18 Signs That Massive Economic Problems Are Erupting All Over The Planet

Volcano Eruption - Mount RedoubtThis is no time to be complacent.  Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine.  In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing.  Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer.  Just look at what is happening in Europe.  The eurozone is now in the midst of the longest recession that it has ever experienced.  Just look at what is happening over in Asia.  Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control.  One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have “kicked the can down the road” by recklessly printing money and by borrowing money at an unprecedented rate.  Unfortunately, the “sugar high” produced by those foolish measures is starting to wear off.  We are going to experience a massive amount of economic pain along with the rest of the world – it is just a matter of time.

But for the moment, there are a lot of skeptics out there.

For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead.

Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe.

The following are 18 signs that massive economic problems are erupting all over the planet…

#1 The eurozone is now in the midst of its longest recession ever.  Economic activity in the eurozone has declined for six quarters in a row.

#2 Italy’s economy has now been contracting for seven quarters in a row.

#3 Industrial production in Italy has fallen for 15 months in a row.  It has now fallen to its lowest level in about 25 years.

#4 The number of people that are considered to be “seriously deprived” in Italy has doubled over the past two years.

#5 Consumer confidence in France has just hit a new all-time low.

#6 The number of unemployed workers seeking a job in France has hit a brand new all-time record high.  Many unemployed workers in France are utterly frustrated at this point…

“I’ve sent CVs everywhere, I come to the unemployment agency every day, for 3 or 4 hours to look for work as a truck driver and there’s never anything,” said 42-year old Djamel Sami, who has been unemployed for a year, leaving a job agency in Paris.

#7 Unemployment in the eurozone as a whole has just hit a brand new all-time record high of 12.2 percent.

#8 Youth unemployment continues to soar to unprecedented heights in Europe.  The following is from an article that was recently posted on the website of the Guardian that detailed how bad things are getting in some of the worst countries…

In Greece, 62.5% of young people are out of work, in Spain it’s 56.4%, then Portugal with 42.5%, and then Italy with 40.5%.

#9 Youth unemployment is being partially blamed for the worst rioting that Sweden has seen in many years.  The following is how the Daily Mail described the riots…

Sweden is reeling after a third night of rioting in largely run-down immigrant areas of the capital Stockholm.

In the last 48 hours violence has spread to at least ten suburbs with mobs of youths torching hundreds of cars and clashing with police.

It is Sweden’s worst disorder in years and has shocked the country and provoked a debate on how Sweden is coping with youth unemployment and an influx of immigrants.

#10 An astounding 10 percent of all banking deposits were pulled out of banks in Cyprus during the month of April alone.

#11 Economic growth in India is the slowest that it has been in an entire decade.

#12 Suddenly Australia is experiencing some tremendous economic challenges.  The following quotes are from a recent Zero Hedge article

-“We’re seeing a much sharper contraction in the Australian economy than we’d anticipated four or five months ago”. Coffey MD, John Douglas. The engineering group has seen its shares, which traded above $4 in 2007, hit 10c last week.

-“By 10am, the Fitness First gym in the city is packed full of brokers who’ve had a gutful of sitting at their desk doing nothing – salary cuts are starting and next it will be jobs” Perth broker

-“Oh mate, the funding market is dead. You are now seeing a few deeply discounted rights issues for those that are reaching desperate levels ….. liquidity has completely disappeared” Perth broker

#13 The financial system in Japan is beginning to spin wildly out of control.  The Japanese stock market has now declined about 15 percent from the peak, and many believe that the yen will continue to get weaker and that interest rates in Japan will start to rise significantly.

#14 Global cash flow is declining at a rate not seen since the last recession.  This indicates that we could be headed for a global credit crunch.

#15 Real wages continue to decline in the United States.  Even though we are being told that the U.S. is experiencing an “economy recovery”, real weekly earnings have declined from $297.79 in 2010 to $295.49 in 2011 to $294.83 in 2012.  (The preceding calculation is based on 1982-1984 dollars)

#16 Wall Street is buzzing about the fact that “the Hindenburg Omen” appeared at the end of last week.  So exactly what is “the Hindenburg Omen”?  The following are the criteria that are used to determine whether it has appeared or not…

1. The daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.

2. The smaller of these numbers is greater than or equal to 69 (68.772 is 2.2% of 3126). This is not a rule but more like a checksum. This condition is a function of the 2.2% of the total issues.

3. That the NYSE 10 Week moving average is rising.

4. That the McClellan Oscillator ( a market breadth indicator used to evaluate the rate of money entering or leaving the market and interpretively indicate overbought or oversold conditions of the market)is negative on that same day.

5. That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs).

When the Hindenburg Omen makes an appearance, it supposedly means that the U.S. stock market is likely to experience a serious decline within the next 40 days.

#17 As I wrote about the other day, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years.  That means that lots of “smart money” has been getting out of the market and lots of “dumb money” has been pouring in.

#18 Margin debt on the New York Stock Exchange has set a new all-time high.  The following is from a recent Market Oracle article

Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 billion as the key stock indices hit new record-highs. (Source: New York Stock Exchange web site, last accessed May 29, 2013.) The highest margin debt ever reached prior to this was in July of 2007, when it stood just above $381.0 billion. At that time, just like today, the key stock indices were near their peaks and “buy now before it’s too late” was the prominent theme of the day

Whenever margin debt spikes like this, a stock market crash almost always follows.  If you doubt this, just check out the chart in this article.

Wall Street has had a good couple of years, but it has been a “false prosperity” that has been pumped up by reckless money printing by the Federal Reserve.  Just like all of the other stock market bubbles that we have seen in recent years, this one is going to burst too.  And as Marc Faber recently pointed out, this bubble has been particularly beneficial to the wealthy…

The Fed has been flooding the system with money. The problem is the money doesn’t flow into the system evenly. It doesn’t increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market – things like stocks, bonds, art, wine, jewelry, and luxury real estate.

Money-printing boosts the economy of the people closest to the money flow. But it doesn’t help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.

The fact that the U.S. stock market has set new all-time record high after new all-time record high in recent months means very little.  At this point, the stock market has become completely divorced from economic reality.  When this current bubble bursts, the adjustment is going to be very painful.  Wall Street will likely whine and complain and ask for more bailouts, but they may find that authorities are not nearly as sympathetic this time.

Much of the rest of the world is already experiencing the next major wave of the economic collapse.  Reckless money printing by the Fed and reckless borrowing and spending by the federal government may have delayed the inevitable in the United States for a little while, but those measures have also made our long-term problems even worse.

There was one piece of advice that Ben Bernanke included in his commencement speech to students at Princeton recently that I thought was particularly ironic…

“Don’t be afraid to let the drama play out.”

Will he take his own advice when the next great financial crisis strikes the United States?

That seems very unlikely.

Unfortunately, things are not going to be so easy to fix this next time.

What happened back in 2008 was just a preview.

What is coming next is going to absolutely shock the world.

25 Things That You Should Do To Get Prepared For The Coming Economic Collapse

25 Things That You Should Do To Get Prepared For The Coming Economic CollapseDo you think that you know how to prepare for the collapse of the economy?  If so, are you putting that knowledge into action?  In America today, people are more concerned about the possibility of an economic collapse than ever before.  It has been estimated that there are now three million preppers in the United States.  But the truth that nobody really knows the actual number, because a lot of preppers keep their “prepping” to themselves.  So what are all of those people preparing for exactly?  Well, survey after survey has shown that “economic collapse” is the number one potential disaster that preppers are most concerned about.  Of course that shouldn’t be surprising because we truly are facing economic problems that are absolutely unprecedented.  We are living in the greatest debt bubble in the history of the world, the global banking system has been transformed into a high-risk pyramid scheme of debt, risk and leverage that could collapse at any time, and wealthy countries such as the United States have been living way above their means for decades.  Meanwhile, the United States is being deindustrialized at a blinding pace and poverty in this country is absolutely exploding.  Anyone that is not concerned about the economy should have their head examined.  Fortunately, I have found that an increasing number of Americans are becoming convinced that we are heading for a horrific economic crisis.  Once they come to that realization, they want to know what they should do.

And the reality is that “getting prepared” is going to look different for each family based on their own unique circumstances.  Some people have a lot of resources, while others have very little.  Some people are very independent of the system and can move wherever they want, while others are totally dependent on their jobs and must stay near the cities at least for now.

