The Beginning Of The End
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The Sky Is Falling, It Is Time To Panic And The U.S. Economy Has Fallen And It Can’t Get Up

So many economists and financial pundits seem absolutely shocked that the U.S. economy is slowing down again.  It is as if this latest wave of bad economic data has caught them completely by surprise.  Now, in the mainstream media we are seeing all kinds of headlines declaring that the U.S. economy is headed for disaster.  But anyone with half a brain could have seen this coming.  This year alone, we have seen the worst tsunami in Japanese history, the worst U.S. tornado season in recent memory and the worst Mississippi River flooding in decades.  In addition, chaos in the Middle East has pushed the price of oil up to very high levels.  Of course all of those things were going to have an effect on the economy.  In addition, all of the long-term trends that have been destroying the U.S. economy for decades have not been taken a breather.  In fact, the truth is that all of our long-term economic problems have been accelerating.  So yes, the sky is falling, it is time to panic and the U.S. economy really has fallen and it really can’t get up.  It is just that everyone in the mainstream media seems to have believed that Ben Bernanke and Barack Obama would just sprinkle a bunch of fairy dust on the economy and everything would just magically get better.  Well, in the real world things simply do not work that way.

Despite an unprecedented debt binge by the federal government and nightmarish money printing by the Federal Reserve, the economic downturn continues to drag on.  Andrew Barber, a strategist at Waverly Advisors in Corning, New York recently told CNN the following….

“People are starting to see that this sort of malaise is not just going to go away no matter what you do.”

And “malaise” is a really good word for what we have been experiencing.  For those that remember the late 1970s, what we are going through today is similar in a lot of ways.

But what is perhaps even more frightening is that 2011 is starting to look a lot like 2008 all over again.

In particular, we are starting to see some real signs of instability in the financial markets.

When Moody’s downgraded Greek debt again on Wednesday all the way down to Caa1, I was only moderately alarmed.  The truth is that everyone knows Greece is a basket case so a debt downgrade wasn’t really all that surprising.

When Moody’s announced that it plans to review the U.S. government’s AAA debt rating “if there is no progress on increasing the statutory debt limit in coming weeks” that got the attention of a lot of people around the world, but it was not totally unexpected. Moody’s is telling Congress that they better raise the debt ceiling or else.  A lot more pressure will be applied to Congress before this is over.

When Moody’s warned that it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo, that really set off alarm bells for me.

Do you all remember what set off the financial panic in 2008?

Do the names “Bear Stearns” and “Lehman Brothers” ring a bell?

Well, right now there are some frightening indications that we may see more trouble at some “too big to fail” institutions.

But will there be any willingness to do more bailouts this time?

Right now the financial markets are closely mirroring their performance just prior to the financial collapse of 2008.  One great example of this is these charts which were recently posted by the Financial Armageddon blog.  It looks like bank stocks may once again be leading the way down.

Hopefully the financial system can hold together and we won’t have a repeat of 2008 right now, because if it happens it is going to be really messy.

But even without a “financial collapse” we already have all of the economic problems that we can handle.

Robert Brusca, the chief economist at FAO Economics, is being quoted by CNN as saying the following….

“We’ve had a poor economic recovery to begin with, and now it appears to be segueing into an end.”

At this point, U.S. consumer confidence is already lower than it was back in September 2008 when Lehman Brothers collapsed.  U.S. consumers are holding on to their money more tightly these days and that is not a good sign for an economy that is so highly dependent on consumer spending.

The latest manufacturing numbers have also been very distressing.  Measures of manufacturing activity all over the world are indicating that we have now entered an economic slowdown.  This is also similar to what we saw a few years ago.

We should all feel really bad for anyone that is entering the workforce right now.  We are in the midst of graduation season, and the only thing that our new graduates have to look forward to is an economic crisis that never seems to end.

On a recent article entitled “Global Financial Markets Tremble As Bad Economic News Continues To Pour In” a reader named Esta left the following comment….

I feel sad for yet another year of graduates entering a horrible job market. I recently read, and I think it was in the mainstream media, that only half the 2010 college grads have found jobs of any kind, only half of those have found jobs requiring a college education, and that 85 percent of all grads moved right back in with their parents. The job growth rate is so low that we keep employing fewer and fewer people as a percentage of our adult population. Why isn’t that still a recession?

What a future our college graduates have to look forward to, eh?  Moving back in with your parents, a crappy job (if you can find one) and a pile of student loan debt that will crush you financially for decades.

We are always told that “more education” is the answer, but even many of our most highly educated young people can’t find jobs.  In fact, it turns out that a third of last year’s law school graduates aren’t even practicing law….

The law school class of 2010 is making news for all the wrong reasons. The budding legal minds who managed to find employment last year have set a new record–only 68.4 percent of them are in jobs that require them to pass the bar exam, the lowest share since the Association for Legal Professionals began collecting data.

Now it looks like the economy is going to starting heading downhill once again.

What is that going to do to the job market?

Last year, only 45.4% of Americans had jobs.  That was the lowest figure since 1983.

In some states it was even worse than that.  In states like California, Arizona and Mississippi only about 37 percent of people had a job last year.

The economic news just seems to get worse and worse and worse.  The American people have been relatively calm over the past several years as they have waited for the promised “economic recovery”, but what do you think is going to happen if we have another major economic downturn and unemployment spikes back up by several more percentage points?

And what in the world can our “leaders” really do to “help” the economy if we do have a repeat of 2008?

We are already running trillion dollar deficits.

The Federal Reserve is already printing money like it is going out of style.

So what would their next moves be?

Most Americans have no idea how fragile our financial system and our economy really are.

Let us hope and pray that things can hold together for as long as possible, because when the next wave of the economic collapse happens it is going to be really, really messy.

  • Joe Mama

    October 21 is rapture…couldn’t have come any sooner!;)

  • Ben Dover

    The USD IS going out of style. The S___ has been slowly hitting the fan for a while.

    Hate to sound like a defeatist, but open the floodgates and let it really pour in. Obviously the only way we are going to see things get better is to wade through and see what is on the other shore. Trying to fix the present system is a fool’s errand.

    In a complete collapse things will turn tribal as they always do. The hard part will be surviving the near-term chaos and then making it to the part of FUSA where you fit.

    Agriculture will be the backbone of the North American economy. People will find a way to farm on a large scale if there is a market for the product. The scale will probably not be as large as we presently enjoy, but we will adapt. The cheap food was great while it lasted.

  • Gary2

    The first thing we need to do is to tax the rich hard and the corporations harder. They have never had it so good. I am very happy Obama is running on raising taxes on millionaires and billionaires. He will destroy the republicans and in his second term we will finally be able to move the country more to the left as he will not have to worry about reelection. We need to be a more center left nation or better yet just left. Single payer here we finally come-Vermont is leading the way!

    The repubes will loose big in 2012 as they are doing everything BUT creating jobs and they have escalated their attack on the poor big time.

    Here is a recent headline in the Milwaukee Jornal 5/31-6/1:

    Madison – Republican lawmakers voted Tuesday to trim taxes for corporations and investors while further cutting tax credit programs for the working poor.

    Boy that’s a winning issue: more tax cuts for the rich and corporations and increases on the poor.

    Republicans/tea baggers are the best thing to ever happen for the Dems

    Republicans-you are going down hard and hopefully permanently.

  • richard Allen

    So what would their next moves be?

    A radical idea:

    After 27 weeks of unemployment if you are not in school or in an intern job you get cut off…..

    Think it through.We have made wage and hour laws that only apply to illegals & sweatshops.

    So us Americans have to work for Free as “interns” ..look at CL hundreds a day in NYC stipend meals transportation but NO ACTUAL PAY

    So instead of looking for jobs that are not there, collect UI for 99 weeks and keep a 30 hour Intern job at the top of your resume.With 10 million unemployed now working it should generate some traction in the economy. And probably stop you from killing yourself or taking Prozac.

    Your job and social skills will be kept up to date..and real paying jobs should be created just from the momentum.

  • http://everything-survival.blogspot.com/ Jäger

    “Don’t Panic, Prepare!” It’s not that hard to do.

