Painful

Goodbye Middle Class: 50 Percent Of American Workers Make Less Than 33,000 Dollars A Year

October 22, 2019October 22, 2019 by Michael

The truth is that most American families are deeply struggling, but you hardly ever hear this from the mainstream media. Yes, about 10 percent of all American workers are making $100,000 or more a year, but most of those high paying jobs are concentrated in the major cities along the east and west coasts. For much of the rest of the country, these are very challenging times as the cost of living soars but their paychecks do not. According to the Social Security Administration, the median income in the United States last year was just $32,838.05. In other words, 50 percent of American workers made more than $32,838.05 and 50 percent of American workers made less than $32,838.05 in 2018. Let’s be generous and round that number up to $33,000, and when you break it down on a monthly basis it comes to just $2,750 a month. Of course nobody can support a middle class lifestyle for a family of four on $2,750 a month before taxes, and so in most families more than one person is working these days. In fact, in many families today more than one person is working multiple jobs in a desperate attempt to make ends meet, and it still is often not quite enough.

If you want to look at the Social Security wage statistics for yourself, you can find them right here. As you will see, I am not making these numbers up.

These days many would have us feel bad if we are not making at least $100,000 a year, but according to the report only about 10 percent of all American workers make that much money.

Instead, most Americans are in what I would call “the barely getting by” category. Here are some key facts that I pulled out of the report…

-33 percent of all American workers made less than $20,000 last year.

-46 percent of all American workers made less than $30,000 last year.

-58 percent of all American workers made less than $40,000 last year.

-67 percent of all American workers made less than $50,000 last year.

That means that approximately two-thirds of all American workers are making $4,000 or less a month before taxes.

Ouch.

But these numbers help us to understand why survey after survey has shown that most Americans are living paycheck to paycheck. After paying the bills, there just isn’t much money left for most of us.

And for an increasing number of Americans, even paying the bills has become exceedingly difficult. In fact, a brand new report from UBS says that 44 percent of all U.S. consumers “don’t make enough money to cover their expenses”…

Low-income consumers are struggling to make ends meet despite the “greatest economy ever,” and if a recession strikes or the employment cycle continues to decelerate — this could mean the average American with insurmountable debts will likely fall behind on their debt servicing payments, according to a UBS report, first reported by Bloomberg.

UBS analyst Matthew Mish wrote in a recent report that 44% of consumers don’t make enough money to cover their expenses.

That means that about half the country is flat broke and struggling just to survive financially.

Of course those at the top of the economic food chain often don’t have a lot of sympathy for those that are hurting. Many of them have the attitude that those that are struggling should just go out and get one of the “good jobs” that the mainstream media is endlessly touting.

But most jobs in the United States are not “good jobs”.

Today, the poverty level for a household of four in the United States is $25,750. More than 40 percent of the workers in this country make less than that each year.

Starting a business is always an option, but that takes money, and thanks to government regulations it is harder than ever to run a small business successfully.

Just look at what is happening to our dairy farmers. There are few occupations that are more quintessentially “American” than being a dairy farmer, and since most people drink milk and eat cheese, you would think that it would be a pretty safe profession.

But instead, dairy farms are shutting down at a pace that is absolutely chilling all over the nation. For example, just check out what has been going on in Wisconsin…

Wisconsin lost another 42 dairy farms in July, and since January 1, has lost 491 farms, reports the Wisconsin Department of Agriculture, Trade and Consumer Protection.

At this rate, the Dairy State could lose 735 dairy farms this year, which would be a decline of 9%. In 2018, the state lost 691 farms, a rate of decline of 7.9%.

Over the last decade the state has lost more than 5,000 farms, or 40% of its licensed dairy farms. To state the obvious, the current rate of exits is more than double that of the last decade.

So why is this happening?

Government.

In profession after profession, government control freaks have made it nearly impossible to make a living, and this has pushed the percentage of Americans that are self-employed to historic lows.

If you are struggling right now, I want you to know that you are not alone. There are tens of millions of other Americans that are really hurting in this economy, and the bad news is that economic conditions will soon get a lot worse.

But you can make it through whatever is ahead. You just have to keep believing.

A lot of people accuse me of spreading “doom and gloom”, but that is not true at all. There is hope in understand what is happening, and there is hope in getting prepared for the hard times that are ahead. When you take steps to prepare, you are telling yourself and everyone around you that you believe that you can make it through the storm that is coming.

Or you could just have blind faith in the system, even though it is exceedingly obvious that the system is crumbling all around us. Those that are blindly trusting the system to take care of them are building their dreams on a foundation of sand, and when the waves come crashing in those dreams are going to get washed away very quickly.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. 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 can only allow this to happen if this “About the Author” section is included 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.