In addition, it is important to distinguish between the “short-term” and the “long-term” when talking about economic collapse.  As I have written about previously, our economic collapse is not going to happen all at once.  It is going to unfold over time.  In the “short-term”, many are moving money around and are building up “emergency funds” to prepare for the next recession.  For the “long-term”, many are storing up food and huge stockpiles of survival supplies in order to be prepared for the total collapse of society.  Both approaches are wise, but it is important to keep in mind that different approaches will be needed at different times.

The strategies posted below are a mix of both short-term and long-term strategies.  Some will be important for our immediate future, while others may not be needed for a number of years.  But in the end, you will be very thankful for the time and the effort that you spent getting prepared while you still could.

The following are 25 things that you should do to get prepared for the coming economic collapse…

#1 An Emergency Fund

Do you remember what happened when the financial system almost collapsed back in 2008?  Millions of Americans suddenly lost their jobs, and because many of them were living paycheck to paycheck, many of them also got behind on their mortgages and lost their homes.  You don’t want to lose everything that you have worked for during this next major economic downturn.  It is imperative that you have an emergency fund.  It should be enough to cover all of your expenses for at least six months, but I would encourage you to have an emergency fund that is even larger than that.

#2 Don’t Put All Of Your Eggs Into One Basket

If the wealth confiscation in Cyprus has taught us anything, it is that we should not put all of our eggs in one basket.  If all of your money is in one single bank account, it would be easy to wipe out.  But if you have your money scattered around a number of different places it will give you a little bit more security.

#3 Keep Some Cash At Home

This goes along with the previous point.  While it is not wise to keep all of your money at home, you do want to keep some cash on hand.  If there is an extended bank holiday or if a giant burst from the sun causes the ATM machines to go down, you want to be able to have enough cash to buy the things that your family needs.  Just ask the people of Cyprus how crippling a bank holiday can be.  One way to keep your cash secure at home is by storing it in a concealed safe.

#4 Get Out Of Debt

A lot of people seem to assume that an economic collapse would wipe out all debts, but that will probably not be the case.  In fact, if you are in a tremendous amount of debt you will be very vulnerable if the economy collapses and you are not able to find a job.  Just ask the people who were overextended and lost their jobs during the last recession.  So please get out of debt.  Many debt collectors are becoming increasingly ruthless.  In many areas of the country they are now routinely putting debtors into prison.  You do not want to be a slave to debt when the next wave of the economic collapse strikes.

#5 Gold And Silver

In the long-term, the U.S. dollar is going to lose a tremendous amount of value and inflation is going to absolutely skyrocket.  That is one reason why so many people are investing very heavily in gold, silver and other precious metals.  All over the globe, the central banks of the world are recklessly printing money.  Everyone knows that this is going to end very badly.  In fact, there is already a push in more than a dozen U.S. states to allow gold and silver coins to be used as legal tender.  Someday you will be glad that you invested in gold and silver now while their prices were still low.

#6 Reduce Your Expenses

A lot of people claim that they can’t put any money toward prepping, but the truth is that we all have room to reduce our expenses.  We all spend money on things that we do not really need.  Those that are “lean and mean” will tend to do much better during the times that are coming.

#7 Start A Side Business

If you do not have much money, a great way to increase your income is by starting a side business.  And it does not take a lot of money – there are many side businesses that you can start for next to nothing.  And starting a side business will allow you to become less dependent on your job.  In this economic environment, a job could disappear at literally any time.

#8 Move Away From The Big Cities If Possible

For many people, this is simply not possible.  Many Americans are still completely and totally dependent on their jobs.  But if you are able, now is a good time to move away from the big cities.  When the next major economic downturn strikes, there will be rioting and a dramatic rise in crime in the major cities.  If you are able to move to a more rural area you will probably be in much better shape.

#9 Store Food

Global food reserves have reached their lowest level in nearly 40 years.  As the economy gets even worse and global weather patterns become even more unstable, the price of food will go much higher and global food supplies will become much tighter.  In the long run, you will be glad for the money that you put into long-term food storage now.

#10 Learn To Grow Your Own Food

This is a skill that most Americans possessed in the past, but that most Americans today have forgotten.  Growing your own food is a way to become more independent of the system, and it is a way to get prepared for what is ahead.

#11 Nobody Can Survive Without Water

Without water, you would not even make it a few days in an emergency situation.  It is imperative that you have a plan to provide clean drinking water for your family when disaster strikes.

#12 Have A Plan For When The Grid Goes Down

What would you do if the grid went down and you suddenly did not have power for an extended period of time?  Anyone that has spent more than a few hours without power knows how frustrating this can be.  You need to have a plan for how you are going to provide power to your home that is independent of the power company.

#13 Have Blankets And Warm Clothing On Hand

This is more for emergency situations or for a complete meltdown of society.  During any major crisis, blankets and warm clothing are in great demand.  They also could potentially make great barter items.

#14 Store Personal Hygiene Supplies

A lot of preppers store up huge amounts of food, but they forget all about personal hygiene supplies.  During a long crisis, these are items that you would greatly miss if you do not have them stored up.  These types of supplies would also be great for barter.

#15 Store Medicine And Medical Supplies

You will also want to store up medical supplies and any medicine that you may need.  In an emergency situation, you definitely would not want to be without bandages and a first-aid kit.  Over the course of a long crisis, you do not want to run out of any medicines that are critical for your health.

#16 Stock Up On Vitamins

A lot of preppers do not think about this either, but it is very important.  These days, it is becoming increasingly difficult to get adequate nutrition from the foods that we eat.  That is why it is very important to have an adequate store of vitamins and other supplements.

#17 Make A List Of Other Supplies That You Will Need

During any crisis, there will be a lot of other things that you will need in addition to food and water.  The following are just a few basic things that it would be wise to have on hand…

– an axe

– a can opener

– flashlights

– battery-powered radio

– extra batteries

– lighters or matches

– fire extinguisher

– sewing kit

– tools

This list could be much, much longer, but hopefully this will get you started.

#18 Don’t Forget The Special Needs Of Your Babies And Your Pets

Young children and pets have special needs.  As you store supplies, don’t forget about the things that they will need as well.

#19 Entertainment

This may sound trivial, but the truth is that our entertainment-addicted society would become very bored and very frustrated if the grid suddenly went down for an extended period of time.  Card games and other basic forms of entertainment can make enduring a crisis much easier.

#20 Self-Defense

In the years ahead, being able to defend your home and your family is going to become increasingly important.  When the economy crashes, people are going to start to become very desperate.  And desperate people do desperate things.

#21 Get Your Ammunition While You Still Can

Your firearms will not do you much good if you do not have ammunition for them.  Already there are widespread reports of huge ammunition shortages.  The following is from a recent CNS News article

“The run on ammunition has manufacturers scrambling to accommodate demand and reassure customers, as many new and seasoned gun owners stock up over fears of new firearms regulations at both the state and federal levels.”

Don’t just assume that you will always be able to purchase large amounts of ammunition whenever you want.  Get it now while you still can.

#22 If You Have To Go…

Have a plan for what you and your family will do if you are forced to leave your home.  If you do have to go, the following are some items that you will want to have on hand…

– a map of the area

– a compass

– backpacks for every member of the family

– sleeping bags

– warm clothing

– comfortable shoes or hiking boots

#23 Community

One of the most important assets in any crisis situation is community.  If you have friends or neighbors that you can depend upon, that is invaluable.  The time spent building those bonds now will pay off greatly during a major crisis.

#24 Have A Back-Up Plan And Be Flexible

Mike Tyson once said the following…

“Everyone has a plan until they get punched in the mouth.”

No plan ever unfolds perfectly.  When your plan is disrupted, what will you do?

It will be imperative for all of us to have a back-up plan and to be flexible during the years ahead.

#25 Keep Your Prepping To Yourself

Do not go around and tell everyone in the area where you live about your prepping.  If you do, then you may find yourself overwhelmed with “visitors” when everything falls apart.

And please do not go on television and brag about your prepping to a national audience.

Prepping is something that you want to keep to yourself, unless you want hordes of desperate people banging on your door in the future.

