One of the reasons why the United States became such a great nation is because originally we were united by a core set of values and principles.  In the beginning, everything was about faith, family and freedom.  Our notions of right and wrong were defined by the Christian faith, the family was the most important institution in our society, and early Americans were desperate for freedom after experiencing deep oppression over in Europe.

But now we have completely abandoned all of that.  The Christian faith has been relentlessly pushed to the fringes of public life, the traditional family unit is mocked while rampant sexual immorality is celebrated all over America, and with each passing day our freedoms are being eroded even more.

At this point, our Constitution has essentially been relegated to being “just a piece of paper” that sits in the National Archives.  It has been trampled on over and over again in recent years, and the courts do not seem to care.

In fact, much of the time it is the courts that are doing the trampling.

We have now gotten to a point where our nation is almost ungovernable.  When Barack Obama first entered the White House, millions upon millions of Americans did not consider him to be a legitimate president.  Then when Donald Trump won the election in 2016, even more Americans did not recognize the legitimacy of his presidency.  Of course that trend is only going to intensify now that Biden is being installed as president.  According to one brand new survey, a whopping 82 percent of all Trump supporters do not believe that Biden is the “legitimate winner of the 2020 election”…

A strong majority of Donald Trump supporters reject the legitimacy of Joe Biden as President-elect, with many citing election irregularities and the most pervasive censorship campaign in American history in support of Biden on the part of Big Tech companies.

A poll released Sunday by CBS News reveals that 82% of self-identifying Trump supporters do not recognize Biden as the “legitimate winner of the 2020 election.”

Of course if the election results were reversed and Donald Trump was given another four years, a similar percentage of Democrats would almost certainly not be willing to recognize the legitimacy of Trump’s victory.

No matter who is in the White House from now on, tens of millions of Americans are not going to accept that individual as being legitimate.

And thanks to the events of the past several weeks, the election fraud that has been going on for decades in this country has now been exposed for everyone to see.  From this point forward, a very high percentage of Americans will not have any faith that our elections are fair.

If people don’t believe in the system, it is just a matter of time before it completely fails.

John Adams once made the following statement…

Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.

Today, the American people are neither moral nor religious.  Instead, we have evolved into an “idiocracy” that is dominated by power-hungry control freaks.

If you go back and read the extremely eloquent things that our founders had to say in their time, you will quickly realize that the way that we speak and write today is completely different.  If they could have traveled to our time and interacted with us, we would have seemed like cavemen to them.  Most of us can barely hold conversations with others, and when we do it is mostly just a bunch of unintelligible gibberish.

But even though we have been dramatically “dumbed down” over the decades, if we could at least try to get along with one another we could still have a functional society.

Sadly, I have never seen more hatred in our country than I am seeing now, and it just keeps on growing.

You would think that Democrats would have an interest in at least trying to pull the country together, but instead they just keep rubbing their “victory” in the faces of their enemies.  For example, just consider something that Debra Messing just said…

The “Will & Grace” star — one of Hollywood’s most vocal Trump critics — expressed a desire for the president to “live a long life in prison” in a tweet to her more than 677,000 followers last week.

She called Trump “a weak, scared, stupid, inept, negligent, vindictive, narcissistic, criminal” before writing she hoped he became “the most popular boyfriend to the all inmates.”

Can you feel the love in those words?

Yes, let the healing begin.

More blood was spilled on the streets of D.C. over the weekend, and the left and the right will continue to go after one another in the weeks and months ahead.  We have now entered a period of semi-permanent civil unrest in this country, and what we have experienced so far is just the beginning.

If we would return to the values and principles that our nation was founded upon, our future could be very different.

But that is not what the American people seem to want.

So we will continue to steamroll toward oblivion, and there is no future for our nation if we stay on the road that we are currently on.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook, Twitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post A Nation Divided Shall Surely Fall appeared first on The Economic Collapse.

When you look at the numbers, they truly are startling.  For example, a recent survey that was conducted by Cigna found that almost half of all Americans feel lonely…

Nearly half of Americans are lonely, according to a survey of 20,000 people across America by Cigna, which used the well-regarded UCLA Loneliness Scale to measure responses. Indeed 46% said they sometimes or always feel alone and 47% say they sometimes or always feel left out.

And other surveys have produced numbers that are even more alarming.  A Harris Poll that was conducted a few years ago actually discovered that 72 percent of all Americans “experience loneliness”…

The survey of more than 2,000 Americans conducted by the Harris Poll last month on behalf of the American Osteopathic Association, showed that almost three-quarters (72 percent) of Americans experience loneliness. And for many, it’s not just a once-in-a-while occurrence — one-third said they feel lonely at least once a week.

Of course this is commonly known as “the happiest time of the year”, but for many it just magnifies their loneliness.

People see love, warmth and community modeled in television commercials and in Hallmark movies, and they assume that most people out there must be living lives like that.

Sadly, that is not true at all.  What we see on our televisions are echoes of the way that America used to be, and many of us would love to see that type of culture make a roaring comeback.

But for now, America is a very, very lonely place, and this reality is reflected in a song that was just released by one of our most popular pop singers…

Mabel, the singer behind the hit “Don’t Call Me Up,” has a new track for those who struggle with loneliness during the holidays.

Titled “Loneliest Time of Year,” Mabel captured how for some people, the holidays can heighten feelings like loneliness, loss and depression. In the song, released Friday, she sings lines like, “Sorry I’m not so merry/But I feel like this yearly/Christmas time isn’t my vibe/Brings no joy into my life” and “If I’m feeling lonely/I can’t be the only one.”

Yes, millions of American families will gather during the holidays, but way too many of those gatherings are filled with bitterness, resentment, strife and discord.

In fact, another new survey has found that the average American only needs 3 hours and 54 minutes “before they start to feel sick of their families”…

The holidays are supposed to be a time to come together with family and celebrate, but a new survey finds that most Americans can barely get through an evening with their family before needing a break. A total of 2,000 Americans who usually travel to visit family during the holidays took part in the research, and 75% say they will inevitably need to get away from their relatives and indulge in some much needed “me time.”

In fact, it only takes respondents an average of three hours and 54 minutes before they start to feel sick of their families.

This isn’t how it is supposed to be.

We were created to love and to be loved.  And when you remove love from the equation, people become very miserable quite rapidly.

In America today, “deaths of despair” are happening at the highest rate in all of U.S. history.  The following information comes directly from the United States Congress Joint Economic Committee…

Anne Case and Angus Deaton famously chronicled a dramatic rise among middle-aged non-Hispanic whites since 1999 in “deaths of despair”—deaths by suicide, drug and alcohol poisoning, and alcoholic liver disease and cirrhosis.1 The Social Capital Project has extended Case and Deaton’s research to cover the full American population as far back as available data permit: to 1900 in some cases, and to 1959 or 1968 in others. We present here a snapshot of the long-term trends in deaths of despair. We also attach our full dataset for use in future research, including results broken down by age, sex, and race.

Mortality from deaths of despair far surpasses anything seen in America since the dawn of the 20^th century. (The trend for middle-aged whites reveals a more dramatic rise but only goes back continuously to 1959.) The recent increase has primarily been driven by an unprecedented epidemic of drug overdoses, but even excluding those deaths, the combined mortality rate from suicides and alcohol-related deaths is higher than at any point in more than 100 years.

So it would appear that our very unhappy nation is rapidly becoming even unhappier.