A Shocking New Survey Finds That Most Americans Are Completely Unprepared For The Next Recession

September 26, 2019September 26, 2019 by Michael

Just like in 2008, most Americans are living right on the edge financially, and so any sort of an economic downturn is going to be extremely painful for tens of millions of American families. When you have not built up a financial cushion, any sort of a setback can be absolutely disastrous. During the last recession, millions of Americans suddenly lost their jobs, and because most of them were living paycheck to paycheck a lot of them suddenly couldn’t pay their mortgages. In the end, millions of Americans lost their homes during the “subprime mortgage meltdown”, and today the housing bubble is even larger than it was back then. Sadly, the reality of the matter is that many of us are just barely scraping by from month to month, and that is a very dangerous position to be in.

A new survey that was just released shows just how vulnerable American consumers have become at this point in time. According to the survey, the top financial priority for 38 percent of all Americans is just trying to pay the bills, and for 19 percent of all Americans it is dealing with credit card debt. The following comes from Fox Business…

Among survey respondents in the nationally representative poll, 38 percent said their top financial priority is “just staying current on living expenses or getting caught up on all the bills.” Almost 3 in 10 respondents (29 percent) said their chief priority was “saving more money,” and 19 percent indicated they were mainly working on paying down debt from products like credit cards and student loans.

So that means that for nearly 60 percent of all Americans, the top financial priority each month is either finding a way to pay the bills or dealing with credit card debt.

And if you are struggling to pay the bills each month or you are drowning in credit card debt, the truth is that you are definitely not ready for the next recession.

The same survey also discovered that a very large percentage of Americans are not following any sort of a financial budget…

More than a decade into the longest economic expansion on record, almost two-fifths of people said in a new Bankrate poll that their main financial priority was just keeping their heads above water on living expenses rather than saving money.

Nearly as many of those surveyed said that they’re not following financial budgets, according to Bankrate’s September Financial Security Poll.

So many people out there spend money whenever they feel like it and they don’t have any sort of a plan for their finances.

And then when they get deep into debt they wonder how that could have possibly happened.

It is so important to take charge of your money and to have a plan for where you want to go financially. Because if you don’t have a plan for your money, I promise you that somebody else does. As many of us have learned the hard way, it is all too easy to fall victim to all of the financial predators that are constantly circling these days. The big financial institutions want to get Americans into as much debt as possible, because the deeper we are in debt the more money they make.

In our society, everything has become all about extracting as much money out of you as possible. Even when we are at the checkout counter at the supermarket we are asked if we want to get some “cash back” so that they can charge us a “convenience fee” and make even more money. And of course most of the money that is extracted out of us ultimately ends up at the very top of the financial pyramid, and as a result the gap between the “haves” and the “have nots” continues to grow.

In fact, the U.S. Census Bureau is telling us that the gap between the rich and the poor is now “greater than it has ever been”…

In the midst of the longest economic expansion the United States has ever seen, with poverty and unemployment rates at historic lows, the separation between rich and poor from 2017 and 2018 was greater than it has ever been, federal data show.

To be fair, the U.S. Census Bureau has only been measuring this since 1967, and so it is entirely possible that things could have been even worse earlier in our history.

But the numbers do clearly show that the gap has been steadily widening for years, and at this point wealth inequality in the U.S. is far greater than it is in any country in Europe…

The Gini index measures wealth distribution across a population, with zero representing total equality and 1 representing total inequality, where all wealth is concentrated in a single household. The indicator has been rising steadily during the past several decades. When the Census Bureau began studying income inequality more than 50 years ago, the Gini index was 0.397. In 2018, the Gini index rose to 0.485.

By comparison, no European country had a Gini index greater than 0.38 between 2017 and 2018.

So what this means is that we have a small group of people at the top of the pyramid doing really, really well, but meanwhile most of the rest of us are deeply struggling.

In fact, survey after survey has shown that the vast majority of Americans are currently living paycheck to paycheck.

The way that our entire system is structured greatly favors Wall Street, the big banks, the largest corporations and those with enormous amounts of money. And they are able to maintain control of the system by literally buying elections and controlling public opinion through their control of the mainstream media. Our founders were deeply suspicious of large concentrations of power, and we need to return to the values that our nation was founded upon if we ever hope to turn things around.

Unfortunately, more Americans that ever are convinced that socialism is the answer to the problems that I just discussed, and this is fueling the rise of politicians such as Bernie Sanders and Elizabeth Warren.

But socialist experiments have failed all throughout human history, and socialism would fail here too.

Big government is never the answer. Sadly, we already have the biggest government in the history of the world, and many Americans seem absolutely determined to make it even bigger.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time. Of course the most important thing that we can share with people is the gospel of Jesus Christ, and if you would like to learn more about how you can become a Christian I would encourage you to read this article.