For much more on prepping, please check out some of my previous articles…

– “Should You Move To Another Country To Escape The Collapse Of America? 10 Questions To Ask Yourself First

– “14 Questions People Ask About How To Prepare For The Collapse Of The Economy

– “Rise Of The Preppers: 50 Of The Best Prepper Websites And Blogs On The Internet

– “120 Powerful Pieces Of Advice For Preppers

Sadly, most Americans still have blind faith that our “leaders” actually know what they are doing and will be able to fix things.

Most Americans still are convinced that everything is going to be just fine.

And of course the mainstream media does all they can to reinforce faith in the system.  Day after day, we see mindless news headlines such as this: “Californians Champing at the Bit Over Powerball Debut“.

But if you are reading this article that means that you are probably much more awake than the average American is.

Please get prepared while you still can.

A great storm is coming, and time is quickly running out.

So do you have any points that you would add to the list above?  Please feel free to post a comment with your thoughts below…

Preppers - Time Is Running Out

Show This To Anyone That Believes That “Things Are Getting Better” In America

Show This To Anyone That Believes That Things Are Getting Better In AmericaHow can anyone not see that the U.S. economy is collapsing all around us?  It just astounds me when people try to tell me that “everything is just fine” and that “things are getting better” in America.  Are there people out there that are really that blind?  If you want to see the economic collapse, just open up your eyes and look around you.  By almost every economic and financial measure, the U.S. economy has been steadily declining for many years.  But most Americans are so tied into “the matrix” that they can only understand the cheerful propaganda that is endlessly being spoon-fed to them by the mainstream media.  As I have said so many times, the economic collapse is not a single event.  The economic collapse has been happening, it is is happening right now, and it will continue to happen.  Yes, there will be times when our decline will be punctuated by moments of great crisis, but that will be the exception rather than the rule.  A lot of people that write about “the economic collapse” hype it up as if it will be some huge “event” that will happen very rapidly and then once it is all over we will rebuild.  Unfortunately, that is not how the real world works.  We are living in the greatest debt bubble in the history of the world, and once it completely bursts there will be no going back to how things were before.  Right now, we are living in a “credit card economy”.  As long as we can keep borrowing more money, most people think that things are just fine.  But anyone that has lived on credit cards knows that eventually there comes a point when the game is over, and we are rapidly approaching that point as a nation.

Have you ever been there?  Have you ever desperately hoped that you could just get one more credit card or one more loan so that you could keep things going?

At first, living on credit can be a lot of fun.  You can live a much higher standard of living than you otherwise would be able to.

But inevitably a day of reckoning comes.

If the federal government and the American people were forced at this moment to live within their means, the U.S. economy would immediately plunge into a depression.

That is a 100% rock solid guarantee.

But our politicians and the mainstream media continue to perpetuate the fiction that we can live in this credit card economic fantasy land indefinitely.

And most Americans could not care less about the future.  As long as “things are good” today, they don’t really think much about what the future will hold.

As a result of our very foolish short-term thinking, we have now run up a national debt of 16.4 trillion dollars.  It is the largest debt in the history of the world, and it has gotten more than 23 times larger since Jimmy Carter first entered the White House.

The chart that you see below is a recipe for national financial suicide…

U.S. National Debt

Of course things have accelerated over the past four years.  Since Barack Obama entered the White House, the U.S. government has run a budget deficit of well over a trillion dollars every single year, and we have stolen more than 100 million dollars from our children and our grandchildren every single hour of every single day.

It is the biggest theft of all time.  What we are doing to our children and our grandchildren is beyond criminal.

And now our debt is at a level that most economists would consider terminal.  When Barack Obama first entered the White House, the U.S. debt to GDP ratio was under 70 percent.  Today, it is up to 103 percent.

We are officially in “the danger zone”.

If things really were “getting better” in America, we would not need to borrow so much money.

Our politicians are stealing from the future in order to make the present look better.  During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.

That is utter insanity!

If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

So what is the solution?

Get ready to laugh.

The most prominent economic journalist in the entire country, Paul Krugman of the New York Times, recently suggested the following in an article that he wrote entitled “Kick That Can“…

Realistically, we’re not going to resolve our long-run fiscal issues any time soon, which is O.K. — not ideal, but nothing terrible will happen if we don’t fix everything this year. Meanwhile, we face the imminent threat of severe economic damage from short-term spending cuts.

So we should avoid that damage by kicking the can down the road. It’s the responsible thing to do.

You mean that we might actually do damage to the debt-fueled economic fantasy world that we are living in if we stopped stealing so much money from future generations?

Oh the humanity!

It is horrifying to think that all that one of the “top economic minds” in America can come up with is to “kick the can” down the road some more.

Unfortunately, neither Paul Krugman nor most of the American people understand that our financial system is actually designed to create government debt.

The bankers that helped create the Federal Reserve intended to permanently enslave the U.S. government to a perpetually expanding spiral of debt, and their plans worked.

At this point, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was first created.

So why don’t the American people understand what the Federal Reserve system is doing to us?

It is because most of them are still plugged into the matrix.  A Zero Hedge article that I came across today put it beautifully…

US society in a nutshell: Chris Dorner has been around for a week and has 222 million results on Google; the Federal Reserve has been around for one hundred years and has 187 million results.

If nothing is done about our exploding debt, it is only a matter of time before we reach financial oblivion.

According to Boston University economist Laurence Kotlikoff, the U.S. government is facing a “present value difference between projected future spending and revenue” of 222 trillion dollars in the years ahead.

So how in the world are we going to come up with an extra 222 trillion dollars?

But it is not just the U.S. government that is drowning in debt.

Just check out this chart which shows the astounding growth of state and local government debt in recent years…

State And Local Government Debt

All over the United States there are state and local governments that are on the verge of bankruptcy.  Just check out what is going on in Detroit.  The only way that most of our state and local governments can keep going at this point is to also “kick the can” down the road some more.

And of course most of the rest of us are drowning in debt as well.

40 years ago, the total amount of debt in the U.S. economic system (government + business + consumer) was less than 2 trillion dollars.

Today, the total amount of debt in the U.S. economic system has grown to more than 55 trillion dollars.

Can anyone say bubble?

The good news is that U.S. GDP is now more than 12 times larger than it was 40 years ago.

The bad news is that the total amount of debt in our financial system is now more than 30 times larger than it was 40 years ago…

Total Credit Market Debt Owed

At the same time that we are going into so much debt, our ability to produce wealth continues to decline.

According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001.  That number dropped to 21.6 percent in 2011.  That is not just a decline – that is a nightmarish freefall.  Just check out the chart in this article.

We are becoming less competitive as a nation with each passing year.  In fact, the U.S. has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.

Most Americans don’t understand this, but the United States buys far more from the rest of the world than they buy from us each year.  In 2012, we had a trade deficit of more than 500 billion dollars with the rest of the world.

That means that more than 500 billion dollars that could have gone to U.S. workers and U.S. businesses went out of the country instead.

So how does our country survive if hundreds of billions of dollars more is flowing out of the country than is flowing into it?

Well, to make up the shortfall we go to the countries that we sent our money to and we beg them to lend it back to us.  If that doesn’t work, we just print and borrow even more money.

Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

That is 8 trillion dollars that could have saved U.S. businesses, paid the salaries of U.S. workers and that would have helped fund government.

But instead, our foolish policies have greatly enriched China and the oil barons of the Middle East.

Sadly, politicians from both political parties continue to boldly support the one world economic agenda of the global elite.

Just consider how destructive many of these “free trade” deals have been to our economy…

When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.

By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little “m”) for the entire year.

In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

In particular, our trade with China is extremely unbalanced.  Today, U.S. consumers spend approximately 4 dollars on goods and services from China for every one dollar that Chinese consumers spend on goods and services from the United States.

But isn’t getting cheap stuff from China good?

No, because it costs us good paying jobs.

According to the Economic Policy Institute, the United States is losing half a million jobs to China every single year.

Overall, more than 56,000 manufacturing facilities in the United States have been shut down since 2001.  During 2010, manufacturing facilities in the United States were shutting down at a rate of 23 per day.  How can anyone say that “things are getting better” when our economic infrastructure is being absolutely gutted?

The truth is that there are never going to be enough jobs in America ever again, because millions of our jobs are being sent overseas and millions of our jobs are being lost to technology.

