detroit that a plan is being considered to bulldoze a fifth of the entire city…
In May, a group ominously titled the “Detroit Blight Removal Task Force” released a report claiming that around 22 percent of the city’s properties were “blighted” – vacant, damaged or considered dangerous. They also found that, of the 84,000 properties owned by public entities, just over 5,000 were occupied by squatters, making the city of Detroit, the report’s authors noted, “a very large and inadvertent landlord”.
The task force’s proposed solution is to demolish it all over the next five years and start again. Unfortunately, the plan doesn’t extend to rebuilding the properties – it’ll be down to private companies and developers to buy up the land and rebuild.
For much more on the decay of our major cities, please see my previous article entitled “The Death Of The Rust Belt“.
Considering the fact that we are already having such a severe problem taking care of our current population, what do you think is going to happen to these waves of illegal immigrants as they attempt to settle in to communities all around the nation?
Ultimately, we are going to have to end up financially supporting a very large percentage of them too.
Right now, more than 20 percent of children in this country are already living in poverty, and 49 million Americans are dealing with food insecurity.
If Obama continues to encourage mass illegal immigration, those numbers are going to get much worse.
Government dependence is already at an all-time record high, and about half the country currently receives benefits of some sort from the federal government every month.
How much more weight can we put on the “safety net” before it breaks? Just check out some more numbers about this crisis from one of my previous articles…
–Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin. But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.
–The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.
–Today, the federal government runs about 80 different “means-tested welfare programs”, and almost all of those programs have experienced substantial growth in recent years.
–Back in 1960, the ratio of social welfare benefits to salaries and wages was approximately 10 percent. In the year 2000, the ratio of social welfare benefits to salaries and wages was approximately 21 percent. Today, the ratio of social welfare benefits to salaries and wages is approximately 35 percent.
–While Barack Obama has been in the White House, the total number of Americans on food stamps has gone from 32 million to nearly 47 million.
–Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, about one out of every 6.5 Americans is on food stamps.
–It sounds crazy, but the number of Americans on food stamps now exceeds the entire population of the nation of Spain.
–According to one calculation, the number of Americans on food stamps is now greater than 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.”
–According to a report from the Center for Immigration Studies, 43 percent of all immigrants that have been in the United States for at least 20 years are still on welfare.
A lot of people that are trying to immigrate here illegally just want to make a better life for themselves, and I can appreciate that.
But a policy of making it incredibly difficult for honest people to come in through the front door while keeping the back door completely wide open for lawbreakers is a recipe for national suicide.
And right now we don’t have jobs for these immigrants.
We can’t even take care of the people that are already living here.
Something desperately needs to be done about this, but I wouldn’t hold your breath waiting for Obama to make a bold move to stop illegal immigrants from pouring over the border.
Did 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.
It may not happen this month, or even this year, but food stamp riots are coming to America. In fact, we got a small preview of the coming food stamp riots this past weekend when a “temporary system failure” caused food stamp cards to stop working in 17 U.S. states. Within hours, there were “mini-riots” at Wal-Marts and other retailers that rely heavily on food stamp users. So what would happen if food stamp benefits were cut off or reduced for an extended period of time? As you will see below, if Congress had not pushed through a “deal”, the USDA would have started cutting off food stamp benefits on November 1st. Considering the fact that 47 million Americans are on food stamps and more than 100 million Americans are enrolled in at least one welfare program run by the federal government, that could have sparked massive rioting. So the good news is that the coming food stamp riots will probably not happen in November. The bad news is that the “deal” in Congress only delays the political fighting until after Christmas. In just a few months we will be dealing with a potential “government shutdown” and a debt ceiling deadline once again.
Most Americans have no idea what almost just happened. According to Reuters, the state of North Carolina had already cut off some welfare benefits for the month of November…
North Carolina has become the first state to cut off welfare benefits to poor residents in the wake of the partial federal government shutdown, ordering a halt to processing November applications until a deal is reached to end the federal standstill.
More than 20,000 people – most of them children – receive monthly benefits aimed at helping them buy food and other basic supplies through North Carolina’s welfare program, called Work First, which is fully funded by the federal government. Recipients must reapply each month.