North America’s Bird Population Is Collapsing – Nearly 3 Billion Birds Have Been Wiped Out Since 1970

September 19, 2019 by Michael

All around us, our world is literally in a state of collapse, but most people don’t seem to care. I spend much of my time writing about the inevitable collapse of our economic and financial systems, but they are only one part of the story. These days, millions upon millions of us are spending countless hours in this “virtual world” that we have created, and that is preventing many of us from understanding what is really going on in “the real world”. Where I live, I can literally keep the doors wide open for hours without worrying about bugs coming in, because insect populations are disappearing at a pace that is frightening. They are calling it “the insect apocalypse”, and some scientists are warning that they could all be gone in 100 years. And this dramatic decline in the insect population is one of the main reasons why North America’s bird population is collapsing. In the old days, I remember the singing of birds often greeting me in the morning, but these days I am never awakened by birds. That might make sense if I lived right in the middle of a major city, but I don’t. I live in a very rural location, and I do see birds out here, but not nearly as many as I would expect.

Sadly, the scientific evidence is confirming what many of us had feared. According to a scientific study that was just released, North America’s bird population has fallen by “nearly 3 billion birds since 1970″…

If you’ve noticed fewer birds in your backyard than you used to, you’re not mistaken.

North America has lost nearly 3 billion birds since 1970, a study said Thursday, which also found significant population declines among hundreds of bird species, including those once considered plentiful.

On second thought, I don’t know if the term “collapse” is strong enough to describe what we are facing.

In 1970, there were about 10 billion birds in North America.

Now, there are about 7 billion.

When are we finally going to admit that we have a major crisis on our hands?

Hopefully it will be before the count gets to zero.

Overall, we are talking about a total decline of approximately 30 percent…

“We saw this tremendous net loss across the entire bird community,” says Ken Rosenberg, an applied conservation scientist at the Cornell Lab of Ornithology in Ithaca, N.Y. “By our estimates, it’s a 30% loss in the total number of breeding birds.”

Could humanity survive without birds?

Probably, but this is yet another sign that the planetary food chain is in the process of totally breaking down. Despite all of our advanced technology, we are not going to survive without an environment that supports life, and at this moment that environment is being destroyed at a staggering pace.

According to the lead author of the study, the evidence they compiled “showed pervasive losses among common birds across all habitats, including backyard birds”…

“Multiple, independent lines of evidence show a massive reduction in the abundance of birds,” said study lead author Ken Rosenberg, a senior scientist at the Cornell Lab of Ornithology and American Bird Conservancy, in a statement. “We expected to see continuing declines of threatened species. But for the first time, the results also showed pervasive losses among common birds across all habitats, including backyard birds.”

I like having birds in my backyard. In fact, I wish that I had a whole lot more.

Two of the largest factors being blamed for this stunning decline are “toxic pesticides” and “insect decline”. We have already talked about the “insect apocalypse” which is raging all around us, but I should say a few words about pesticides. Yes, they may help to protect our crops and our lawns, but in the process we are literally poisoning everything.

And that includes ourselves. According to the Centers for Disease Control and Prevention, “there are traces of 29 different pesticides in the average American’s body”, and many believe that this is one of the reasons why cancer rates have skyrocketed in recent decades.

These days it seems like just about everyone knows at least one person with cancer. If you are one of those rare people that doesn’t know a single person with cancer, please leave a comment below, because I would love to hear your story. It has been estimated that one out of every three women and one out of every two men will get cancer in their lifetimes, but considering the rate that we are currently polluting our environment those estimates may be too conservative.

Without a doubt, several of the big pesticide companies are some of the most evil corporations on the entire planet, and yet most Americans don’t really seem to care about the death and destruction that they have unleashed all around us.

As with so many other things, this is yet another example that shows that we have no future on the path that we are currently on, and the clock is ticking.

Don’t you want a world in which the birds sing to you in the morning? Pete Marra, one of the scientists involved in the study, told the press that a number of bird species “that were very common when I was a kid” are among those being hit the hardest…

“We can all talk through the stories about there being fewer and fewer birds, but it’s not until you really put the numbers on it that you can really grasp the magnitude of these results,” Marra said. “We’re now seeing common species that have declined, things like red-winged blackbirds and grackles and meadowlarks — species that I grew up with, that were very common when I was a kid. That is the most surprising and most disturbing part.”

Everywhere around us, we can see decay, decline or collapse. This stunning drop in the bird population is just one more example.

But just like with so many other issues, most people don’t really care, and most people certainly don’t want to change.

So in the end we will reap what we have sown, and it will not be pleasant.

Is There A Hidden Political Agenda? The Mainstream Media Is Suddenly Full Of Stories About The Coming Recession

August 15, 2019August 15, 2019 by Michael

All of a sudden, it seems like the mainstream media just can’t stop talking about “the coming recession”. If you go to Google News and type in the word “recession”, you will literally get dozens of articles from the last couple of days with “recession” in the headline. And of course it is true that there are signs of global economic trouble all around us, and I have been documenting them on my website all throughout 2019. So we don’t want to criticize the mainstream media when they actually decide to tell the truth, because a recession is definitely coming, but could it be possible that there is also a hidden political agenda at work? The economy is generally regarded to be one of the bright spots for President Trump, and political operatives on the left clearly understand that a major economic downturn now would spell almost certain doom for Trump’s chances of winning the 2020 election. And when mainstream reporters talk about the possibility of a recession as we approach the next election, many of them almost seem gleeful as they describe how it could hurt Trump politically. Ultimately, when things start to really get bad it is inevitable that the mainstream media will place the blame directly at the feet of Trump. It is easy to imagine a narrative along the lines of “Trump’s handling of the economy has plunged the nation into a recession” being relentlessly pounded into the heads of American voters over the next year. And if the end result is Trump being voted out of office, more than 90 percent of those that work for the big news companies will be just fine with that.