And it doesn’t take a genius to figure out what this is happening.

As a society, we decided that marriage wasn’t important.  So now we have one of the lowest marriage rates and one of the highest divorce rates in the entire world.

As a society, we decided that children weren’t important.  So now our birth rate has dropped below replacement level and a third of all U.S. children live in a home without a father.

As a society, we decided that patriotism wasn’t important.  So now the American flag is being banned by some schools as a “divisive symbol” and most of our young people have never even read the entire U.S. Constitution.

As a society, we decided that God wasn’t important.  So now just about every form of evil that you can possibly imagine is exploding in our society, and we are literally on a path that leads to national suicide.

If you feel lonely, miserable or depressed this holiday season, I would definitely encourage you to get my latest book entitled “Living A Life That Really Matters”.  It is filled with very practical advice that will enable you to start turning things around immediately.  But even more importantly, reach out to those that you love during this holiday season.

Life is way too short to live it alone.

Society would have us believe that those that have the most money are the most “successful”.  But that is not true at all.  In reality, those that love the most are really the most “successful”, and so let us endeavor to be people of great love.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.

The post Americans Are Lonely, Miserable And Depressed – The Legacy Of A Society That Has Rejected Family, Faith And Patriotism appeared first on The Economic Collapse.

In 1991, only six percent of Americans identified their religious affiliation as “none,” and that number had not moved much since the early 1970s. By the end of the 1990s, 14% of the public claimed no religious affiliation. The rate of religious change accelerated further during the late 2000s and early 2010s, reaching 20% by 2012. Today, one-quarter (25%) of Americans claim no formal religious identity, making this group the single largest “religious group” in the U.S.

The most dramatic change during this time period has been among our young people.

If you go all the way back to 1986, just 10 percent of Americans in the 18 to 29-year-old age group were “unaffiliated”.  Today, that number has skyrocketed to 39 percent.  Here is more from PRRI…

Today, nearly four in ten (39%) young adults (ages 18-29) are religiously unaffiliated—three times the unaffiliated rate (13%) among seniors (ages 65 and older). While previous generations were also more likely to be religiously unaffiliated in their twenties, young adults today are nearly four times as likely as young adults a generation ago to identify as religiously unaffiliated. In 1986, for example, only 10% of young adults claimed no religious affiliation.

And just because Millennials claim a religious affiliation of some sort does not mean that they actually go to church.

In fact, a study from the Pew Research Center discovered that only 27 percent of Millennials say that they “attend religious services on a weekly basis”…

Millennials – especially the youngest Millennials, who have entered adulthood since the first Landscape Study was conducted – are far less religious than their elders. For example, only 27% of Millennials say they attend religious services on a weekly basis, compared with 51% of adults in the Silent generation. Four-in-ten of the youngest Millennials say they pray every day, compared with six-in-ten Baby Boomers and two-thirds of members of the Silent generation. Only about half of Millennials say they believe in God with absolute certainty, compared with seven-in-ten Americans in the Silent and Baby Boom cohorts. And only about four-in-ten Millennials say religion is very important in their lives, compared with more than half in the older generational cohorts.

Of course not all of those that are “attending religious services” are going to Christian churches.  Some are going to mosques, others are attending synagogue, and yet others are involved in other faiths.

At one time you could count on fast growing groups such as the Southern Baptists and the Mormons to produce positive growth numbers, but those days are long gone…

The Southern Baptists have lost more than a million members over the last decade, according to LifeWay. Giving and attendance are down, and Baptists are seeing more gray and silver heads in the pews.

Meanwhile, the Church of Jesus Christ of Latter-day Saints has seen its once-enviable U.S. growth rate slow to under 1 percent in each of the last two years. Mormonism, which grew by just .75 percent in this country in 2017, is barely keeping pace with the growth of the U.S. population (+.71 percent).

Europe has been described as a “post-Christian society”, and we are well on our way to joining them.

So what is causing this to happen?

Well, there is certainly a lot of debate about this within Christian circles.  From the outside, many experts are pointing to demographic changes.  The following comes from a recent article by Jana Riess…

One of the biggest demographic trends of our time is that millennials are delaying marriage or not getting married at all. And since there’s a strong correlation between being married and being involved in religion, the fact that fewer Americans are getting married is worrisome news to clergy.

In addition to a decline in marriage numbers, experts also point to the fact that Americans are having fewer children these days…

The number of children a family has is related to the couple’s religious involvement — couples without kids are a bit less likely to be religious. So the fact that fertility is on the decline is, again, worrisome news for organized religion.

But are those factors a cause of the decline of religious faith in America, or are they the result of it?

It could be argued that churches have always heavily promoted marriage and family, and if young Americans are no longer as engaged in church it would make sense that they put less of a priority on those things now.

The good news for churches is that even though atheism is rapidly growing, most Americans (even the unaffiliated ones) still believe in God…

Despite their lack of connection to formal religious institutions, most unaffiliated Americans retain a belief in God or a higher power. A majority of unaffiliated Americans say God is either a person with whom people can have a relationship (22%) or an impersonal force (37%). Only one-third (33%) of religiously unaffiliated Americans say they do not believe in God. Strong majorities of Americans who belong to the major Christian religious traditions hold a personal conception of God. Compared to Christians, Americans who identify with a non-Christian tradition are significantly less likely to hold a personal conception of God (33%) and are more likely to say God is an impersonal force in the universe (49%).

Americans still have a keen interest in spiritual things, but many of them are now attempting to fill that void in alternative ways.  For example, it has been claimed that Wicca (a very popular form of witchcraft) is now the fastest growing faith in America.

Many like to focus on the political changes that are happening in this country, but the truth is that these cataclysmic shifts in our faith numbers are going to have far more to do with determining the future course of this nation.

If we ever hope to restore the Constitutional Republic that our founders once established, we must return to the Christian values and principles that this nation was originally founded upon.

Any other approach is simply not going to work, and time is running out.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The post Mass Exodus From The Church: The Percentage Of Young Adults With No Religious Affiliation Has Nearly QUADRUPLED Since 1986 appeared first on The Economic Collapse.

The new religion of artificial intelligence is called Way of the Future. It represents an unlikely next act for the Silicon Valley robotics wunderkind at the center of a high-stakes legal battle between Uber and Waymo, Alphabet’s autonomous-vehicle company. Papers filed with the Internal Revenue Service in May name Levandowski as the leader (or “Dean”) of the new religion, as well as CEO of the nonprofit corporation formed to run it.

So what will adherents of this new faith actually believe?

To me, it sounds like a weird mix of atheism and radical transhumanism.  The following comes from Way of the Future’s official website…

We believe in science (the universe came into existence 13.7 billion years ago and if you can’t re-create/test something it doesn’t exist). There is no such thing as “supernatural” powers. Extraordinary claims require extraordinary evidence.

We believe in progress (once you have a working version of something, you can improve on it and keep making it better). Change is good, even if a bit scary sometimes. When we see something better, we just change to that. The bigger the change the bigger the justification needed.

We believe the creation of “super intelligence” is inevitable (mainly because after we re-create it, we will be able to tune it, manufacture it and scale it). We don’t think that there are ways to actually stop this from happening (nor should we want to) and that this feeling of we must stop this is rooted in 21st century anthropomorphism (similar to humans thinking the sun rotated around the earth in the “not so distant” past).

But even though Way of the Future does not embrace the “supernatural”, they do believe in a “God”.