    I’m not selling anything as I work full time as a police sergeant. So if you just getting started out in the prep area you will find useful info here;
    http://everything-survival.blogspot.com/

  • 007

    As much as it sucks, the safest place for your money for a short time will be dollar bills kept under your bed. Gold, silver and commodities are going to fall in price as demand weakens. Gold will eventually go even higher. However in the short run it may be wise not to ride the vomit inducing roller coaster. It’s all going down just like in 2008 only worse. It’s a good time to get out of the market until Bernanke kicks of QE 3.I suspect he will wait several months because of the flack he got for printing his last 600 billion.

    So as QE2 ends along with the wildly successful stimulus spending all life support will yanked from the economy. The two big to fail will fail. Your money won’t be safe in any bank. Hope ya have a parachute.

  • http://economiccollapse.info End the Fed

    No surprises here. The economy is in big trouble and always has been.

  • Maria

    An acquaintance of mine was telling me a sobering story about her mother as a girl living in a tent with her family during the Depression. It was not uncommon back then even in our part of the world where it snows.

    I told her that my family of six once lived in a 15′ trailer in a campground for more than 6 months when I was a kid. I could not imagine living in a tent during the winter.

    Later that day, I learned that she and her husband just filed bankruptcy. They may lose a home they have been paying on for over ten years.

    Do we really want to keep a system in place that makes us nothing but slaves to the banks? They show no mercy.

  • Paul

    Need to spend more on investment and much less on consumption.
    Anything spent on consumption is lost.

    Please understand me right – buying shares is not investment, it’s gambling.

    Investment is building schools and universities, teaching, building infrastructure to save operating costs.

    Consumption is ammunition, you spend it once and it is gone, or reading a newspaper – it’s worthless tomorrow.
    You can make money with perishable goods that need to be replaced daily or after use, like ammunition, news, medicine, food, tickets. But “making money” is always a snowball system – the last is the loser.

  • Kalen

    Another great post Michael. My only question is how many of these people are working age Americans? I know 44.6% is low but what percentage of people would we expect in a healthy economy? Just cool to have a reference

  • DM

    One of the commentators claims that they have tried everything and nothing seems to work. That is not true. If high commodity prices(oil, corn, wheat, etc) will send economies into recession. Then a tremendous drop in prices will cause economic expansion. This applies in cases where commodity prices are excessive such as oil. If OPEC were destroyed, some economists estimate that oil would drop to $30 per barrel. This would cause a worldwide recovery.

    Since OPEC is already an illegal cartel, the DOJ would merely have to enforce anti-trust laws already on the books (which incidentally the DOJ is currently not doing).

    Congress would have to pass laws against speculation in commodities markets.

    In America, we pay twice as much for health care (18%) as other developing nations (8%). Put caps on drugs and medical procedures. Force true competition in medical care and end legal monopolies in drugs.

    In America, we have about 8 million workers who are employed illegally. Send them home and free up 8 million jobs for American citizens.

    In America, we allow unions to extort from businesses. Pass laws requiring special judges to handle labor disputes using arbitration. Make certain wages are competitive with other sectors of our economy.

    These are some simple solutions which no one in the business, media, or the government seems to be willing to do. But, they will have to in order for this nation to survive.

    It may have been Einstein who said, “Insanity is doing the same thing again and again and expecting different results.” We marvel at the insanity of our media, our government, and business in America.

  • the Beast

    Empires rose and fell, it is normal in history.
    But nations that stick together prevailed, while those who disregard unity and focus on themselves individually perished.
    Americans can choose their own fate in the face of the crumbling of US Empire…unite and you shall prevail, disperse and you shall be erased by history.
    God help us…

  • dmitry

    this would be a trigger points.

    .thnks

  • Robert Jeffery

    The Monetary system has had it’s day. There is so much imbalance in the system that can’t be resolve using the same old quick fixes. We’ve passed the point of no return and are now on a decline that has been gaining momentum in the last 20-30 years. We have two choices facing us. Either we move out of this cancerous system into a system which is far more fairer and humane. Or we continue in this dead system and descend into something far worse than what we have now.

  • nader paul kucinich gravel mckinney baldwin

    ’08 green shoots ’09 green shoots ’10 green shoots ’11 truth

  • Rev. Donald S. Eskine

    This Nation Needs To Repent! Because JESUS THE CHRIST Is The Only Answer! We Need Truth!

  • HerrLT

    Moving back to South America is looking better each day. It’s nutty down there but at least you have personal liberties and your privacy is respected. I wondered what the Romans felt like seeing their nation fall: and Patrick Buchanan said it best, “And this is how America ends, not with a bang, but with a whisper.”

  • Mr Carpenter

    I read recently that some gold-bugs (who’ve been far more right about things over the past decade than the so-called “establishment financial experts”) have said it’s time to stop buying gold and silver, and to hoard and hold cash money. This surprised me until I read the reasoning behind it; once the collapse of the banks and “bank holidays” ensue, dollars will still be needed until the next level of collapse occurs – and after that (when the US dollar goes into hyperinflation), we all get to join the fun for awhile. During and following the hyperinflation timeframe, silver will be useful and later on, gold will be useful.

    I understand that a busboy (yes, a busboy) in Berlin, 1920, was given a French Angel gold piece as a VERY large tip by a wealthy Frenchman (approximately 1/3 ounce of gold).

    By 1924, after they hyperinflation ruined Germany (and heralded the later arrival of Adolph), the same busboy PURCHASED the entire hotel he worked in, in Berlin, with the selfsame French Angel gold coin.

    Get the picture? There will be a few “new wealthy” after hyperinflation. In “dollars” after a few years, “we’ll all be trillionaires”.

    And dollar bills in any denomination won’t even be good for toilet paper.

  • Mr Carpenter

    Obviously, if you can buy silver and gold AND hoard / hold some dollars, that’s even smarter.

  • Matt

    Gary2, most of the rich you want to tax are corrupt. So are the people in govt doing the taxing – they are just as corrupt if not more. Put the corrupt in jail, don’t raise the tax rate, which hurts honest hard working people who have actually earned it. What is fair is a 10% flat tax for everyone regardless of race, income level, gender, etc. Jail the bankers – all of them, and jail 99% of the Democrats, and 90% of the Republicans. If we get rid of corruption and get back to following the Constitution 100% then we will be back on the road to being a great country again that you would be happy with.

  • Matt

    How it will all end – 100% gauranteed….

    If the FED is buying most of the govt debt now (around 80%, to slowly increase to 100%) with printed eMoney, and the govt defaults on the debt meaning that it doesn’t pay the interest on and hand back the eMoney, then what is really lost? Its like penciling in + $1000 in you checking account ledger, buying a Tbill for $1000 where you then subtract out that $1000 you just added, making a net of 0. So if you don’t get paid back you don’t lose anything – no wealth is lost. So the FED will then, worst case, not lose any wealth, and best case increase their balance which they are doing – so what then is their motivation to stop printing? They won’t until we end up like Zimbabwe at which point their game will be over – that’s the only thing that will stop them. Until then they are going to use every clever deception they can think of to either hide or justify their game. Then when they know the game is over they will skip town right before it starts to get really ugly, and then the collapse will occur. That’s how I predict this is all going to end.

  • Rowell

    A doctor walks into an examination room to see a man sitting on a stool with a stream of blood trickling out his arm.

    “Doctor, I was stabbed. Can you help me?”

    “I sure can,” the doctor said. “I’m going to write you a prescription for vicodin. I want you to take one pill every 8 hours with a meal. You should be fine in a few days.”

    “Don’t you think you should put some stitches on the wound? Or maybe a bandaid?” the man asked.

    “No need for that, m’boy. This prescription will make everything better.”

    The man has the prescription filled and follows the doctor’s orders to the letter. Four days later, the man dies from loss of blood.

    Moral of the story is: If you treat the problem by blocking the pain and not addressing the root cause, nothing gets fixed. In fact, things get worse. The US can’t hope to decrease unemployment as long as jobs are moved overseas. The US economy can’t improve as long as free trade agreements with certain countries put us at a disadvantage. People’s financial predicaments cannot improve as long as rules (or lack of rules) are in place that make it easy for a few to reap the rewards on the sweat of others’ brows.