This week, we have seen an absolute explosion in the number of stories about the possibility of an imminent recession. The following are just a few of the stories I came across while doing research earlier today…

–A global recession may be coming a lot sooner than anyone thought

–Recession watch: 6 financial moves to make when the economy slows down

–Trump 2020 can’t afford a recession

–The recession question we should be asking isn’t ‘when’ but ‘how bad?’

–Recession fears explained in one simple sentence

–Recession ahead? Dow, stocks tank on fears that bond market signals a downturn

–Recession indicator with perfect track record flashing red

–Recession signs are flashing, but Americans are still shopping at Walmart

–Worried about a recession? Don’t panic, but be prepared

Of course many of these stories were sparked by a major event that we just witnessed on Wall Street. The following comes from Fox Business…

The yield curve is blaring a recession warning.

The spread between the U.S. 2-year and 10-year yields on Wednesday turned negative for the first time since 2007. Such a development has occurred ahead of each and every U.S. recession of the last 50 years, sometimes leading by as much as 24 months.

Yes, it is possible that the yield curve could be wrong this time, but I wouldn’t bet on it.

And the economic news that is coming in from all over the world just continues to confirm that conditions are deteriorating. On Thursday, we learned that U.S. manufacturing has slumped back into contraction territory, and earlier this week we got some really troubling news from Germany and China…

Germany – Europe’s largest economy – reported that its gross domestic product, a measure of an economy’s health, went negative in the second quarter.

In China, the country’s industrial output in July hit a 17-year low, Detrick said. Retail sales and investment in real estate and other fixed assets weakened, an indication the world’s second-biggest economy is feeling pressure.

So it isn’t as if the mainstream media is being dishonest with us in this case. Global economic activity is most definitely slowing down, and many believe that things will get much worse during the second half of this year.

And a global economic slowdown would be terrible news for the Trump campaign, because their entire narrative depends on President Trump making the economy great again. A substantial percentage of American voters are convinced that since he is a billionaire, Trump must really understand the economy very well. And according to a CNN poll from earlier this year, the performance of the economy is one of the main reasons for his current level of support…

Right now, the main reason voters approve of Trump’s job performance is the economy. A CNN poll from late May found that 26% of those who approve of Trump’s job performance said it was mainly because of the economy. That was more than double the next most commonly given answer. Additionally, 8% said jobs/unemployment was the main reason for why they approved of Trump. Among those who disapproved, few said anything related to the economy was the main reason why they disapproved of Trump. For example, only 1% said the Trump tax cuts.

But if the U.S. economy plunges into a painful recession, the game completely changes.

For those on the left that would like to see Trump voted out in 2020, the timing of the next recession will be key. If the next recession doesn’t begin until the second half of 2020, there may not be enough economic pain before November to swing the election in the favor of the Democratic candidate. So what the left really needs is for a recession to begin during the second half of 2019 or the first half of 2020 so that Americans are really suffering by the time election day rolls around.

I know that is a very sick way to think, but these are the sorts of conversations that these people actually have. For example, on his own television show Bill Maher publicly stated that a recession would be “worth it” if Trump is voted out in 2020. As we approach the next election, many on the left will be so desperate to see Trump gone that they will be willing to pay just about any price to see that happen.

And to be honest, the U.S. economy is definitely way overdue for a major downturn, and so it is only prudent to get prepared for rough times ahead. At this point, even USA Today is providing us with “recession survival tips”…

Do you really need that bundle package from your cable provider, or to pay a gardener to mow your lawn every week? Now might be a good time to figure out what’s an essential expense, and what you can let go.

“Review the family budget to see what could be reduced or cut if there was a sudden drop in monthly income,” says Richard Fleming, a certified financial planner based in Colorado Springs, Colorado. “Be prepared to make those reductions (or) cuts as soon as it becomes necessary.”

That is actually really good advice.

Now is a time to cut costs, get out of debt and build up your emergency fund.

The coming year promises to be quite chaotic, and those that hate President Trump are likely to pull out all the stops in an all-out attempt to get him voted out in 2020.