In this new religion, the worship of a “Godhead” that will be created using artificial intelligence will be actively encouraged…

The documents state that WOTF’s activities will focus on “the realization, acceptance, and worship of a Godhead based on Artificial Intelligence (AI) developed through computer hardware and software.” That includes funding research to help create the divine AI itself. The religion will seek to build working relationships with AI industry leaders and create a membership through community outreach, initially targeting AI professionals and “laypersons who are interested in the worship of a Godhead based on AI.” The filings also say that the church “plans to conduct workshops and educational programs throughout the San Francisco/Bay Area beginning this year.”

So how “powerful” will this newly created “God” actually be?

Well, Levandowski says that he envisions creating an artificially intelligent being that will literally be “a billion times smarter than the smartest human”…

“What is going to be created will effectively be a god,” he said. “It’s not a god in the sense that it makes lightning or causes hurricanes. But if there is something a billion times smarter than the smartest human, what else are you going to call it?”

He added, “I would love for the machine to see us as its beloved elders that it respects and takes care of. We would want this intelligence to say, ‘Humans should still have rights, even though I’m in charge.’”

But what if this “super-intelligence” gets outside of our control and turns on us?

What then?

I am not sure that Levandowski has an answer for that.

Other transhumanists also believe that artificial intelligence will grow at an exponential rate, but instead of AI ruling over us, they see a coming merger between humanity and this new super intelligence.  In fact, world famous transhumanist Ray Kurzeil believes that this will enable us to “become essentially god-like in our powers”…

Kurzweil and his followers believe that a crucial turning point will be reached around the year 2030, when information technology achieves ‘genuine’ intelligence, at the same time as biotechnology enables a seamless union between us and this super-smart new technological environment. Ultimately the human-machine mind will become free to roam a universe of its own creation, uploading itself at will on to a “suitably powerful computational substrate”. We will become essentially god-like in our powers.

And prominent transhumanist Mark Pesce takes things even further.  He in absolutely convinced that rapidly advancing technology will allow ordinary humans “to become as gods”…

“Men die, planets die, even stars die. We know all this. Because we know it, we seek something more—a transcendence of transience, translation to incorruptible form. An escape if you will, a stop to the wheel. We seek, therefore, to bless ourselves with perfect knowledge and perfect will; To become as gods, take the universe in hand, and transform it in our image—for our own delight. As it is on Earth, so it shall be in the heavens. The inevitable result of incredible improbability, the arrow of evolution is lipping us into the transhuman – an apotheosis to reason, salvation – attained by good works.”

Throughout human history, there has always been a desire to create our own gods or to become our own gods.

But no matter how hard these transhumanists try to run from death, it will eventually find them anyway, and at that point all of their questions about who God really is will be answered once and for all.

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

The post Silicon Valley Exec Has Created A New Religion That Will Worship A ‘Godhead’ Based On Artificial Intelligence appeared first on The Economic Collapse.

If you ask most Americans to quote from the Declaration of Independence, almost everyone will give you something from this sentence…

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

This is one of the most famous sentences in the English language, but do most of us still proudly believe this?

And if you happen to be someone that does not believe in God, then where do your rights come from?

If they come from men, then men can take them away.  But if they come from God, then nobody can take them away.  This is a point that President Trump brought up in a major speech that he just delivered to a group of veterans…

“Since the signing of the Declaration of Independence 241 years ago, America always affirmed that liberty comes from our creator. Our rights are given to us by God, and no earthly force can ever take those rights away. That is why my administration is transferring power out of Washington and returning that power back where it belongs to the people,” Trump said.

“Our religious liberty is enshrined in the very first amendment in the Bill of Rights. The American founders invoked our creator four times in the Declaration of Independence,” said Trump. “Benjamin Franklin reminded his colleagues at the Constitutional Convention to begin by bowing their heads in prayer. Inscribed on our currency are the words: ‘In God We Trust.’”

It is so refreshing to hear a president talk like this, because these days most of our politicians are so careful to be politically-correct.  And I am not just talking about Democrats.  Many politicians that are supposedly “conservative” seem quite uncomfortable when matters of faith come up, and if you can get them to talk about God they usually want to switch topics as quickly as possible.

But in the old days, Republicans and Democrats both acknowledged the importance of faith in our society.  The following comes from an excellent article by Dr. Gary Scott Smith…

Dwight Eisenhower insisted that the Founding Fathers “wrote their religious faith into our founding documents, stamped their trust in God upon our coins and currency, [and] put it squarely at the base of our institutions.” They strove to obey God’s commandments, live in freedom, and create a prosperous country. “The knowledge that God is the source of all power,” Eisenhower maintained, gave birth to and sustained America. Human dignity depended on the God-given rights that were “eloquently stated” in the Declaration of Independence.

Faith in Almighty God, John F. Kennedy contended, “was a dominant power in the lives of our Founding Fathers.” He urged Americans to “dwell upon the deep religious convictions of those who formed our nation.”

Ronald Reagan repeatedly stressed the religious commitments of the Founding Fathers, especially their contention that the United States would flourish only if its people acted morally. The founders, he declared, “believed faith in God was the key to our being a good people and America’s becoming a great nation.” Reagan regularly recounted how the founders, especially Washington, had relied on God in leading the nation. The Declaration of Independence, Reagan claimed, expressed America’s recognition of God’s power and authority. He noted that Benjamin Franklin, John Jay, Thomas Jefferson, and James Madison all accentuated God’s providential guidance and the importance of prayer. The Founding Fathers ensured that Congress began each day with prayer, Reagan proclaimed, because they valued prayer so highly.

Of course in our day and time teens are actually being threatened with arrest for praying in school.

If we truly want to restore our Republic, we can’t throw out the principles and values that the Republic was founded upon.  The First Amendment guarantees that there will never be an official state church and that we will always get to worship God the way that we want, but there is absolutely nothing in there that says we must have a godless government.  On the contrary, our founders were more influenced by the Bible than any other book, and they quoted from it more than any other book.  Dr. Daniel L. Dreisbach is the author of “Reading the Bible with the Founding Fathers“, and I have used this quote from him previously, but I wanted to use it again here because it fits my point perfectly…

The founders, as I document in my new book “Reading the Bible with the Founding Fathers,” lived in a biblically literate society. Their many quotations from and allusions to both familiar and obscure biblical texts confirm that they knew the Bible from cover to cover. Biblical language and themes liberally seasoned their rhetoric. The phrases and intonations of the King James Bible, especially, influenced their written and spoken words. Its ideas shaped their habits of mind.

The Bible left its mark on their political culture. Legislative debates, pamphlets and political sermons of the age are replete with quotations from and allusions to the Bible. Following an extensive survey of American political literature from 1760 to 1805, political scientist Donald S. Lutz reported that the Bible was cited more frequently than any European writer or even any European school of thought, such as Enlightenment liberalism. Approximately one-third of all citations in the literature he surveyed were to the Bible. The book of Deuteronomy alone was the most frequently cited work, followed by Montesquieu’s “The Spirit of the Laws.” In fact, Deuteronomy was referenced nearly twice as often as Locke’s writings, and the Apostle Paul was mentioned about as frequently as Montesquieu.

The biggest reason why our federal government is such a mess today is because it has pushed God completely out of the picture.

So instead of defending life, our nation has murdered nearly 60 million children since Roe v. Wade was decided in 1973.