You won’t hear this on the news, but the percentage of the civilian labor force in the United States that is employed has been steadily declining every single year since 2006.

Younger workers have been hit particularly hard.  In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent.  Today, the unemployment rate for that same age group is about 13 percent.

If you are under the age of 30 and you aren’t living with your parents, there is a really good chance that you are living in poverty.  If you can believe it, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.

Our economy has been steadily bleeding huge numbers of middle class jobs, and many of those jobs have been replaced by low paying jobs in recent years.

According to one study, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.

And at this point, an astounding 53 percent of all American workers make less than $30,000 a year.

Oh, but “things are getting better”, right?

Maybe if you live on Wall Street or if you are an employee of the federal government.

But for most families this economic decline has been a total nightmare.  Median household income in America has fallen for four consecutive years.  Overall, it has declined by over $4000 during that time span.

Sometimes people forget how good things were about a decade ago.  About three times as many new homes were sold in the United States in 2005 as were sold in 2012.

But we like to live in denial.

In fact, a lot of families are trying to keep up their standards of living by going into tremendous amounts of debt.

Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned.  By 2007, that figure had soared to $1.48.

Fake it until you make it, right?

But how much debt can our system possibly handle?

Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.

We are a nation that is completely addicted to debt, but as the financial crisis of 2008 demonstrated, all of that debt can have horrific consequences.

As the economy has slowed in recent years, the Federal Reserve has decided that “the solution” is to recklessly print money in an attempt to get the debt spiral cranked up again.

Have they gone overboard?  You be the judge…

Monetary Base 2013

And of course this won’t have any affect on the value of the money that you have been saving up all these years right?

Wrong.

Every single dollar that you own is continually losing value…

Purchasing Power Of The Dollar

Overall, the value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.

As the cost of living continues to go up and wages continue to go down, millions of American families have fallen out of the middle class and into poverty.

If you can believe it, the number of Americans on food stamps has grown from about 17 million in the year 2000 to more than 47 million today.

But “things are getting better”, right?

Incredibly, more than a million public school students in the United States are homeless.  This is the first time that has ever happened in our history.

But “things are getting better”, right?

There are now 20.2 million Americans that spend more than half of their incomes on housing.  That represents a 46 percent increase from 2001.

But “things are getting better”, right?

In 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 55.1 percent are covered by employment-based health insurance.

But “things are getting better”, right?

Today, more Americans than ever have found themselves forced to turn to the federal government for help.

Overall, the federal government runs nearly 80 different “means-tested welfare programs”, and at this point more than 100 million Americans are enrolled in at least one of them.

According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government.  Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.

So is it a good sign or a bad sign that the percentage of Americans that are financially dependent on the federal government is at an all-time high?

And in future years the number of Americans that are receiving benefits from the federal government is projected to absolutely skyrocket.

Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse.  It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

If you take a look at Medicare, things are very more sobering.

As I wrote recently, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for every single household in the United States.

Are you ready to contribute your share?

Social Security is a complete and total nightmare as well.

Right now, there are approximately 56 million Americans collecting Social Security benefits.

By 2035, that number is projected to soar to an astounding 91 million.

Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

Oh, but don’t worry because “things are getting better”, right?

I honestly do not know how anyone can look at the numbers above and come to the conclusion that the economy is in good shape.

We have accumulated the largest mountain of debt in the history of the world, our economic infrastructure is being gutted, we are bleeding good jobs, government dependence is at an all-time high and we are getting poorer as a nation with each passing day.

But other than that, everything is rainbows and lollipops, right?

If you want to see the economic collapse, just open up your eyes.

And if dramatic changes are not made quickly, things are going to get much, much worse from here.

Please share this article with as many people as possible.  Time is quickly running out and there are a whole lot of people out there that we need to wake up while we still can.

The Economic Collapse Is Happening

 

 

The Twinkie That Broke The Economy’s Back?

Can you hear that sound?  It is the sound of the air being let out of the economy.  Since the election, there has been a massive tsunami of layoffs and business failures.  Of course the company that is making the biggest headlines right now is Hostess.  On Monday, Hostess will be in a New York bankruptcy courtroom as it begins the process of liquidating itself.  Needless to say, Twinkie lovers all over America are horrified.  Many are running out to grocery stores and hoarding as many as they can find, and some online sellers are already listing boxes of 10 Twinkies for as much as $10,000 on auction websites such as eBay.  Well, there is really no reason to panic.  It is very likely that another company will purchase the Twinkie brand and continue to produce them.  In fact, it is already being rumored that a Mexican company may have the inside track.  But even though the Twinkie may survive, the failure of Hostess is yet another sign of how weak the U.S. economy has become.  Approximately 18,500 Hostess workers will be losing their jobs, and even if some of them are rehired by the company that takes over the Twinkie brand, the truth is that those workers will almost certainly be looking at greatly reduced pay and benefits.  Sadly, we are seeing this kind of thing happen all over America.  Large numbers of once thriving businesses are either shutting down or laying off workers.  Overall, the failure of Hostess is not that big of a deal for the U.S. economy.  But we may look back someday and remember Hostess as a symbol of the economic problems that were unleashed by the election of 2012.  Since November 6th, a wave of pessimism has swept over the economy and we are now seeing some of the worst economic numbers that we have seen in more than a year.  Many fear that we may have reached a tipping point and that things are only going to get worse from here.

Sadly, the reality is that Hostess is not the only iconic American company that is in a huge amount of trouble right now.  Sears just announced a loss of nearly 500 million dollars in the third quarter.  Sears has been bleeding money like this for a couple of years, and if they continue to do so it will just be a matter of time before Sears is headed for liquidation as well.

Can you imagine trying to explain the Sears catalog and Twinkies to future generations in a world where those things no longer exist?

Our world is changing at mind blowing speed, and the pace of change is only going to keep accelerating.

A few days after the election, I wrote an article about the huge number of layoff announcements that we saw after Barack Obama won.

Well, it has gotten even worse since then.  The following is a partial list of the layoffs and job losses that have been announced since November 6th…

Abbott Labs 700
Activision 30
Adventist Health 48
Airlines SAS 6000
AMD 400
American Cotton Growers 110
ArcelorMittal 20
American Independence Museum 4
Ameridose 790
American Airlines 4400 + 800 leaving voluntarily
American Coal 54
Atlantic Lottery Corporation 16
Assc Milk Producers 130
Aveo Oncology 45
ATI 172
Bankia 5000
Bechtel Power Corp 277
Bigpoint Games 47
Boston Scientific 1200
Brake Parts LLC 75
Brattleboro Retreat 31
Bristol Myers 500
Career Education 900 + Closing 23 Campuses
Cigna 1300
Citigroup 100
Commerzbank 6000
Consol Energy in W.V. 145
Covidien 595
Crouse Hospital Syracuse NY 70
Cummins 150
CVPH 27
DEP in Tallahassee FL 15
DuPont, Co. 64
Eagle-Tribune, Andover 21
Emanuel Medical Cente 24
Energizer Holdings 1500
Ericsson 1550
Exide Tech, Laureldale 150
City of Findlay, OH 39
First Energy 400
Gameforge Berlin 20
Gamesa Energy 92
GenOn Energy Inc 33
Glen Falls Hospital 29
Groupon 80
GT Advanced Tech 165
Harris’ Broadcast 17
Hawker Beechcraft 400 + Facilities closing
Hill Rom 200
Hills Holdings 300
HMX Group 567
Hostess 627
Iberia Airlines 4500
ICM of Colwich 25
ING 2350
Judson University 21
Juniper Networks 500
Kaiser Permanente 84
Kinetic Concepts 427
Kratos Defense Security 125
Lackawanna County PA 11
Lightyear Network Solutions 12+
Lonza 500
Majestic Star Casino/hotel 80
Major Wind Company 3000
Martha Stewart Living 70
Medtronic 1000
Mills Manufacturing NC 68
Momentive, Inc. 150
Monitor Group 235
Montco Behavioral Health/Dev 58
NBC 500
Nebraska Medical Center 38
Neovia Logistics Services 52
New Energy 40
Ormet 200
Panasonic 10000
PayPal 320
Penn Refrigeration 40
Penske Logistics 50
Pepsi 4000
Philips Electronics 218
Pierce Mfg 325
Pratt & Whitney Rocketdyne 100
Research in Motion 200
Rheem Manufacturing 50
Sentry Foods 70
Shaw’s Supermarket 700
Shawano foundry WI 90
Smith & Nephew 770
Smithfield Packing Co. 125
Solel Solar Systems 140
Southeastern Container 15
SpaceX 100
SRA Intl Inc 222
St. Jude Medical 300
Stryker 1170
Sulake 60
Sun Media 500
TE Connectivity 620
TECO Coal Corporation 90
Texas Instruments 1700
The Providence Journal Co 23
TMX Group Ltd. 100
Turbocare 220
Turkey Point Nuclear Plant 277
Oce North America, Inc. 135
Turbocare OCE 220
UBS 10000
US Cellular 980
UtahAmerican Energy Inc 102
Volvo Trucks Pulaski County 300
Wake Forest Baptist Medical 950
Welch Allyn 275
West Ridge Mine 102
Westinghouse 50
World Media Enterprises Inc 105
WPS Health Insurance 600
Wright Patterson AFB 115
Wyodak Coal Mine 11
Xerox 2500

Sadly, the list actually keeps going.  You can view the remainder of the list right here.

