The “coming economic collapse” has already been happening. You see, the truth is that the economic collapse is not a single event. It has already started, it is happening right now, and it will accelerate during the years ahead. The statistics in this article show very clearly that the U.S. economy has fallen dramatically over the past ten years or so. Unfortunately, there are lots of mockers out there that love to mock the idea of an economic collapse even though one is happening right in front of our eyes. They love to say stuff like this (and I am paraphrasing): “An economic collapse is never going to happen. We can consume far more wealth than we produce forever. We can pile up gigantic mountains of debt forever. There is no way that the party is over. In fact, the party is just getting started. Woo-hoo!” That sounds absolutely ridiculous, but “economists” and “journalists” actually write things that reflect these kinds of sentiments every single day. They do not seem alarmed about the fact that our national debt is nearly 17 times larger than it was 30 years ago. They do not seem alarmed about the fact that the total amount of debt in our country is more than 28 times larger than it was 40 years ago. They do not seem alarmed about the fact that our economic infrastructure is being absolutely gutted and we are steadily becoming poorer as a nation. They just think that the magic formula of print, borrow, spend and consume can go on indefinitely. Unfortunately, the truth is that a massive economic disaster has already started to unfold. We inherited the greatest economic machine in the history of the world, but we totally wrecked it. We have been able to live far, far beyond our means for the last couple of decades thanks to the greatest debt bubble in the history of the planet, but now that debt bubble is getting ready to burst. Anyone with half a brain should be able to see what is coming. Just open your eyes and look at the facts. The following are 40 stats that prove the U.S. economy has already been collapsing over the past decade… (Read More...)
The “McDonald’s Budget”: Laughably Unrealistic But Also Deeply Tragic
Can you support a family on $2,000 a month? Recently, McDonald’s and Visa teamed up to launch a website that is intended to help employees of McDonald’s manage their money. The aspect of the website that is getting a tremendous amount of national attention is the “McDonald’s Budget” which is a sample monthly budget which is designed to help workers plan their spending. You can see a copy of it for yourself right here. This budget is laughably unrealistic, but it is also deeply tragic, because there are tens of millions of American workers that are actually trying to raise families on this kind of an income. (Read More...)
A Nightmare Scenario
Most people have no idea that the U.S. financial system is on the brink of utter disaster. If interest rates continue to rise rapidly, the U.S. economy is going to be facing an economic crisis far greater than the one that erupted back in 2008. At this point, the economic paradigm that the Federal Reserve has constructed only works if interest rates remain super low. If they rise, everything falls apart. Much higher interest rates would mean crippling interest payments on the national debt, much higher borrowing costs for state and local governments, trillions of dollars of losses for bond investors, another devastating real estate crash and the possibility of a multi-trillion dollar derivatives meltdown. Everything depends on interest rates staying low. Unfortunately for the Fed, it only has a certain amount of control over long-term interest rates, and that control appears to be slipping. The yield on 10 year U.S. Treasuries has soared in recent weeks. So have mortgage rates. Fortunately, rates have leveled off for the moment, but if they resume their upward march we could be dealing with a nightmare scenario very, very quickly. (Read More...)
Goodbye Full-Time Jobs, Hello Part-Time Jobs, R.I.P. Middle Class
A fundamental shift is taking place in the U.S. economy. In fact, this transition is rapidly picking up momentum and is in danger of becoming an avalanche. The percentage of full-time jobs in our economy is steadily declining and the percentage of part-time jobs is steadily increasing. This is not a recent phenomenon, but now there are several factors which are accelerating this trend. One of them is Obamacare. The truth is that Obamacare actually gives business owners incentive to cut hours and turn full-time workers into part-time workers, and according to the Wall Street Journal and other prominent publications this is already happening all over the United States. Perhaps this is part of the reasons why the U.S. economy actually lost 240,000 full-time jobs last month. (Read More...)
Love Your Neighbor As You Love Yourself: An Appeal For Reconciliation
Whatever you may think about the George Zimmerman trial, the truth is that it is yet another example that shows very clearly how divided America is at this point. I was hesitant to write anything about the Zimmerman trial today, because it seems like the more people talk about it the more divided we become. But we need to have some honest discussions about these issues, because all of this division threatens to literally tear this nation apart. If we do not learn how to love one another and forgive one another, America is not going to have any sort of a future. After all this time, the people of the United States should have been able to get beyond racial hatred. Instead, it appears to be growing with each passing day. Right now, there are millions of Americans that hate African-American people. Right now, there are millions of Americans that hate Hispanic-American people. Right now, there are millions of Americans that hate Asian-American people. Right now, there are millions of Americans that hate white people. Right now, there are millions of Americans that hate Jewish people. All of this hatred is evil, and it is eating away at our nation like cancer. The problems that our country is facing are immense, and we are never going to have any hope of solving them until we can forgive one another and start to honestly love one another. (Read More...)
10 Reasons Why The Global Economy Is About To Experience Its Own Version Of “Sharknado”
Have you ever seen a disaster movie that is so bad that it is actually good? Well, that is exactly what Syfy’s new television movie entitled “Sharknado” is. In the movie, wild weather patterns actually cause man-eating sharks to come flying out of the sky. It sounds absolutely ridiculous, and it is. You can view the trailer for the movie right here. Unfortunately, we are witnessing something just as ridiculous in the real world right now. In the United States, the mainstream media is breathlessly proclaiming that the U.S. economy is in great shape because job growth is “accelerating” (even though we actually lost 240,000 full-time jobs last month) and because the U.S. stock market set new all-time highs this week. The mainstream media seems to be absolutely oblivious to all of the financial storm clouds that are gathering on the horizon. The conditions for a “perfect storm” are rapidly developing, and by the time this is all over we may be wishing that flying sharks were all that we had to deal with. The following are 10 reasons why the global economy is about to experience its own version of “Sharknado”… (Read More...)
Inflation Is Too Low? Are You Kidding Us Bernanke?
Federal Reserve Chairman Ben Bernanke said this week that inflation in the United States needs to be higher. Yes, he actually came right out and said that. It almost seems as if Bernanke is trying to purposely hurt the middle class. On Wednesday, Bernanke told the press that “both sides of our mandate are saying we need to be more accommodative“. Of course he was referring to the Fed’s dual mandate to keep unemployment and inflation low, but Bernanke has a very unique interpretation of that mandate. According to Bernanke, inflation in the U.S. is now “too low“. The official inflation rate is currently sitting at about 1 percent, and Bernanke insists that such a low rate of inflation is not good for the economy. He would prefer that the rate of inflation be up around 2 percent, and he is hoping that more “monetary accommodation” will help push inflation up and the unemployment rate down. (Read More...)
Will North Colorado Be The 51st State In The Union?
There are ten counties in northern Colorado that are discussing plans to secede from the state of Colorado in order to form a new state that would be known as “North Colorado”. North Colorado would have a population of more than 300,000 people, and it would be the 42nd largest state in the country by land area. The county officials that are leading this movement say that a “collective mass” of issues has resulted in this desire to leave the state of Colorado for good. In recent years, the Democratically-controlled state legislature has been pursuing new regulations on the oil and gas industries, it has imposed strict new renewable energy standards throughout the state and it has adopted new gun control measures that are highly unpopular with rural voters. The desire to be independent of the meddling bureaucrats in the state capital is certainly a commendable goal, but there are some obstacles that will make establishing a new state very difficult. Hopefully the challenges will not cause those pursuing this new state to lose heart. (Read More...)