Instead of defending liberty, the control freaks at the federal level are suffocating us with hundreds of thousands of laws, rules and regulations, and if you throw in the state and local levels, the number of laws, rules and regulations governing us is in the millions.

And instead of promoting the pursuit of happiness, all of us have to work several months each year just to pay the dozens of different taxes and fees that various levels of government impose on all of us.  But we don’t actually have to have such a system.  If we got rid of our debt-based financial system and went to a much smaller federal government, we could abolish the income tax, the IRS and the Federal Reserve.

Government is not the solution to our problems.

As Ronald Reagan once famously said, government is the problem.

If we work together, we can dismantle the monstrous federal bureaucracy that the liberal elite have spent decades constructing, and we can restore the Republic that our founders risked everything to establish.

It won’t be easy, but we can get there, and the first step is getting back to the principles and values that made America great in the first place.

The post Just Like Our Founders 241 Years Ago, We Need To Unashamedly Declare That Our Rights Come To Us From God appeared first on The Economic Collapse.

So exactly how did the big banks in Cyprus get into so much trouble?  Well, they have been doing exactly what hundreds of other large banks all over the U.S. and Europe have been doing.  They have been gambling with our money.  In particular, the big banks in Cyprus made huge bets on Greek sovereign debt which ended up failing.

But what happened in Cyprus is just the tip of the iceberg.  All over the planet major financial institutions are being incredibly reckless with client money.  They are leveraged to the hilt and they have transformed the global financial system into a gigantic casino.

If they win on their bets, they become fabulously wealthy.

If they lose on their bets, they know that the politicians won’t let the banks fail.  They know that they will get bailed out one way or another.

And who pays?

We do.

Either our tax dollars are used to fund a government-sponsored bailout, or as we have just witnessed in Cyprus, money is directly confiscated from our bank accounts.

And then the game begins again.

People need to understand that the precedent that has just been set in Cyprus is a game changer.

The next time that a major bank fails in Greece or Italy or Spain (or in the United States for that matter), the precedent that has been set in Cyprus will be looked to as a “template” for how to handle the situation.

Eurogroup president Jeroen Dijsselbloem has even publicly admitted that what just happened in Cyprus will serve as a model for future bank bailouts.  Just check out what he said a few days ago…

“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’. If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders”

Dijsselbloem insists that this will cause people “to think about the risks” before they put their money somewhere…

“It will force all financial institutions, as well as investors, to think about the risks they are taking on because they will now have to realise that it may also hurt them. The risks might come towards them.”

Well, as depositors in Cyprus just found out, there is a risk that you could lose 40 percent (and that is the best case scenario) of your money if you put it in the bank.

Why would anyone want to take that risk – especially in a nation that is already experiencing very serious financial troubles such as Greece, Italy or Spain?

As if that was not enough, Dijsselbloem later went in front of the Dutch parliament and publicly defended a wealth tax like the one that was just imposed in Cyprus.

Dijsselbloem is being widely criticized, and rightfully so.  But at least he is being more honest that many other politicians.  His predecessor as the head of the Eurogroup, Jean-Claude Juncker, once said that “you have to lie” to the people in order to keep the financial markets calm…

Mr. Dijsselbloem’s style contrasts with that of his predecessor, Jean-Claude Juncker, Luxembourg’s prime minister, who spoke in a low mumble at news conferences and was expert at sidestepping questions. Mr. Juncker once even advocated lying as a way to prevent financial markets from panicking—as they did Monday after Mr. Dijsselbloem’s comments.

“When it becomes serious, you have to lie,” Mr. Juncker said in April 2011. “If you have pre-indicated possible decisions, you are feeding speculation in the financial markets.”

But Dijsselbloem is certainly not the only one among the global elite that is admitting what is coming next.  Just check out what Joerg Kraemer, the chief economist at Commerzbank, recently told Handelsblatt about what he believes should be done in Italy…

“A tax rate of 15 percent on financial assets would probably be enough to push the Italian government debt to below the critical level of 100 percent of gross domestic product”

Yikes!

And as I wrote about the other day, the Finance Minister of New Zealand is proposing that bank account holders in his nation should be required to “take a haircut” if any banks in his nation fail.

They are telling us what they plan to do.

They are telling us that they plan to raid all of our bank accounts when the global financial system fails.

And calling it a “haircut” does not change the fact of what it really is.  The truth is that when they confiscate money from our bank accounts it is outright theft.  Just check out what the Daily Mail had to say about the situation in Cyprus…

People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship.

It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times. 

It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent.

And when you cause paralysis in the banking system, a once thriving economy can freeze up almost overnight.  The following is an excerpt from a report from someone that is actually living over in Cyprus…

As it stands now, nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed. If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise. If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash. TONIGHT there are demonstrations at most street corners and especially at the parliament building (just 2 miles from me).

Many are thinking that the ECB and EU are allowing Cyprus to fail as a test ground for new financial standards.

Just wanted all you guys to know the real story of whats going on here. Prayers are appreciated (although this is very interesting to watch) many of my local friends have lots of money in the banks.

Would similar things happen in the United States if there was a major banking crisis someday?

That is something to think about.

In any event, the problems in the rest of Europe continue to get even worse…

-The stock market in Greece is crashing.  It is down by more than 10 percent over the past two days.

-The stock markets in Italy and Spain are experiencing huge declines as well.  Banking stocks are being hit particularly hard.

-The Bank of Spain says that the Spanish economy will sink even deeper into recession this year.

-The latest numbers from the Spanish government show that Spain’s debt problem is rapidly getting worse…

“The central government’s interest bill surged 15 percent last year to 26 billion euros, while tax receipts slumped 21 percent. The cost of servicing debt represented 30 percent of the taxes collected at the end of December, up from 20 percent a year earlier.”

-The euro took quite a tumble on Thursday and the euro will likely continue to decline steadily in the weeks and months to come.

For a very long time I have been warning that the next major wave of the economic collapse is going to originate in Europe.

Hopefully people are starting to see what I am talking about.

As this point, the major banks in Europe are leveraged about 26 to 1, and that is close to the kind of leverage that Lehman Brothers had when it finally collapsed.  As a whole, European banks are drowning in debt, they are taking risks that are almost incomprehensible and now faith in those banks has been greatly undermined by what has happened in Cyprus.

Anyone that cannot see a crisis coming in Europe simply does not understand the financial world.  A moment of reckoning is rapidly approaching for Europe.  The following is from a recent article by Graham Summers…

At the end of the day, the reason Europe hasn’t been fixed is because CAPITAL SIMPLY ISN’T THERE. Europe and its alleged backstops are out of money. This includes Germany, the ECB and the mega-bailout funds such as the ESM.

Germany has already committed to bailouts that equal 5% of its GDP. The single largest transfer payment ever made by one country to another was the Marshall Plan in which the US transferred an amount equal to 5% of its GDP. Germany WILL NOT exceed this. So don’t count on more money from Germany.

The ECB is chock full of garbage debts which have been pledged as collateral for loans. If anyone of significance defaults in Europe, the ECB is insolvent. Sure it can print more money, but once the BIG collateral call hits, money printing is useless because the amount of money the ECB would have to print would implode the system.

And then of course there are the mega bailout funds such as the ESM. The only problem here is that Spain and Italy make up 30% of the ESM’s supposed “funding.” That’s right, nearly one third of the mega-bailout fund’s capital will come from countries that are bankrupt themselves.

What could go wrong?

