Michael T. Snyder

Power Mad Obama Offers Two Choices: Unconditional Surrender Or Default

Obama SleepingBarack Obama is warning that if he does not get everything that he wants that he will force the U.S. government into a devastating debt default which will cripple the entire global economy.  In essence, Obama has become so power mad that he is actually willing to take the entire planet hostage in order to achieve his goals.  A lot of people are blaming the government shutdown on the Republicans, but they have already voted to fund the entire government except for Obamacare.  The U.S. Constitution requires that all spending bills originate in the House of Representatives, and the House did their duty by passing a spending bill.  If the Senate or the President do not like the bill that the House has passed, then negotiations need to take place.  That is how our system works.  And the weak-kneed Republicans have already indicated that they are willing to give up virtually all of their prior demands.  In fact, if Obama offered all of them 20 dollar gift certificates to Denny’s to end this crisis they would probably jump at that deal.  But that is not good enough for Obama.  He has made it clear that he will settle for nothing less than the complete and unconditional surrender of the Republican Party.

Why is Obama doing this?  Why is Obama willing to bring the country to the brink of financial disaster?

It isn’t hard to figure out.  Just check out what one senior Obama administration official said last week…

“We are winning…. It doesn’t really matter to us” how long the shutdown lasts “because what matters is the end result,” a senior Obama Administration official told the Wall Street Journal last week.

This is all about a political victory and crushing the Republicans.  Obama doesn’t really care how long this crisis lasts because he believes that he is getting the end result that he wants.

According to Obama, the Republican Party is just supposed to roll over and give him the exact spending bill that he wants and also give him another trillion dollar increase in the debt limit.

If the Republicans do not give him that, he is willing to plunge us into financial oblivion.

The funny thing is that most Americans do not want the debt limit increased.  According to one new poll, 58 percent of all Americans do not even want the debt ceiling to be increased by a single penny.

And recent polls show that Americans are against Obamacare by an average margin of about 10 percent.

But the pathetic Republican Party is actually willing to hand Obama a trillion dollar debt ceiling increase and fully fund Obamacare if Obama will at least give them something.

Unfortunately, Obama won’t even give them the time of day.

So don’t blame the Republicans for what is happening.  The Republicans have already compromised themselves to the point of utter disgrace.  If Obama had been willing to even compromise a couple of inches this entire crisis would already be over.

And nobody should be claiming that the Republicans won’t vote to end this shutdown.  They have already voted to end it.  The following is from a recent article by Thomas Sowell…

There is really nothing complicated about the facts. The Republican-controlled House of Representatives voted all the money required to keep all government activities going — except for ObamaCare.

This is not a matter of opinion. You can check the Congressional Record.

As for the House of Representatives’ right to grant or withhold money, that is not a matter of opinion either. You can check the Constitution of the United States. All spending bills must originate in the House of Representatives, which means that Congressmen there have a right to decide whether or not they want to spend money on a particular government activity.

Whether ObamaCare is good, bad or indifferent is a matter of opinion. But it is a matter of fact that members of the House of Representatives have a right to make spending decisions based on their opinion.

Once again, the Republicans have already indicated that they are willing to fund Obamacare.  They just want Obama to throw them a bone.

And Obama will not do it.

So either the Republicans are going to cave in completely (a very real possibility) or we are going to pass the “debt ceiling deadline”.

What happens then?

Well, we would have more of a “real government shutdown” than the fake shutdown that we are having right now.

Once the federal government cannot borrow any more money, it will only be able to spend what it actually has on hand.  That means that a lot more government functions will have to shut down.

Money will still be coming in to the government, but it won’t be enough to fund everything.  According to the Wall Street Journal, the federal government will still have enough money to pay interest on the debt, make Social Security payments, make Medicare payments, make Medicaid payments, provide food stamp benefits and pay the military if they cut almost everything else out.

The other day, I suggested that the federal government could potentially start defaulting on interest payments on the debt as early as November.  But that would only happen if the federal government manages their money foolishly.

If the federal government managed their money smartly and saved cash for the interest payments as they came due, they would not have to miss any.

But when was the last time the federal government ever did anything “smartly”?

For the sake of argument, however, let’s assume that the federal government can manage money wisely and can save up enough cash ahead of time for large interest payments as they come due.

If that could somehow be managed, then according to Paul Mampilly the government would never need to actually default…

The U.S. Treasury always has money coming into its accounts. So its always got some amount of cash that it can use to pay interest on bonds. That’s especially true right now because the government is partially shutdown and there’s no cash going out from its accounts.

In fact, when you look at it the U.S. Treasury should simply have no trouble making interest payments on bonds that it has issued.

And there’s no restriction on the U.S. Treasury prioritizing interest payments. Why?

The obligation to pay interest is set by the 1917 Second Liberty Bond Act and laws that commanded the Treasury to pay interest on the debt. You can look this up in section 3123 of Title 31 of the U.S. Code and section 4 of the 14th Amendment of the Constitution and in Supreme Court precedent (Perry v. United States). It’s all there in black and white.

So the only possible way the U.S. defaults on its debt is if Barack Obama, President of the United States, instructs his Treasury secretary Jack Lew to default on the debt.

And according to the Washington Post, Moody’s has just issued a memo that also indicates that the federal government should be able to make all interest payments even if the debt limit is not increased…

In a memo being circulated on Capitol Hill Wednesday, Moody’s Investors Service offers “answers to frequently asked questions” about the government shutdown, now in its second week, and the federal debt limit. President Obama has said that, unless Congress acts to raise the $16.7 trillion limit by next Thursday, the nation will be at risk of default.

Not so, Moody’s says in the memo dated Oct. 7.

“We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.”

Of course the federal government would have to stop throwing money around like a drunk gambler at a casino in Las Vegas in order for this to work.

On the very first day of the government shutdown, the feds gave $445 million to the Corporation for Public Broadcasting.  Apparently Elmo is considered to be “essential personnel” by the Obama administration.

And according to CNS News, the U.S. Army has committed more than $47,000 to buy a mechanical bull during this “shutdown”…

The government shutdown may be keeping furloughed federal workers at home, but on Monday the U.S. Army contracted to buy a mechanical bull.

The $47,174 contract was awarded on Oct. 7 to Mechanical Bull Sales Inc. of State College, Penn.

So needless to say, there is some serious doubt about whether the federal government would be able to manage their money effectively in the event that the debt ceiling deadline passes.

And if the U.S. did start defaulting on debt payments, it would be absolutely disastrous for the global economy as I discussed in a previous article…

“A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented.  And that would just be for starters.”

Other nations that we depend upon to lend us money would stop lending to us and would start dumping U.S. debt instead.

Could you imagine what would happen if China started dumping a large portion of the 1.3 trillion dollars in U.S. debt that they are holding?

It would be a total nightmare.  The collapse of Lehman Brothers would pale in comparison.

And already some banks are stuffing their ATM machines with extra cash just in case the general public starts to panic.

But none of this has to happen.

If Obama decides to negotiate with the Republicans, this crisis will likely end very rapidly.

If not, and we pass the “debt ceiling deadline”, the federal government will still have enough money to make interest payments on the debt as long as they manage their money correctly.

Unfortunately, Obama seems far more interested in playing political games than he is in solving our problems.

