The global debt crisis has reached a dangerous new phase. Unfortunately, most Americans are not taking notice of it yet because most of the action is taking place overseas, and because U.S. financial markets are riding high. But just because the global economic crisis is unfolding at the pace of a “slow-motion train wreck” right now does not mean that it isn’t incredibly dangerous. As I have written about previously, the economic collapse is not going to be a single event. Yes, there will be days when the Dow drops by more than 500 points. Yes, there will be days when the reporters on CNBC appear to be hyperventilating. But mostly there will be days of quiet despair as the global economic system slides even further toward oblivion. And right now things are clearly getting worse. Things in Greece are much worse than they were six months ago. Things in Spain are much worse than they were six months ago. The same thing could be said for Italy, France, Japan, Argentina and a whole bunch of other nations. The entire global economy is slowing down, and we are entering a time period that is going to be incredibly painful for everyone. At the moment, the U.S. is still experiencing a “sugar high” from unprecedented fiscal and monetary stimulus, but when that “sugar high” wears off the hangover will be excruciating. Reckless borrowing, spending and money printing has bought us a brief period of “economic stability”, but our foolish financial decisions will also make our eventual collapse far worse than it might have been. So don’t think for a second that the U.S. will somehow escape the coming global economic crisis. The truth is that before this is all over we will be seen as one of the primary causes of the crisis. (Read More...)
Will The Election Results Cause Massive Riots To Erupt All Over America?
Will the most divisive campaign in modern American history culminate in massive riots in our major cities? Right now, supporters of Barack Obama and supporters of Mitt Romney are both pinning all of their hopes on a victory on November 6th. The race for the presidency is extremely tight, and obviously the side that loses is going to be extremely disappointed when the election results are finalized. But could this actually lead to violence? Could we actually see rioting in communities all over America? Well, the conditions are certainly ripe for it. A whole host of surveys over the past few years have shown that Americans are very angry and very frustrated right now. In fact, a Pew Research Center poll from late last year found that 86 percent of all Americans are either angry or frustrated with the federal government. We have seen this frustration manifest in protest movements such as the Tea Party and Occupy Wall Street, but right now things are fairly calm as liberals and conservatives both look forward to November 6th. Many Republicans started the countdown to the next election literally the day after John McCain lost back in 2008. All of their hopes of getting Obama out of the White House are riding on a Romney victory. For many Democrats, Barack Obama is a “once in a generation” icon. Just the thought of Mitt Romney replacing Obama in the White House is enough to push many of them to the brink of insanity. In recent years we have seen horrible rioting erupt in cities after major sports championship games. How much worse could the rioting potentially be if this bitterly contested election is decided by a very narrow margin – especially if there are allegations that the election is “stolen”? (Read More...)
UNSUSTAINABLE
When it comes to explaining the problems with our economy, one of the hardest things to do is to get people to understand that we are living in an economic fantasy world that is completely and totally unsustainable. As a nation we consume far more than we produce, we spend far more than we bring in, our debt is growing much faster than our GDP is, our entitlement programs are growing at an exponential rate, our retirement system is a Ponzi scheme and the Federal Reserve is printing money as if there is no tomorrow in a desperate attempt to paper over all of our problems. But we have all grown so accustomed to the debt-fueled prosperity that we have been enjoying for so many decades that it actually feels “real” to most of us. Unfortunately, history has shown us that it is simply not possible to grow your debt faster than your economy indefinitely. At some point your consumption will drop back to a level more equal to your production. Sometimes that adjustment can be gradual, but other times it can be extremely painful. In our case, we have been living way above our means for so long that it would take a major economic miracle just to keep our adjustment to an “exceedingly painful” level. We are living in the largest debt-fueled prosperity bubble in the history of the world, and our unsustainable economy is going to crash and burn at some point. Hopefully it will be later rather than sooner, but a crash is most definitely coming. (Read More...)
28 Good Questions That The Mainstream Media Should Be Asking
Why is there so little trust in the mainstream media these days? CNN ratings have been hovering close to record lows over the past few months. A recent Gallup survey found that 60 percent of all Americans “have little or no trust” in the mainstream media. That was a record high according to Gallup. So why is this happening? Sadly, the truth is that the mainstream media quit telling the truth a long time ago. The mainstream media has an agenda, and more Americans than ever are beginning to recognize this. Once upon a time, control of the news in the United States was at least somewhat decentralized. But now there are just six giant media corporations that control almost everything that we see, hear and watch. The version of “the news” that they give us is designed to serve the interests of those corporate giants and the other corporate giants that spend billions of dollars to advertise their products through those outlets. Watching the news on television can be an extremely frustrating experience these days. Yes, there are little bits and pieces of the truth in there, but you have to wade through an awful lot of “infotainment” to get to those bits and pieces. That is one of the reasons why the “alternative media” has absolutely exploded in recent years. The American people are hungry for the truth, and they are increasingly turning to alternative sources of news on the Internet in an attempt to find it. (Read More...)