    Changes need to be made. Difficult changes. It may be too late to come through unscathed, but any sort of change will help lessen the blow coming eventually.

  • sharonsj

    I love the way these experts are surprised. If they–and our lousy politicians–ever got outside the office and actually went into the real world, they wouldn’t be so damn surprised.

    Gas prices aside, here in Pennsylvania, the state took the cap off the electric companies. So now we’re seeing a rise in fees on almost a monthly basis. The governor cut the education budget, so my school taxes are rising (and many teachers lost their jobs). Despite the housing bubble, my property taxes are going up. We’ve had inflation in both human and pet food costs for the last two years, but the media is just noticing now.

    If everybody except the rich pays most of their income just to survive, there’s no money left to buy stuff. So retail sales go down. And if 70% of the economy–that isn’t a stock market ponzi scheme–is consumer based, no wonder we’re screwed.

  • Peter

    With debt out of control there is no recovery, period, the worrying sign will be when the masses catch on to this in big way and start to hit the streets, we’ve seen whats been happening in Greece in particular. If anyone thinks America is not Greece then think again!

  • http://theeconomiccollapse JackieR

    You need college to get a good job.
    There is no inflation.
    The economy is improving.
    The prices rising is only temporary.
    We will sell some of our reserve oil so the prices will go down.
    If we dont raise the debt ceiling the country will fall into the abyss.

    Brainwashing big time.

  • Silver Bean

    Another outstanding article with concise points of information. It makes it easier for me to pass on the information to others who haven’t seen the light, or continue to live in La La land. Thank you for this article and the two that proceeded them. I take articles like these and compare a country collapsing to a family’s finances collapsing. People get it that way. And now I am going to sign off and go get rid of some more worhtless Federal Reserve Notes while buying tangibles.

  • Freedom prepper

    Better4 start learning how to garden raise food like chickens and rabbits. Learn good survival slills like is taught here. http://www.snare-trap-survive.com that one snaring tip might keep your family eating in the future.

  • Prepping for the Future

    We are in a Depression that only thing keeping people from Starving is food stamps. Better learn to garden, raise rabbits, raise chickens, learn survival skills while you have time. Learn to trap and snare http://www.snare-trap-survive.com snaring could keep you eating when the hunters come home with nothing. Snares are working 24/7 for you.

  • http://TheEconomicCollapse Dave

    I think what is going to happen is that Europe will go down first, very soon. This will temporarily boost the value of our dollar, for our dollar, treasuries, and equities will be a refuge of last resort for investors (outside of precious metals — they will go down too for a while). We may have a dip when Europe does, but we will climb slightly out of it and it will look as if we have rounded the corner and are recovering. But the debt issues that are bringing down Europe will also eventually bring us down to pay the piper as well.

    Keep up the good reporting. I need this. Every day I wake up hoping the U.S. will turn the corner, but your articles are a shot of reality.
    God bless.

  • William

    Bear Sterns was “saved” because Bear was running the Federal Reserve/US Treasury Dept silver and gold price suppression criminal scams (the purpose of which is to make the worthless paper dollar a little more acceptable). Lehman was not involved in the price suppression crimes, and was allowed to fail. But, to the main points, as long as the US military is spread around the world in useless and unnecessary wars, and as long as the fools in the US Congress continue to be reelected, there will be no substantive changes and, therefore, NO HOPE!! So, be SURE to vote for the IDIOT who represents YOU in the US House and US Senate. These are the IDIOTS who have caused this destruction of America.

  • http://fiatsfire.blogspot.com/ Fiat’s Fire

    As you say, most Americans have not a single clue as to how fragile the US/UK/EU economies really are. The collapse will be swift and most will be caught off guard.

  • http://www.youtube.com/user/zedgehero Tim

    Chekcout this college conspiracy video they just made at the NIA, I htought of it after reading another great article from you. Keep it up.

    http://www.youtube.com/user/InflationUS

    I have also started a weekly news show inspired by the likes of the Economic Collapse Blog, NIA, & Zero Hedge.

    http://www.youtube.com/user/zedgehero

  • McKinley Morganfield

    “We are already running trillion dollar deficits. The Federal Reserve is already printing money like it is going out of style. So what would their next moves be?”

    Their next move will be QE 3,4,5 … until collapse.

    “Most Americans have no idea how fragile our financial system and our economy really are.”

    An understatement of grand proportions. ;-)

    “Let us hope and pray that things can hold together for as long as possible, because when the next wave of the economic collapse happens it is going to be really, really messy.”

    I agree it will be really, really mess. I disagree that panicking is a wise choice; and hoping and praying had best be backed up with preparations. God or gods are not going to patch the ever widening fault lines in the economy. Preparation is the key to weathering the storm.

  • Piglet

    Michael: Here’s another unhappy tale to add to your long list: “Airlines lost one in every four jobs in past decade.”

    http://www.pittsburghlive.com/x/pittsburghtrib/business/s_740174.html

    People don’t travel when they don’t have the money for air tickets.

  • bobbobbobbob

    im suprised!! u still dont get it first of all its not as bad as u think— u r cancer free. second usa will still grow– just not as fast as china. even if the checks bounce dont forget the us debt is in us dollars. not in euros gold ect. google TAX CREDIT FOR EXPORTING US JOBS and u will see the republicans are really trators to the usa. for the insist on exporting those good union jobs. and the dont want u to have medical care. but the milk is spilt.