In fact, Park Service rangers have been ordered to “make life as difficult for people as we can” during this government shutdown.  Obama has apparently decided to punish the American people in order to get leverage on the Republicans.  Just check out the following example from a new Weekly Standard article…

There’s a cute little historic site just outside of the capital in McLean, Virginia, called the Claude Moore Colonial Farm. They do historical reenactments, and once upon a time the National Park Service helped run the place. But in 1980, the NPS cut the farm out of its budget. A group of private citizens set up an endowment to take care of the farm’s expenses. Ever since, the site has operated independently through a combination of private donations and volunteer workers.

The Park Service told Claude Moore Colonial Farm to shut down.

The farm’s administrators appealed this directive​—​they explained that the Park Service doesn’t actually do anything for the historic site. The folks at the NPS were unmoved. And so, last week, the National Park Service found the scratch to send officers to the park to forcibly remove both volunteer workers and visitors.

Think about that for a minute. The Park Service, which is supposed to serve the public by administering parks, is now in the business of forcing parks they don’t administer to close. As Homer Simpson famously asked, did we lose a war?

The hypocrisy that Obama has demonstrated during this “government shutdown” has been astounding.

He has barricaded open air war memorials to keep military veterans from visiting them, but he temporarily reopened the National Mall so that a huge pro-immigration rally that would benefit him politically could be held.

He has continued to fund al-Qaeda rebels in Syria that are trying to overthrow the Syrian government, but he has been withholding death benefits from families of fallen U.S. soldiers.

The conduct of the Obama administration during this shutdown has been so egregious that is hard to put into words.  Obama has chosen to purposely harm the American people in order to score political points.

But this is how our politicians view us these days.  As Monty Pelerin recently explained, most of our politicians have absolutely no problem with exploiting us for their own purposes…

The concept of political service has been replaced by that of masked exploitation. The public is no longer viewed as clients or constituents to be served. Instead they have become political prey. Politicians see the public as a collection of wallets and votes, fair game to be hunted as the means to expand power and wealth. Constituents are now the Soylent Green of the political food chain.

The political class assumes the public exists to serve them, not the other way around. Public participation beyond the lightening of wallets or the provision of votes is unwelcome. It is considered “interference” that must be deterred by the ruling class.

The political class is now a huge, voracious parasite. Like the plant in the Little Shop of Horrors, its needs have grown to the point where it threatens anything productive. Its needs now exceed the willingness for continued sacrifice on the part of the productive. The parasite threatens the very existence of the host.

The political Ponzi scheme of tax, borrow and spend has reached its limit. Either it will die when citizens turn on it or it will kill the productive, ensuring its own destruction.

It perishes in the end. Whether it takes civilization with it is the bigger question.

Is there anyone out there that still does not believe that our system is broken?

Hopefully cooler heads will prevail and power mad Obama will decide to toss the Republicans a few crumbs and this crisis will be resolved.

Because if this crisis is not resolved soon, it could have consequences that are far beyond what any of us could possibly imagine.

Extreme Hypocrisy! Obama Orders Federal Workers To “Make Life As Difficult For People As We Can”

Barack Obama On The Phone In The Oval OfficeWhy would the president of the United States try to purposely hurt the American people?  Well, in 2013 this is done in order to score political points and force the opposition in to doing what you want them to do.  A few days ago, an angry Park Service ranger publicly admitted that he and his fellow rangers have been ordered to “make life as difficult for people as we can” during this government shutdown.  That Park Service ranger would never have received such an order unless it came from the very top.  Apparently the Obama administration plans to cause as much pain as possible until Obama gets everything that he is demanding.  In many cases, it is actually going to cost far more money to put up barricades and use guards to keep Americans from visiting open air memorials, driving on roads, and fishing in bodies of water than it would to put up a “closed” sign and simply go home.  As you will see from the examples posted below, the Obama administration is being extremely spiteful and vindictive.  And the level of hypocrisy that we are now witnessing is hard to fathom.  For instance, the National Mall has been totally closed to the public, but the Obama administration is specifically reopening it for a massive pro-immigration rally that will benefit the Democrats politically.  The abuse of power that is taking place is absolutely staggering, and the American people need to demand that those that are abusing it be held accountable when all of this is over.

The following are just a few examples of how Obama is using this shutdown to make life as difficult for people as possible…

#1 The Obama administration is doing all it can to keep Americans from even getting a glimpse of Mount Rushmore, but Barack Obama’s chefs have been deemed “essential” and are still preparing his meals.

#2 Small businesses cannot get loans, but the exclusive gyms that are only for members of Congress have been deemed “essential” and remain open.

#3 The National Mall has been closed to the public, but it will be opened for a huge pro-immigration rally being held by Obama supporters.

#4 Last chance cancer treatments for children with cancer have been suspended, but the IRS continues to collect taxes from us.

#5 The NIH has stopped therapy dogs from visiting sick children, but Obama and Congress are still getting paid.

#6 The USDA website has been shut down, but Michelle Obama’s Let’s Move website is still operating.

#7 A runner has been fined $100 for jogging through Valley Forge National Historical Park, but the military golf course that Obama uses regularly is still open.

#8 The Obama administration has shut down the Grand Canyon, but the new two billion dollar NSA spy center is still spying on all of us.

#9 The federal government has forced an elderly couple out of their home on Lake Mead during this shutdown, but the operations of the Federal Reserve have not been affected at all.

#10 In South Carolina, the Obama administration is actually using Park Service rangers to keep people away from a privately-owned hotel.

#11 In Tennessee, the feds have totally shut down the Foothills Parkway, a major thoroughfare that runs through Blount County.  At this point the feds are not even letting people visit the graves of their dead relatives.

#12 The Obama administration has actually removed all of the well pumps along a 184 mile trail that goes from Washington D.C. to Pittsburgh just so that anyone that decides to use the trail will not be able to get any water to drink.

#13 The Obama administration is actually attempting to close 1,100 square miles of ocean off of the coast of Florida.  It is going to take a tremendous amount of time, money and energy to keep fishing boats out of that area.

#14 According to one news report, “Gestapo tactics” were used against one tour group made up mostly of senior citizens at Yellowstone National Park…

Pat Vaillancourt went on a trip last week that was intended to showcase some of America’s greatest treasures.

Instead, the Salisbury resident said she and others on her tour bus witnessed an ugly spectacle that made her embarrassed, angry and heartbroken for her country.

Vaillancourt was one of thousands of people who found themselves in a national park as the federal government shutdown went into effect on Oct. 1. For many hours her tour group, which included senior citizen visitors from Japan, Australia, Canada and the United States, were locked in a Yellowstone National Park hotel under armed guard.

The tourists were treated harshly by armed park employees, she said, so much so that some of the foreign tourists with limited English skills thought they were under arrest.

When finally allowed to leave, the bus was not allowed to halt at all along the 2.5-hour trip out of the park, not even to stop at private bathrooms that were open along the route.

#15 Of course one of the most disturbing abuses of power is how the Obama administration is using barricades and guards to keep military veterans away from open air memorials such as the World War II Memorial, the Vietnam War Memorial and the Iwo Jima Memorial that are normally open to the public 24 hours a day.

It is beyond disgusting for Barack Obama to take these memorials hostage for political gain.

And a lot of military veterans have decided that they are not going to take this slap in the face.  In fact, one group is organizing a “Million Veteran March on the Memorials” this weekend.  You can find their Facebook page right here.  According to their page, a mass protest is being planned for 9 AM this Sunday morning…

“Join fellow Veterans at the war memorials in Washington DC on Sunday October 13th at 9 AM and at memorials across these United States.”

