What is the second half of 2012 going to bring? Are things going to get even worse than they are right now? Unfortunately, that appears more likely with each passing day. I will admit that I am extremely concerned about the second half of 2012. Historically, a financial crisis is much more likely to begin in the fall than during any other season of the year. Just think about it. The stock market crash of 1929 happened in the fall. “Black Monday” happened on October 19th, 1987. The financial crisis of 2008 started in the fall. There just seems to be something about the fall that brings out the worst in the financial markets. But of course there is not a stock market crash every year. So are there specific reasons why we should be extremely concerned about what is coming this year? Yes, there are. The ingredients for a “perfect storm” are slowly coming together, and in the months ahead we could very well see the next wave of the economic collapse strike. Sadly, we have never even come close to recovering from the last recession, and this next crisis might end up being even more painful than the last one. (Read More...)
America On Fire: Why Is The Number Of Wildfires In The United States Increasing?
As America watches large sections of Colorado literally burn to the ground, many are wondering why all of this is happening. There have always been wildfires, but what we are experiencing now seems very unusual. So is the number of wildfires in the United States increasing? As you will see later in this article, the answer is yes. 2011 was a record setting year for wildfires and this wildfire season is off to a very frightening start. Right now the eyes of the nation are focused on the Waldo Canyon Fire in Colorado. It doubled in size overnight and it has consumed more than 300 homes so far. It is threatening the city of Colorado Springs, and at this point more than 35,000 people have been forced to evacuate – including the U.S. Air Force Academy. On Twitter and Facebook residents are describing what they are seeing as “the apocalypse” and as “the end of the world”. But this is just the beginning of the wildfire season. We haven’t even gotten to July and August yet. (Read More...)
Where Does Money Come From? The Giant Federal Reserve Scam That Most Americans Do Not Understand
How is money created? If you ask average people on the street this question, most of them have absolutely no idea. This is rather odd, because we all use money constantly. You would think that it would only be natural for all of us to know where it comes from. So where does money come from? A lot of people assume that the federal government creates our money, but that is not the case. If the federal government could just print and spend more money whenever it wanted to, our national debt would be zero. But instead, our national debt is now nearly 16 trillion dollars. So why does our government (or any sovereign government for that matter) have to borrow money from anybody? That is a very good question. The truth is that in theory the U.S. government does not have to borrow a single penny from anyone. But under the Federal Reserve system, the U.S. government has purposely allowed itself to be subjugated to a financial system in which it will be constantly borrowing larger and larger amounts of money. In fact, this is how it works in the vast majority of the countries on the planet at this point. As you will see, this kind of system is not sustainable and the structural problems caused by such a system are at the very heart of our debt problems today. (Read More...)
Too Much Debt: Our Biggest Economic Problem
What is the biggest economic problem that the United States is facing? Very simply, our biggest problem is that we have way too much debt. Over the past 30 years, household debt, corporate debt and government debt have all grown much faster than our GDP has. But no nation on earth has ever been able to expand debt much faster than national output indefinitely. All debt bubbles eventually burst. Right now, we are living in the greatest debt bubble in the history of the world. All of this debt has fueled a “false prosperity” which has enabled many Americans to live like kings and queens. But no nation (or household) can pile on more debt forever. At some point the weight of the debt becomes just too great. It is amazing that the United States has been able to pile up as much debt as it has. Over the years, many authors have predicted that U.S. government finances would collapse long before the U.S. national debt ever got to this level. So the mountain of debt that we have accumulated is quite an “achievement” if you want to look at it that way. But the clock is ticking on this debt bubble and when it collapses we will say “bye bye” to our vastly inflated standard of living and we will discover that we have destroyed the economy for all future generations of Americans. (Read More...)
Data Mining: Big Corporations Are Gathering Every Shred Of Information About You That They Can And Selling It For Profit
When most people think of “Big Brother”, they think of the FBI, the CIA, the NSA, the Department of Homeland Security and other shadowy government agencies. Yes, they are definitely watching you, but so are many big corporations. In fact, there are some companies that are making tens of millions of dollars by gathering every shred of information about all of us that they can and selling it for profit to anyone willing to pay the price. It is called “data mining”, and these data miners want to keep track of literally everything that you do. Most people know that basically everything that we do on the Internet is tracked, but data mining goes far beyond that. When you use a customer rewards card at the supermarket, the data miners know about it. When you pay for a purchase with a credit card or a debit card, the data miners know about it. Every time you buy a prescription drug, that information is sold to someone. Every time you apply for a loan, a whole host of organizations is notified. Information has become an extremely valuable commodity, and thanks to computers and the Internet it is easier to gather information than ever before. But that also means that our personal information is no longer “private”, and this trend is only going to get worse in the years ahead. (Read More...)
Will Toledo, Ohio Be The First Major American City To Be Owned By China?
It has been said that there are two ways to conquer and enslave a nation. One way is by using the sword, and the other is by using debt. Fortunately, America is not in danger of being conquered by the sword right now, but America is being conquered by debt. The borrower is the servant of the lender, and today we owe China more than a trillion dollars. By running a gigantic trade deficit with us, China has been able to become incredibly wealthy. We have begged them to lend us back some of the money that we have sent them and this has made them even wealthier. Now China is gobbling up U.S. real estate and U.S. assets at an astounding pace. In fact, some cities are in danger of becoming completely dominated by Chinese ownership. One of those cities is Toledo, Ohio. In many “rust belt” areas, real estate can be had for a song, and the Chinese are taking full advantage of this. America was once the wealthiest nation on earth, but now we are drowning in debt and we are being sold off in chunks to the highest bidder. Is this the legacy that we are going to leave for future generations? (Read More...)
The Mancession: 16 Signs That This Economic Decline Is Sucking The Life Out Of The American Male
This economic decline has been really hard on everyone, but it has been particularly hard on American men. During the last recession male employment dropped like a rock and it has not recovered much at all since then. That is why many referred to the last recession as a “mancession”. Industries where men are disproportionately represented such as construction and manufacturing have really been hit hard in recent years. In the old days, you could take a high school education down to the local factory and get a job that would enable you to live a middle class lifestyle and support a growing family on just that one income. Sadly, those days are long gone. Today, American men live in a world where their labor is not really needed. Wages are falling because almost any worker can be easily replaced by the vast pool of unemployed American workers that are currently searching for work, and a lot of big companies are shifting labor-intensive jobs overseas where workers only make a small fraction of what they make in the United States. American workers (especially those without much education) are considered to be expensive liabilities in a world where labor has become a global commodity. So the percentage of working age American men that have jobs is likely to continue to decline and wages are likely to continue to stagnate as well. (Read More...)
Oh Crud! 19 Reasons Why It Is Time To Start Freaking Out About The Global Economy
Yes, it is officially time to start freaking out about the global economy. The European financial system is falling apart and it is going to go down hard. If Europe was going to be saved it would have happened by now. The big money insiders have already pulled their funds from vulnerable positions and they are ready to ride the coming chaos out. Over the next few months the slow motion train wreck currently unfolding in Europe will continue to play out and things will likely really start really heating up in the fall once summer vacations are over. Most Americans greatly underestimate how much Europe can affect the global economy. Europe actually has a larger population than the United States does. Europe also has a significantly larger economy and a much larger banking system. The world is more interconnected today than ever before, and a collapse of the financial system in Europe will cause a massive global recession. Once the global economy slides into another major recession, it is going to take years to recover. The pain is going to be immense. Yes, that is going to include the United States. Sadly, we never recovered from the last recession, and it is frightening to think about how much farther this next recession is going to knock us down. (Read More...)