Even companies owned by Obama supporters are laying people off.  Just check out this excerpt from a report by CitizenLink

A corporation whose part owner gave $2 million to a group committed to re-electing President Obama announced this week that it will be forced to lay off more than 1,000 employees in lieu of the financial hardship imposed by the president’s signature health care law.

Overall, more than 100,000 job losses have been announced since the election.  It is almost as if the election was the straw that broke the camel’s back.  Everyone in the business community that had been hoping for something different now realizes that no change is coming.

Meanwhile, Obama continues to pour on even more rules and regulations.  According to CNSNews.com, the Obama administration has posted a total of 6,125 regulations on its reguations.gov website during the past 90 days.  Our politicians are clueless and they simply don’t understand what they are doing to the business community.

But of course this goes for politicians from both sides.  For decades we have been consuming far more than we produce and spending far more money then we bring in, and most of our politicians seem to be under the delusion that this can continue indefinitely.

The other night my wife had me watch a documentary entitled “The Queen of Versailles” that followed the lives of time share mogul David Siegel and his wife Jackie.  I found it to be a perfect metaphor for what America is going through right now.  David Siegel built the greatest time share empire the world has ever seen on a mountain of easy money and cheap credit.  At the beginning of the movie, David and Jackie were living the high life and were constructing the largest house in America down in Florida.

Well, things dramatically changed when the financial crisis of 2008 struck.  Suddenly nobody wanted to lend to David’s company and the house of cards started to crumble.  But even though they were facing massive financial problems, Jackie found it incredibly difficult to adjust her lifestyle.  She just kept spending and spending and spending.

It would be easy to pass judgment on David and Jackie, but the truth is that they are a perfect example of what this entire country is going through.  Thousands of businesses are failing, our economic infrastructure is being gutted, millions of jobs are being shipped overseas, our financial system has become a gigantic casino and we keep piling even more mountains of debt on top of the mountains of debt that we already have.  We have been living way above our means for so long that we don’t even have any concept of what “normal” is anymore.

If you have not seen “The Queen of Versailles” yet, I encourage you to do so.  Don’t watch it to laugh at the downfall of David and Jackie Siegel.  They are just trying to make their way in this world like all of us are.  Rather, watch for parallels between their lives and what the United States is experiencing as a whole.  As I mentioned earlier, I found their story to be a perfect metaphor for what is happening to this entire country.  You can find the trailer for “The Queen of Versailles” right here.

As the economy falls apart, it is going to be really easy to point fingers at one another and blame one another.  But what will really be needed is more love and compassion.  A lot of workers at Hostess and a lot of other good companies just lost their jobs.  The unemployment epidemic in this country is going to get a lot worse.  These people are going to need our love and support.

In the end, we are all in this together.  The coming economic storm is not going to be averted, but we can choose how we respond to it.  Hopefully the crisis that is coming will bring out the best in many of us.

14 Signs That The World Economy Is Getting Weaker

The United States is not the only one with massive economic problems right now.  The truth is that just about wherever you look around the globe things are getting even worse.  China is experiencing a substantial economic slowdown, and Japan has resorted to yet another round of money printing in an effort to keep the Japanese economy moving.  Unemployment in Europe continues to get even worse, and the riots this week in Spain and in Greece have been absolutely frightening at times.  In the United States there are a whole host of signs that another recession is approaching, and the number of American CEOs that say that they plan to eliminate jobs in the coming months is rapidly rising.  The world economy is more interconnected today than ever before, and that means that we are all in this together.  Just remember what happened back in 2008 and 2009.  The economic pain that started on Wall Street was felt in every corner of the planet.  So anyone that believes that the United States (or any other major nation for that matter) is going to escape the next wave of the economic crisis is simply not being realistic.  Why do you think central banks all over the world are in “panic mode” right now?  They are firing all of their ammunition and printing money like there is no tomorrow in an attempt to keep the system together.  Unfortunately, it is not going to work.

If the powers that be had an “easy button” that would quickly fix everything, they would have pressed it by now.  But despite all of their efforts things continue to unravel.  If you want to get an idea of where we are headed,  just look at what is already happening in Europe.   Unemployment has risen above 24 percent in Greece and above 25 percent in Spain.

Those two nations are on the “bleeding edge” of the next wave of economic problems.  Unemployment is rising almost everywhere else in Europe as well, and things are eventually going to get really bad in Asia and in North America too.

So hold on to your seat belts – it is going to be a bumpy ride.

The following are 14 signs from around the globe that the world economy is getting weaker….

#1 Things in China do not look good right now.  The Shanghai Composite index fell to its lowest point in over 3 years earlier this week.  Will the S&P 500 soon follow suit?

#2 The Bank of Japan has resorted to yet another round of money printing in a desperate attempt to try to bolster the faltering Japanese economy….

In Asia, the Bank of Japan has long been manufacturing money out of thin air. It has just announced an eighth round of money printing to prop up the ailing Japanese economy. The Bank of Japan is to purchase 10 trillion yen of bonds to add further liquidity into the financial system. Now it has 80 trillion yen of bonds in its portfolio, equivalent to 20 per cent of Japan’s gross domestic product.

#3 In Spain, violent demonstrations over the state of the Spanish economy just outside the national Parliament building in Madrid on Tuesday evening made headlines all over the globe.  You can view video of police brutally beating young Spanish protesters during those demonstrations right here.

#4 As unemployment hovers around the 25 percent mark, foraging through garbage bins for food has become so rampant in Spain that one city has actually started putting locks on supermarket garbage bins “as a public health precaution“.

#5 Despite all of the money printing that the ECB has been doing, the yield on 10 year Spanish bonds has risen back up to about 6 percent again.

#6 The economic protests in Greece are getting completely and totally out of control.  Just check out this description of the “Day of Rage” that took place in Greece earlier this week….

Police fired stun grenades and tear gas at protesters yesterday as tens of thousands poured into the streets of Athens as part of a nationwide strike to challenge a new round of austerity measures that are expected to cut wages, pensions and healthcare once again.

Dozens of youths, some masking their faces with helmets and T-shirts, hurled Molotov cocktails and rocks at police who fired back in an effort to scatter the angry crowds around the parliament building. More than 50,000 people are believed to have participated in the mass walk-out in Athens alone.

#7 The unemployment rate in France has risen for 16 months in a row and is now the highest that it has been in over a decade.

#8 As I wrote about recently, the number of unemployed workers in Italy has increased by more than 37 percent over the past year.

#9 New orders for durable goods in the United States fell by a whopping 13.2 percent in August.  That was the largest decline that we have seen since the middle of the last recession (January 2009).

#10 According to the Bureau of Economic Analysis, U.S. GDP only grew at a 1.3 percent annual rate during the second quarter of 2012 as opposed to the 1.7 percent annual rate previously reported.

#11 The U.S. Postal Service is about to experience its second financial default in just the past two months….

The U.S. Postal Service will default this week on a $5.6 billion congressionally mandated obligation to pre-fund retiree health benefits, marking the second time in two months the cash-strapped agency has done this.

#12 It looks like General Motors is on a path that will lead to bankruptcy (again).

