Austerity In America: 22 Signs That It Is Already Here And That It Is Going To Be Very Painful

Over the past couple of years, most Americans have shown little concern as austerity measures were imposed on financially troubled nations across Europe.  Even as austerity riots erupted in nations such as Greece and Spain, most Americans were still convinced that nothing like that could ever happen here.  Well, guess what?  Austerity has arrived in America.  At this point, it is not a formal, mandated austerity like we have seen in Europe, but the results are just the same.  Taxes are going up, services are being slashed dramatically, thousands of state and city employees are being laid off, and politicians seem to be endlessly talking about ways to make even deeper budget cuts.  Unfortunately, even with the incredibly severe budget cuts that we have seen already, many state and local governments across the United States are still facing a sea of red ink as far as the eye can see. (Read More...)

Food Riots 2011

The stunningly violent food riots in Tunisia and Algeria show just how quickly things can change.  Just a few months ago, these two northern Africa nations were considered to be very stable, very peaceful and without any major problems.  But now protesters are openly squaring off with police in the streets.  Many of the protesters are throwing “fire bombs” or are shooting fireworks at the authorities, and the police are responding with a tremendous amount of violence themselves.  In Algeria, several protesters have been killed by police and several others have actually set themselves on fire to protest the economic conditions.  In Tunisia, more than 100 people have been killed and the president of that country actually had to flee for his life.  But on a global scale, food shortages have not even gotten that bad yet.  Yes, food prices are starting to go up and food supplies are a little bit tighter right now, but much worse times than these are coming.  So what in the world are the cities of the world going to look like when we have a very serious food shortage? (Read More...)

Doom And Gloom

Have you noticed that most Americans seem to know far more about American Idol, Dancing with the Stars, Justin Bieber and their favorite sports teams than they do about world affairs?  Most Americans cannot even find Tunisia and Algeria on a map, and if you told them that food riots are happening in those nations right now most of them would not even care anyway.  We have become a very self-centered, self-involved and self-absorbed nation.  Quite a few people have accused this column of being obsessed with “doom and gloom”, but the truth is that the world really is falling apart out there.  What are we supposed to do?  Are we all supposed to stick our heads in the sand and pretend that everything is going to be okay?  Should we all not try to warn others so that they can prepare for what is coming?  Until people understand that we are facing absolutely massive problems they are not going to be motivated to take significant action, and hopefully those of us that are proclaiming “doom and gloom” are doing a good enough job of describing what is really going on out there that some people are starting to wake up and actually make changes. (Read More...)

20 Shocking New Economic Records That Were Set In 2010

2010 was quite a year, wasn’t it?  2010 will be remembered for a lot of things, but for those living in the United States, one of the main things that last year will be remembered for is economic decline.  The number of foreclosure filings set a new record, the number of home repossessions set a new record, the number of bankruptcies went up again, the number of Americans that became so discouraged that they simply quit looking for work reached a new all-time high and the number of Americans on food stamps kept setting a brand new record every single month.  Meanwhile, U.S. government debt reached record highs, state government debt reached record highs and local government debt reached record highs.  What a mess!  In fact, even many of the “good” economic records that were set during 2010 were indications of underlying economic weakness.  For example, the price of gold set an all-time record during 2010, but one of the primary reasons for the increase in the price of gold was that the U.S. dollar was rapidly losing value.  Most Americans had been hoping that 2010 would be the beginning of better times, but unfortunately economic conditions just kept getting worse. (Read More...)

House Prices – Up Or Down In 2011?

How soon will it be before people finally start using the term “depression” to describe what has happened to the U.S. housing market?  It has been four and a half years since housing prices began to decline, and they are still falling.  In fact, U.S. housing prices have now fallen further during this economic downturn than they did during the Great Depression of the 1930s.  Just think about that.  We are now in unprecedented territory, and most analysts believe that U.S. house prices will continue to decline in 2011.  Mortgage rates have been moving up, mortgage delinquencies are on the rise again, U.S. mortgage lenders have really tightened lending standards and “foreclosuregate” continues to plague the entire mortgage industry.  It would be really nice for the overall economy if house prices did go up in 2011, but right now it looks like that simply is not going to happen. (Read More...)

10 Things That Would Be Different If The Federal Reserve Had Never Been Created

The vast majority of Americans, including many of those who believe that they are “educated” about the Federal Reserve, do not really understand how the Federal Reserve really makes money for the international banking elite.  Many of those opposed to the Federal Reserve will point to the record $80.9 billion in profits that the Federal Reserve made last year as evidence that they are robbing the American people blind.  But then those defending the Federal Reserve will point out that the Fed returned $78.4 billion to the U.S. Treasury.  As a result, the Fed only made a couple billion dollars last year.  Pretty harmless, eh?  Well, actually no.  You see, the money that the Federal Reserve directly makes is not the issue.  Rather, the “magic” of the Federal Reserve system is that it took the power of money creation away from the U.S. government and gave it to the bankers.  Now, the only way that the U.S. government can inject more money into the economy is by going into more debt.  But when new government debt is created, the amount of money to pay the interest on that debt is not also created.  In this way, it was intended by the international bankers that U.S. government debt would expand indefinitely and the U.S. money supply would also expand indefinitely.  In the process, the international bankers would become insanely wealthy by lending money to the U.S. government. (Read More...)

Two Americas: 12 Facts That Show That Those Who Are Too Big To Fail Are Thriving On The Bailout Money That Our Politicians Gave Them Even As The Economic Suffering Of Ordinary Americans Continues To Deepen

Most Americans have a deep aversion to the phrase “redistribution of wealth”, and rightly so.  On a fundamental level, it is just not right to take the money that one man has worked so hard to earn and “redistribute” it to someone else.  In the political realm, the phrase “a redistribution of wealth” is usually a reference to our ballooning social programs, but what most Americans don’t realize is that one of the biggest redistributions of wealth in world history took place during the Wall Street bailouts of a couple years ago.  Trillions of dollars of our money and of money that belongs to future generations was redistributed to the Wall Street bankers.  The Wall Street bankers did not earn this money and they did not deserve this money.  We were told that if Wall Street did not get this money that the global economy would collapse and that there would be martial law in the streets.  We were promised that this money would “fix” Wall Street and then the prosperity would “trickle down” to Main Street.  So did this happen?  Of course not. (Read More...)

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