This Wasn’t Supposed To Happen: U.S. Employment Growth Just Plunged To The Lowest Level In 9 Years

June 5, 2019 by Michael

If the U.S. economy was heading into a recession, we would expect to see a slowdown in the employment numbers, and that is precisely what is happening. According to payroll processing firm ADP, the U.S. economy only added 27,000 new jobs in May, and that is way below the number that is needed just to keep up with population growth. Of course some in the mainstream media are attempting to put a positive spin on this, but there really is no denying that this is a truly awful number. In fact, we have not seen a number this bad in more than 9 years…

Job creation skidded to a near-halt in May in another sign that the U.S. economic momentum is slowing.

Companies added just 27,000 new positions during the month, according to a report Wednesday from payroll processing firm ADP and Moody’s Analytics that was well below Dow Jones estimates of 173,000.

The reading was the worst since around the time the economic expansion began and the jobs market bottomed in March 2010 with a loss of 113,000.

9 years is a very long time, but this terrible employment number is perfectly consistent with all of the other horrible economic numbers that have been rolling in lately.

Time after time in recent weeks I have been using phrases such as “since the last recession” to describe what we are witnessing. The U.S. economy has not been in such rough shape in nearly a decade, and things just keep getting worse.

So how did Wall Street respond to the latest employment news?

Actually, stock prices surged, because investors are super excited about the prospect that the Federal Reserve could soon lower interest rates…

Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles.

The Dow Jones Industrial Average rose 207.39 points to 25,539.57, while the S&P 500 advanced 0.8% to 2,826.15. The Nasdaq Composite closed 0.6% higher at 7,575.48.

Pushing interest rates all the way to the floor certainly helped the stock market recover after the last recession, but this time around there is a major twist.

The U.S. is currently engaged in a major trade war with China, and the normal tools that the Fed utilizes may not be powerful enough to overcome the negative effects of such a conflict.

And to make things worse, now the U.S. is also starting a trade war with Mexico. On Wednesday, President Trump made it clear that “not nearly enough” progress had been achieved during negotiations with Mexican officials…

President Donald Trump said “not nearly enough” progress was made in talks with Mexico to mitigate the flow of undocumented migrants and illegal drugs, raising the likelihood that the U.S. will follow through with tariffs next week.

So tariffs will be slapped on Mexican goods starting on Monday, and President Trump seems quite excited about this…

“If no agreement is reached, Tariffs at the 5% level will begin on Monday, with monthly increases as per schedule,” Trump tweeted Wednesday. “The higher the Tariffs go, the higher the number of companies that will move back to the USA!”

Of course the Mexicans will almost certainly retaliate, and both countries will start seeing higher prices and significant job losses.

In fact, one study has concluded that the U.S. economy could lose more than 400,000 jobs as a result of these tariffs on Mexico. The following comes from CNN…

If the 5% US tariff on all goods from Mexico takes effect and is maintained, more than 400,000 jobs in the United States could be lost, an analysis released this week found.

The tariffs on Mexico, set to go in effect on Monday, would cost Texas alone more than 117,000 jobs, according to the analysis by The Perryman Group, an economic consulting firm. Texas is Mexico’s largest export market, making the two economies closely intertwined.

And the truth is that those numbers could actually be on the low side.

According to Marc Thiessen, a trade war with Mexico would literally put millions of U.S. jobs at risk…

Indeed, Mexican tariffs could be even more devastating for Americans than those imposed on China. Deutsche Bank estimates the tariffs could raise the average price of automobiles sold in the United States by $1,300. Indeed, U.S. and Mexican auto-supply chains are so deeply integrated that many parts cross the border multiple times before they end up in a finished vehicle — which means they would be hit by tariffs multiple times, compounding costs. Ten million U.S. workers’ jobs depend on this supply chain; tariffs would put those jobs at risk, including those of the “forgotten Americans” in the industrial Midwest whose jobs Trump vowed to protect.

We shall see what happens, but the outlook for the U.S. economy for the rest of this year is not good at all, and beyond that things look exceedingly grim.

Hopefully I am wrong, but it certainly appears that a major economic downturn is developing just in time for the 2020 presidential election.

There is one more thing that I would like to mention before I wrap up this article. This week, a Russian news source reported that Russia and China “will sign an agreement” regarding the use of their own national currencies in bilateral trade with one another…

Russia and China will sign an agreement on possible payments in national currencies. A decree of the Russian government on signing of a relevant agreement with the Chinese side was released on the official portal of legal information on Wednesday.

According to the draft decree approved through that government document, “settlements and payments for goods, service and direct investments between economic entities of the Russian Federation and the People’s Republic of China are made in accordance with the international practice and the legislation of the sides’ states with the use of foreign currency, the Russian currency (rubles) and the Chinese currency (yuan).”

In other words, they are dumping the dollar in favor of their own national currencies when trading with each other. This is a direct threat to the international dominance of the U.S. dollar, and other countries have been discussing similar moves.

For decades, the U.S. dollar has essentially been a global currency. More dollars are actually used outside of the United States than within this country, and most Americans don’t realize that.

This has given us some enormous advantages in the global marketplace, and it could be just a matter of time before those advantages begin to disappear.