Right now, close to half of all money that is on deposit at banks in Europe is uninsured.  As people move that uninsured money out of the banks, the amount of money that will be required to “fix the banks” will go up even higher.

It would be wise to try to avoid the big banks at this point – especially those with very large exposure to derivatives.  Any financial institution that uses customer money to make reckless bets is not to be trusted.

If you can find a small local bank or credit union to do business with you will probably be better off.

And don’t think that this kind of thing can never happen in the United States.

One of the key players that was pushing the idea of a “wealth tax” in Cyprus was the IMF.  And everyone knows that the IMF is heavily dominated by the United States.  In fact, the headquarters of the IMF is located right in the heart of Washington D.C. not too far from the White House.  When I worked in D.C. I would walk by the IMF headquarters quite a bit.

So if the United States thought that confiscating money from bank accounts was a great idea in Cyprus, why wouldn’t they implement such a thing here under similar circumstances?

The global elite are telling us what they plan to do, and the game has dramatically changed.

Move your money while you still can.

Unfortunately, it is already too late for the people of Cyprus.

The post The Global Elite Are Very Clearly Telling Us That They Plan To Raid Our Bank Accounts appeared first on The Economic Collapse.

Many of you may not believe that they would ever come after bank accounts, retirement funds or stock portfolios in the United States.

Many of you may be entirely convinced that the Great Cyprus Bank Robbery could never happen in America.

Well, where do you think this whole plan was dreamed up?

It was the IMF that reportedly pushed the hardest for the wealth tax in Cyprus, and the IMF is headquartered right in the heart of Washington D.C.

Almost every nation on the planet has to deal with the IMF.  It is an organization that is dominated by the United States and that is always involved when there is an international debt crisis.

If the IMF thinks that it is a great idea to steal from bank accounts to solve a financial crisis in Cyprus, why wouldn’t they impose a similar solution in other countries in the future?

And if bank accounts are no longer safe, are there any truly safe places to put your money?

You can trust the politicians when they tell you that an unannounced “wealth tax” will never happen where you live if you want, but that is the exact same lie that the politicians in Cyprus were telling their people until the day that it happened.  The following is from an article in the Cyprus Mail…

And after all, President Anastasiades had emphatically declared in his inauguration speech that “absolutely no reference to a haircut on public debt or deposits will be tolerated,” adding that “such an issue isn’t even up for discussion.” Finance Minister Michalis Sarris made similarly reassuring statements, arguing that it would be lunacy for the EU to impose such a measure because it would threaten the euro system.

At this point, politicians in Cyprus have been given two very unappealing options.  Either they vote yes on the wealth tax and destroy all faith in the banking system of Cyprus, or they vote no and they are forced out of the eurozone.  In either case, we will probably see the financial system of Cyprus collapse and their economy plunge deep into depression.

At this point, the vote has been delayed until Tuesday.  Apparently some additional “arm twisting” was required to get the needed votes.

And there have been proposals to change the terms of the wealth tax.  Reportedly, some politicians want to impose a maximum rate of up to 15 percent on bank accounts of over 500,000 euros so that the rate on smaller accounts can be decreased.

It has also been announced that the earliest that banks in Cyprus will reopen will be Thursday.

But what is happening in Cyprus is small potatoes compared to how this will affect the rest of the world.  The entire planet is watching this unfold, and as a recent article by Lucas Jackson described, faith in the global financial system is being greatly shaken…

It would be hard to over-emphasize how significant the Cyprus situation is.  The EU demonstrated under no uncertain circumstances that they will destroy the rule of law to maintain their own power.  It was a recognition of tyranny that many of us have always assumed was the case but yesterday became reality.

The damage done here is not related to the size of the haircut – currently discussed between 3 and 13% – but rather that the legal language which each and every investor on the planet must rely on in order to maintain confidence in the system has been subordinated to the needs of the powerful elite.  To the power elite making the major decisions in DC, London, Berlin, France, Brussels, et. al., laws are like ice cream, easily melted.

Which begs the question, who is next?  Will it be Portugal?  Greece? Spain?  Italy?  France???

Will they impose a “one-time” tax on your bank account?  Your house?  Your stocks and bonds?  Retirement accounts?

The global elite have declared open season on all large piles of money, and now many people all over the world will consider taking money out of the bank to be the rational thing to do.  This will especially be true in countries in southern Europe since they would probably be the next to have wealth confiscated.

This is so abundantly clear that even Paul Krugman of the New York Times understands this…

It’s as if the Europeans are holding up a neon sign, written in Greek and Italian, saying “time to stage a run on your banks!”

Tomorrow and the days immediately following should be very interesting.

The global elite have truly “crossed the Rubicon” by going after private bank accounts.  It is almost as if they purposely chose the most damaging solution possible to the financial crisis in Cyprus.

Many in the financial world are absolutely stunned by all of this.  For example, David Zervos is describing this move as a “nuclear war on savings and wealth“…

All of us should really take a moment to consider what the governments of Europe have done. To be clear, they initiated a surprise assault on the precautionary savings of their own people. Such a move should send shock waves across the entire population of the developed world. This was not a Bernanke style slow moving financial repression against risk free savings that is meant to stir up animal spirits and force risk taking. This is a nuclear war on savings and wealth – something that will likely crush animal spirits. This is a policy move you expect from a dictatorial regime in sub-Saharan Africa, not in an EMU member state. If the European governments can clandestinely expropriate 7 to 10 percent of their hard working citizen’s precautionary savings after the close of business on a Friday night, what else are they capable of doing? Why even hold money in a bank account? Are they trying to start a bank run?

So what motivated the global elite to do this?

According to CNBC, one of the motivations was to go after the Russians that had been using the banking system of Cyprus to launder money…

Indeed, the IMF is reported to have been keen on the levy as a way to stem the flood of Russian money into the island over the last few years which has prompted concerns over money laundering.

Russian money accounts for about 25 percent of all money in the banking system of Cyprus, and obviously the Russians are quite upset by what the IMF and the EU have decided to do.  Even Vladimir Putin is loudly denouncing this move…

Russian President Vladimir Putin called the tax “unfair, unprofessional and dangerous,” according to a statement posted on the Kremlin website. Russian companies and individuals have $31 billion of deposits in Cyprus, according to Moody’s.

And you haven’t heard a lot about this in the western media, but the Russians have actually stepped forward and have offered to help Cyprus out of this jam.  For example, there are reports that Russian investors are interested in buying the two banks that were the primary cause of this bailout…

Officials have also said Russian investors are interested in buying a majority stake in Cyprus Popular Bank and increasing their holdings in Bank of Cyprus – the two biggest banks on the Mediterranean island.

And according to Sky News, Gazprom has offered Cyprus a very large sum of money for the right to explore their offshore gas reserves that have not been developed yet…

The uncertainty comes as Russia’s finance minister said his country would consider restructuring its loans to Cyprus.

Russian energy giant Gazprom has also reportedly offered financial assistance to Cyprus in exchange for access to the island’s gas reserves.

So far the government of Cyprus has rejected the help of the Russians, but could they change their mind at some point?  Apparently the Russians are offering enough money to completely fund the bank bailout…

According Greek Reporter, Gazprom made an offer over the weekend to the Cypriot government to fund the bank restructuring planned under the Cypriot bailout (which is set to cost up to €10bn) in exchange for exclusive exploration rights for Cypriot territorial waters. How reliable this story is remains to be seen, but it does hint at the geopolitical tension which we have been warning about.