#13 According to a recent survey conducted by State Street Global Advisors, 71 percent of “investors in a survey of 300 around the world, including the largest pension funds, asset managers and private banks, fear an imminent Lehman-like event.”

#14 According to a recent survey of American CEOs by Business Roundtable, the number of CEOs that plan to eliminate jobs has risen significantly from earlier this year….

The CEOs’ decline in confidence comes alongside a worsening employment outlook. Thirty-four percent of the 138 CEOs surveyed said in this quarter’s survey that they expected their companies to cut jobs in the next six months, compared to just 20 percent in the second quarter. Likewise, only 29 percent say they expect employment to grow in the next half year, down from 36 percent last quarter.

But the mainstream media in the United States would like us to believe that everything is getting better.

The mainstream media would like us to believe that QE3 is going to stimulate lots of new hiring all over America, and they are greatly celebrating the fact that the S&P 500 hit a five year high on Thursday.

Well, those on Wall Street should celebrate this monetary “sugar high” while they still can.  Of course QE3 was going to cause stock prices to rise in the short-term, but the reality of the matter is that QE3 is not going to do a thing to stop the financial markets from crashing when the time comes for them to crash.

Economies tend to flourish in a stable, predictable environment.  When you start recklessly printing money, it may help your economic numbers in the short-term, but it disrupts the stability of the system.

And once you have created a tremendous amount of instability, it is really, really hard to convince people that you can create stability once again.

When it comes to economics, confidence is one of the most important ingredients.  If people lose confidence in the system, it almost does not matter what else you do.

As I wrote about the other day, quantitative easing worked for the Weimar Republic for a little while, but in the end it resulted in total disaster.

It will also end in total disaster for us.

All over the globe financial authorities are playing all sorts of games in an attempt to keep the system functioning smoothly.  But these games are going to steadily undermine confidence in the system, and that is going to prove to be absolutely deadly.

Take advantage of this period of relative stability while you still can, because when it is gone it is not coming back.

How QE3 Will Make The Wealthy Even Wealthier While Causing Living Standards To Fall For The Rest Of Us

The mainstream media is hailing QE3 as a great victory for the U.S. economy.  On nearly every news broadcast, the “talking heads” are declaring that Ben Bernanke’s decision to pump 40 billion dollars a month into our financial system is definitely going to help solve our economic problems.  The money for QE3 is being created out of thin air and this round of quantitative easing is going to be “open-ended” which means that the Federal Reserve is going to keep doing it for as long as they feel like it.  But is this really good for the average American on the street?  No way.  Despite two previous rounds of quantitative easing, median household income has still fallen for four years in a row, the employment rate has not bounced back since the end of the last recession, and new home sales have remained near record lows.  So what have the previous rounds of quantitative easing accomplished?  Well, they have driven up the prices of financial assets.  Those that own stocks have done very well the past couple of years.  So who owns stocks?  The wealthy do.  In fact, 82 percent of all individually held stocks are owned by the wealthiest 5 percent of all Americans.  Those that have invested in commodities have also done very nicely in recent years.  We have seen gold, silver, oil and agricultural commodities all do very well.  But that also means that average Americans are paying more for basic necessities such as food and gasoline.  So the first two rounds of quantitative easing made the wealthy even wealthier while causing living standards to fall for all the rest of us.  Is there any reason to believe that QE3 will be any different?

Of course not.

This time the Federal Reserve is focused on buying mortgage-backed securities.  Yes, the same financial garbage that helped cause the last crisis.  The Fed plans to gobble up tens of billions of dollars of that trash every month from now on.

But will the Fed pay true market value for those mortgage-backed securities?  If you believe that, I have a bridge to sell you.

So this is going to be a huge windfall for some people, and that does not include us.

Not a single penny of this 40 billion dollars a month will go directly into our hands.  The theory is that it will “filter down” to us eventually.

But that hasn’t happened with previous rounds of quantitative easing.

So where does the money go?

A recent CNBC article discussed a very interesting report from the Bank of England about the effects of quantitative easing….

It said that the Bank of England’s policies of quantitative easing – similar to the Fed’s – had benefited mainly the wealthy.

Specifically, it said that its QE program had boosted the value of stocks and bonds by 26 percent, or about $970 billion. It said that about 40 percent of those gains went to the richest 5 percent of British households.

Many said the BOE’s easing added to social anger and unrest. Dhaval Joshi, of BCA Research wrote that  “QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it.”

Wow.

Who benefits from quantitative easing?

According to the Bank of England, it is “mainly the wealthy” who benefit.

As I noted the other day, Donald Trump said essentially the same thing when he told  CNBC the following….

“People like me will benefit from this.”

As I already discussed above, a lot of quantitative easing money gets into the financial markets where it pumps up the prices of financial assets.

But not all of it goes there.

We were told that the whole idea behind quantitative easing was that it was supposed to get banks lending again, but this has not happened.  Instead, banks are sitting on unprecedented amounts of money.  Just look at how the first two rounds of quantitative easing have caused excess reserves being held by banks to explode from close to zero to over 1.5 trillion dollars….

Of course one of the biggest problems is that the Federal Reserve is still paying banks not to lend money.

Yes, you read that correctly.

The Federal Reserve is paying banks to park money with them.  So instead of risking their money by lending it out to us, the banks can just park it at the Fed and make risk-free profits for as long as they want.

Must be nice.

If the Federal Reserve really wanted banks to start lending again, all the Fed has to do is to stop paying banks not to lend money.

But of course if more than 1.5 trillion dollars suddenly started flooding into our economy (especially after you consider the multiplier effect) we would be dealing with nightmarish inflation unlike anything we have ever seen before.

So if you want to know why inflation was not even worse after QE1 and QE2 it is because more than a trillion and a half dollars is being parked with the Fed.

So did QE1 and QE2 do any good for average Americans?

Let’s go to the charts.

This first chart shows that the percentage of working age Americans with a job has stayed extremely flat since the end of the last recession.

Does it look like QE1 and QE2 made a difference to you?  I don’t see any difference….

Okay, but what about new home sales?

Did QE1 and QE2 help them?

Nope….

But the mainstream media is still buying the baloney the Fed is pushing.

The mainstream media is promising us that home sales will soon rise and that lots of new jobs are on the way.

Sadly, the truth is that things have steadily gotten worse for average Americans over the past 4 years despite all of the money printing the Fed has been doing.  If you doubt this, just read this article.

But this is all that Ben Bernanke seems to have left.  When printing money doesn’t work, his answer is to print even more money.

QE3 is likely to cause agricultural commodities and the price of oil to rise even further.

So unless you can convince your employer to give you a corresponding raise, this is going to mean that your paychecks are not going to go as far as they did before.

And so that means a lower standard of living.

In a recent article, Bruce Krasting issued an ominous warning….

Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on “stuff”. Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.

In addition, the policy of the Federal Reserve of keeping interest rates as low as possible is absolutely crippling the finances of many retirees.  Even the former president of the Federal Reserve Bank of Atlanta, William F. Ford, recognizes this….

One of the overlooked consequences of the Federal Reserve’s recent rounds of monetary stimulus is the adverse impact those policies have had on the interest income of savers. The prolonged and abnormally low interest-rate structure put in place by the Fed has made life particularly difficult for retirees and others who depend on conservative interest-sensitive investments. But the negative effects do not stop there. They spillover into the overall performance of the economy.

Just about everything that the Federal Reserve does these days is bad for ordinary Americans.

But the Fed is not going to stop.  The Fed is addicted to money printing now, and as a recent article by Peter Schiff explained, the Fed is just going to “up the dosage” until it gets what it wants….

The Fed will try to conjure a recovery on the backs of currency debasement. It will not stop or alter from this course. If the economy fails to respond to the drugs, Bernanke will simply up the dosage. In fact, he is so convinced we will remain dependent on quantitative easing that he explicitly said he won’t turn off the spigots even if things noticeably improve.

This is complete and total incompetence by Ben Bernanke and his cohorts over at the Fed.

Economist Marc Faber believes that Ben Bernanke should resign, and I agree with him….

“If I had messed up as badly as Bernanke I would for sure resign. The mandate of the Fed to boost asset prices and thereby create wealth is ludicrous — it doesn’t work that way. It’s a temporary boost followed by a crash.”