And as Mac Slavo recently detailed, the USDA was already planning to cut off food stamp assistance to millions of Americans on November 1st…
We say next month because the USDA, which oversees the Supplemental Nutritional Assistance Program (SNAP), has just issued an order to SNAP agency directors calling for their respective States to implement an emergency contingency program because of government funding issues. In a letter obtained by the Crossroads Urban Center food pantry, the USDA is directing state agencies to, “delay their November issuance files and delay transmission to State Electronic Benefit Transfer (EBT) vendors until further notice.”
What this means is that should Congress fail to increase the debt ceiling this week, come November there will literally be millions of people in the United States who will have exactly zero dollars transferred to their EBT cards.
What will happen to the nearly 50 million people who depend on these benefits to survive?
In fact, there have been quite a few news reports that have confirmed this…
In Utah, Fox News 13 in Salt Lake City reported that a local provider recently received a letter from the USDA sticking to the November 1 cut-off date.
“This is going to create a huge hardship for the people we serve here in our food pantry,” Bill Tibbits, Associate Director at Crossroads Urban Center, told Fox News 13.
“What this means [is] if there’s not a deal, if Congress doesn’t reach a deal to get federal government back up and running, in Utah about 100,000 families won’t get food stamp benefit,” added Tibbits.
The USDA letter says in part, “in the interest of preserving maximum flexibility, we are directing states to hold their November issuance files and delay transmission to state electronic benefit transfer vendors until further notice.”
So what would have happened if tens of millions of Americans suddenly had their food stamp benefits cut off without warning?
Well, what happened last weekend can give us a few clues. Just check out what happened at one Wal-Mart in Mississippi…
Customers staged a disturbance then walked out of a Mississippi Walmart store with groceries that hadn’t been paid for Saturday night after a computer glitch left them unable to use their food stamp cards.
People in 17 states found themselves unable to buy groceries with their Supplemental Nutrition Assistance Program cards after a routine check by vendor Xerox Corp. resulted in a temporary system failure.
Shortly after the mini-riot, managers decided to temporarily close the store, citing customer safety.
Due to this technical glitch, many parents were left wondering how they were going to feed their families. If this is the kind of anger that is unleashed over a single failed trip to the grocery store, what would we see if this kind of thing went on for an extended period of time?
At some Wal-Mart stores down in Louisiana, EBT cards were not showing any limits on Saturday night, and within two hours many store shelves in the grocery section were completely cleared of merchandise…
Shelves in Walmart stores in Springhill and Mansfield, LA were reportedly cleared Saturday night, when the stores allowed purchases on EBT cards even though they were not showing limits.
The chaos that followed ultimately required intervention from local police, and left behind numerous carts filled to overflowing, apparently abandoned when the glitch-spurred shopping frenzy ended.
Springhill Police Chief Will Lynd confirms they were called in to help the employees at Walmart because there were so many people clearing off the shelves. He says Walmart was so packed, “It was worse than any black Friday” that he’s ever seen.
Sadly, this was only a very small preview of the massive food stamp riots that are eventually coming to America. I like how Mike Adams explained what we are likely to see in the future…
Why does any of this matter? Because this is exactly the same way these people will behave when the federal government goes into default and nearly 50 million EBT cards stop working nationwide.
Fifty million. Consider that for a moment. Most of those 50 million people live in high-density cities. Many are proud owners of Obama phones, Obama food stamps, Obama unemployment checks and Obama subsidized housing. They have absolutely no clue that the government upon which they wholly depend to put food on the table is teetering on the verge of permanent collapse. (Seriously, they cannot conceive of the idea of government “running out of money” because they do not understand where money comes from.) Because of this distorted belief, they do not prepare for any future events other than more Obama handouts. Their entire “preparedness” plan is to vote for Democrats, because that’s who they know will give them the most handouts. And they will always win the popular vote, too, because any politician promising to restore responsible fiscal spending to the government by cutting programs will be viciously accused of being “mean” or involved in “hating poor people.” So the government handouts will only ratchet higher and higher, ensnaring more and more people, until the entire system is unsustainable and collapses under its own weight.