  • http://MidgetTechnology tome

    The article should be of a bear & a bull going at each others throat, because that seems to be the
    approach the Democrats & Republicans have towards each other at a time that the very future of the
    free enterprise system is being brought into question. Of couse thinking back, all the way to 1929
    when everything seemed to be as bleek, it was President Roosevelt who came through with
    a jobs program that put millions of people back to work. Then again the WWII helped alot. That is not
    the situation we have today. Although wars are begun when there is economic distress. That was
    case just prior to WWII, the world was in a economic depression, as it is today. Once WWII was over
    the US was obligated to rebuild what was left of the economies of the world and in order to do this
    it required that we convert to a consumer oriented economy & fast, because Communism was
    beginning to infect the world with its promises of Utopia at a time that people were looking for
    relief from years of war & devestation. At that time the West, being the US govt, the bankers
    & corporate America came up with the idea of easy credit, not just your lay away plan, but a method
    by which they would be able to get money into the hands of the consumer quickly enough to jump
    start the economy, and by most evaluations it worked. Today we have our credit cards, which is the
    result of these policies taken way back when. But things have changed, and boy have they changed.
    The end result of all of this, is a standard of living that is the highest in the world. That in & of itself
    is an accomplishment that should be commended to all the hardworking people who have come
    before us. But in achieving this standard of living the downside is that we have accumulated so much
    debt that the American people are, to put it simply, “tapped out”. We have reached our limit on what can
    be achieved from easy access to easy money. We have minipulated ourselves into a money pit that we
    can’t extracate ourselves from. The money is no longer there and the American people can no longer
    lie to themselves that its going to somehow change. But this is not all the fault of the American people,
    we did play along and now the gig is up. But lets not forget the bankers and corporate America, they too
    are responsible for the result for which we find ourselves in. Yet the only ones who will come away from
    all of this unscathed is the bankers and corporate America, no matter the end result. Why is that?
    Because they in essence control, more than government, your future. Why? Because they are the only
    ones with any money. And IF & when there should an economic collapse of unpresented proportion, it is
    they who will control the direction this nation will take in the future. So where does that leave us?
    What are the options? First of all, no society of Nations of the modern world operates in a vacuum.
    It takes money to bring advancement and change. It also takes money to maintain a healthy economic
    system. The economies of the world depend on it own people to be able to interact with each other on
    common ground, this is the rule of civility. Without it, there is anarchary. This is not the intent of any
    sane and rational ruling elite it would only be the cause of their own demise. Corporate America
    over the years has gradually migrated from being strickly a domestic creation to a more international
    domain. Its present day existence depends not only on its homebase for security but also its foreign
    interests which at the present time is of a greater dimension to their future. This came about from
    years of free trade agreements around the world. It has brought about the diversification of mass
    production to a world stage, and with it corporate America has followed the money. At the present time
    we are importing more than what we produce. The result is that we now have a trade deficit with the
    rest of the world that runs into hundreds of billions of dollars. Most of anything that is manufactured
    in todays world is done ourside the borders of the US. This has resulted in corporations building factories
    and centers of operations all over the world. This has also been the cause of the thousands of lost jobs
    here in the US. But this resulting out of balance is of no nevermind to corporate America. They still make
    millions and millions even if the economy does goes into a great recession. It like the saying goes
    “Don’t Put All Of Your Chickens In The Same Basket” But corporate America has made a mistake. Since
    we the people import more than we export, inturn it is we the people who are the ones who can stimulate
    the economies of the rest of the world as well as our own. See the rest of the world is dependent on us to
    purchase their products and if the American people don’t have the money to do that, there isn’t an
    economy in the world that will improve from its present state of affairs. The only way that going to
    happen is if the American people have access to, or attain an increase in their cash flow.
    For years the salaries of the American worker has been stagnant, if not downright denied any
    ability for discretionary spending. This is where the change must come from if we as a Nation
    are to cure the ills of greed, corruption and self serving actions of a self defined “ruling elite”.
    But corporate America doesn’t want to spend money on salaries when it takes away from the bottom
    line, unless of couse worker productivity increase, but just how much more can the American worker
    endure. Already it takes both the husband & wife to be working full time to pay the mortgage, and the kids
    if not in day care, come home to an empty house and wait for dinner from the microwave. So what options are
    there? Lower taxes? Nope? Goverment does have money now as it is, and it won’t be enough to give a boost
    to the economy fast enough. It would be “to little,to late”. It must come as a across the board increase in
    salary for all presently working. But still corporate America will not even consider this remedy. Why?
    Because as I said earlier we buy more from outside the US than what we produce. But not because of that.
    As I said earlier the US has the highest living standard in the world, which in turn causes our products to be
    more expensive overseas. In order for us to compete on a world stage we must find a way to produce a
    product at a cheaper price, but with the cost of living in the US such as it is, how? By lowering the standard
    of living in the US ! This is the intent of corporate america. The way that will be achieved is by going into a
    national default the result of which will be the leveling off of our standard of living and the raising of the
    standard of living of the rest of the world. Increasing the profitability of corporate America. This has never
    been attempted before and is new to American economic theory. This is a work in progress, such as it is.
    It’s beginning to look to me, as it did to the Jews when the Egyptians were in charge. Our benefactors have
    become our new task masters.How sad that its come to this !

  • http://goto.glocalnet.net/pdn/ Perdavid Nygren

    American Dream – (Full Movie of 30min):

    http://www.youtube.com/watch?feature=player_embedded&v=tGk5ioEXlIM#at=1734

    Can´t understand why romans are depicted as good people in the ending scenes though. That cast out a shadow of doubt over the whole movie. But the movie is still very informative!

  • Covington

    It would appear at times that the talking heads in the mainstream media know something isn’t right. On several occasions watching CNN’s World Business Today the question pops up whether the volumes in the exchanges are based on real expectations or are the markets being bouyed with Fed internvention money.

  • Covington

    Thanks for your blog Michael. Its sad that more people still haven’t awakened to the dangers that lie ahead. Most people I know simply prefer to ignore whats happening because to recognize otherwise requires understanding which most fail to obtain. Face it. Economics is not really exciting to study.
    There is another factor why people are so asleep and that is here in Mexico, where I live, the notion that the United States is bankrupt and changing rapidly into a 3rd world county is too hard to believe.

  • Otown Right Guy

    The collapse has already happened. If not, then what event or condition will indicate that we our economy has officially collapsed? Really its been happening for decades and continues. Real wages have been in decline for that long. Taxation and regulation are destroying us. We do not need more central planning by more central planners. We need to throw off the government ball and chain and free ourselves.

    That won’t happen because we have a permanent loser-class of Gary2/ImpeachRonPaul/Morpheus invertebrates who think they have a claim on the property of others. They are too cowardly to get it themselves as common thieves would. Instead they hide behind the skirt of Big Mamma Federal Government.

  • http://MidgetTechnology tome

    The Sky Is Falling, It Is Time To Panic And The US Economy Has Fallen And It Can’t Get Up.

    A better way of saying that is..

    The Sky Is Falling, It Is Time To Panic And The US Economy Has Fallen And It Can’t GET IT UP !

    Because the politician don’t have the b*lls to stick it to the very people responsible for this rock and a hard place we find ourselves in, the fat cat bankers and the greedy corporate executives.

  • El Pollo de Oro

    Michael T. Snyder writes that “when the next wave of the economic collapse happens, it is going to be really, really messy.” I would love to disagree with that statement; I would love to be able to say that Michael is wrong and that Gerald Celente is overly pessimistic, and I would love to be proven wrong when I say that that the former USA now has the economy of a Third World banana republic. But facts are facts, and evidence is evidence—and the evidence indicates that yes, the next wave of the economic collapse is going to be incredibly messy. It will be horrible.

    “Economic recovery” for The Banana Republic of America (formerly the USA) is an illusion. At this point, the economy of the BRA is a Third World Ponzi scheme. All the bailouts, stimulus, etc. cannot erase the fact that the BRA economy is on life support and that this is one sick patient. The BRA went into a recession in 2007, and that recession became a depression in Sept. 2008; the first shoe fell in Sept. 2008, and when the other shoe falls, God help us. Celente predicts that the BRA is going into what he calls The Greatest Depression: a collapse even worse than the Great Depression of the 1930s. Celente predicts food riots, sky-high unemployment, social unrest, and a plague of violent crime not unlike what one finds in Third World countries.

    “You’re going to see crime levels in America that are going to rival that of a Third World country. Welcome Mexico City. You’re going to start seeing people being kidnapped in this country like they do in other underdeveloping nations. It’s going to be very violent in America.”—Gerald Celente

    Indeed it will. If you want a glimpse into the BRA’s violent future, just read about all the violence in Johannesburg, Caracas or Ciudad Juarez (orale, guay!). Welcome to the favela slums of Rio de Janeiro, welcome to El Barrio Bravo de Tepito in Mexico City, welcome to Raskol gangs in Port Moresby, Papua New Guinea. Welcome to the Hillsbrow ghetto of Johannesburg. Welcome to the shantytown slums of Caracas. Welcome to Trenchtown, Jah-maica, where the rude boys play rough and play for keeps.

    Prof. Tom Leykis has predicted that the country will recover economically and will be entering a period of unprecedented prosperity. I always enjoyed Prof. Leykis when he was on the air, and God knows, I hope he’s right. But the evidence suggests that the opposite is true and that the BRA is headed for a financial apocalypse that will make the horrible suffering of the 1930s look like a picnic.

    “When the money stops flowing down to Main Street, the blood begins to flow on the streets. And the money is not flowing down.”—Gerald Celente

    No, it certainly isn’t. And things are only going to get worse (actually, a lot worse) in The Banana Republic of America (formerly the USA). Anyone who thinks the BRA economy is recovering is delusional. Michael T. Snyder is right: “when the next wave of the economic collapse happens, it is going to be really, really messy.” Que dios nos ayude.

  • RickD

    Has anyone noticed that when things turn for the worse, our government breaks down. Insted of working together to solve our problems, they square off against each other and make things worse. We are insane people to put with this nonsense. Our government acts like a child because they don’t know what to do.

    Memo to America: Stop waiting for Democrats and Republicans to save you.
    *It’s bad for your health and your future.

    “WAKE UP PEOPLE!” – JOIN THE REVOLUTION
    Read “Common Sense 3.1” at ( http://www.revolution2.osixs.org )

    We don’t have to live like this anymore, NOT unless you prefer IT!

