In California, Home Sales Are Plunging Like It Is 2008 All Over Again

What goes up must eventually come down.  For years, the California housing market was on the cutting edge of “Housing Bubble 2” as we witnessed home prices in the state soar to absolutely absurd levels.  In fact, it got so bad that a burned down house in Silicon Valley sold for $900,000 earlier this year, and a condemned home in Fremont sold for $1.2 million.  But now things have changed in a major way.  The hottest real estate markets in the entire country led the way down during the collapse of “Housing Bubble 1”, and now it looks like the same thing is going to be true for the sequel.

According to CNBC, the number of new and existing homes sold in southern California was down 18 percent in September compared to a year ago…

The number of new and existing houses and condominiums sold during the month plummeted nearly 18 percent compared with September 2017, according to CoreLogic. That was the slowest September pace since 2007, when the national housing and mortgage crisis was hitting.

Sales have been falling on an annual basis for much of this year, but this was the biggest annual drop for any month in almost eight years. It was also more than twice the annual drop seen in August.

Those numbers are staggering.

And it is interesting to note that sales of new homes are being hit even harder than sales of existing homes…

Sales of newly built homes are suffering more than sales of existing homes, likely because fewer are being built compared with historical production levels. Newly built homes also come at a price premium. Sales of newly built homes were 47 percent below the September average dating back to 1988, while sales of existing homes were 22 percent below their long-term average.

At one time, San Diego County was a blazing hot real estate market, but now the market has turned completely around.

In fact, the county just registered the fewest number of home sales in a month since the last financial crisis

A combination of rapid mortgage rate increases and decreased affordability, San Diego County home sales collapsed 17.5% to the lowest level in 11 years last month, in the first meaningful sign that one of the country’s hottest real estate markets could be at a turning point, real estate tracker CoreLogic reported Tuesday.

In September, 2,942 homes were sold in the county, down from 3,568 sales last year. This was the lowest number of sales for the month since the start of the financial crisis when 2,152 sold in September 2007.

And it can be argued that things are plunging even more rapidly in northern California.

In the San Francisco Bay area, sales of new and existing homes were down 19 percent in September on a year over year basis…

Home sales in the San Francisco Bay area have been falling for months, but in September buyers pulled back in an even bigger way.

Sales of both new and existing homes plunged nearly 19 percent compared with September 2017, according to CoreLogic. It marked the slowest September sales pace since 2007 and twice the annual drop seen in August.

If a new real estate crisis is really happening, these are precisely the kinds of numbers that we would expect to see.  If you still need some more convincing, here are even more distressing numbers from the California real estate market that Mish Shedlock recently shared

  • The California housing market posted its largest year-over-year sales decline since March 2014 and remained below the 400,000-level sales benchmark for the second consecutive month in September, indicating that the market is slowing as many potential buyers put their homeownership plans on hold.
  • Existing, single-family home sales totaled 382,550 in September on a seasonally adjusted annualized rate, down 4.3 percent from August and down 12.4 percent from September 2017.
  • September’s statewide median home price was $578,850, down 2.9 percent from August but up 4.2 percent from September 2017.
  • Statewide active listings rose for the sixth consecutive month, increasing 20.4 percent from the previous year.
  • Inventory reached the highest level in 31 months, with the Unsold Inventory Index reaching 4.2 months in September.
  • September year-to-date sales were down 3.3 percent.

Of course a similar thing is happening on the east coast as well.  At this point, things have cooled off so much in New York City that it is being called “a buyer’s market”

New York City’s pricey real estate has become a “buyers market,” new data suggests, characterized by lowball offers and a rise in the number of properties staying on the market for longer.

The latest figures from Warburg Realty show that among higher-priced homes, New York City is in the throes of a “major shift” that reflects a cooling market, the likes of which hasn’t been seen in almost a decade.

“Offers 20 percent and 25 percent below asking prices began to flow in, a phenomenon last seen in 2009,” wrote Warburg Realty founder and CEO Frederick W. Peters in the report, which surveys real estate conditions around the city.

In the final analysis, it is no mystery how we got to this point.

During the Obama era, the Federal Reserve pushed interest rates all the way to the floor for years, and this caused “Housing Bubble 2” to become even larger than the original housing bubble.

Now the Federal Reserve has been aggressively raising interest rates, and this is now busting the bubble that they created in the first place.

So if you want to blame someone for this mess, blame the Federal Reserve.  The Federal Reserve has created huge “booms” and “busts” ever since it was created in 1913, and hopefully the American people will be outraged enough following this next “bust” to start calling for real change.

I have been calling for the abolition of the Federal Reserve for years, and there are many others out there that also want to return to a free market financial system.