Police: “Enter Detroit At Your Own Risk”
If you plan on visiting Detroit any time soon, the police have a message for you: “Enter Detroit at your own risk”. That ominous message was actually emblazoned across the top of a flyer that the Detroit Police Officer Association was passing out prior to a rally on Saturday. The flyer pointed out that Detroit is the most violent city in the nation and that more homicides are committed in Detroit than anywhere else. Meanwhile, the number of police officers in Detroit has been steadily decreasing. There are more murders in Detroit today than there were a decade ago, but the number of police officers in the city has decreased by about 1,000 over that time period. The remaining police officers are overworked and incredibly frustrated. But Detroit is far from alone. All over the nation there are major cities that are reporting a spike in crime even as police budgets are being slashed. Sadly, this is just the beginning. As the economy gets even worse, budget cuts will become even more severe and crime will become an even bigger problem. (Read More...)
The Largest Economy In The World Is Imploding Right In Front Of Our Eyes
A devastating economic depression is rapidly spreading across the largest economy in the world. Unemployment is skyrocketing, money is being pulled out of the banks at an astounding rate, bad debts are everywhere and economic activity is slowing down month after month. So who am I talking about? Not the United States – the economy that I am talking about has a GDP that is more than two trillion dollars larger. It is not China either – the economy that I am talking about is more than twice the size of China. You have probably guessed it by now – the largest economy in the world is the EU economy. Things in Europe continue to get even worse. Greece and Spain are already experiencing full-blown economic depressions that continue to deepen, and Italy and France are headed down the exact same path that Greece and Spain have gone. Headlines about violent protests and economic despair dominate European newspapers day after day after day. European leaders hold summit meeting after summit meeting, but all of the “solutions” that get announced never seem to fix anything. In fact, the largest economy on the planet continues to implode right in front of our eyes, and the economic shockwave from this implosion is going to be felt to the four corners of the earth. (Read More...)
A Jobs Report Conspiracy?
Well, isn’t that convenient? The Obama campaign desperately needed the last employment report to be released before the election to show that the unemployment rate had fallen below 8 percent, and somehow it magically happened. Even though non-farm payroll employment only increased by 114,000 last month (not enough to even keep up with population growth), the official unemployment rate fell from 8.1 percent to 7.8 percent. So how did that happen? Well, the unemployment number is not based on the survey of employers that showed that 114,000 jobs were added to the economy last month. Rather it is based on a survey of households. And that survey showed that the total number of Americans employed last month increased by a whopping 873,000 – almost eight times the number that the employer survey showed. That figure for September (873,000) was the biggest one month increase in 29 years. And it just happened to come at the exact perfect time for Barack Obama. So was there a jobs report conspiracy? Examine the evidence and decide for yourself. (Read More...)
16 Critical Economic Issues That Obama And Romney Avoided During The Debate
Did you watch the presidential debate on Wednesday night? It is absolutely amazing how they can have an hour and a half debate about the economy and say so little. It seemed like both candidates were falling all over each other wanting to talk about how much they value education, but will more education really solve our problems? After all, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed in 2011. So perhaps they should just both agree that education is a good thing and start talking about how to create more jobs for all of us. If you want to grade the debate from a technical standpoint, clearly Romney was the winner of the debate. Romney was full of energy and was generally sharp with his answers. Obama looked like he had just popped a couple of antidepressants and was ready for nap time. As a result, this might have been the worst blowout in the history of presidential debates. A CNN/ORC International poll that was taken right after the debate found that 67 percent of all Americans that had watched the debate thought that Romney was the winner. Never before had any presidential candidate crossed the 60 percent mark in the history of their post-debate polling. So Romney definitely had a big night. But the reality is that both candidates were telling the American people what they want to hear. If either Obama or Romney told the truth about what we are facing they would lose votes, and in a race this tight both of them really want to avoid doing that. Obama and Romney both desperately want to win this election, and the words that are coming out of their mouths have been carefully crafted to appeal to the “undecided voters” in the swing states. If you actually believe that they can deliver on everything that they are promising, then you must not have been paying much attention to U.S. politics over the past several decades. (Read More...)