And veterans will not be the only ones in D.C. this weekend.  An organization known as “Truckers Ride for the Constitution” will also be there.  You can find their Facebook page right here.  The truckers are planning a three day strike and protest which will stretch from Friday to Sunday…

“The American people are sick and tired of the corruption that is destroying America! We therefore declare a national protest in support of our nation’s truckers on the weekend of October 11-13, 2013! Truck drivers will not haul freight! Americans can strike in solidarity with truck drivers! Truckers will lead the path to saving our country if every American rides with them!”

Many truckers are even planning to take their trucks right into the heart of Washington D.C. itself.

It will certainly be interesting to see what happens.

Personally, I have never seen anything like what we are witnessing right now.  The president of the United States is actually trying to purposely hurt the American people in order to put pressure on Congress.  He isn’t even being subtle about it.

Whether you are a Democrat, a Republican or an Independent, you have got to be absolutely disgusted by what Obama is doing.  He is showing an astounding lack of respect for the American people.

It is one thing to play hardball with Congress.  That is acceptable.  It is quite another thing to spitefully abuse the American people in order to get what you want.

What Obama has done goes way over the line.  If the American people are not outraged by this, what will it take to wake them up?

12 Very Ominous Warnings About What A U.S. Debt Default Would Mean For The Global Economy

Ominous Clouds - Photo posted on Instagram by annekejongA U.S. debt default that lasts for more than a couple of days could potentially cause a financial crash unlike anything that the world has ever seen before.  If the U.S. government purposely wanted to damage the global financial system, the best way that they could do that would be to default on U.S. debt obligations.  A U.S. debt default would cause stocks to crash, would cause bonds to crash, would cause interest rates to soar wildly out of control, would cause a massive credit crunch, and would cause a derivatives panic that would be absolutely unprecedented.  And that would just be for starters.  But don’t just take my word for it.  These are the things that top financial experts all over the planet are saying will happen if there is an extended U.S. debt default.

Because they are so close together, the “government shutdown” and the “debt ceiling deadline” are being confused by many Americans.

As I wrote about the other day, the “partial government shutdown” that we are experiencing right now is pretty much a non-event.  Yeah, some national parks are shut down and some federal workers will have their checks delayed, but it is not the end of the world.  In fact, only about 17 percent of the federal government is actually shut down at the moment.  This “shutdown” could continue for many more weeks and it would not affect the global economy too much.

On the other hand, if the debt ceiling deadline (approximately October 17th) passes without an agreement that would be extremely dangerous.

And if the U.S. government is eventually forced to start delaying interest payments on U.S. debt (which could potentially happen as soon as November), that would be absolutely catastrophic.

Once again, just don’t take my word for it.  The following are 12 very ominous warnings about what a U.S. debt default would mean for the global economy…

#1 Gerald Epstein, a professor of economics at the University of Massachusetts Amherst: “If the US does default, that will make the Lehman Brothers bankruptcy look like a cakewalk”

#2 Tim Bitsberger, a former Treasury official under President George W. Bush: “If we miss an interest payment, that would blow Lehman out of the water”

#3 Peter Tchir, founder of New York-based TF Market Advisors: “Once the system starts to break down related to settlement and payments, then liquidity disappears, as we saw after Lehman”

#4 Bill Isaac, chairman of Cincinnati-based Fifth Third Bancorp: “We can’t even imagine all the things that might happen, just like Henry Paulson couldn’t imagine all the bad things that might happen if he let Lehman go down”

#5 Jim Grant, founder of Grant’s Interest Rate Observer: “Financial markets are all confidence-based. If that confidence is shaken, you have disaster.”

#6 Richard Bove, VP of research at Rafferty Capital Markets: “If they seriously default on the debt, what we’re really talking about is a depression”

#7 Chinese vice finance minister Zhu Guangyao: “The U.S. is clearly aware of China’s concerns about the financial stalemate [in Washington] and China’s request for the US to ensure the safety of Chinese investments.”

#8 The U.S. Treasury Department: “A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, the negative spillovers could reverberate around the world, and there might be a financial crisis and recession that could echo the events of 2008 or worse”

#9 Goldman Sachs: “We estimate that the fiscal pull-back would amount to 9pc of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly”

#10 Simon Johnson, former chief economist for the IMF: “It would be insane to default, but it’s no longer a zero-percent probability”

#11 Warren Buffett about the potential of a debt default: “It should be like nuclear bombs, basically too horrible to use”

#12 Bloomberg: “Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen.”

A U.S. debt default could be the trigger for the “nightmare scenario” that so many people have been writing about in recent years.  In fact, it could greatly accelerate the timetable for the inevitable economic collapse that is coming.  A recent Yahoo article described some of the things that we would likely see in the event of an extended U.S. debt default…

A default would upend money markets, destroy bond funds, slam the brakes on lending, cause interest rates to spiral, make our banks insolvent, and deal a blow to our foreign trading partners and creditors around the globe; all of which would throw the U.S. and the world into economic disarray.

And of course stocks would crash big time.  Deutsche Bank’s David Bianco believes that if the U.S. government starts missing interest payments on U.S. Treasury bonds, we could see the S&P 500 go down to 850 by the end of the year.

There would be almost immediate panic among ordinary Americans as well.  In fact, it is being reported that some banks are already stuffing their ATM machines will extra cash just in case…

With just 10 days left to raise the debt ceiling and congressional Republicans threatening to force the government to default on its obligations, banks are taking some dramatic steps to prepare for the economic chaos that would result should the brinkmanship continue.

The Financial Times reports that one major U.S. bank has started stuffing its automatic teller machines with extra cash in preparation for a possible bank run from panicked depositors. The New York Times reports that another bank is weighing a plan to advance funds to customers who rely on Social Security and other government payments that could stop in the event of a default.

Let’s hope that cooler heads will prevail and that a U.S. debt default will be avoided.

Unfortunately, it appears that the Democrats are absolutely determined not to be moved from their current position a single inch.  They have decided to refuse to negotiate and demand that the Republicans give them every single thing that they want.

And who can really blame them for adopting that strategy?  After all, it has certainly worked in the past.  Whenever Democrats have stood united and have refused to give a single inch, the Republicans have always freaked out and caved in eventually.

Will this time be any different?

The funny thing is that once upon a time, Barack Obama was adamantly against any increase in the debt limit.  The following comes courtesy of Zero Hedge…

Obama Debt Ceiling

But now Obama says that it is so unreasonable to be opposed to a debt limit increase that any negotiations are out of the question.

So which Obama is right?

If the Democrats will not negotiate, a debt default could still be avoided if the Republicans give in.

And that is what they always do, right?

Perhaps not this time.  Just check out what John Boehner had to say on Sunday…

“I, working with my members, decided to do this in a unified way,” the speaker said — with demands to defund, delay or otherwise alter the Affordable Care Act.

Boehner had expected that the Obamacare fight would come during the next vote to raise the debt ceiling, “but, you know, working with my members, they decided, let’s do it now,” he said. “And the fact is, this fight was going to come, one way or another. We’re in the fight. We don’t want to shut the government down. We’ve passed bills to pay the troops. We passed bills to make sure the federal employees know that they’re going to be paid throughout this.”