History has shown that free markets work exceedingly well once you take the shackles off, and as a nation we desperately need to return to the values and principles that this nation was founded upon.

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

The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots.  It is a premium members-only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically.  The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.

The American Dream Is Getting Smaller, And The Reason Why Is Painfully Obvious…

Over the past decade, an unprecedented stock market boom has created thousands upon thousands of new millionaires, and yet the middle class in America has continued to shrink.  How is that even possible?  At one time the United States had the largest and most vibrant middle class in the history of the planet, but now the gap between the wealthy and the poor is the largest that it has been since the 1920s.  Our economy has been creating lots of new millionaires, but at the exact same time we have seen homelessness spiral out of control in our major cities.  Today, being part of the middle class is like playing a really bizarre game of musical chairs.  Each month when the music stops playing, those of us still in the middle class desperately hope that we are not among the ones that slip out of the middle class and into poverty.  Well over 100 million Americans receive money or benefits from the federal government each month, and that includes approximately 40 percent of all families with children.  We are losing our ability to take care of ourselves, and that has frightening implications for the future of our society.

One of the primary reasons why our system doesn’t work for everyone is because virtually everything has been financialized.  In other words, from the cradle to the grave the entire system has been designed to get you into debt so that the fruits of your labor can be funneled to the top of the pyramid and make somebody else wealthier.  The following comes from an excellent Marketwatch article entitled “The American Dream is getting smaller”

More worrying, perhaps: 33% of those surveyed said they think that dream is disappearing. Why? They have too much debt. “Americans believe financial security is at the core of the American Dream, but it is alarming that so many think it is beyond their reach,” said Mike Fanning, head of MassMutual U.S.

Almost everyone that will read this article will have debt.  In America today, we are trained to go into debt for just about everything.

If you want a college education, you go into debt.

If you want a vehicle, you go into debt.

If you want a home, you go into debt.

If you want that nice new pair of shoes, you don’t have to wait for it.  Just go into more debt.

As a result, most Americans are currently up to their necks in red ink

Some 64% of those surveyed said they have a mortgage, 56% said they had credit-card debt and 26% said they have student-loan debt. Many surveyed said they don’t feel financially secure. More than a quarter said they wish they had better control of their finances.

You would have thought that we would have learned from the very hard lessons that the crisis of 2008 taught us.

But instead, we have been on the greatest debt binge in American history in recent years.  Here is more from the Marketwatch article

It makes sense that debt is on Americans’ minds. Collectively, Americans have more than $1 trillion in credit-card debt, according to the Federal Reserve. They have another $1.5 trillion in student loans, up from $1.1 trillion in 2013. Motor vehicle loans are now topping $1.1 trillion, up from $878.5 billion in 2013. And they have another nearly $15 trillion in mortgage debt outstanding.

That is one huge pile of debt.

We criticize the federal government for running up 21 trillion dollars in debt, and rightly so, but American consumers have been almost as irresponsible on an individual basis.

As long as you are drowning in debt, you will never become wealthy.  In order to build wealth, you have got to spend less than you earn, but most Americans never learn basic fundamentals such as this in our rapidly failing system of public education.

Many Americans long to become financially independent, but they don’t understand that our system is rigged against them.  The entire game is all about keeping consumers on that debt wheel endlessly chasing that piece of proverbial cheese until it is too late.

Getting out of debt is one of the biggest steps that you can take to give yourself more freedom, and hopefully this article will inspire many to do just that.

To end this article today, I would like to share 14 facts about how the middle class in America is shrinking that I shared in a previous article

#1 78 million Americans are participating in the “gig economy” because full-time jobs just don’t pay enough to make ends meet these days.

#2 In 2011, the average home price was 3.56 times the average yearly salary in the United States.  But by the time 2017 was finished, the average home price was 4.73 times the average yearly salary in the United States.

#3 In 1980, the average American worker’s debt was 1.96 times larger than his or her monthly salary.  Today, that number has ballooned to 5.00.

#4 In the United States today, 66 percent of all jobs pay less than 20 dollars an hour.

#5 102 million working age Americans do not have a job right now.  That number is higher than it was at any point during the last recession.

#6 Earnings for low-skill jobs have stayed very flat for the last 40 years.

#7 Americans have been spending more money than they make for 28 months in a row.

#8 In the United States today, the average young adult with student loan debt has a negative net worth.

#9 At this point, the average American household is nearly $140,000 in debt.

#10 Poverty rates in U.S. suburbs “have increased by 50 percent since 1990”.

#11 Almost 51 million U.S. households “can’t afford basics like rent and food”.

#12 The bottom 40 percent of all U.S. households bring home just 11.4 percent of all income.

#13 According to the Federal Reserve, 4 out of 10 Americans do not have enough money to cover an unexpected $400 expense without borrowing the money or selling something they own.

