Another month, another bad jobs report. For the month of May, the U.S. economy only added 69,000 jobs and the unemployment rate rose to 8.2%. Many are calling this a total “disaster” and are worried that the U.S. economy could be headed back into another recession. Economists had been expecting 150,000 payroll jobs would be added, so the 69,000 number really shocked a lot of people. The truth is that the economy needs to add approximately 125,000 new jobs every single month just to keep the unemployment rate steady. So yes, this bad jobs report is not welcome news at all – especially for the Obama administration. When Barack Obama first took office the unemployment rate was sitting at 7.6 percent and now it is sitting at 8.2 percent. Some “recovery”, eh? But the reality is that this jobs report was really not that “devastating” even though the stock market had its worst day of the year. Unemployment in America is still about at the same level as it was back at the beginning of 2012. The tough stretch that we are going through right now is only a very small taste of the economic nightmare that is on the horizon. If you think that things are a “disaster” right now, just wait until you see what is coming. (Read More...)
18 Examples Of The Nanny State Gone Wild
America has been overrun by control freaks. Once upon a time the United States was considered to be “the land of the free and the home of the brave”, but today there are millions of laws, rules and regulations that tightly regulate our daily lives. Most of these laws, rules and regulations were established by people who believed that they had “good intentions”, but at this point the nanny state has become so oppressive that it is strangling the life out of us. If you look back throughout history, the societies that have really thrived have had a very high degree of liberty and freedom. When the bureaucrats get the upper hand, it can suck the life out of any economy. Unfortunately, our political system seems to be a magnet for control freaks. These control freaks truly believe that they know better than the rest of us and they are systematically moving toward taking total control of our lives. Our rights are being stripped away a little bit more with each passing day, and we are being told that we need a “permit” or a “license” for almost everything. Many younger Americans have been living this kind of “straight jacket existence” for so long that they don’t even remember what real liberty and freedom are. We are steamrolling down the road toward totalitarianism, and most Americans don’t even realize what is happening. (Read More...)
How The Super Rich Avoid Taxes Even As They Demand That The Rest Of Us Pay More
The way that we tax people in the United States is fundamentally broken and should be completely discarded. The U.S. tax code is absolutely riddled with loopholes that allow the super rich to legally avoid taxes while many of the rest of us are being taxed into oblivion. In our system of taxation, middle class families that work hard and try to play by the rules are deeply penalized while those that are willing to abuse the system make out like bandits. There is something fundamentally wrong with a system that enables wealthy politicians such as Barack Obama and Mitt Romney to pay a smaller percentage of their incomes in taxes than millions of middle class families. Mitt Romney has millions of dollars parked down in the Cayman Islands and in other tax havens. He does this to avoid taxes. Unfortunately, most Americans do not have the resources to funnel money through offshore tax havens. Most Americans just automatically have their paychecks shredded by taxes and then try to live on whatever is left over. Most Americans are just trying to survive financially from one month to the next. But the super rich have options. Thanks to technology, they can live almost anywhere they want and they can run their companies and manage their investments from anywhere in the world. The truth is that the wealthier you are the easier it is to avoid taxes. But even as the ultra-wealthy do their best to avoid taxes, many of them still feel free to demand that the rest of us be taxed more. (Read More...)
When The Derivatives Market Crashes (And It Will) U.S. Taxpayers Will Be On The Hook
Warren Buffett once said that derivatives are “financial weapons of mass destruction”, and that statement is more true today than it ever has been before. Recently, JP Morgan made national headlines when it announced that it was going to take a 2 billion dollar loss from derivatives trades gone bad. Well, it turns out that JP Morgan did not tell us the whole truth. As you will see later in this article, most analysts are estimating that the losses will eventually be far larger than 2 billion dollars. But no matter how bad things get for JP Morgan, it will not be allowed to fail. JP Morgan is the largest bank in the United States, so it is essentially the “granddaddy” of the too big to fail banks. If JP Morgan gets to the point where it is about to collapse, the U.S. government and the Federal Reserve will rush in to save it. Because of this “security blanket”, banks such as JP Morgan feel free to take outrageous risks. Today, JP Morgan has more exposure to derivatives than anyone else in the world. If they win, they win big. If they lose, U.S. taxpayers will be on the hook. Not only that, but thanks to Dodd-Frank, U.S. taxpayers are on the hook for bailing out the major derivatives clearinghouses if there is ever a major derivatives crisis. So when the derivatives market crashes (and it will) you and I will be left holding a gigantic bill. (Read More...)