When that system of dependence fails, those who depend on it will panic in mere hours. As proof of this, consider the fact that this mass looting of Wal-Mart stores happened in less than three hours after the Saturday EBT card glitch struck. Police had to be called in to prevent the situation from getting completely out of control, and it was offline for only part of one day.
Now imagine what will happen when EBT cards go offline for 24, 48 or even 72 hours. And imagine it happening in every U.S. city simultaneously.
Of course not all Americans would go wild when food stamp benefits are cut off.
Other Americans express their desperation in other ways. According to Bloomberg, an increasing number of people are starting to sell hair, breast milk and their own eggs in a desperate attempt to make ends meet…
Hair, breast milk and eggs are doubling as automated teller machines for some cash-strapped Americans such as April Hare.
Out of work for more than two years and facing eviction from her home, Hare recalled Louisa May Alcott’s 19th-century novel and took to her computer.
“I was just trying to find ways to make money, and I remembered Jo from ‘Little Women,’ and she sold her hair,” the 35-year-old from Atlanta said. “I’ve always had lots of hair, but this is the first time I’ve actually had the idea to sell it because I’m in a really tight jam right now.”
The mother of two posted pictures of her 18-inch auburn mane on www.buyandsellhair.com, asking at least $1,000 and receiving responses within hours. Hare, who also considered selling her breast milk, joins others exploring unconventional ways to make ends meet as the four-year-old economic expansion struggles to invigorate the labor market and stimulate incomes.
We have moved into a time when things are becoming increasingly unstable and when people are becoming increasingly desperate.
In an attempt to keep order, the authorities will become increasingly forceful in the years ahead. At this point, many law enforcement officers already believe that there is very little that they cannot do to exert their “authority” over the rest of us. Just check out video of a drunk off-duty police officer “arresting” a woman that refused to go out on a date with him right here. Sadly, this type of behavior is becoming way too common these days.
And it looks like major financial institutions are getting ready for the chaos that is eventually coming as well. In fact, according to an article by Paul Joseph Watson, Chase Bank is now placing a limit on cash withdrawals and is banning business customers from sending wire transfers out of the country…
Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers from November 17 onwards, prompting speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.
Numerous business customers with Chase BusinessSelect Checking and Chase BusinessClassic accounts have received letters over the past week informing them that cash activity (both deposits and withdrawals) will be limited to a $50,000 total per statement cycle from November 17 onwards.
Fortunately, the chaos that would have been unleashed if Congress had not made a deal has now been delayed for a few months.
But by kicking the can down the road, our politicians continue to make our long-term problems even worse. Either we are going to have tremendous pain now, or we are going to have even worse pain later. Peter Schiff explained the choice that we are facing this way…
If Republicans were to inexplicably prevail, and the federal government were to cut spending so that its expenditures matched its tax revenues (a truly radical idea) the country’s financial mess would be laid bare. The government would have to weigh the relative costs and benefits of making interest payments on Treasury debt (primarily to foreign creditors) or to trim entitlements promised to U.S. citizens. But those are choices we will have to make sooner or later anyway. In fact we should have dealt with these issues years ago. But generations of mechanistic debt ceiling increases have allowed us to perpetually kick the can down the road. What could possibly be gained by doing it again, particularly if it is done with no commitment to change course?
The Democrats’ argument that America needs to pay its bills is just hollow rhetoric. Paying off one’s Visa bill with a new and bigger MasterCard bill can’t be considered a legitimate payment of debt. At best it is a transfer. But in the government’s case, it doesn’t even qualify as that. Treasury debt is primarily bought by the Fed, foreign central banks, and major financial institutions. None of that will change with a debt ceiling increase. We will just go to the same people for greater quantities. So it’s like paying off your Visa card with a bigger Visa card.
We are living on borrowed time that has been purchased by stealing money from future generations.
We are literally destroying the future in order to make the present more palatable.
But whether it is this year, or next year or the year after that, at some point we are going to experience the pain that results from decades of incredibly foolish decisions.
I hope that you are getting ready.