Things that used to take months or years to happen are now happening in a matter of days. The pace of change is really picking up, and right now the momentum of events is heading in a direction that is definitely not favorable to the United States.

Goodbye Middle Class: The Percentage Of Wealth Owned By The Top 10% Just Got Even BIGGER

June 4, 2019June 4, 2019 by Michael

The middle class in America is being systematically eviscerated, and it is getting worse with each passing year. As you will see below, one new study has found that 10 percent of Americans now own 70 percent of all the wealth. Once upon a time, the United States had the largest and most vibrant middle class in the history of the world, but pretty soon we are just going to have the ultra-wealthy and everyone else. Our system has been designed to funnel as much wealth as possible to the very top of the financial pyramid, and that means that most of the rest of us are deeply struggling. And when you are just barely getting by from month to month, all it takes is one bad break to knock you completely out of the middle class and into poverty.

I have been chronicling the demise of the middle class for many years, but I didn’t know that the numbers had gotten this bad. According to a study that was recently conducted by the Federal Reserve, the percentage of wealth controlled by the top 10 percent of U.S. households has shot up from 60 percent in 1989 to 70 percent today…

Deutsche Bank’s Torsten Sløk says that the distribution of household wealth in America has become even more disproportionate over the past decade, with the richest 10% of U.S. households representing 70% of all U.S. wealth in 2018, compared with 60% in 1989, according to a recent study by researchers at the Federal Reserve.

The study finds that the share of wealth among the richest 1% increased to 32% from 23% over the same period.

The ironic thing is that the Federal Reserve has actually done much to cause this high concentration of wealth among the elite. In response to the last financial crisis, the Federal Reserve pumped unprecedented amounts of money into the financial system, and this has created the greatest stock market bubble in our history…

The Dow Jones Industrial Average DJIA, +2.06% has climbed nearly 300% since its closing low in March 2009, the S&P 500 index SPX, +2.14% has climbed 325%, while the Nasdaq Composite Index COMP, +2.65% has soared 535% over the same period.

Meanwhile, wages have stagnated for ordinary Americans. According to the Social Security Administration, the median yearly wage in the United States is currently just $30,533. In other words, 50 percent of all American workers make at least that much per year, and 50 percent of all American workers make that much or less per year.

$30,533 a year breaks down to approximately $2,500 per month, and you simply can’t support a middle class lifestyle for a typical American family on $2,500 a month.

Meanwhile, the cost of living for middle class families has exploded higher over the past few decades…

Everyday expenses continue to rise, and as the shadow inflation increases, it also threatens to wipe out the middle class – what’s left of it anyway. In fact, middle-class life is now 30% more expensive than it was 20 years ago, according to a separate report by CNBC. The cost of things such as college, housing, and child care has risen precipitously: Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled, Alissa Quart, author and executive director of the Economic Hardship Reporting Project, tells CNBC Make It.

As the cost of living has risen faster than our incomes have, more Americans have been squeezed out of the middle class with each passing month.

As a result, an increasing number of Americans have become financially dependent on the government, and our rapidly expanding welfare state is a big reason why the federal government is now 22 trillion dollars in debt.

Of course many Americans are no longer able to make it at all, and the ranks of the homeless are swelling all over the nation. In fact, we just got some brand new numbers about the growth of homelessness in the Los Angeles area that are absolutely eye-popping…

The number of homeless people counted across Los Angeles County jumped 12% over the past year to nearly 59,000, with more young and old residents and families on the streets, officials said Tuesday.

The majority of the homeless were found within the city of Los Angeles, which saw a 16% increase to 36,300, the Los Angeles Homeless Services Authority said in presenting January’s annual count to the county Board of Supervisors.

Yes, it is true that we have a record number of millionaires on the west coast in 2019, but meanwhile our major west coast cities are being transformed into rotting, decaying nightmares right in front of our eyes.

During a recent interview with Laura Ingraham, Dr. Drew Pinsky admitted that there is “a complete breakdown of the basic needs of civilization in Los Angeles right now”…

“We have a complete breakdown of the basic needs of civilization in Los Angeles right now,” Pinsky told host Laura Ingraham. “We have the three prongs of airborne disease, tuberculosis is exploding, (and) rodent-borne. We are one of the only cities in the country that doesn’t have a rodent control program, and sanitation has broken down.”

Pinsky’s comments followed news that Los Angeles police officer had contracted typhoid fever, a rare and life-threatening illness that fewer than 350 Americans contract each year.

Los Angeles had a typhus outbreak last summer and will likely have another this summer, Pinsky said. Meanwhile, bubonic plague – a pandemic that killed tens of millions of people during the 14th century – is “likely” already present in Los Angeles, Pinsky added.

Despite all of our great wealth and despite all of our advanced technology, this is what life is like in our second largest city right now.

And if things are degenerating this badly during stable times, what are things going to look like once our society plunges into chaos?

Ultimately, the American Dream is about being self-sufficient. Most people want to be able to work hard and provide a nice life for their families, but that is becoming harder and harder to do.