    “Spread the News”

  • VegasBob

    Today’s BLS jobs report showed the US economy created a mere 54,000 jobs in May. Buried within the report was the fact that the BLS birth/death model showed an addition of 206,000 jobs in May. These 206,000 jobs are basically a statistical artifact designed to estimate net jobs created by new businesses.

    While it is not appropriate to simply subtract the 206,000 birth/death jobs from the 54,000 overall job total to arrive at a realistic job total, it is fair to say that the birth/death model grossly overestimates new job creation, and that without this overestimate, the BLS report would have showed job losses during May.

    The government tells us that BLS stands for Bureau of Labor Statistics. I think a more appropriate moniker would be Bureau of Lies and Scams.

  • mondobeyondo

    Not looking too good right now, is it? Well…

    Unemployment – up a tenth of a percent.
    Jobs created – much lower than predicted.
    Predictions of a “double dip” recession.

    Enjoy it while you can. It will only get worse.

  • DownWithLibs

    Maybe we should have a pool on when the economy will collapse. We can give someone in here a fiat windfall!!! Wouldn’t that be cool!!

  • http://www.planorperish.com/ Gutter Economist

    Unemployment shocker: Joblessness is already at Great Depression levels

    http://georgewashington2.blogspot.com/2011/06/yastrow-we-are-on-verge-of-great-great.html

  • BigM

    Mike…we’re running out of band-aids for our economy and the bleeding gets worse by the minute.

    And what do our 2 politicians go do? Play a game of golf and talk it over. :duh:

  • StokeyBob

    No matter how much real money people can put together to build their countries the way they want there are those that can print up what ever it takes to get their way.

    Maybe this will help make the danger of fiat money clear.
    Imagine you and me are setting across from each other. We create enough money to represent all of the world’s wealth. Each one of us has one SUPER Dollar in front of him.
    You own half of everything and so do I.
    I’m the government though. I get bribed into creating a Central Bank.
    You’re not doing what I want you to be doing so I print up myself eight more SUPER Dollars to manipulate you with.
    All of a sudden your SUPER Dollar only represents one tenth of the wealth of the world!
    That isn’t the only thing though. You need to get busy and get to work because YOU’VE BEEN STIFFED with the bill for the money I PRINTED UP to get YOU TO DO what I WANTED.
    That to me represents what has been happening to the economy, and us, and why so many of our occupations just can’t keep up with the fake money presses.

    http://photos.imageevent.com/stokeybob/followthemoney/Supersingle640x537.jpg

  • StokeyBob

    Once the fundamentals of allowing some to counterfeit the entire money supply over and over some things may come to mind like;

    ~A group that shouldn’t have had any money to speak with have been given ten times they say than the man with the honest dollar.

    ~Some are being allowed to print up a piece of paper for six cents and get a dollar for it and pay no capital gains on it.

    ~Some are being allowed to print up our own fake money and charge us for borrowing it. Shouldn’t we be collecting the interest on the loaning of it?

  • John

    This pessimism schtick is overdone. America is still the best, just cut taxes and we will be fine. We have the strongest, broadest economy, so go ahead and waste your money on mountain house cans, but I’ll keep making money as we go forward as planned.

    • Michael

      Our collapse as a country has been happening for quite some time now. It doesn’t happen overnight, but if you look at the last ten years (in which we had multiple tax cuts) that collapse is evident.

      • Rednano74

        And in the last 5 years of total Democrat control of Congress, Pelosi and Obama are responsible for 35% of the national debt.

        And your right, the collapse doesn’t happen overnight but only an economic illiterate like yourself will blame it on small “income” tax cuts (in relations to the GDP) over the last 10 years. If the government creates a housing bubble through left wing affordable housing laws and rules forcing banks to give loans to people who cannot afford them, it doesn’t matter what tax cuts you give, the economic bubble will go BUST.

        The government controlled, highly manipulated and distorted economy created by “planners” is collapsing here as that in Europe. Socialism doesn’t work long term. You can prop up people for so long with hand outs but eventually you will run out of other people’s money (taxes) and can only borrow so much without it having a negative return on the market.

        Social Security tax rates are up 600%. Medicare tax rates are up 800%. Both are collapsing despite higher taxes and increased age requirements as all wealth stealing pyramids will do. Taxing employers to HIRE people is just plain STUPID.

        Total combined government spending in 1910 was 10%. TODAY is is 45%!

        • ObamaBinLaden

          “Socialism doesn’t work long term.”
          Things far are worst than that, Civilisation doesn’t work long term. Every single civilisation have collapsed. Civilisation (culture based on city) is set to fail from the beginning… It’s unsustainable by definition. I can only hope that when we will sit on the top of the heap of ruins we will be wiser than each time in the last 10,000 years and will find a better way to go than repeating the same mistake.

    • Andrew

      We do not have the strongest economy, period. We have the larges, but definitely not the strongest. In 2016 even that is likely to change. “We will be fine,” Hoover said those exact words. Cutting taxes, will increase revenue, I agree, but there’s simply too large a hole to dig out of. We will default through inflation–TAKE THAT TO THE BANK.

    • gfmucci

      Most Americans are perpetual believers that America is invincible, despite our plunge into cultural depravity, runaway entitlements, and unsustainable fiscal chaos.

      We are not the same country we were in the ’30’s by any stretch. Even the “Mountainhouse” food mentality among those intelligent enough to prepare is a dead giveaway of our spoiled softness: We must spend $3 to $5 per serving for emergency survival food or the family will throw a tantrum.

      Mainstream financial advisors are still saying “buy and hold” when the signs point to that being folly.

      Sure, there are short-term gains out there – we’ve experienced these during the run up of the past year. But unless you are younger than Springtime, i.e. under 40, you’d best not put many eggs in the traditional investment basket. There are too many things working against this country right now, including many of our own citizens who remain blind to the discipline we need that has become sorely lacking.

      We are headed into either long term stagnation or long term decline, with a growing potential for a long-term collapse.

    • Charles Bowdler

      Hope you can eat those dollars.

    • DiabloLoco

      I’ll be living large eating from my mountain house cans while you are starving wondering what the hell happened….LOL

    • Bob4232

      Cry you babies, cry! I/m glad to see it all come down! The reason? Because I’ve been seeing and expecting this outcome since I was in High School and was criticized for my views. I even lost a job for talking about the mess. I’ve suffered at the hands of my fellow citizens but now I get to warch the bonfire at my 80th birthday party!

    • Todd

      Are you serious John? You’re either ignorant or an ostrich. No one said anything about whether this country is great or not! FACT: our economy is beyond sick and the current “leaders” are NOT taking the proper steps to correct it. FACT! Furthermore, this is a global economic issue. You need to read history John, the greatest empires in the world met their demise. The US is so much like the Roman Empire, it turns my stomach, but we have not learned from history. Stop being so defensive of the greatness of this country and look at the facts, then respond properly. Sticking your head in the sand ignoring the facts will not make the issues go away. I’m an optimistic realist; however, the signs still scream more trouble is coming. Prepare! When the $hit hits the fan, the first thing you will do is run to one of the preparers in the mountain crying for help.

    • Allerious

      “America is still the best, just cut taxes and we will be fine.”

      You may be right in theory but nobody is going to seriously cut taxes or spending until it’s too late. *That’s* the crux of the problem.

    • Bruce

      John you are so lost. You are being negligent to your own family. Just how damn much evidence do you need? There is none so blind as one who will not see.

  • Sancho Paza

    This is Europe speaking.

    Talk about hard times. A while back I saw pictures of the Dust Bowl famine in OK in 30`s. People – tough as boots – a woman and a child, skin and bones with determination to match the appearances, slowly making it despite the odds.

    THAT to me epitomises the core spirit of american people and that is also your legacy. Not the extra baggage, that everyone seems to be carrying nowadays.

    Do you still have it in you? Or is it long gone?

  • javajaw

    This blog is a compilation of facts intended to create the impression of inevitable economic collapse.

    Fine.

    But if it is intended to present a fair picture of reality it is intellectually dishonest in its failure to note the countervailing forces that make this premise questionable. The vast wealth of the US and the scores of millions living in comfort and health puts a question mark to the conclusions of the author of this blog.