“You’ve never seen a more dedicated group of people who are thoroughly concerned about the future of our country,” he said of House Republicans. “It is time for us to stand and fight.”

But will the Republicans really stand and fight?

In the past, betting on the intestinal fortitude of the Republican Party has been a loser every single time.

So we’ll see.  Boehner insists that this time is different.  Boehner insists that he is not going to fold like a 20 dollar suit this time.  In fact, when he was asked if the U.S. government was headed toward a debt default if Obama continued to refuse to negotiate, Boehner made the following statement…

“That’s the path we’re on.”

The mainstream media has certainly been placing most of the blame at the feet of the Republicans, but at least the U.S. House of Representatives has been trying to get an agreement reached.  The House has voted 26 times since the Senate last voted.  Harry Reid has essentially shut the Senate down until the Republicans fold and give the Democrats exactly what they want.

The funny thing is that this could probably be solved very easily.  If the Democrats agreed to a one year delay to the individual mandate, the Republicans would probably jump at it.  And because of epic technical failures, hardly anyone has been able to get signed up for Obamacare anyway.  So a one year delay would give the Obama administration time to get their act together.

Unfortunately, the Democrats seem absolutely obsessed with the idea that they will not give the Republicans one single inch.  They seem to believe that this will be to their political benefit.

But this is a very dangerous game that they are playing.  The U.S. government must roll over 441 billion dollars of short-term debt between October 18th and November 15th.

If a debt ceiling increase is not in place by that time, it will send interest rates soaring.  Borrowing costs for state and local governments, corporations, and ordinary Americans will go through the roof and economic activity will be hit really hard.

And as detailed above, we could potentially be looking at a financial crash that would make 2008 look like a Sunday picnic.

So let us hope for a political solution soon.  That will at least kick the can down the road for a little bit longer.

If a debt default were to happen before the end of this year, that would bring a tremendous amount of future economic pain into the here and now, and the consequences would likely be far greater than any of us could possibly imagine.

30 Statistics About Americans Under The Age Of 30 That Will Blow Your Mind

Young People - Photo by Jefferson liffeyWhy are young people in America so frustrated these days?  You are about to find out.  Most young adults started out having faith in the system.  They worked hard, they got good grades, they stayed out of trouble and many of them went on to college.  But when their educations where over, they discovered that the good jobs that they had been promised were not waiting for them at the end of the rainbow.  Even in the midst of this so-called “economic recovery”, the full-time employment rate for Americans under the age of 30 continues to fall.  And incomes for that age group continue to fall as well.  At the same time, young adults are dealing with record levels of student loan debt.  As a result, more young Americans than ever are putting off getting married and having families, and more of them than ever are moving back in with their parents.

It can be absolutely soul crushing when you discover that the “bright future” that the system had been promising you for so many years turns out to be a lie.  A lot of young people ultimately give up on the system and many of them end up just kind of drifting aimlessly through life.  The following is an example from a recent Wall Street Journal article…

James Roy, 26, has spent the past six years paying off $14,000 in student loans for two years of college by skating from job to job. Now working as a supervisor for a coffee shop in the Chicago suburb of St. Charles, Ill., Mr. Roy describes his outlook as “kind of grim.”

“It seems to me that if you went to college and took on student debt, there used to be greater assurance that you could pay it off with a good job,” said the Colorado native, who majored in English before dropping out. “But now, for people living in this economy and in our age group, it’s a rough deal.”

Young adults as a group have been experiencing a tremendous amount of economic pain in recent years.  The following are 30 statistics about Americans under the age of 30 that will blow your mind…

#1 The labor force participation rate for men in the 18 to 24 year old age bracket is at an all-time low.

#2 The ratio of what men in the 18 to 29 year old age bracket are earning compared to the general population is at an all-time low.

#3 Only about a third of all adults in their early 20s are working a full-time job.

#4 For the entire 18 to 29 year old age bracket, the full-time employment rate continues to fall.  In June 2012, 47 percent of that entire age group had a full-time job.  One year later, in June 2013, only 43.6 percent of that entire age group had a full-time job.

#5 Back in the year 2000, 80 percent of men in their late 20s had a full-time job.  Today, only 65 percent do.

#6 In 2007, the unemployment rate for the 20 to 29 year old age bracket was about 6.5 percent.  Today, the unemployment rate for that same age group is about 13 percent.

#7 American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

#8 During 2012, young adults under the age of 30 accounted for 23 percent of the workforce, but they accounted for a whopping 36 percent of the unemployed.

#9 During 2011, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed.

#10 At this point about half of all recent college graduates are working jobs that do not even require a college degree.

#11 The number of Americans in the 16 to 29 year old age bracket with a job declined by 18 percent between 2000 and 2010.

#12 According to one survey, 82 percent of all Americans believe that it is harder for young adults to find jobs today than it was for their parents to find jobs.

#13 Incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation since the year 2000.

#14 In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger.  Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger.

#15 In 2011, SAT scores for young men were the worst that they had been in 40 years.

#16 Incredibly, approximately two-thirds of all college students graduate with student loans.

#17 According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003.

#18 In America today, 40 percent of all households that are led by someone under the age of 35 are paying off student loan debt.  Back in 1989, that figure was below 20 percent.

#19 The total amount of student loan debt in the United States now exceeds the total amount of credit card debt in the United States.

#20 According to the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent.

#21 The student loan default rate in the United States has nearly doubled since 2005.

#22 One survey found that 70% of all college graduates wish that they had spent more time preparing for the “real world” while they were still in college.

#23 In the United States today, there are more than 100,000 janitors that have college degrees.

#24 In the United States today, 317,000 waiters and waitresses have college degrees.

#25 Today, an all-time low 44.2 percent of all Americans between the ages of 25 and 34 are married.

#26 According to the Pew Research Center, 57 percent of all Americans in the 18 to 24 year old age bracket lived with their parents during 2012.

#27 One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents.

#28 Young men are nearly twice as likely to live with their parents as young women the same age are.

#29 Overall, approximately 25 million American adults are living with their parents according to Time Magazine.

#30 Young Americans are becoming increasingly frustrated that previous generations have saddled them with a nearly 17 trillion dollar national debt that they are expected to make payments on for the rest of their lives.

And this trend is not just limited to the United States.  As I have written about frequently, unemployment rates for young adults throughout Europe have been soaring to unprecedented heights.  For example, the unemployment rate for those under the age of 25 in Italy has now reached 40.1 percent.

Simon Black of the Sovereign Man blog discussed this global trend in a recent article on his website…

Youth unemployment rates in these countries are upwards of 40% to nearly 70%. The most recent figures published by the Italian government show yet another record high in youth unemployment.

An entire generation is now coming of age without being able to leave the nest or have any prospect of earning a decent wage in their home country.

This underscores an important point that I’ve been writing about for a long time: young people in particular get the sharp end of the stick.

They’re the last to be hired, the first to be fired, the first to be sent off to fight and die in foreign lands, and the first to have their benefits cut.

And if they’re ever lucky enough to find meaningful employment, they can count on working their entire lives to pay down the debts of previous generations through higher and higher taxes.

But when it comes time to collect… finally… those benefits won’t be there for them.

Meanwhile, the overall economy continues to get even weaker.

In the United States, Gallup’s daily economic confidence index is now the lowest that it has been in more than a year.

For young people that are in high school or college right now, the future does not look bright.  In fact, this is probably as good as the U.S. economy is going to get.  It is probably only going to be downhill from here.