Gazprom is known to be very close to the Russian government and despite Russian President Vladimir Putin overtly slamming the deposit tax – calling it “unfair, unprofessional and dangerous” –  it is unlikely that they would let this opportunity pass untouched. Fortunately, the Cypriot government is said to have rejected the deal off the bat, but if displeasure towards the eurozone and the EU grows, the Russian option may become increasingly appealing.

It will be very interesting to see what happens.

Meanwhile, some European officials are already suggesting that other nations in southern Europe should have a “wealth tax” imposed upon them.  The following comes from an article by Paul Joseph Watson…

Joerg Kraemer, chief economist of the German Commerzbank, has called for private savings accounts in Italy to be similarly plundered. “A tax rate of 15 percent on financial assets would probably be enough to push the Italian government debt to below the critical level of 100 percent of gross domestic product,” he told Handelsblatt.

A “tax” of 15 percent on all financial assets?

Could you imagine if you woke up one morning and the government had decided to suddenly steal 15 percent of all the money that you had in bank accounts, retirement funds and stock portfolios?

If I had a bank account in Italy I would be very nervous right about now.

Under normal circumstances these kinds of things don’t happen, but governments will use an “emergency” to justify all kinds of things.  I recently came across an article that included a great quote by Herbert Hoover that put this beautifully…

“Every collectivist revolution rides in on a Trojan horse of ‘emergency’. It was the tactic of Lenin, Hitler, and Mussolini. In the collectivist sweep over a dozen minor countries of Europe, it was the cry of men striving to get on horseback. And ‘emergency’ became the justification of the subsequent steps. This technique of creating emergency is the greatest achievement that demagoguery attains.”

This is what the elite love to do.

They love to create order out of chaos.

And this is just the beginning.  The Great Cyprus Bank Robbery was just a beta test for what is coming next.

As the global financial system crumbles, the global elite are going to target our bank accounts, our retirement funds and our stock portfolios.  You might want to start thinking about how you will protect yourself.

So what are your thoughts on all of this?  Please feel free to post a comment with your thoughts below…

The post The Great Cyprus Bank Robbery Shows That No Bank Account, No Retirement Fund And No Stock Portfolio Is Safe appeared first on The Economic Collapse.

So exactly what is a “prepper”?  Well, the truth is that there is a tremendous amount of diversity among the people that fall under that label.

To me, you don’t have to move to Montana and store 500 cases of MREs in a nuclear fallout shelter to be considered a prepper.  I believe that anyone that can see a very serious crisis coming and that is taking steps to prepare for that crisis would be considered a prepper.  You might be living next to one and never even know it.  Many families have converted spare rooms into food pantries or are taking survival training on the weekends.  Others have renewed their interest in gardening or have started to invest in precious metals.  As far as I am concerned, anything that you can do to become more self-sufficient and more independent of the system is a good thing, because the system is rapidly failing.

Perhaps you are reading this and you are thinking that people who are “preparing for disaster” are being rather foolish.  Well, I encourage you to read the list of questions that I have compiled below and come to your own conclusions.

The following are 50 shocking questions that you should ask to anyone that is not a prepper yet…

#1 Why are sales of physical silver coins breaking all sorts of all-time records?  The U.S. Mint is on pace to sell more silver eagles during the first month of 2013 than it did during the entire year of 2007.

#2 Why has Germany announced that it will be moving gold from New York and Paris to its own vaults back home?  Is this a sign of a breakdown in trust among global central banks?

#3 Why is China systematically hoarding gold?

#4 Why have billionaires such as George Soros and John Paulson been hoarding massive amounts of gold?

#5 Why are billionaires buying up so much ranch land up in Montana?

#6 Why is Russia warning that we are rapidly approaching a global “currency war”?

#7 Why has Barack Obama chosen this moment to launch an all-out attack on the Second Amendment?

#8 Why does Barack Obama want doctors to ask their patients questions about firearms?

#9 Why is there an incredibly severe nationwide ammunition shortage all of a sudden?

#10 Why has a bill been introduced in the U.S. House of Representatives that “would ban Internet or mail order ammunition purchases“?

#11 Why are gun control advocates such as Piers Morgan pushing for us to become more like the UK when the UK actually has a much higher violent crime rate than we do?

#12 Why was a Forbes article that made a connection between the use of psychiatric drugs and the mass shootings that we have seen in recent years almost immediately taken down from the Internet?

#13 Why does the federal government want to start putting “black boxes” in all new motor vehicles?

#14 Why are some U.S. states now using computers to predict “future crimes“?

#15 Why are “black-clad federal SWAT teams” raiding farms and ranches all over the United States?

#16 Why are we all being trained to spy on one another?

#17 Why are highly advanced facial recognition cameras being put up all over the United States?

#18 Why have police departments all over America begun to deploy unmanned surveillance drones in the skies over our cities?

#19 Why are schools all over America beginning to require students to carry IDs with RFID microchips in them wherever they go?

#20 Why are more Americans not outraged that nearly 400 TSA employees have been fired for stealing from travelers since 2003?

#21 Why are Americans not more outraged that TSA goons are manhandling the private areas of our women and our children in the name of “national security”?

#22 Why is an elderly survivor of the Nazi occupation of Austria, Kitty Werthmann, warning that America is heading down the exact same path that she experienced?

#23 If the economy is in good shape, then why are more than one out of every four U.S. workers with a 401(k) raiding those funds in order to pay current expenses?

#24 Why does the Federal Reserve continue to insist that the economy is “improving” when it obviously is not?

#25 Why can so few Americans explain how money is created in the United States?

#26 Why has the U.S. dollar declined in value by well over 95 percent since the Federal Reserve was created?

#27 Why is the U.S. national debt more than 5000 times larger than it was when the Federal Reserve was created?

#28 Why isn’t the mainstream media in the U.S. discussing the fact that the U.S. dollar is in danger of losing its status as the primary reserve currency of the world?

#29 Why don’t more Americans know about the quadrillion dollar derivatives bubble?

#30 Why did the U.S. national debt grow during the first four years of the Obama administration by about as much as it did from the time that George Washington took office to the time that George W. Bush took office?

#31 Why is the middle class in America bringing home a smaller share of the overall income pie than has ever been recorded before?

#32 If the U.S. economy is producing a healthy number of good jobs, then why are we spending nearly a trillion dollars a year on welfare?

#33 If the U.S. economy is not collapsing, then why has the number of Americans on food stamps grown from 17 million in the year 2000 to more than 47 million today?

#34 If America is still an economic powerhouse, then why have we lost more than 56,000 manufacturing facilities since 2001?

#35 Why are we losing half a million jobs to China every single year?

#36 Why were one out of every ten homes sold in the state of California last year purchased by Chinese citizens?

#37 Why has the percentage of men with jobs in the United States fallen so dramatically?  Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

#38 Why are so many Americans poor today?  According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”.  Why is this happening?

#39 Why does the U.S. government have a website that teaches immigrants how to sign up for welfare programs once they arrive in the United States?

#40 Why has the number of gang members living in the United States risen by an astounding 40 percent just since 2009?

#41 Why does approximately one out of every three children in the United States live in a home without a father?  Can such a society prosper in the long run?

#42 Why are our supermarkets being flooded with genetically-modified foods when a whole host of studies have shown that they are potentially dangerous to human health?