    But since the author is a cynical media vampire we are not surprised. ‘The sky is falling’, he brazenly declaims. His arrogance proves the mental decrepitude of an audience eager for the most extreme conclusions, regardless of validity, frantic for another dose of doom-porn to stir their jaded souls.

    The doomster whores encrusting these comments squeal with the dire glee of schadenfreude as they lap the rancid syrup of dytopian delight, like a dog eating its own vomit.

    It is worth noting that every poster is computer literate and in possession of a computer worth enough to pay for at least a week’s hotel room and three hot meals every day.
    I depravity of the idle panicmongers and the purveyor of this sight seems to know no bounds.

    Why would any person despair with the promise of another day before them?

    But I really could care less about this pigmire. Indeed why worry about anything? On a long enough time scale we are all dead.

    • mondobeyondo

      This blog is a compilation of facts intended to educate the uneducated and otherwise ignorant masses of the coming. inevitable economic collapse.

      Whether you believe it’s true or not… that is irrelevant.

      As Hans and Franz used to say on “Saturday Night Live”.. “Hear us now and believe us later”.

    • Book

      I used to take solace in the fact that posters like this would be proven wrong and would be forced to admit (if not publicly, then at least to themselves) that they were not only incorrect, but also stupid for bashing someone who was only telling the truth. However, after studying other countries where collapse has happened, like Argentina and Zimbabwe, even after the collapse takes place, there are still going to be people just like Javajaw who deny a collapse has taken place.

    • gman

      you are right about the large amount of wealth remaining in the u.s. and you are right about the shadenfreude, it does exist. but there are objective signs of collapse.

      1) much of the wealth in the u.s. is based on leveraged credit that will never be repaid.

      2) the most productive portion of the population is largely retiring and being replaced by tribal hostiles. the retirees will demand more goods and services paid for by taxes and interest, and the tribals multiply and demand ever more free support, even as the tax and business base declines.

      3) not only is our currency a debt pyramid scheme that sabotages everything we do, like a chain letter it has reached its limit and is in the process of collapse.

    • Todd

      javajaw, you post is total empty of any reason: all you do is make baseless critic without any facts or reason to support your thoughts. Should the author not state the facts and warn people of the coming troubles?? Please, don’t criticize if you can’t give correction or creative comments. Wealth is an illusion, at best. All this illusive wealth will soon disappear and the reality of the house of cards will wake up many people too late!

  • http://whatcanidotochangetheworld.com Jason Frost

    At this point, I don’t think a collapse can be avoided. Those who will fare the best are the super rich, and people who can live off the grid and produce enough food to feed themselves. A good local network of family and neighbors will also help.

  • Fred

    I have two comments. First, Moody indicates that the U.S. debt may be downgraded if the Debt Ceiling is not raised. My response to that is “What good is that going to do, if the government keeps borrowing 1.6 trillion dollars every year.” Moody should have downgraded U.S. debt to AA+ last year. This year it should be downgraded to AA. If the credit agencies that rate various debts did such a poor job of rating the Mortgage Back Securities (MBS), how can we trust them to rate the U.S. debt.

    As for the Federal deficit, I do not believe any real effort will be made to reduce that deficit. If you raise taxes by 500 billion dollars a year and reduce spending by 500 billion dollars a year, that still leaves the government with a 600 billion dollar deficit year after year. What chance do they have of even accomplishing that. My answer is Zero.

    What happens, if the wealthy people and millions of other people decide to move to other countries? What then? How will the rest of the American people left behind reduce the national debt when so many are collecting benefits such as welfare, food stamps, and rent subsidies?

    America is a financial mess and I’m not optimistic that the economy will really improve any time soon.

  • http://AmericanPatrol.com Eloise Ott

    Excellent article. I found the article under AmericanPatrol.com. The headlines on it are: open borders = unemployment.

  • Bill Brasky

    I concur with the notion to cut out all the religious and ideologically skewed comments.

    I don’t know of anywhere else on the net like this, and the blog is becoming more valuable every day.

    The S is hitting the fan, and there is nothing magical about it, folks.

    Just the logical end result of a bunch of greedy, stupid people doing greedy, stupid things as a matter of course for generations on end.

    We have grown exponentially for decades by burning through precious resources that have been, for those few decades, extremely cheap.

    The resources (oil, metals, fresh water, etc.), as any sane person would have foreseen, are becoming scarce and harder to extract and therefore more expensive.

    We (meaning YOU baby boomer greedy obese turds) built an utterly fraudulent financial mega-ponzi scheme on the basis of this growth. And you sold your sons out for PC “values”, just to try to grab a piece of the pie.

    These ideas and observations need to be discussed in a RATIONAL manner, not in one that references fictional characters that exist only in collective (or single) imaginations.

    Are we clear?

  • http://www.rightmovesproject.com Francis A. Toto

    This message comes from a private 27-year R&D program that is today the definitive authority on the healthcare crisis for 28 reasons. It produced the first and only scientific explanation, the first and only scientific explanation based on a mathematical law, and the only legitimate time line. It means that the claims made here are not merely predictions because there is no uncertainty. Time is rapidly running out.

    There is now incontrovertible scientific evidence and compelling historical evidence that the mammoth healthcare establishment–posting recent revenues of $2.5 trillion–has already started to suddenly and violently collapse (this term is not used metaphorically but mathematically). Astonishingly, this critical industry has started to collapse at its strongest point–the once highly successful US Dental Services Industry. That American dentistry has not been included in the “reform” debate is that it is considered to be the only part of the ailing healthcare system that “works.” Furthermore, American dentistry is considered to be the exemplar of dentistry worldwide. The life cycle evolution of dentistry in the nation is about 3 years ahead of the other two big industries: medicine and hospitals.

    The astonishing crash was equivalent to forty-three 1929 stock market crashes. This implosion is arguably the worst in economic history. This classic textbook event put dentistry into the decline stage of its life cycle–the Nemesis Vortex–due to the same phenomenon that causes stock market crashes, avalanches, and wildfires. Once they trigger, the destroy everything in their paths: the violence they discharge is “autocatylitic” or self-breeding.

    The other two big, “mainspring” industries are metaphorically “teetering” of the verge of collapse; mathematically, they have reached their historic catastrophic threshold. They are in a state of “unstable equilibrium” and high critically because they can minor jolt can trigger a big crash.

    These claims are dramatically demonstrated on the website above and the http//dental.rightmoves project.com

    Groupthink is always antecedent to disasters going back to the fall of the ancient city of Babylon, around 539 BC.Groupthink has been extensively demonstrated among politicians and doctors of all types.

    Fortunately, there is good news. The prescription of collapse goes back to Roman times, about 500 AD. The remedy to a collapse was discovered by an little-known business scholar three decades ago; this remedy has been extensively demonstrated to produce truly extraordinary results under the most challenging conditions. It’s the best kept secret in the world of business and management.
    Francis A.Toto
    Director, The Right Moves Project since 1982
    San Diego

    PS: What is truly disturbing is the politicians and the healthcare leadership refuses to believe that what has happened, has actually happened. Fear paralysis and threat rigidity is epidemic. Worse yet: this looming, man-made national disaster should never have happened in the first place. It was just a “little neglect that breeds great mischief” as Benjamin Franklin would admonish back in 1745.

  • SC23

    While we slowly circle the toilet bowl in this fiscal mess that is about to be flushed, pop economists like Krugman are greasing the social skids for another stimulus giveaway.

    The current battle cry is that the evil republicans didn’t let them spend enough the first time, and that is why our economy is *back* (as if it ever left) in the crapper. Never mind the fact that every part of a decent economic base have long since headed east.

    I think it might be too late for us. I see many out in the web world have bought into the more debt to fix debt mantra and taxing the rich seems to be the only hope to these people. While I am all for fair taxing, there is a bloodlust for the “rich” that will only end with more jobs and money walking away.

    Its coming. We all know it..its simply a waiting game now.