25 Signs That The Smart Money Has Completely Written Off Southern Europe
When it comes to the financial world, it is important to listen to what the “smart money” is saying, but it is much more important to watch what the “smart money” is actually doing. The ultra-wealthy and those that run the biggest financial institutions on the planet are far more “connected” to what is really going on in financial circles behind the scenes than you and I could ever hope to be. But if we watch their behavior we can get clues as to what they think is about to happen. As is the case with so many other things, if you want to figure out what is really going on in Europe, just follow the money. And right now, money is rapidly flowing out of southern Europe and into northern Europe. In fact, some large corporations are now pulling the money that they make in Greece during the day out of the country every single night. It is becoming increasingly clear that the upper crust of the financial world considers a Greek exit from the euro to be “inevitable” and that it also considers much of the rest of southern Europe to be a lost cause. Unfortunately, a financial collapse across southern Europe is also likely to trigger another devastating global recession. (Read More...)
Turn Out The Lights – The Largest U.S. Cities Are Becoming Cesspools Of Filth, Decay And Wretchedness
Once upon a time, the largest U.S. cities were the envy of the entire world. Sadly, that is no longer the case. Sure, there are areas of New York City, Boston, Washington and Los Angeles that are still absolutely beautiful but for the most part our major cities are rapidly rotting and decaying. Cities such as Detroit, Cleveland, Baltimore, Memphis, New Orleans, St. Louis and Oakland were all once places where middle class American workers thrived and raised their families. Today, all of those cities are rapidly being transformed into cesspools of filth, decay and wretchedness. Millions of good jobs have left our major cities in recent decades and poverty has absolutely exploded. Basically, you can turn out the lights because the party is over. In fact, some major U.S. cities are literally turning out the lights. In Detroit, about 40 percent of the streetlights are already broken and the city cannot afford to repair them. So Mayor Bing has come up with a plan to cut the number of operating streetlights almost in half and leave vast sections of the city totally in the dark at night. I wonder what that will do to the crime rate in the city. But don’t look down on Detroit too much, because what is happening in Detroit will be happening where you live soon enough. (Read More...)
Eurobonds: The Issue That Could Shatter Europe
Would you pool your debt with a bunch of debt addicts that have no intention of reducing their wild spending habits? Of course you wouldn’t. But that is exactly what Germany is being asked to do. Increasingly, “eurobonds” are being touted as the best long-term solution to the financial crisis in Europe. These eurobonds would represent jointly issued debt by all 17 members of the eurozone. This debt would also be guaranteed by all 17 members of the eurozone. This would allow all countries in the eurozone to enjoy the same credit rating that Germany does, and borrowing costs for nations such as Greece, Portugal, Italy and Spain would plummet. But borrowing costs for Germany would rise substantially. In fact, it is being estimated that Germany could be facing an extra 50 billion euros a year in interest expenses. So over ten years that would come to about 500 billion euros. Needless to say, Germany is not thrilled about this idea. But new French President Francois Hollande is pushing eurobonds very hard, and he has the support of the OECD, the IMF and many top Italian politicians. In the end, this could be the key to the future of the eurozone. If the Germans give in and decide that they are willing to deeply subsidize their profligate neighbors indefinitely, then the euro could potentially be saved. If not, then this issue could end up shattering Europe. (Read More...)
Obama’s Five Trillion Dollar Lie
Why isn’t the U.S. economy in a depression right now? The number one reason is because the federal government has stolen more than five trillion dollars from future generations since Barack Obama was elected and has used that money to pump up our grossly inflated standard of living. Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up in the pockets of the American people who then use it to buy the things they need for their daily lives. If the U.S. government had not borrowed and spent an extra five trillion dollars that we did not have over the past several years, we would be in the middle of a rip-roaring economic depression right now. So any talk that Barack Obama is “improving the economy” is a total farce. It is a five trillion dollar lie. The reality is that Barack Obama and the U.S. Congress have been stealing trillions of dollars from future generations in order to make things tolerable in the present. If the federal government adopted a balanced budget next year, the debt-fueled prosperity that we are currently enjoying would start disappearing very rapidly and all hell would break loose in America. (Read More...)