The system is failing, and young people are going to become even angrier and even more frustrated.

So what will that mean for our future?

Please feel free to share what you think by posting a comment below…

Government Shutdown? 36 Facts Which Prove That Almost Everything Is Still Running

The West Front of the U.S. CapitolAll of this whining and crying about a “government shutdown” is a total joke.  You see, there really is very little reason why this “government shutdown” cannot continue indefinitely because almost everything is still running.  63 percent of all federal workers are still working, and 85 percent of all government activities are still being funded during this “shutdown”.  Yes, the Obama administration has been making a big show of taking down government websites and blocking off the World War II Memorial, but overall business in Washington D.C. is being conducted pretty much as usual.  It turns out that the definition of “essential personnel” has expanded so much over the years that almost everyone is considered “essential” at this point.  In fact, this shutdown is such a non-event that even referring to it as a “partial government shutdown” would really be overstating what is actually happening.  The following are 36 facts which prove that almost everything is still running during this government shutdown…

#1 According to U.S. Senator Rand Paul, 85 percent of all government activities are actually being funded during this “government shutdown”.

#2 Approximately 1,350,000 “essential” federal employees will continue to work during this “government shutdown”.

#3 Overall, 63 percent of the federal workforce will continue to work during this “government shutdown”.

#4 The U.S. Postal Service will continue to deliver our mail.

#5 U.S. military personnel will remain on duty and will continue to get paid.

#6 Social Security recipients will continue to get their benefits.

#7 Medicare recipients will continue to get their benefits.

#8 Medicaid recipients will continue to get their benefits.

#9 Food stamp recipients will continue to get their benefits.

#10 Those on unemployment will continue to get their benefits.

#11 Federal retirees will continue to get their pensions.

#12 The federal school lunch program has enough money to go through at least the end of this month.

#13 Public schools all over the country will continue to stay open.

#14 Almost all federal law enforcement officials will continue working.

#15 The Federal Reserve will remain “completely functional“.

#16 The Supreme Court will continue to operate normally and federal courts have enough money to keep going for at least two weeks.

#17 TSA employees will continue to molest travelers at our airports.

#18 Air traffic controllers will continue to monitor traffic at our airports.

#19 Hopelessly outmanned border patrol agents will continue to try to stem the tide of illegal immigration.

#20 Visas and passports will continue to be issued by the State Department.

#21 The Veterans Administration will continue to offer substandard medical services, and it will be able to continue processing benefit payments at least for now.

#22 The Obama administration apparently has plenty of money to spend on closing open-air memorials that are usually open to the public 24 hours a day.

#23 The Department of Defense announced the awarding of 94 new contracts worth a combined total of more than 5 billion dollars on September 30th – the day right before the “government shutdown”.

#24 The “government shutdown” has not prevented the new two billion dollar NSA spy center from opening up.

#25 Federal prisons will continue to operate normally.

#26 Amtrak trains will continue to run.

#27 The Patent and Trademark Office will be open.

#28 The Consumer Product Safety Commission will continue to issue product recalls if the products “create an immediate threat to the safety of human life“.

#29 The National Weather Service and the National Hurricane Center will continue to track weather patterns.

#30 If the federal government needs to respond to a natural disaster, this “shutdown” will not affect that.

#31 NASA will continue to support the Mars Rover and the two American astronauts up on the International Space Station.

#32 All city employees of the D.C. government have been deemed “essential” and will continue to go to work.

#33 Even though the Obamacare exchanges are not working properly, people will still be able to access them.

#34 The IRS will continue to collect taxes, but it will be suspending punitive audits of conservative organizations.

#35 Barack Obama will continue to get paid for the full duration of this “shutdown”.

#36 The U.S. Congress will continue to get paid for the full duration of this “shutdown”.

Of course not everything is operating normally during this government shutdown.  Government parks are closed.  The EPA and the Department of Energy have almost totally closed up shop.  But overall, most Americans are not going to notice much of a difference.

And perhaps now is a good time for the American people to evaluate whether or not they actually need a gigantic federal government that wastes enormous mountains of our money.

For example, our federal government recently spent $98,670 to construct a single outhouse in Alaska.

That is more than a lot of Americans pay for their entire houses.

For many more examples like this, please see my previous article entitled “The Waste List: 66 Crazy Ways That The U.S. Government Is Wasting Your Hard-Earned Money“.

It is about time that Washington D.C. started experiencing some of the “belt-tightening” that the rest of the country has been going through.  For far too long, the fatcats in D.C. have been living in an alternate reality where they have been able to live the high life at our expense.  A recent blog post by Daniel Greenfield discussed how this shutdown is going to affect the alternate reality that the Obamas have been living in…

The government shutdown has forced Obama to make do with only a quarter of his 1,701 person staff. That would leave 436 “vital” employees. The 90 people who look after his living quarters would be slashed to 15 to “provide minimum maintenance and support”.

Buckingham Palace, which is twelve times the size of the White House and has its own clockmaker, only has an 800 person staff. King Harald V of Norway and his court make do with 152 staffers. King Carl XVI Gustaf of Sweden gets by with 203.

On Twitter, Michelle Obama announced that she is unable to Tweet on her own without the aid of all of her sixteen assistants; many of whom take home six figure salaries. There are more directors, associate directors and deputy associate directors on Michelle Obama’s staff than there were in George Washington’s entire administration.

Presidents have fought wars and made peace, explored and annexed vast territories and built a nation out of a handful of colonies with fewer senior staffers than are needed to handle Michelle Obama’s Twitter account.

Oh the humanity!  Will Michelle Obama ever tweet again?  And how will the White House continue to function without at least one projectionist on duty at the White House 24 hours a day?

No wonder Barack Obama is so upset about this shutdown.

In the end, this shutdown could turn out to be very good for America.  We have a government that is wildly out of control and that desperately needs to be reigned in.

During the Obama administration, federal debt held by the public has risen by 90 percent, and overall federal government spending has risen by a whopping 317 percent since 1990.

So is it really a bad thing that the federal government has been forced to cut back for a little while?

Our politicians can whine and cry all they want.  They won’t be getting any sympathy from me.

About 40 Percent Of All Food In The United States Is Thrown In The Garbage

LandfillCould that headline actually be true?  Do Americans waste about 40 percent of all the food that we produce?  That sounds like an absolutely crazy number, but it is actually quite accurate according to a study conducted by the Natural Resources Defense Council.  What the NRDC discovered is that approximately 40 percent of our total food supply is either thrown into dumpsters by grocery stores, is discarded by restaurants, never gets harvested on our farms, or is thrown into the garbage by consumers in their homes.  Even though 47 million Americans are on food stamps and millions of children go to bed hungry in this country every single night, we continue to waste approximately 263 million pounds of food every single day of the year.  One day people will look back and regard us as probably the most wasteful society in the history of the planet.

So where does all of that food go?

Well, according to a recent Seattle Times article, “food waste” takes up more space in our landfills than anything else does…

Last year, the NRDC found that Americans throw out as much as 40 percent of the country’s food supply each year, adding up to $165 billion in losses.

Food waste makes up the largest portion of solid trash in landfills, according to researchers.

Some $900 million of expired food is dumped from the supply chain annually, much of it a result of confusion. Misinterpreted date labels cause the average American household of four to lose as much as $455 a year on squandered food, according to researchers.