#14 22 percent of all Americans cannot pay all of their bills in a typical month.

This article originally appeared on The Economic Collapse Blog.  About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Number Of Americans Living In Their Vehicles “Explodes” As The Middle Class Continues To Disappear

If the U.S. economy is really doing so well, then why is homelessness rising so rapidly?  As the gap between the rich and the poor continues to increase, the middle class is steadily eroding.  In fact, I recently gave my readers 15 signs that the middle class in America is being systematically destroyed.  More Americans are falling out of the middle class and into poverty with each passing day, and this is one of the big reasons why the number of homeless is surging.  For example, the number of people living on the street in L.A. has shot up 75 percent over the last 6 years.  But of course L.A. is far from alone.  Other major cities on the west coast are facing similar problems, and that includes Seattle.  It turns out that the Emerald City has seen a 46 percent rise in the number of people sleeping in their vehicles in just the past year

The number of people who live in their vehicles because they can’t find affordable housing is on the rise, even though the practice is illegal in many U.S. cities.

The number of people residing in campers and other vehicles surged 46 percent over the past year, a recent homeless census in Seattle’s King County, Washington found. The problem is “exploding” in cities with expensive housing markets, including Los Angeles, Portland and San Francisco, according to Governing magazine.

Amazon, Microsoft and other big tech companies are in the Seattle area.  It is a region that is supposedly “prospering”, and yet this is going on.

Sadly, it isn’t just major urban areas that are seeing more people sleeping in their vehicles.  Over in Sioux Falls, South Dakota, many of the homeless sleep in their vehicles even in the middle of winter

Stephanie Monroe, managing director of Children Youth & Family Services at Volunteers of America, Dakotas, tells a similar story. At least 25 percent of the non-profit’s Sioux Falls clients have lived in their vehicles at some point, even during winter’s sub-freezing temperatures.

“Many of our communities don’t have formal shelter services,” she said in an interview. “It can lead to individuals resorting to living in their cars or other vehicles.”

It is time to admit that we have a problem.  The number of homeless in this country is surging, and we need to start coming up with some better solutions.

But instead, many communities are simply passing laws that make it illegal for people to sleep in their vehicles…

A recent survey by the National Law Center on Homelessness and Poverty (NLCHP), which tracks policies in 187 cities, found the number of prohibitions against vehicle residency has more than doubled during the last decade.

Those laws aren’t going to solve anything.

At best, they will just encourage some of the homeless to go somewhere else.

And if our homelessness crisis is escalating this dramatically while the economy is supposedly “growing”, how bad are things going to be once the next recession officially begins?

We live at a time when the cost of living is soaring but our paychecks are not.  As a result, middle class families are being squeezed like never before.

A recent Marketwatch article highlighted the plight of California history teacher Matt Barry and his wife Nicole…

Barry’s wife, Nicole, teaches as well — they each earn $69,000, a combined salary that not long ago was enough to afford a comfortable family life. But due to the astronomical costs in his area, including real estate — a 1,500-square-foot “starter home” costs $680,000 — driving for Uber was a necessity.

“Teachers are killing themselves,” Barry says in Alissa Quart’s new book, “Squeezed: Why Our Families Can’t Afford America” (Ecco), out Tuesday. “I shouldn’t be having to drive Uber at eight o’clock at night on a weekday. I just shut down from the mental toll: grading papers between rides, thinking of what I could be doing instead of driving — like creating a curriculum.”

Home prices are completely out of control, but that bubble should soon burst.

However, other elements of our cost of living are only going to become even more painful.  Health care costs rise much faster than the rate of inflation every year, food prices are becoming incredibly ridiculous, and the cost of a college education is off the charts.  According to author Alissa Quart, living a middle class life is “30% more expensive” than it was two decades ago…

“Middle-class life is now 30% more expensive than it was 20 years ago,” Quart writes, citing the costs of housing, education, health care and child care in particular. “In some cases the cost of daily life over the last 20 years has doubled.”

And thanks to the trade war, prices are going to start going up more rapidly than we have seen in a very long time.

On Tuesday, we learned that diaper and toilet paper prices are rising again

Procter & Gamble said on Tuesday that it was in the process of raising Pampers’ prices in North America by 4%. P&G also began notifying retailers this week that it would increase the average prices of Bounty, Charmin, and Puffs by 5%.

P&G is raising prices because commodity and transportation cost pressures are intensifying. The hikes to Bounty and Charmin will go into effect in late October, and Puffs will become more expensive beginning early next year.

I wish that I had better news for you, but I don’t.  We are all going to have to work harder, smarter and more efficiently.  And we are definitely going to have to tighten our belts.