  • http://TheEconomicCollapse Dave

    You know, if I were the Antichrist or the end -time “Beast Power,” the situation in Europe would be lining up just as I would hope. The only way for Europe to survive and financially grow is for there to be a united central bank free of all national constraints to run the financials of all Europe — a federal reserve bank of Europe. The sovereign states of Europe would never submit to this. So I would allow a crisis to develop as is happening today in Europe. In the midst of the coming economic breakdown, I would come forward with the plan for a Federal Reserve Bank of Europe and the people of Europe would have no choice but get on board. We will see if that happens.

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    1) Exxon Mobil made $19 billion in profits in 2009. Exxon not only paid no federal income taxes, it actually received a $156 million rebate from the IRS, according to its SEC filings. (Source: Exxon Mobil’s 2009 shareholder report filed with the SEC here.)

    2) Bank of America received a $1.9 billion tax refund from the IRS last year, although it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion. (Source: Forbes.com here, ProPublica here and Treasury here.)

    3) General Electric made $26 billion in profits in the United States over the past five years and, thanks to clever use of loopholes, paid no taxes.(Source: Citizens for Tax Justice here and The New York Times here. Note: despite rumors to the contrary, the Times has stood by its story.)

    4) Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009. (Source: See 2009 Chevron annual report here. Note 15 on page FS-46 of this report shows a U.S. federal income tax liability of $128 million, but that it was able to defer $147 million for a U.S. federal income tax liability of negative $19 million.)

    5) Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million refund from the IRS last year. (Source: Paul Buchheit, professor, DePaul University, here and Citizens for Tax Justice here.)

    6) Valero Energy, the 25th largest company in America with $68 billion in sales last year, received a $157 million tax refund check from the IRS and, over the past three years, received a $134 million tax break from the oil and gas manufacturing tax deduction. (Source: the company’s 2009 annual report, pg. 112, here.)

    7) Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department. (Source: Bloomberg News here, ProPublica here, Treasury Department here.)

    8) Citigroup last year made more than $4 billion in profits but paid no federal income taxes. It received a $2.5 trillion bailout from the Federal Reserve and U.S. Treasury. (Source: Paul Buchheit, professor, DePaul University, here, ProPublica here, Treasury Department here.)

    9) ConocoPhillips, the fifth largest oil company in the United States, made $16 billion in profits from 2006 through 2009, but received $451 million in tax breaks through the oil and gas manufacturing deduction. (Sources: Profits can be found here. The deduction can be found on the company’s 2010 SEC 10-K report to shareholders on 2009 finances, pg. 127, here.)

    10) Carnival Cruise Lines made more than $11 billion in profits over the past five years, but its federal income tax rate during those years was just 1.1 percent. (Source: The New York Times here.)

    http://www.greenpartywatch.org/2011/04/30/top-10-corporations-who-paid-no-taxes/

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    According to history buff, Alan Batterman, the German word for “Gestapo” is an acronym of GEheim STAdt POlezi. Translation: “Homeland Security.”

    • mondobeyondo

      Scary stuff.
      Maybe you should mention that to Janet Napolitano. Hee!!

    • Vogel

      Homeland Security is “Heimat Sicherheitsdienst.”

    • Anonymous

      Your history buff should brush up his German. “Geheim Stadt Polizei” is not only grammatically wrong – it also means approximately “secret town’s police”.

      In reality, Gestapo stood for “GEheime STaadsPOlizei” (one word, double “a”), which means “secret state police”.

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    The indulgence of our lives has cast a shadow on our world.
    Our devotion to our appetites betrayed us all.
    An apocalyptic plight.
    More destruction will unfold.
    Mother Earth will show her darker side and take her toll.

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    “If the American people ever allow private banks (the Federal Reserve Banks) to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered..” –Thomas Jefferson

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    It’s a brand new world. Tick tick tick.

    • mondobeyondo

      Yippers! Welcome to Zimbabwe North!
      We don’t have zebras roaming the plains, but we sure got just about everything else! *sigh*

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    If the alleged and long suspected New World Order is supposed to be based on a resource depleted, burned out, war torn, shit hole of an earth, with the majority of left over human beings suffering, they deserve congratulations because we are well on our way to it.

    • gman

      the new world order sounds like a corpse.

      what if their goal isn’t to rule?

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    You build prisons and fill them with people for selling dime bags and stealing CD players. But for stealing a billion dollars? For fraud that puts a million people into foreclosure? Pass. It’s not a crime. Prison is too harsh. Get them to say sorry, and move on. let’s not even make them say they’re sorry. That’s too mean; let’s just give them a piece of paper with a government stamp on it, officially clearing them

    • Smashmouth

      Smashing the control Machine says:
      You build prisons and fill them with people for selling dime bags and stealing CD players.

      Dearest Smash
      I agree with you but please let me tell you what a high ranking state official in NY said to me once about that and it is very scary.
      He said and I quote: “it’s cheaper to lock up a lot of these (little) people for petty crimes (pot), (Stealing CD players)because there are not enough jobs for everyone and prison is cheaper then giving them welfare, assisted living, medicaid, etc.”
      and this he told me before the economic collapse 2008.

  • http://www.youtube.com/watch?v=QlUbg3rUGrU Smash the Control Machine

    According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION.

    Five banks account for 95% of this. Can you guess which five?

  • Gary2

    New Gallup poll: By 57-35 margin, Americans feel wealth in the USA “should be more evenly distributed.”

    TAX THE RICH SPREAD THE WEALTH!!!!

  • Ron

    How come all of the economic analysts that we see in the mainstream media never mention a simple way to at least alleviate somewhat the job scarcity?

    stop importing foreign workers aka immigration

    • Gary2

      you are correct. There are a fair number of us progressives who completely agree with this.

      The last thing we need is more unskilled people coming to this country. We have enough already, too many truth be told.

      Look at the piss ass cheap farmers complaining they can not get anyone to pick their crops. Newsflash-pay more!!! Make less profit DUH!!

  • McKinley Morganfield

    “According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION.”

    Cooked books, creative accounting, and a sucker is born every minute regulations… its all pieces of paper these fraudsters have been swapping around the globe in a grand Ponzi scheme. That is what makes them ‘too big to fail’.

    “Five banks account for 95% of this. Can you guess which five?”

    I’ll try Goldman Sachs, Bank of America, J.P. Morgan Chase, Citigroup, and Wells Fargo for $50 trillion. ;-)

    But seriously, their real assets are probably worth no more than 10% of that $223 trillion. See reference to a grand Ponzi scheme, above. ;-)

  • McKinley Morganfield

    Gary2,

    One more humorous attempt at pointing out the logical fallacy of your stale religion (tax the rich solves everything) and then I promise to forever ignore you:

    http://iowahawk.typepad.com/iowahawk/2011/03/feed-your-family-on-10-billion-a-day.html

    Its game over time, dude. You can take everything the ‘rich’ possess and feed them and their children to the poor and it won’t solve the problem.

  • mondobeyondo

    Burn and crash.

    Or is that crash and burn?
    What the hell’s the difference??

  • mondobeyondo

    Recession over? Ha-ha-hee-heee hee hoo hooooo!
    Double dip recession?!! (Repeat above phrase)

    The recession never ended.
    You think it did, because Katie Couric (she’s leaving CBS as of 6/6/11) and Brian Williams told you it ended in July of 2009.

    Their info is wrong. Wrong! Wrong! WRONG!!!!!
    Check the latest unemployment figures. (Distorted as they are)

    Our current economic problems – current as of June 5th, 2011 – are a continuation of the policies initiated in 2008, 2009 and 2010.

    That snake oil they’re selling, it may be mighty good stuff. I’m still not buying it.

  • Steve D

    Dear John,
    The people that don’t prepare for anything are the first one’s to panic.I think there are alot of people who are getting ready for a downturn.You can have all your numbers on a piece of paper that shows you have something but let the electric go out for a day or two and your on the phone screaming.When big Ben wants to add 3 zero’s to a one dollar bill maybe people will get how bad it is. I think the reset button is coming and people I know just want to know when.If this will not turn around soon the change will be so quick and suffering great

  • http://www.pathtoasia.com rhea

    The present economic mess affects us all in a very immediate way and the American public has a right to know how we got to this point. Anything congress/Obama/FED does will only make things worse in the long term. Government undertakings always backfire with catastrophic results. Beware of the unintended consequences.