The expired food that gets wasted is one of my personal pet peeves.

I don’t do this a lot, but today I am going to share a personal story with you.

Earlier today I was out running errands and I decided that I wanted to pick up some mini-cupcakes from Safeway that I just love.  I do try to eat a healthy diet, but I do also like a treat from time to time.  So I got over to Safeway, and I noticed that the only mini-cupcakes that they had out were ones with chocolate frosting, but I wanted ones with vanilla frosting.

So I went up to the bakery counter and there was nobody there, but behind the counter I saw a stack of several containers of vanilla cupcakes.  I waited until the bakery lady got back and I asked her if I could have them.

I was astounded when she very firmly told me that I could not buy them.

She said that it was against regulations.

I implored her to sell them to me.  I explained that I had come over to Safeway just to buy them and I didn’t care if they were a little old.

Again she very firmly told me that I could not buy them.

I could not understand this.  I knew that the cupcakes were just going to be thrown out, so I asked to speak to her manager.

After a few moments her manager came over and I was once again told very firmly that under no circumstances would I be able to buy the cupcakes.

So needless to say, I left the store with a sad look on my face and without any cupcakes.

Now of course I probably didn’t need the cupcakes anyway.  They are not healthy for me.  But big chains such as Safeway throw away massive amounts of very good food as well.  The level of the waste that goes on is absolutely astounding.

Meanwhile, the number of Americans that are dealing with hunger and malnutrition grows with each passing day.  I want to share with you an excerpt from a recent article authored by Jason Ford entitled “I Work On The Breadline“…

I work as a cashier at a nationally known discount store. I sell clothing, cleaning products, house wares and food. The people I sell to are people of all colors, races, ages and sex, but most of them have one thing in common; EBT cards. I would say about half of every transaction I do is paid for with an EBT card. Sometimes people will use three different methods of payment. They will use whatever is left on their EBT card, then use whatever is left on their debit card, and then scrape their purse to find the remaining balance, and sometimes they still don’t have enough.

Another common trait of the people I serve besides the poverty is the poor health. The food I sell is not healthy, by any stretch. I sell potato chips, candy bars, bread, canned food, ice cream, soda, packaged meat, cigarettes and alcohol. I noticed quickly that a common ingredient of most of the foods is sugar and grains. Sugar and grains are easy to grow and produce cheaply and are used as fillers in processed food to cut cost and mask the taste of other questionable ingredients. Grains work in conjunction with sugars to inflame the body and compromise the immune system. Grains and sugars also have no nutritional value besides calories, so on top of inflaming the body; they do not provide the sustenance the body needs to survive. As the functions of the body require these nutrients the diet lacks, the body sucks these minerals from the bones, teeth and brain. Bone loss, and tooth decay and decreased brain function are the unfortunate symptoms of malnutrition. The poorest of the customers I serve are also the sickest. I have witnessed toothless mouths in the young and old. Mental retardation is also a common trait among many of them. I have even witnessed one unfortunate woman whose skin was a pale green color. These people are dying a slow starvation and they don’t even know it.

Doesn’t that just break your heart?

People are living like that, and yet America discards 263 million pounds of food every single day.

Something is fundamentally wrong with the way our system works.

So what is society going to do as the number of hungry people continues to grow in this country and around the world?

Well, according to ABC News, some scientists plan to feed them with flour made out of bugs…

A team of MBA students were the recipients of the 2013 Hult Prize earlier this week, providing them with $1 million in seed money to produce an insect-based, protein-rich flour for feeding malnourished populations in other countries. The product is called Power Flour.

“It’s a huge deal because we had a very ambitious but highly executable five-year plan in place,” said team captain Mohammed Ashour, whose team hails from McGill University in Montreal. “So winning this prize is a great step in that direction.”

Ashour, along with teammates Shobhita Soor, Jesse Pearlstein, Zev Thompson and Gabe Mott, will be immediately working with an advisory board to recruit farmers and workers in Mexico, where a population of roughly 4 million live in slum conditions with widespread malnutrition.

“We will be starting with grasshoppers,” Ashour said.

Are you ready for a “protein-rich flour” made out of grasshoppers?

I know that I am not.

And in Japan, scientists have actually been working on a way to create meat out of poop.  You can read more about that right here.

Perhaps if we just quit wasting so much food we would be able to feed everybody without resorting to such craziness.

These days, an increasing number of Americans are fighting back against the colossal waste that they see all around them.  Some have even chosen to take advantage of the waste by regularly going “dumpster diving”.  The following is how I described “dumpster diving” in one of my previous articles…

Have you ever thought about getting your food out of a trash can?  Don’t laugh.  Dumpster diving has become a hot new trend in America.  In fact, dumpster divers even have a trendy new name.  They call themselves “freegans”, and as the economy crumbles their numbers are multiplying.  Many freegans consider dumpster diving to be a great way to save money on groceries.  Others do it because they want to live more simply.  Freegans that are concerned about the environment view dumpster diving as a great way to “recycle” and other politically-minded freegans consider dumpster diving to be a form of political protest.  But whatever you want to call it, the reality is that thousands upon thousands of Americans will break out their boots, rubber gloves and flashlights and will be jumping into dumpsters looking for food once again tonight.

Who knows – perhaps some enterprising young dumpster diver will end up fishing the vanilla cupcakes that I wanted out of Safeway’s dumpsters this evening.

It is amazing what some of these dumpster divers are able to recover from “the trash”.  In North Carolina, one man even takes his son dumpster diving with him…

A programmer by day, Todd takes to the streets of North Carolina by night, digging through Dumpsters at drug stores and grocery stores all around his rural neighborhood.

“You would be simply amazed at what businesses throw out,” he said. “I’ve only had to buy two loaves of bread all year. … Last week I had a trunk full of cereal, cookies, chips and ramen noodles.”

Todd slinks in and out of smelly places with low-light flashlights to evade rent-a-cops who will shoo him away.  Most nights, his 14-year-old son comes along.

Unfortunately, dumpster diving is not as easy as it used to be.

As dumpster diving has soared in popularity, some grocery stores have responded by putting locks on their dumpsters.

And in some areas of the country, police have even started regularly arresting dumpster divers.

But in the end, dumpster diving was not going to be a permanent solution anyway.

A permanent solution would be to quit wasting so much food.

I applaud the grocery store chains that choose to donate their expired food to homeless shelters and food banks.

We need to see a lot more of that going on.

And in our own homes we need to find ways to give more food away and waste less of it.

All of this needless wasting of food does not have to happen.  Let’s work together to find some solutions.

World Bank Whistleblower Karen Hudes Reveals How The Global Elite Rule The World

Karen HudesKaren Hudes is a graduate of Yale Law School and she worked in the legal department of the World Bank for more than 20 years.  In fact, when she was fired for blowing the whistle on corruption inside the World Bank, she held the position of Senior Counsel.  She was in a unique position to see exactly how the global elite rule the world, and the information that she is now revealing to the public is absolutely stunning.  According to Hudes, the elite use a very tight core of financial institutions and mega-corporations to dominate the planet.  The goal is control.  They want all of us enslaved to debt, they want all of our governments enslaved to debt, and they want all of our politicians addicted to the huge financial contributions that they funnel into their campaigns.  Since the elite also own all of the big media companies, the mainstream media never lets us in on the secret that there is something fundamentally wrong with the way that our system works.