No matter which political party has been in power in Washington, the middle class has continued to shrink and more wealth and power has become concentrated in the hands of the elite.

Now we stand on the precipice of the next major economic downturn, and many are deeply concerned about what that is going to mean for the future of our society.

Even Before The Recession Has Officially Begun, Some Large U.S. Firms Are Laying Off Thousands Of Workers

May 20, 2019 by Michael

If the U.S. economy is “booming” and very bright days are ahead, then why are many large U.S. corporations laying off thousands of workers? Layoffs are starting to come fast and furious now, and this is happening even though the coming recession has not even officially started yet. Of course many are convinced that we are actually in a recession at this moment. In fact, according to John Williams of shadowstats.com if the government was actually using honest numbers they would show that we have been in a recession for quite some time. But the narrative that the mainstream media keeps feeding us is that the U.S. economy is “doing well” and that the outlook for the future is positive. Well, if that is true then why are big companies laying off so many workers right now?

Let’s start by talking about Ford Motor Company. On Monday, they announced that they will be laying off approximately 7,000 workers…

Ford Motor said Monday that it is laying off about 7,000 managers and other salaried employees, about 10% of its white-collar workforce across the globe, as part of a restructuring plan designed to save the No. 2 automaker $600 million annually.

The cuts, some of which were previously announced by the company, will be completed by August, Ford CEO Jim Hackett said in an email to employees Monday.

If the U.S. economy was about to take off like a rocket, this move doesn’t make any sense at all.

But if we are headed into a recession, this move makes perfect sense.

Another large firm that is laying off thousands of workers is Nestle…

Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.

And we also recently learned that 3M is planning to get rid of about 2,000 workers…

3M plans to cut 2,000 globally as part of a restructuring due to a slower-than-expected 2019.

The maker of Post-it notes, industrial coatings and ceramics said Thursday that the move is expected to save about $225 million to $250 million a year. The St. Paul Minnesota-based company anticipates a pretax charge of about $150 million, or 20 cents per share, this year.

Did you catch that part about these layoffs being due to “a slower-than-expected 2019”?

Unfortunately, things are slow for a lot of companies out there these days.

Another company that is dumping a large number of workers is MGM Resorts…

MGM Resorts International MGM, -2.09% plans to cut about 1,000 positions by the end of the current quarter amid a cost-cutting and operational overhaul that calls for fewer managers across its properties.

That figure includes some 254 positions that the company moved to eliminate last week.

In addition, Dressbarn just announced that all of their stores will be closing…

Dressbarn is closing all of its stores.

The women’s retailer announced Monday “plans to commence a wind-down of its retail operations, including the eventual closure of its approximately 650 stores.”

I am not sure how many employees they have per store, but even if it is just a handful we are talking about the loss of thousands of jobs.

The U.S. economy has been slowing down for months, and now the complete breakdown of trade talks with China threatens to plunge us into a prolonged trade war. As I noted in another article, a couple of different studies have concluded that an extended trade war could literally cost our economy millions of lost jobs.

And once the job losses start rolling, they can really get out of hand very quickly. We saw this in 2008, and it is just a matter of time until we see it happen again.

On Sunday, a reader sent me an article about a factory closing that was happening in her neck of the woods in Pennsylvania. One worker that was laid off said that the closure of the facility “was the final kick in the gut”…

Robert and Brooks Gronlund, owners of Wood-Mode Inc., wrote a text to workers Friday, saying they “are extremely appreciative” of the employees’ contributions and commitments. The company owners then confirmed all of them were terminated, as were their benefits.

“It was the final kick in the gut,” Michele Sanders, a 22-year employee of the company, said Saturday.

The privately-owned company in Kreamer, which produced custom wood cabinets, shut its doors Monday, leaving nearly 1,000 people without jobs. The abrupt closure of the plant stunned workers and community leaders.

So now almost 1,000 people do not have a way to support themselves and their families.

We are talking about hard working people with real hopes and real dreams.

Kreamer is a very small town. According to Wikipedia, only 773 people live within the city limits, and so obviously there are not a lot of employment opportunities in the town.

And if those workers are anything like the rest of the U.S. population, most of them were probably living paycheck to paycheck.

I keep encouraging my readers to build an emergency fund, because you never know when you will be next on the employment chopping block. I personally know a number of people that have just lost their jobs, and it can be an absolutely devastating experience.

Unfortunately, it looks like what we have witnessed so far is just the beginning. All of the numbers tell us that economic activity is slowing down, and so we should all get ready to potentially face a rapidly deteriorating economic environment during the second half of 2019.