    We help Americans find jobs and prosperity in Asia. Visit http://www.pathtoasia.com/jobs/ for details.

  • Otown Right Guy

    John, yes it might be possible to turn it around IF Americans would be willing to roll back DC, stop the wars, cut taxes and get the evil feds out of our lives. But the majority of people don’t want that. Any politician who hints at even the most limp-wristed medicare or SS reform will be demonized by Democrats and kicked out of office. The democrat “solution”, of course, is to raise taxes on “the rich” and keep growing entitlements. And then you have all the insane and ruinous wars that the republicans love. So that it is why most of us are so pessimistic.

    • mondobeyondo

      Years ago, I watched the movie “Dr. Strangelove” (great movie, by the way!) And in the opening scenes, they showed soldiers in front of a background that said, “Peace is Our Profession”.

      Perfect.

      • http://do.com Whoopdy Do

        I believe that was the motto of the now-defunct Strategic Air Command, then responsible for nuclear weapon delivery via bombers and ICBMs.

      • Lily

        and ” War Is Just A Hobby”

    • Gary2

      Damn straight, we WILL be raising taxes on the scum bag thieving rich and their ill gotten wealth WILL be spread around.

      We will be absolutely creaming the repubes in 2012. Recalls in WI, NY-26, were even trying to get rid of Paul Ryan. Too bad tea-publicans-you are nothing but cannon fodder for the rich. What stupid dolts! We want to do everything we can to make Walker(college dropout) fail. He is doing a pretty good job on his own on this…

      The right wing hate radio in Milwaukee has gone from saying no repubes will be recalled to saying we (dems) will get back the senate.

  • Maria

    This man, James G. Rickards, demonstrates Clear ideas how the economic issues will transpire.

    http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/4_Jim_Rickards.html

  • Gary2

    Former Reagan aide Bruce Bartlett, meanwhile, blasted GOP leaders in Congress for asserting, without evidence, “that cutting taxes for the well-to-do and big corporations” will solve what ails America. In truth, says Bartlett, federal taxes on corporations and the rich remain “very low,” and we have “no reason to believe that reducing them further will do anything to raise growth or reduce unemployment.”

    TAX THE RICH SPREAD THE WEALTH. former Raygun aid says!

    TAX THE WEALTHY TO KEEP US HEALTHY!!

  • Gabrial Singh

    Seeming as everyone else is chiming in here….this is entertainment people.

    nothing on this tea party website is supposed to be taken seriously.

    This is what happens, when a whole bunch of old white people, become alarmed, as more and more Mexicans, move next door, into their fine white neighborhoods.

    ” The sky is falling” is the battle cry of the tea baggers..trying to scare the **** out of the old people.

    I think it is funny, myself. And NO, this isnt the first time in our history, for these facists to proclaim, the end of the USA is near. That, is a joke!

    • Bobby

      Little bit of anti-white racism there, huh Mr. Singh?

    • Bobby

      Mr. Singh are you one of those people exploiting those Mexicans, by any chance?

    • Annie Oakley

      Mr. Singh is anti-white racist. You wanna know what happens when dozens of Mexican families move to a neighborhood.

      Falling property values, dense traffic due to a dozen people living the house, increased crime, mariachi music blaring at night.

      Singh, if you love these mexicans so much, why don’t you take care of them? Oh no, you’re too busy exploiting them.

      Hey owner of this blog, you never posted my last comment about immigration. But you continue to allow posts in here that are anti-white and bigots like Singh and other spam posts with links to outsourcing companies.

      What gives here?

  • Bobby

    Well, lets see now. Wall Street criminals have literally stolen hundreds of billions if not trillions. States across the U.S. are forced to pay for illegal aliens by the millions, that create job depression in blue collar industries,and force taxpayers to take care of their large families, and worthless government “workers”, especially in states like Illinois, California, New Jersey, ….etc. are cleaning up with big salaries and grossly high pensions. So the U.S. economy has fallen? Do say.

  • Bobby

    Excuse me Mr. Singh, those old white people, and their ancestors built this whole nation. Capish Mr. Singh?

  • delmar Jackson

    baloney!!
    If economy is as bas as you claim, why is US Government alowing over a million legal foreign workers a year plus doing little to stop the 300,000 illegal workers coming in yearly?? Why haven’t usa made everify mandatory and stopped suing Arizona for protecting itself from immigration.

    Diversity will make us stronger.

    And if you think that is a bad thing, why haven’t you joined numbersusa yet? Hypoccrites!

  • Centcom

    Liberals preach about embracing diversity. Yea, unless diversity is holding a can of Mountain House food. And Liberals love to preach ‘exit strategy’. OK, we have Christ. What’s yours? One more question while you’re standing there looking like deer in the headlights. We are prepared to be wrong. Are you?

  • Covington

    I have watched CNN’s “World Business Today” and on several occasions the irrational exuberance in the markets was questiones. Specifically whether volumes in markets were pent up or based on fundamentals.

  • Covington

    Michael. Thanks for your blog. Its people like you who are helping to get peoples heads out of the sand.

    Alot of people, out of disbelief that the US is failing, prefer to ignore the facts. Instead they shun the obvious hoping the problems will fade away and they can keep right on waisting time with NFL games, Hollywood and text messaging irrelevancies.

  • ken jmr

    It is the soldier, more than anyone else, who prays for peace. For it is the soldier, more than anyone else, who knows the high price of war.

  • david

    John its people like you we are trying to teach. just sit down one day and do the math.

    No wonder many people in the world consider us arrogant. The sad part is many of us are not only arrogant, we are blind.

  • Zombee K

    Arizona is burning. Is that a bad omen for the economy?

  • http://321gold j.kruszewski

    Robert Reich also warned against the dangers of second mortgages and how they’re going to come back and bite the borrower with a vengeance. The other problem is getting the genie back in the bottel.
    In the good ol’ days of the 50s and early 60s the wealthy were taxed over 50% and they didn’t run off shore.The roads, librarys and schools were in great shape and the little guy actually had money to spend. It wasn’t until the military industrial complex figured out how much money there’s to be made in war profiteering.
    A good example is HWBush neutering Saddam. Halliburton and it’s cronies made a “killing”. They couldn’t wait to get a patsy like GWbush to start another war and this time make it never ending.
    The elites closing factories in the US for slave wages in China have been making money hand over fist and coupled with the “supposed” tax breaks to stimulate jobs aren’t going to part with their obscene amounts of money now that they have it.
    The corporatists running this kleptocracy only use patiotism when they want to send troops to protect their assets abroad. They could care less to the damage their greed has done to America.

  • Matt Schilling

    We need something to replace housing. I know it became a bubble that ended up hurting a lot, but people forget too easily that housing carried the economy for several years. By which I mean 100’s of thousands of people were gainfully employed – their lives, and therefore, the lives of many around them – were on a positive footing.
    What can replace housing now? I say a war footing to end our dependence on foreign oil. First, break ground on a nuclear power plant each month for the next several years. We’re not going to build anything like those damaged dinosaurs in Japan, nor are we going to build any on seismic faults.
    A nuke plant is 90% steel and cement – fairly low tech, high paying jobs. The average large plant will employ 2,400 construction workers at peak construction, and will create around 700 permanent jobs when done. There are usually 1 or 2 support jobs created in the surrounding community for every job at the plant.
    If we broke ground on a new plant each month for four years, and if the plants take an average of four years to build, the first one will be finished when ground is broken on the last one. In 8 short years we will have increased our fleet of nuclear plants by 50%, employing probably 100,000 people. As many as 50,000 construction workers will have been busy at the peak of construction.
    Of course, why stop with only 48 plants? We ought to double our inventory from the current 104 – and displace a ton of coal from making electricity in the process. We ought to use that coal to make pristine clean diesel and jet fuel – that’s where we reduce our dependence on foreign oil: Nuclear power displaces coal out of electricity, the displaced coal is used in transportation, displacing foreign oil right out of our economy.

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