#43 If the economy has “improved” during the Obama years, then why are hunger and poverty still absolutely skyrocketing in the United States?

#44 Why are more than a million public school students in the United States homeless?

#45 Why are more than 50 percent of all children in Detroit living in poverty?  Detroit used to be one of the greatest cities in the entire world.  How did such prosperity turn into such desolation?

#46 Why did a violent riot break out at an event where government-subsidized section 8 housing vouchers were being handed out in a suburb of Detroit earlier this month?  Is this the kind of unrest that we can expect to see all over the country when things get really bad?

#47 Why are cities all over the United States making it illegal to feed the homeless?

#48 Why is the UN trying to take control of the Internet?

#49 Why have global food supplies sunk to their lowest level in nearly 40 years?

#50 Why is global power concentrated in so few hands?  According to the Swiss Federal Institute, a network of 147 mega-corporations control 40 percent of all the wealth in the world, and in a previous article I described how just six obscenely powerful corporations completely dominate the media industry in the United States.  Is it good for such incredible power to be concentrated in the hands of so few people?

Please share this article with as many people as you can.  It only takes a few moments to share an article, but the person on the other end that reads it might have their life changed forever.

Do you have any questions that you think should be added to this list?  Please feel free to share your thoughts by leaving a comment below…

The post 50 Shocking Questions That You Should Ask To Anyone That Is Not A Prepper Yet appeared first on The Economic Collapse.

The following are four reasons to be even less optimistic about the global financial system than you were last month….

#1 PFGBest Is MF Global All Over Again

Do you remember that whole MF Global thing?

Do you remember how hundreds of millions of dollars of customer funds were “missing” due to “accounting irregularities”?

Well, it is happening again.

PFGBest is a brokerage firm in Cedar Falls, Iowa that mostly handles agricultural futures.

All hell broke loose when the National Futures Association discovered that a bank account that was supposed to be holding 225 million dollars of customer funds was only holding about 5 million dollars instead.

So where is the other 220 million dollars?

That is a very good question.

Of course it is not a promising sign that the head of PFGBest tried to commit suicide when this news came out.

A lot of PFGBest clients are going to be absolutely devastated by this scandal.  The following is from a recent Reuters article….

Farmers on Tuesday fumed at the prospect of financial losses, or at a minimum a lengthy wait for the return of frozen funds, due to alleged mismanagement at brokerage PFGBest, and some said they had been burned for the last time.

The U.S. futures industry reeled as regulators accused Iowa-based PFGBest of misappropriating more than $200 million in customer funds for more than two years, a new blow to trader trust just months after MF Global’s collapse.

Centered in the heart of farm belt, the firm handled agricultural futures accounts for a number of clients who grow corn, soybeans and cotton.

But it is not just PFGBest clients that are going to feel the pain of this scandal.

The truth is that this is going to deeply shake confidence in the entire global financial system.

Many dismissed what happened at MF Global as an “isolated incident”.

But now it is happening again.

Fool me once, shame on you.

Fool me twice, shame on me.

#2 A Third California City Goes Bankrupt In Less Than A Month

First it was Stockton.

Then it was Mammoth Lakes.

Now it is San Bernardino’s turn.

On Tuesday, the city council of San Bernardino, California voted to file for bankruptcy.

An article in the Los Angeles Times detailed the issues at the heart of San Bernardino’s financial problems….

The city’s fiscal crisis has been years in the making, compounded by the nation’s crushing recession and exacerbated by escalating pension costs, lucrative labor agreements, Sacramento’s raid on redevelopment funds and a city reserve that is tapped out, officials said.

While it would be easy to dump on the state of California (and that is something I have done quite often), the truth is that we are seeing municipal debt problems erupting all over the United States.

For example, the city of Scranton, Pennsylvania has such severe financial problems that the mayor of Scranton has ordered that all city employees be paid minimum wage until a solution to the crisis is found.

If this was television, Dwight Schrute would find a way to save the day for Scranton.

Unfortunately, this is real life and Dwight Schrute does not exist in real life.

#3 The Liborgate Scandal Keeps Getting Worse

We have been taught that we should all have faith in the integrity of the global financial system.

What a bunch of baloney that turned out to be.

It turns out that banksters have been colluding to fix global interest rates for years.

“Liborgate” is being called the biggest financial scandal in history.  Libor is important because it is one of the key benchmarks used to set prices for hundreds of trillions of dollars of loans, securities and derivatives.

British banking giant Barclays has already admitted that they were involved in manipulating Libor.

Barclays has already agreed to pay $453 million in fines to British and U.S. authorities.

But the truth is that it would have been totally impossible for Barclays to have manipulated Libor by themselves.

So who else was involved?

That was a question that was discussed in a recent article in The Economist….

Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks. Corporations and lawyers, too, are examining whether they can sue Barclays or other banks for harm they have suffered. That could cost the banking industry tens of billions of dollars. “This is the banking industry’s tobacco moment,” says the chief executive of a multinational bank, referring to the lawsuits and settlements that cost America’s tobacco industry more than $200 billion in 1998. “It’s that big,” he says.

As many as 20 big banks have been named in various investigations or lawsuits alleging that LIBOR was rigged. The scandal also corrodes further what little remains of public trust in banks and those who run them.

So what does all of this mean?

The Wall Street Journal says that the credibility of the entire global financial system is at stake….

At stake is both the integrity of the world’s financial system and the credibility of the U.K. authorities to police it. Long before the current scandal, many European policy makers had concluded that London during the boom was the Wild West, whose loose standards are a threat to European financial stability. The Libor scandal suggests U.S. regulators have reached similar conclusions. The Commodities Futures Trading Commission, the U.S. regulatory body that first started investigating rate-fixing, left little doubt how seriously it regards the abuses it uncovered.

Once faith is shattered, it is incredibly difficult to rebuild.

And right now it is really hard to come up with a decent argument why anyone should trust their money to such a corrupt system.

#4 Spain Is Turning Into Greece

A central government drowning in debt?

Check.

A banking system on the verge of collapse?

Check.

Politicians pushing a forced austerity program that includes much higher taxes, much lower government spending and greatly reduced pay for government workers?

Check.

Wild rioting in the streets by protesters?

Check.

Let’s see….where have we seen this before?

Can anyone still possibly deny that Spain is going down the exact same road that Greece has gone?

Spanish Prime Minister Mariano Rajoy is proposing a huge slate of tough austerity measures including a 3 point increase in the Value Added Tax on goods and services.  If that 3 point hike is implemented, the Value Added Tax will rise to 21 percent.

Could you imagine going to the store and paying a 21 percent sales tax?

Ouch.

Rajoy is promising that these measures will get Spain back on the right track.

Of course we have already seen how well such austerity measures have worked in Greece.

The unemployment rate in Spain is already up to 24.4 percent, and now these austerity measures will slow the economy down even more.

No wonder there is rioting in the streets.  You can see high quality footage of the rioting that has been going on in Spain this week right here.  At one point police were seen firing rubber bullets at the protesters.

But of course the citizens of Spain could not live way above their means forever.  At some point every debt bubble ends, and when that happens the results are often incredibly painful.

This is a lesson that the United States has not learned either.  When we stop racking up more than a trillion dollars of additional government debt every year our “adjustment” will be exceedingly painful as well.

A little over a week ago, I wrote an article entitled “17 Reasons To Be EXTREMELY Concerned About The Second Half Of 2012“. I never imagined that things would get so much worse in just a week.