And yes, a crash is coming.

Bernanke can try to put it off for a while, but every action he takes is just making the eventual crash even worse.

And some in the financial community clearly recognize this.  For example, credit rating agency Egan-Jones downgraded the credit rating of the United States to AA- on Friday.

The primary reason they gave for the downgrade was QE3.

Ben Bernanke and the Federal Reserve are destroying the U.S. dollar and destroying our financial system for a short-term economic sugar high.

It is utter insanity.

That is why we desperately need to get the American people educated about the Federal Reserve system.  It is at the very heart of our economic problems and yet neither major political party is willing to blame the Fed for the problems that it is causing.

A bunch of unelected bankers that are not accountable to the American people are running our economy into the ground and the American people do not even realize what is happening.

Please share this article with as many people as you can.  Hopefully we can get the American people to understand that more money printing is definitely not the solution to our problems.

James Holmes Is Not Alone – 20 More Examples Of The Sickos That Are Overrunning America

There is much more to the collapse of America than just our economic problems.  The truth is that the United States is like a beautiful house that may still look great on the outside but that has rotted and decayed very badly on the inside.  In fact, the foundations of our country have rotted away so badly that our entire society is starting to collapse.  Just look at James Holmes.  It would be great if we could honestly say that James Holmes is an aberration, but we all know better than that.  James Holmes is not alone.  The cold, hard reality of the matter is that our degenerate society regularly produces sickos and monsters like James Holmes.  As I wrote about the other day, we lead the world in a whole host of bad categories.  We lead the world in child abuse, we lead the world in divorce, we lead the world in teen pregnancy and we lead the world in drug addiction.  The basic building blocks of society that tie us together and help keep us grounded (such as the family) are breaking down, but we still seem surprised that we have hordes of “lone wolf individuals” running around doing crazy things.  We are a sick, twisted society that is producing sick, twisted individuals.  If we do not admit how deep our problems really are, then we are never going to find any real solutions and we are going to keep being shocked when another James Holmes pops on to the scene.

Why didn’t this type of thing happen back in the 1950s?

Why are our young people so violent and so mentally unstable?

What has changed?

Those are some very important questions.  But most Americans will forget this incident very quickly and they will move on with their self-absorbed lives.

But there is so much about this shooting that calls for further examination.

What would make a highly educated 24 year old man do something so incredibly evil?

Why are so many young people suddenly “snapping” these days?

As our society continues to decay, how much worse are things going to get?

It is almost to the point where people are going to start becoming afraid of gathering in public places.

Most Americans never would have imagined that it would be dangerous to go to the movie theater.

But now people are going to look at going to the movies much differently.

And could it have been possible that James Holmes had some help?

There are some important questions that the media is not really focusing on in this case….

-How did an impoverished college student put together an arsenal of weapons, ammunition and body armor worth tens of thousands of dollars?

-Why do some eyewitnesses claim that he had at least one other person assisting him?

-Why did he surrender to police without offering any resistance whatsoever?

It would be great if we could get some answers to those questions.

In any event, this is yet another sign of how far our society has fallen.  We are becoming more sick and more twisted with each passing day, and it is time to admit this fact.

The following are 20 more examples of the sickos that are overrunning America….

#1 A Sicko In Oregon That Breaks Into Homes In Order To Watch Computer Porn

According to CBS, one young man in Oregon has been breaking into homes with the intent of watching pornography on the Internet….

Police say a 21-year-old Oregon man broke into homes to look at pornography on the Internet, sometimes while the homeowners were inside.

Eugene police said Thursday they arrested Antone Forrest Deedward Owens on charges of burglary, menacing and coercion. Authorities say he broke into at least three homes since last September, sometimes entering the same home on multiple occasions.

#2 Delaware Pediatrician That Sexually Abused 103 Children

Who is the bigger monster – James Holmes or the Delaware doctor that sexually abused 103 children?  The following is from a recent Natural News article….

According to reports in 2010, Dr. Earl Bradley, who has since been dubbed “America’s Worst Pedophile,” stood accused of molesting 103 young patients in his office in the tiny town of Lewes, Del., since 1994.

Detailed in 160 pages of what ABC News described as “disturbing court documents,” Bradley apparently videotaped his sex acts. The documents said Bradley repeatedly molested his child patients as their parents sat nearby and unsuspecting outside the waiting room of his BayBee’s Pediatrics clinic.

#3 Jerry Sandusky

Jerry Sandusky was supposed to be a role model.  He was an assistant football coach at Penn State and he was heavily involved in charity work.

But it turns out that it was all a lie.  In fact, a whole bunch of people involved in the Penn State football program knew what was going on and did not report it.

In the end, Jerry Sandusky was found guilty of 45 counts of sexually abusing young boys.  He has become a national symbol of the depravity which is rotting away the very heart of this nation.

#4 Man That Kept His Wife Chained Up For 10 Years

What would you do to a man that kept his wife chained up for ten years?

According to one West Virginia news source, that is exactly what one man down in West Virginia did….

Earlier this month, Lizon was arrested after police say he kept his wife, Stephanie, chained up for nearly a decade in their home along Miller Hollow Road in Leroy, W.Va.

Lizon is accused of smashing Stephanie’s feet with farm equipment and hitting her with a hot frying pan.

Police say she also had a miscarriage because of the abuse and was forced to have another baby while still chained.

#5 Serial Foot-Licker In New York

Did serial foot-lickers even exist back in the 1950s?

Why are there so many of them running around today?

The following is from the New York Daily News….

Police have a possible serial foot-licker in custody after a 49-year-old man was arrested for inappropriately touching two young girls at an upstate New York library.

Anthony Parri allegedly took off a child’s shoe and rubbed the girl’s foot against his nose and mouth in one of two incidents Tuesday at Penfield Library, according to reports.

One of the alleged attacks happened in an open area in the children’s section, library director Bernadette Brickman told WHAM, ABC’s affiliate in Rochester. The child’s mom and a library employee witnessed the abuse and called the cops, according to the station.

#6 Houston Police Officer Accused Of Raping A Woman While On Duty

Who is supposed to keep all of these sickos under control?

The police?

Sadly, the police often are the sickos.

The following is from the Houston Chronicle….

DNA evidence has linked a Houston police officer to a rape he allegedly committed while on duty last month, according to the Harris County District Attorney’s Office.

Officer Adan Jimenez Carranza, 32, was being held Friday at the Harris County Jail under a $30,000 bond, charged with aggravated sexual assault of a woman June 18 after a minor traffic accident, court records show.

#7 Philadelphia Police Officer Makes 14 Year Old Girl Watch Him Have Sex With A Prostitute After Sexually Assaulting Her

If we can’t trust the police, then who can we trust?

Recently there have been a bunch of reports of sexual misconduct by police in the national news.

The following is how Fox News described one particularly disturbing incident from the Philadelphia area….

A Philadelphia cop was arrested over allegations that he abducted a 14-year-old girl, sexually assaulted her and made her watch him have sex with a prostitute.

Police found Anthony Dattilo, 36, at a motel in the Bensalem area of the city Wednesday while responding to a possible abduction, according to the Bucks County Courier Times.

Dattilo, a 12-year veteran of the Philadelphia Police Department, is reportedly in custody at the Bucks County prison on $500,000 bail.

#8 TSA Agent Spills Grandpa’s Ashes And Laughs About It

Almost every single day there is another TSA horror story in the news.

But what you are about to read is one of the worst of them all.

The following is from an ABC News article….

John Gross was leaving Florida with the remains of his grandfather  in a tightly sealed jar marked “Human Remains, ” ABC Indianapolis  affiliate RTV6 reported.

 “They opened up my bag, and I told them, ‘Please, be careful. These are my grandpa’s ashes,’” Gross told the station. “She picked up the jar. She opened it up.”

Gross said the TSA agent used her finger to sift through the ashes and accidentally spilled it.  He said one-third to one-half of the ashes spilled and that the agent laughed as he tried to gather what he could from the floor.

“She didn’t apologize. She started laughing. I was on my hands and knees picking up bone fragments. I couldn’t pick up all, everything that was lost. I mean, there was a long line behind me.”