Top U.S. Officials Gather To Discuss “Military Options” In Venezuela As Russia Warns Of “Grave Consequences” If America Invades

May 1, 2019 by Michael

On Wednesday afternoon, senior U.S. officials gathered at the White House to discuss possible military options for Venezuela. Meanwhile, the Russians are warning of grave consequences if the U.S. invades, and so the stage is being set for a potential showdown between the world’s two foremost military powers. Previously, administration officials had hoped that the Venezuelan people would rally around Juan Guaido to such a degree that it would not require military intervention to oust Venezuelan President Nicolas Maduro, but that hasn’t happened. In fact, Guaido’s big push to start a revolution in the streets over the past few days has ended up being a total flop. The following comes from Yahoo News…

Guaido had called for the “largest march” in Venezuela’s history and said on Twitter that “millions of Venezuelans” were in the streets in “this final phase” of his move to oust Maduro.

But by late afternoon, many of the protesters in the capital Caracas were drifting home.

Despite Guaido’s calls for the military to support him, the armed forces leadership has so far remained loyal to Maduro, who has been in power since 2013.

In the long-term, the situation in Venezuela isn’t going to change much if the U.S. is able to replace one socialist president (Maduro) with another socialist president (Guaido). Socialism always ends badly, and the people of Venezuela are going to have to decide for themselves that they don’t want socialism any longer.

But that isn’t what this is about. U.S. officials have decided that it is time to impose their will on the people of Venezuela, and they have determined that Maduro must go. If Guaido cannot create a successful internal revolution, then other options will be explored.

And as I mentioned in the opening paragraph, there was a very, very important gathering of top U.S. officials at the White House on Wednesday afternoon…

Senior U.S. administration officials, including Secretary of State Mike Pompeo, acting Defense Secretary Patrick Shanahan, Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford, and National Security Advisor John Bolton, will meet at the White House Wednesday afternoon. With the situation on the ground still “extraordinarily fluid,” according to Shanahan, the U.S. says it is still weighing military options.

Don’t you wish that you could have been a fly on the wall for that meeting?

Of course we already know what Pompeo and Bolton are thinking. This is what Pompeo just told Fox Business…

“Military action is possible. If that’s what’s required, that’s what the United States will do.”

In other words, if Guaido can’t get the job done, our boys and girls are going in.

And John Bolton has repeatedly insisted that “all options are on the table” regarding Venezuela, and he just told reporters the following about potential Russian interference…

“This is our hemisphere,” he told reporters outside the White House. “It’s not where the Russians ought to be interfering. This is a mistake on their part. It’s not going to lead to an improvement of relations.”

So precisely what would Bolton like us to do about it?

The Russians already have troops and military equipment in Venezuela, and they are there with the permission of the Venezuelan government. Does Bolton really want us to attack and risk a war with Russia?

And for what? Venezuela certainly has a lot of oil, but the truth is that there is no fundamental national security interest at stake in Venezuela.

Unfortunately, there is a growing consensus in Washington that something must be done about Venezuela, and the hysteria has already reached absolutely ridiculous levels. For example, just consider the words of U.S. Senator Rick Scott…

“Here is what is going to happen. We are in the process, if we don’t win today, we are going to have Syria in this hemisphere. So, we can make sure something happens now, or we can deal with this for decades to come. If we care about families, if we care about the human race, if we care about fellow worldwide citizens, then we’ve got to step up and stop this genocide.”

Did you catch that?

Apparently, if you are not in favor of a U.S. invasion of Venezuela, you don’t “care about families” and you don’t “care about the human race” either.

In response to those comments, this is what Tucker Carlson had to say…

When was the last time we successfully meddled in the political life of another country? Has it ever worked? How are the democracies we set up in Iraq, in Libya, in Syria, and Afghanistan right now? How would Venezuela be different? Please explain — and take your time.

Are we prepared for the refugees a Venezuelan war would inevitably produce? A study by the Brookings Institution found that the collapse of the Venezuelan government could force eight million people to leave the country. Many of them would come here. Lawmakers in this country propose giving them temporary protected status that would let even illegal arrivals live and work here, in effect, permanently, as many have before, with no fear of deportation. Are we prepared for that?

If we are going to ask members of our military to shed their blood, it had better be for a really, really good reason.

And switching out one socialist leader for another socialist leader in Venezuela definitely does not qualify.

Of course that is the best case scenario.

In a worst case scenario, a U.S. military invasion of Venezuela would spark a war with Russia, and the Russians are making it very clear that there will be “grave consequences” if we attack…

Russian Foreign Minister Sergei Lavrov told Pompeo by phone on Wednesday that further “aggressive steps” in Venezuela would have grave consequences, Russia’s Foreign Ministry said.

Meanwhile, the U.S. is getting dangerously close to war with Iran as well. The Iranians are threatening to close the Strait of Hormuz in retaliation for Washington cutting off all their oil exports, and if the Strait of Hormuz gets shut down all hell could break loose.

U.S. officials want to “get tough” with all of our enemies around the world, and that is fine as long as you know what are you doing.

Because even one miscalculation can result in missiles flying back and forth, and once peace is taken from the Earth things could get wildly out of control very rapidly.

So let us hope that cooler heads prevail, because right now we are quickly approaching a tipping point.

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