Remember, this is not some “conspiracy theorist” that is saying these things.  This is a Yale-educated attorney that worked inside the World Bank for more than two decades.  The following summary of her credentials comes directly from her website…

Karen Hudes studied law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non Governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.

Today, Hudes is trying very hard to expose the corrupt financial system that the global elite are using to control the wealth of the world.  During an interview with the New American, she discussed how we are willingly allowing this group of elitists to totally dominate the resources of the planet…

A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success.

Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities — mostly financial institutions and especially central banks — exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.”

Previously, I have written about the Swiss study that Hudes mentioned.  It was conducted by a team of researchers at the Swiss Federal Institute of Technology in Zurich, Switzerland.  They studied the relationships between 37 million companies and investors worldwide, and what they discovered is that there is a “super-entity” of just 147 very tightly knit mega-corporations that controls 40 percent of the entire global economy…

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

But the global elite don’t just control these mega-corporations.  According to Hudes, they also dominate the unelected, unaccountable organizations that control the finances of virtually every nation on the face of the planet.  The World Bank, the IMF and central banks such as the Federal Reserve literally control the creation and the flow of money worldwide.

At the apex of this system is the Bank for International Settlements.  It is the central bank of central banks, and posted below is a video where you can watch Hudes tell Greg Hunter of USAWatchdog.com the following…

“We don’t have to wait for anybody to fire the Fed or Bank for International Settlements . . . some states have already started to recognize silver and gold, the precious metals, as currency”

Most people have never even heard of the Bank for International Settlements, but it is an extremely important organization.  In a previous article, I described how this “central bank of the world” is literally immune to the laws of all national governments…

An immensely powerful international organization that most people have never even heard of secretly controls the money supply of the entire globe.  It is called the Bank for International Settlements, and it is the central bank of central banks.  It is located in Basel, Switzerland, but it also has branches in Hong Kong and Mexico City.  It is essentially an unelected, unaccountable central bank of the world that has complete immunity from taxation and from national laws.  Even Wikipedia admits that “it is not accountable to any single national government.”  The Bank for International Settlements was used to launder money for the Nazis during World War II, but these days the main purpose of the BIS is to guide and direct the centrally-planned global financial system.  Today, 58 global central banks belong to the BIS, and it has far more power over how the U.S. economy (or any other economy for that matter) will perform over the course of the next year than any politician does.  Every two months, the central bankers of the world gather in Basel for another “Global Economy Meeting”.  During those meetings, decisions are made which affect every man, woman and child on the planet, and yet none of us have any say in what goes on.  The Bank for International Settlements is an organization that was founded by the global elite and it operates for the benefit of the global elite, and it is intended to be one of the key cornerstones of the emerging one world economic system.

This system did not come into being by accident.  In fact, the global elite have been developing this system for a very long time.  In a previous article entitled “Who Runs The World? Solid Proof That A Core Group Of Wealthy Elitists Is Pulling The Strings“, I included a quote from Georgetown University history professor Carroll Quigley from a book that he authored all the way back in 1966 in which he discussed the big plans that the elite had for the Bank for International Settlements…

[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

And that is exactly what we have today.

We have a system of “neo-feudalism” in which all of us and our national governments are enslaved to debt.  This system is governed by the central banks and by the Bank for International Settlements, and it systematically transfers the wealth of the world out of our hands and into the hands of the global elite.

But most people have no idea that any of this is happening because the global elite also control what we see, hear and think about.  Today, there are just six giant media corporations that control more than 90 percent of the news and entertainment that you watch on your television in the United States.

This is the insidious system that Karen Hudes is seeking to expose.  For much more, you can listen to Joyce Riley of the Power Hour interview her for an entire hour right here.

So what do you think about what Hudes is saying?  Please feel free to share your thoughts by posting a comment below…

Oxford Professors: Robots And Computers Could Take Half Our Jobs Within The Next 20 Years

Robot 2013What are human workers going to do when super-intelligent robots and computers are better than us at doing everything?  That is one of the questions that a new study by Dr. Carl Frey and Dr. Michael Osborne of Oxford University sought to address, and what they concluded was that 47 percent of all U.S. jobs could be automated within the next 20 years.  Considering the fact that the percentage of the U.S. population that is employed is already far lower than it was a decade ago, it is frightening to think that tens of millions more jobs could disappear due to technological advances over the next couple of decades.  I have written extensively about how we are already losing millions of jobs to super cheap labor on the other side of the globe.  What are middle class families going to do as technology also takes away huge numbers of our jobs at an ever increasing pace?  We live during a period of history when knowledge is increasing an an exponential rate.  In the past, when human workers were displaced by technology it also created new kinds of jobs that the world had never seen before.  But what happens when the day arrives when computers and robots can do almost everything more cheaply and more efficiently than humans can?

For employers, there are a whole host of advantages that come with replacing human workers with technology.  Robots and computers never complain, they never get tired, they never need vacation, they never show up late, they never waste time on Facebook, they don’t need any health benefits and there are a vast array of rules, regulations and taxes that you must deal with when you hire a human worker.

If you could get a task done more cheaply and more efficiently by replacing a human worker with technology, why wouldn’t you want to do it?

We are already starting to see this happen on a mass scale, and according to Dr. Frey and Dr. Osborne, close to half of all of our jobs could be automated within the next 20 years.  A recent article posted on smartplanet.com described how this process might play out…

The automation of half the nation’s jobs will occur in two phases, the study says: The first wave will affect (and is affecting) jobs in transportation/logistics, production labor, administrative support, services, sales, and construction. The second wave — propelled by artificial intelligence — will affect jobs in management, science, engineering, and the arts.

Just as interesting as the study is the response provided by Gary Reber, founder and executive director of For Economic Justice, who argues that owners of the means of production will actually thrive as such a shift takes place. Those who rely on 9-to-5 standard employment arrangements for subsistence are likely to  suffer the most in the automation wave. As Reber put it: ‘Full employment is not an objective of businesses. Companies strive to keep labor input and other costs at a minimum.”

This is one of the reasons why the U.S. economy will never produce enough jobs for everyone ever again.

If technology can outperform humans, it is only rational for companies to replace humans with technology.

And this is even starting to happen in fields that require very high levels of education.

Just look at what is happening in the medical field.  Today, millions of people turn to websites such as WebMD for their medical needs, but this is only just the beginning.  Check out this excerpt from a recent Bloomberg article entitled “Doctor Robot Will See You Shortly“…

Johnson & Johnson proposes to replace anesthesiologists during simple procedures such as colonoscopies — not with nurse practitioners, but with machines. Sedasys, which dispenses propofol and monitors a patient automatically, was recently approved for use in healthy adult patients who have no particular risk of complications. Johnson & Johnson will lease the machines to doctor’s offices for $150 per procedure — cleverly set well below the $600 to $2,000 that anesthesiologists usually charge.

Certainly we will always need doctors.

But many of the tasks that doctors once performed will now be performed by technology.

For example, have you heard about “OnStar for the Body” yet?  Some of these new “wearable technologies” are more than a little bit creepy…

Smart, cheaper and point-of-care sensors, such as those being developed for the Nokia Sensing XCHALLENGE, will further enable the ‘Digital Checkup’ from anywhere. The world of ‘Quantified Self’ and ‘Quantified Health’ will lead to a new generation of wearable technologies partnered with Artificial Intelligence that will help decipher and make this information actionable.