#9 Connecticut Man Threatens To Cut The Tongue Out Of The Mouth Of A 3 Year Old Child

What kind of a man would hold up a knife and threaten to cut the tongue out of the mouth of a 3 year old kid?

Sadly, that is exactly what happened up in Connecticut recently.

The following is from a WFSB report about this incident….

Police in Vernon are investigating reports that a man held a knife to a child’s face and threatened to cut out his tongue.

On Friday, a woman named Heather Bonneville called police to inform them that a family acquaintance, who has been identified as Roman Fein, held the knife within inches of her 3-year-old son’s face before making the threat to cut his tongue out of his mouth.

#10 Naked “Cannibal” Threatens To Eat Police Officers Down In Georgia

Why are so many criminals getting naked lately?

Why are so many criminals trying to eat people?

The following is from a recent Daily Mail article….

Karl Laventure, 21, was believed to be high on bath salts when he tried to attack the officers in Lilburn, Georgia.

And after they had managed to subdue him he began threatening to eat them.

Laventure appeared out of some woods and was seen running naked around a golf range near Atlanta, swinging a club around his head and screaming.

Police said that it took several officers to subdue the man who had ‘super-human strength’.

#11 Public School Administrator In New York Fired For Not Participating In A Gay Orgy

Almost every day there is another story in the news about a new school sex scandal somewhere in America.

The following is from Courthouse News Service….

A public school administrator claims in court that his male boss sexually assaulted him in a hotel room after giving him pornography and trying to get him to join a foursome, then fired him for rebuffing the advances.

#12 Naked Florida Man Bites Chunk From Another Man’s Stomach

This year criminals in America seem to have become obsessed with chewing on human flesh.

The following example is from a recent Daily Mail article….

A naked man allegedly flew into a violent rampage, biting a chunk out of another man’s stomach after leaping from his roof onto a truck and urinating inside his home.

Officers responding to the scene needed backup to restrain Jeremiah Aaron Haughee with leg shackles, a spit hood and handcuffs after he continued fighting despite being Tasered five times.

Authorities did not carry out tests on Haughee to see if he was under the influence of any drugs.

Police first arrived at the home in Flagler Beach, Florida at 4.30 a.m. to find two men restraining the naked 22-year-old in a puddle of urine and glass.

#13 Father Who Killed His 3 Daughters Inside The Home Of His Ex-Wife

You know that society is really starting to break down when parents start killing their own children.

What one man up in Wisconsin is being charged with is absolutely horrific.

The following is from a recent CNN article….

A 34-year-old father was being held by authorities Wednesday in connection with the deaths of his three daughters, who were found inside his ex-wife’s Wisconsin home with the gas fireplace turned on, officials said.

#14 Pregnant Woman Set On Fire In Detroit

These days not even pregnant women are immune to violence.

What one pregnant woman up in Detroit went through recently is hard to stomach….

A 22-year-old pregnant woman survived after being bound, driven to Detroit, set on fire and shot early Saturday morning.

The woman, who was nine-months pregnant, had returned from a movie with her boyfriend and dropped him off at his house in Warren when she was approached from behind, Warren police Sgt. Dave Geffert said.

The woman’s hands, feet and eyes were bound with duct tape. She was then forced into her car and driven to an unknown place in Detroit where she was doused with lighter fluid, set on fire and shot once in the upper back, he said.

#15 New Jersey Man Throws His Own Intestines At Police

If the police were breaking into your home, would you cut out your own entrails and throw them at the police?

According to the Huffington Post, that is exactly what one man up in New Jersey did….

A New Jersey man allegedly cut out his entrails in front of police and then threw bits of his flesh and intestines at them.

The gruesome scene played out at a home in Hackensack, N.J., where 43-year-old Wayne Carter allegedly barricaded himself in on Sunday, NBC New York reported.

Officers got a call that morning when a witness said Carter was threatening to harm himself with a knife. Two cops responded, kicked in the door and found Carter in the corner, the station reported.

Carter allegedly ignored officers’ orders to put down the knife, and instead began stabbing himself in the abdomen, neck and legs.

#16 Naked Man Brutally Murders A Hotel Maid

Why would anyone want to kill a 62 year old cleaning woman?

Many of the crimes that are being committed today are absolutely senseless.

The following is how the CBS affiliate in Sacramento reported this story….

A naked man who may have been on drugs was arrested Saturday for killing a Tracy motel employee.

Andrew Carreiro, 25, is behind bars accused of killing the 62-year-old woman who cleans rooms at the Hacienda Inn on the 600 block of West 11th Street.

Witnesses say they found Carreiro covered in blood and standing near the partially naked body of the woman, say witnesses.

“[It’s] most definitely the craziest thing I’ve seen in my life, most definitely,” said Jermaine Haynes, a motel resident who made the gruesome discovery.

#17 Crack-Fueled Sickos Abduct A Female Jogger

These days you are not safe anywhere in the country.

Just check out what happened to one math teacher from Montana.  The following is how a Daily Mail article described what two very sick drug addicts did to her….

After smoking crack cocaine over the entire trip, Waters allegedly told Spell the drug ‘brought the devil out in him’ and began talking about kidnapping and killing a female, AP reports.

After they spotted Arnold, Spell claims that Waters told him to ‘grab the lady’ and pull her into their Ford Explorer as she jogged by.

‘Spell said Waters got into the back seat with the female and “choked her out”,’ the affidavit states.

After dropping Arnold’s body in a rural area of North Dakota later that night, Waters bought a shovel at a nearby Walmart. They buried the body in a two- to three-feet-deep hole on an old farmstead.

#18 Female Teacher Has Sex With Four Male Students

Why are so many public school teachers having sex with their students?

Don’t they realize that they will inevitably get caught?

Aren’t the dozens of other school sex scandals in the news sufficient warnings?

The following is from the NBC affiliate in Tucson, Arizona….

A new police report reveals racy, disturbing details of the alleged relationships between an Ironwood Ridge High School teacher and four of her students.

Oro Valley Police picked up Melissa Dalton April 30th booking her on four counts of sexual conduct with a minor.

She posted bail and got out the next day.

Subsequently more Ironwood Ridge students came forward with more allegations. That prompted the Oro Valley Police Department to add eight more counts including six of sex with a minor.

Melissa Dalton was in her first year teaching at Ironwood Ridge High School. The 33 year old is a wife and mother.

#19 Texas House Of Horrors

The nightmares that were happening in one quiet house in Texas are so horrifying that it is hard to find the words to describe them.

The following is from a New York Daily News article….

Texas authorities said Tuesday they removed 11 children from a crowded home where a registered sex offender lives after they found eight confined in a small, dark bedroom with restraints tying some to their beds.

Along with the children, 10 adults were living in the one-story, 1,700-square-foot home in Dayton, about 30 miles northeast of Houston, Child Protective Services spokeswoman Gwen Carter said. One month after a raid on the house, authorities are still trying to determine how the children are related and why they were there, she said.

#20 Florida Man Bites The Lips Off Of A Kitten

What kind of a monster would bite the lips off of a kitten?

It is hard to imagine anyone actually doing such a thing, but according to WKMG this apparently happened….

A Palm Coast man was arrested on suspicion of biting the lips off a kitten and strangling another cat.

Angel Vega Roman, 28, was arrested Saturday and charged with cruelty to animals.

According to the Flagler County Sheriff’s Office, Roman told an acquaintance that he accidentally choked his roommates’ kitten a couple of weeks ago and bit the lips off another black and white kitten named Oreo.  Roman also tortured Oreo by burning its ear and whiskers with a lighter, a sheriff’s report stated.

I know that I used a lot of disturbing examples in this article, but I wanted to make my point very strongly.

James Holmes is not an isolated case.  America is literally being overrun by sickos and monsters.

In the old days, our societal institutions were strong and they helped to tie us together.

But today there is very, very little that ties us together and keeps us grounded.  Faith in almost every major institution in society is very low and our families are falling apart.

The percentage of adult Americans that are married right now is at an all-time low.  The percentage of Americans with no religious affiliation at all is at an all-time high.

Our society is rotting from the inside out and many of our formerly great cities are degenerating into absolute hellholes.

Fixing America is not just a matter of fixing our economic system or our political system.

Fixing America is going to take a whole lot more than that.

So what do all of you think about this?

Please feel free to post a comment with your thoughts below….

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