Everything seems to be accelerating these days.

That includes the decay that is happening in society.  A few days ago I made a list of 25 signs that society is falling apart, but then another story came along after I had finished my article that topped all of the examples in my list.  The following is how one man in West Virginia has been treating his wife….

During the conversation, according to the criminal complaint, Lizon’s wife told the woman that her husband had kept her chained up with metal padlocks and chains for about 10 years. The woman noticed scar tissue on the victim’s hands and ankles. Lizon’s wife told the woman that the scars were from the chains tearing into her skin.

Lizon’s wife told the woman that she and her husband were originally from Czechoslovakia, and that they live in Leroy, W.Va.

According to the complaint, the woman told investigators that the feet of Lizon’s wife were “mutilated and swollen,” one of which was missing a considerable amount of skin. Lizon’s wife told the woman that her husband smashed her foot with a bucket or scoop attachment of a farm tractor.

Lizon’s wife also told the woman Lizon called her his “slave,” and that whenever her husband entered the room she had to kneel down before him, according to the complaint.

Can you imagine anyone doing that?

Can you imagine any husband chaining his wife up for 10 years?

That is so sick that it is beyond words to describe it.

Unfortunately, that is not just one isolated incident of depravity in a world filled with goodness.

The truth is that the entire world system is saturated with depravity and corruption.

If anyone is willing to stand up for “the integrity of the global financial system”, I challenge you to leave a comment below explaining to the rest of us why we should still have blind faith in the system after everything that has happened.

I don’t imagine that too many people will even attempt to take me up on that challenge.

The post Four Reasons To Be Even Less Optimistic About The Global Financial System Than You Were Last Month appeared first on The Economic Collapse.

The following are 5 new lies that the Federal Reserve is telling the American people.  After each lie I have posted what The Economic Collapse Blog thinks is actually going to happen….

#1 The Federal Reserve says that the labor market has improved and that unemployment is going to decline significantly over the next few years.

The following is a quote from the FOMC press release that was released on Wednesday….

Labor market conditions have improved in recent months; the unemployment rate has declined but remains elevated.

The Federal Reserve is projecting that the unemployment rate will fall within the range of 7.8 percent and 8.0 percent by the end of 2012.

The Federal Reserve is also projecting that the unemployment rate will fall within the range of 6.7 percent and 7.4 percent by the end of 2014.

The Economic Collapse Blog says that the labor market has not improved.  In March 2010, 58.5 percent of all working age Americans had a job.  Exactly two years later in March 2012, 58.5 percent of all working age Americans had a job.  If the labor market was improving, the percentage of working age Americans with a job should have gone up.

The Economic Collapse Blog also says that while there is a chance the official unemployment rate may go down slightly in the short-term, the truth is that it is going to go up into double digits once the next wave of the financial crisis hits us.

#2 The Federal Reserve says that that U.S. economy is going to experience solid GDP growth over the next couple of years.

In fact, the Federal Reserve is projecting that U.S. GDP will be rising at an annual rate that falls between 3.1 percent and 3.6 percent by the end of 2014.

The Economic Collapse Blog says that a great economic cataclysm is coming….

“When the European banking system crashes (and it will) it is going to reverberate around the globe.  The epicenter of the next great financial crisis is going to be in Europe, and it is getting closer with each passing day.”

#3 The Federal Reserve says that we can expect low inflation for an extended period of time.

The Federal Reserve is officially projecting that the annual rate of inflation will not be higher than 2.0 percent by the end of 2012.  Federal Reserve Chairman Ben Bernanke reinforced this projection during his press conference on Wednesday….

“But we expect that to pass through the system, and assuming no new shocks in the oil sector, inflation ought to moderate to about 2 percent later this year.”

The Economic Collapse Blog says that the Fed is being tremendously dishonest and that if inflation was measured the exact same way that it was measured back in 1980, the annual rate of inflation would be more than 10 percent right now.

The truth is that most middle class families know that we do not have low inflation right now.  This is hammered home millions of times a day when average Americans visit the gas station or the grocery store.

At the beginning of the next recession inflation will likely subside, but that will only be because economic activity will be slowing down dramatically.

#4 The Federal Reserve says that it has built up a 30 year reputation for keeping inflation low.

Ben Bernanke actually had the gall to make the following claim during his press conference on Wednesday….

“We, the Federal Reserve, have spent 30 years building up credibility for low and stable inflation, which has proved extremely valuable in that we’ve been able to take strong accommodative actions in the last four, five years to support the economy.”

Oh really?

The Economic Collapse Blog says that the Federal Reserve has nearly a 100 year reputation for destroying the value of the U.S. dollar.  Even using the Fed’s doctored numbers, the value of the U.S. dollar has declined by more than 95 percent since 1913.

To get a really good idea of just how much the dollar has been destroyed by the Fed over the years, just check out this chart.

#5 Federal Reserve Chairman Ben Bernanke says that we should trust him because the Federal Reserve stands ready to do whatever is necessary to support the U.S. economy.

“If appropriate… we remain entirely prepared to take additional action”

The Economic Collapse Blog says that Federal Reserve Chairman Ben Bernanke is doing a great disservice by not warning the American people about the tremendous crisis that is coming.  In a recent article I stated that this next crisis will blindside most Americans just like the last one did….

“Sadly, just like back in 2008, most people will never even see this next crisis coming.”

So who should you trust – the Federal Reserve or all of the half-crazed bloggers out there that are warning about the “serious doom” that is coming.

Well, come back to this article in a year or two and compare how accurate the predictions were.

In the end, time will tell who is telling lies and who is not.

If we do not learn from history, we are doomed to repeat it.

For example, let’s take a quick look at Ben Bernanke’s track record over the past several years.

The following are statements that Bernanke actually made to the public….

#1 (July, 2005) “We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though.”

#2 (October 20, 2005) “House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.”

#3 (November 15, 2005) “With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.”

#4 (February 15, 2006) “Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise.”

#5 (February 15, 2007) “Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances appear generally solid, and delinquency rates on most types of consumer loans and residential mortgages remain low.”

#6 (March 28, 2007) “At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”

#7 (May 17, 2007) “All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.  The vast majority of mortgages, including even subprime mortgages, continue to perform well.  Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable.”

#8 (January 10, 2008) “The Federal Reserve is not currently forecasting a recession.”

#9 (June 10, 2008) “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

But don’t worry, Ben Bernanke insists that he knows exactly what is going on this time.

So do you believe him?

A lot of Americans don’t.  In fact, an “economic collapse” is the number one catastrophic event that Americans worry about according to one recent survey.

Perhaps that is one reason why so many Americans are preparing for doomsday these days.

The central planners over at the Federal Reserve are not going to solve our economic problems.

The truth is that the Fed is at the very heart of our economic problems.

We have been living in the greatest debt bubble in the history of the world and that debt bubble has been facilitated by the Fed.

Over the past three decades, the total amount of debt in America has increased by about 50 trillion dollars.  By stealing from future generations, we have been able to live like kings and queens, but there is going to be a great price to pay for our foolishness.

Ben Bernanke and the other folks running the Federal Reserve are just going to keep insisting that everything is going to be okay for as long as they possibly can.  They are going to tell you that they know exactly how to fix things and that the economy will be back on track very soon.

Don’t be stupid and believe them this time.

The post 5 New Lies That The Federal Reserve Is Telling The American People appeared first on The Economic Collapse.