11 Economic Headlines That Make You Wonder What In The World Is Actually Going On

These days there are times when you read the economic headlines and all you can do is shake your head.  Is anyone in control out there?  Who in the world could possibly be making so many bad decisions?  The truth is that the U.S. economy is in a state of absolute chaos, but whenever anybody in power tries to do something about it they usually seem to make things worse.  It is almost as if the vast majority of people in positions of power have lost the common sense that they were born with.  Meanwhile, average Americans just keep getting angrier and angrier and are looking for someone to blame for this gigantic mess. (Read More...)

How Can Anyone Claim That The Housing Crisis Is Over When The Delinquency Rate On U.S. Mortgages Continues To Explode At An Exponential Rate?

Housing prices have stabilized and are actually slightly increasing in some areas.  The tax breaks passed by Congress have encouraged more first-time home buyers to get into the market.  So is the U.S. housing crisis over?  Will the real estate market be back to normal in no time?  Well, if you listen to many of the talking heads on the news channels, you might be tempted to think that the worst of the housing crisis is behind us and that we are headed towards recovery.  But that is not what is happening.  The truth is that we are just now getting ready for round 2 of the real estate nightmare. (Read More...)

For Americans Wishing To Leave The United States, What Is The Best Country In The World To Move To?

For those seeking to move outside of the United States, figuring out the best country to move to can be a very daunting task.  There are a ton of social, cultural, economic and safety issues to be considered.  In addition, those who have never been outside of North America should not underestimate the severe “culture shock” that can take place when moving to another nation.  While moving outside of the United States may seem like an attractive alternative, the truth is that it is not easy and it is not something to be done lightly.  But there have been many Americans who have done it successfully and are now loving life.  Our recent article, “Is Moving Out Of The United States A Way To Escape The Coming Economic Collapse?”, generated some really great comments about what various areas of the world are like for Americans who move there.  Today we wanted to share with you some of those comments.  These commenters have some very strong opinions about where the best places for Americans to move to are, but the reality is that each person and each situation is different so keep that in mind as you read these….  (Read More...)

The Health Care Reform Bill: Welcome To The Biggest Tax Increase In U.S. History

Will the health care reform bill that the Democrats are trying to figure out a way to ram through Congress end up being the biggest tax increase in U.S. history?  Unfortunately, a close reading of the bill leads to the inescapable conclusion that it will be.  You see, the crafters of this legislation were smart.  They realized that if they included one huge tax increase in the health care bill it would make headlines all over the country, so they chopped up the taxes into a bunch of smaller pieces in order to make them easier to swallow.  In fact, one review of the Senate version of the health care bill identified at least 19 tax increases.  When you put all of the tax increases together they add up to the biggest tax increase in the history of the United States.  Considering the fact that the U.S. economy is already on the verge of economic collapse, the last thing that the American people need is a massive tax increase.  But that is exactly what they are about to get. (Read More...)

Virginia Hands Out 6996 Traffic Tickets In One Weekend In An Effort To Raise Revenue For The State Government

In the old days, police officers wrote traffic tickers primarily to keep people safe and to prevent citizens from breaking the traffic laws.  But in the new Amerika, all of that has changed.  Now traffic tickets are primarily viewed as a revenue raising tool for state and local governments.  For example, a federally funded ticketing blitz in the state of Virginia resulted in a total of 6996 traffic tickets being handed out this past weekend.  This most recent ticketing blitz is part of a campaign code-named “Operation Air, Land & Speed”.  Last Saturday and Sunday state troopers were ordered to absolutely saturate Interstate 95 and Interstate 81 and to issue as many traffic tickets as humanly possible during those two days.  Why?  Well, it turns out that the state of Virginia has a 2.2 billion dollar budget deficit that they are trying to deal with, and so they need to find some quick sources of cash.  (Read More...)

The Mayor Of Detroit’s Radical Plan To Bulldoze One Quarter Of The City

How do you save a city that is dramatically declining like Detroit?  Well, for the mayor of Detroit the answer is simple – you bulldoze one-fourth of the city.  Faced with a 300 million dollar budget deficit and a rapidly dwindling tax base, Detroit finds itself having to make some really hard choices.  During the glory days of the 1950s, Detroit was a booming metropolis of approximately 2 million people, but now young people have left in droves and the current population is less than a million.  The true unemployment rate for those still living in Detroit is estimated to be somewhere around 45 to 50 percent, and poverty and desperation have become entrenched everywhere.  In many areas of the city, only one or two houses remain occupied an an entire city block.  In fact, some areas of Detroit have so many vacant, burned-out homes that they literally look like war zones.  And yes, it is true that there are actually some houses in Detroit that you can actually buy for just one dollar.  According to one recent estimate, Detroit has 33,500 empty houses and 91,000 vacant residential lots.  So what can be done when an entire city experiences economic collapse? (Read More...)

The Move Your Money Campaign – Is Taking Our Money Away From The Big Banks The Answer?

Is taking all of our money out of the big banks part of the solution to America’s financial problems?  The truth is that people across the United States are angrier about financial and economic issues than they ever have been in modern history.  It did not sit well with millions upon millions of hard working Americans to watch their tax dollars being used to fund multi-million dollar bonuses at big financial institutions that were just bailed out by the U.S. government.  It made Americans even angrier when these big banks that got the bailouts actually decreased their lending.  It has been the big banks who got the massive government-funded bailouts who have been hoarding their cash, while the local community banks and credit unions that have been serving their customers loyally for generations have been left to die by the feds.  Now the banking industry in the United States is more centralized than ever.  At the end of 2007, the “Big Four” U.S. banks – Citigroup, JPMorgan Chase, Bank of America and Wells Fargo – held 32 percent of all deposits in FDIC-insured institutions. As of June 30th of last year it was 39 percent. (Read More...)

All Money In The United States Comes Into Existence As Debt – So What Will Happen Now That Bank Lending In The U.S. Is Contracting At The Fastest Rate In History?

Most Americans who closely follow economics understand that all money in the United States comes into existence as debt.  Either the Federal Reserve creates it when the U.S. government borrows money, or private banks create it when they use fractional reserve banking to make loans to customers.  If lending increases, it is going to create new money and increase the money supply.  But if lending declines, it is going to take money out of the system and will decrease the money supply.  So why is this important?  It is important because without sufficient lending, the U.S. economy will seize up and grind to a standstill.  Unfortunately, we have created an economic system that is fueled by credit, and without enough credit businesses can’t expand or hire more workers, individuals can’t buy homes and cars and there will not be any hope that the U.S. economy will function at previous levels. (Read More...)