And this ‘actionability’ is key. We hear the term Big Data used in various contexts; when applied to health information it will likely be the smart integration of massive data sets from the ‘Internet of things’ with the small data about your activity, mood, and other information. When properly filtered, this data set can give insights on a macro level – population health – and micro – ‘OnStar for the Body‘ with a personalized ‘check engine light’ to help identify individual problems before they further develop into expensive, difficult-to-treat or fatal conditions.

We are also seeing humans being replaced in other fields as well.  For instance, DARPA has developed a robot named “Atlas” that it hopes will be used in “disaster-response scenarios”…

DARPA’s Virtual Robotics Challenge entered a new phase in July, when Atlas — a 6-foot-2-inch, 330-pound robot developed by Boston Dynamics — was introduced to seven teams tasked with training it for disaster-response scenarios. The end goal? “Supervised autonomy” so that Atlas and its successors can step into situations too dangerous for humans.

I don’t know about you, but I don’t really want “Terminator” to show up when my family is in the middle of a disaster, but this is where things are headed.

And as technology increases, a lot of good paying middle class jobs are going to be vulnerable.  In fact, one study of employment data that examined statistics from 20 countries found that “almost all the jobs disappearing are in industries that pay middle-class wages, ranging from $38,000 to $68,000.”

Those are exactly the sort of “breadwinner jobs” that middle class families rely upon.

And of course working class jobs are being replaced by technology as well.  According to MIT Technology Review, a $22,000 humanoid robot named Baxter has been developed that can easily be programmed to do jobs that have never been automated before…

Brooks’s company, Rethink Robotics, says the robot will spark a “renaissance” in American manufacturing by helping small companies compete against low-wage offshore labor. Baxter will do that by accelerating a trend of factory efficiency that’s eliminated more jobs in the U.S. than overseas competition has. Of the approximately 5.8 million manufacturing jobs the U.S. lost between 2000 and 2010, according to McKinsey Global Institute, two-thirds were lost because of higher productivity and only 20 percent moved to places like China, Mexico, or Thailand.

The ultimate goal is for robots like Baxter to take over more complex tasks, such as fitting together parts on an electronics assembly line. “A couple more ticks of Moore’s Law and you’ve got automation that works more cheaply than Chinese labor does,” Andrew McAfee, an MIT researcher, predicted last year at a conference in Tucson, Arizona, where Baxter was discussed.

So what are human workers going to do when robots are making all of our products?

That is a very good question.

Incredibly, robots are now even replacing human factory workers in China.  The following comes from a recent TechCrunch article…

Foxconn has been planning to buy 1 million robots to replace human workers and it looks like that change, albeit gradual, is about to start.

The company is allegedly paying $25,000 per robot – about three times a worker’s average salary – and they will replace humans in assembly tasks. The plans have been in place for a while – I spoke to Foxconn reps about this a year ago – and it makes perfect sense. Humans are messy, they want more money, and having a half-a-million of them in one factory is a recipe for unrest. But what happens after the halls are clear of careful young men and women and instead full of whirring robots?

So who benefits from all of this?

Those that own the big corporations that dominate our economy certainly benefit.  They aren’t going to need to hire as many of us to work for them, and they are going to make even bigger profits than before.

Meanwhile, the gap between the wealthy and the poor will grow even larger.  The only thing that most people have to offer in the economic marketplace is their labor, and the demand for that labor is decreasing with each passing day.

What do you think will happen to society when most of us are no longer “needed”?

Could we be headed for big trouble as a society?

And if you think that your job could “never be automated”, you might want to think again.

We are rapidly getting to the point where even driving will be automated…

Brace yourself. In a few years, your car will be able to drop you off at the door of a shopping center or airport terminal, go park itself and return when summoned with a smartphone app. Audi demonstrated such a system at this year’s Consumer Electronics Show.

At your next dinner party, ask for a show of hands of the people who’d want that.

Everybody?

Anybody want a car that doesn’t crash? At this month’s Frankfurt auto show, mega-auto supplier Continental announced a partnership with IBM to help bring autonomous vehicles to market, with “zero accidents” as a possible result. Volvo has promised to injury-proof its cars by 2020. GM and Carnegie Mellon aim to develop autonomous technology to eliminate car accidents.

So what will happen to the 3.1 million Americans that drive trucks for a living once all driving is automated?

What will happen to the millions of other Americans that drive buses, taxis and limos once all driving is automated?

That is something to think about.

And researchers are even trying to create computers that “seem human” when you have a conversation with them…

On 14 September, researchers will gathered in Derry, Northern Ireland, to demonstrate their latest efforts. If any of them has created a machine that successfully mimics a human, they will leave $100,000 richer.

The money is being put up by Hugh Loebner, a New York based philanthropist. His goal, he says, is total unemployment for all human beings throughout the world. He wants robots to do all the work. And the first step towards that is apparently to develop computers that seem human when you chat to them.

So if your job involves a telephone, you are in danger of being phased out.  In fact, this transition is already starting to happen…

IPsoft is a young company started by Chetan Dube, a former mathematics professor at New York University. He reckons that artificial intelligence can take over most of the routine information-technology and business-process tasks currently performed by workers in offshore locations. “The last decade was about replacing labour with cheaper labour,” says Mr Dube. “The coming decade will be about replacing cheaper labour with autonomics.”

IPsoft’s Eliza, a “virtual service-desk employee” that learns on the job and can reply to e-mail, answer phone calls and hold conversations, is being tested by several multinationals. At one American media giant she is answering 62,000 calls a month from the firm’s information-technology staff. She is able to solve two out of three of the problems without human help. At IPsoft’s media-industry customer Eliza has replaced India’s Tata Consulting Services.

We truly are entering an unprecedented time in human history.

Instead of robots violently taking over society like so many movies have portrayed, they are slowly starting to “replace” us instead.  A recent Wired article described what this transition might look like as it picks up steam…

First, machines will consolidate their gains in already-automated industries. After robots finish replacing assembly line workers, they will replace the workers in warehouses. Speedy bots able to lift 150 pounds all day long will retrieve boxes, sort them, and load them onto trucks. Fruit and vegetable picking will continue to be robotized until no humans pick outside of specialty farms. Pharmacies will feature a single pill-dispensing robot in the back while the pharmacists focus on patient consulting. Next, the more dexterous chores of cleaning in offices and schools will be taken over by late-night robots, starting with easy-to-do floors and windows and eventually getting to toilets. The highway legs of long-haul trucking routes will be driven by robots embedded in truck cabs.

All the while, robots will continue their migration into white-collar work. We already have artificial intelligence in many of our machines; we just don’t call it that. Witness one piece of software by Narrative Science (profiled in issue 20.05) that can write newspaper stories about sports games directly from the games’ stats or generate a synopsis of a company’s stock performance each day from bits of text around the web. Any job dealing with reams of paperwork will be taken over by bots, including much of medicine. Even those areas of medicine not defined by paperwork, such as surgery, are becoming increasingly robotic. The rote tasks of any information-intensive job can be automated. It doesn’t matter if you are a doctor, lawyer, architect, reporter, or even programmer: The robot takeover will be epic.

Are you ready for the “robot takeover”?

The world of employment is never going to be the same again.  Technology has already surpassed human workers in a whole host of arenas, and this transition is only going to become more rapid in the years ahead.

So what does this mean for the rest of us?  Please feel free to share your thoughts by posting a comment below…

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