Many middle class families are relying on debt to get them from month to month, and consumer debt in the United States has surged to an all-time high.  But eventually a day of reckoning comes, and we all understand that.

The U.S. economy is not going to be getting any better than it is right now.  So it is time to be a lean, mean saving machine, because it will be important to have a financial cushion for the hard times that are ahead of us.

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

Police Union President Laments That Portland Has Become A “Cesspool” As West Coast Cities Struggle With An Unprecedented Surge In Homelessness

Even though it has always been kind of crazy, at one time Portland, Oregon was quite an attractive place to live, but now those days are long gone.  Today, the city streets are strewn with garbage, drug paraphernalia and human feces.  Mentally ill homeless people and drug addicts wander about like zombies, and there are certain areas of the city that you absolutely do not want to visit at night.  In essence, the city is slowly becoming a post-apocalyptic version of its former self, and those that love the city are seething with frustration.  Of course Portland is simply experiencing the same surge in homelessness that so many other west coast cities are struggling to deal with.  As housing prices have risen dramatically, many on the lower end of the income scale have been priced out of the market entirely, and an increasing number of people are being forced to sleep in vehicles, in shelters or on the streets.

The president of the police union in Portland has had enough.  His officers are overwhelmed by the needs of the homeless on a nightly basis, and he is calling on the mayor to finally do something to resolve this crisis.  The following is the first paragraph from a statement that PPA President Daryl Turner just released

Our City has become a cesspool. Livability that once made Portland a unique and vibrant city is now replaced with human feces in businesses doorways, in our parks, and on our streets. Aggressive panhandlers block the sidewalks, storefronts, and landmarks like Pioneer Square, discouraging people from enjoying our City. Garbage-filled RVs and vehicles are strewn throughout our neighborhoods. Used needles, drug paraphernalia, and trash are common sights lining the streets and sidewalks of the downtown core area, under our bridges, and freeway overpasses. That’s not what our families, business owners, and tourists deserve.

If that sounds familiar, that is because many other west coast cities are dealing with the exact same issues right now.

For example, new San Francisco Mayor London Breed recently admitted that there “is more feces on the sidewalks than I’ve ever seen”

There is more feces on the sidewalks than I’ve ever seen growing up here,” Breed told KNTV. “That is a huge problem and we are not just talking about from dogs — we’re talking about from humans.”

The streets of San Francisco are littered with a “dangerous mix of drug needles, garbage, and feces”, KNTV’s investigative team reported in February after surveying the city’s streets.

And a lot of other San Francisco residents have noticed the exact same thing.  In fact, during one recent seven day period 16,000 complaints were submitted to the city about human feces.

Sounds like a great place to live, right?

It is important to keep in mind that San Francisco supposedly has a “booming economy” and some of the highest real estate prices in the entire nation.

If this is happening in a “prosperous area”, what are things like in major cities where things are not so prosperous?

Down in L.A., there was a nearly 26 percent increase in homelessness in 2017, and overall homelessness in L.A. has risen 75 percent over the past 6 years.

Let that sink in for a moment.

During this supposed “economy recovery”, our second largest city has seen homelessness go up 75 percent.

Sadly, it is estimated that 25 percent of the nation’s entire homeless population now lives in California…

While it’s tough to say precisely how many Californians are experiencing homelessness, the federal Housing and Urban Development Department estimates the number statewide at 130,000 on a given night. That’s 25 percent of the entire nation’s homeless population. Since 2016, California experienced a larger increase in homelessness than any other state.

At one time, L.A.’s “skid row” was limited to a single street, but now it goes on mile after mile.  I just have to share with you the following excerpt from an excellent article about what life is like for those living on this famous stretch of real estate

Most of its 2,000 residents sleep in tents or under tarps. Those with more status occupy the sides of streets shaded by trees. Location, location, location. The lowest caste sleep on cardboard or nothing. Some people rent tents for a few bucks a night.

There are no liquor stores so businessmen buy alcohol from shops a few miles away and sell it at a steep mark-up. Loan sharks collect debts by taking control of the debit cards issued to homeless people by government agencies.

A guy sits at a table on the sidewalk selling cigarettes and joints. The city has installed sidewalk restrooms. Ruffin pointed to one and figured people inside were shooting up or smoking. Meth, heroin and crack are the scourges of choice. Needles litter the gutter, as does a dead rat. On another block, homeless entrepreneurs chop and assemble bicycles for sale.

And let us not forget about Seattle.  Homeless encampments have become so pervasive in “the Emerald City” that authorities started building “tiny house villages” for the homeless out of desperation.  But these “tiny house villages” are a lot more depressing than they sound

In the nearby neighborhood of Wallingford, a newly erected outpost of small wooden shacks offer shelter for 22 of Seattle’s homeless residents. This is a “tiny house village,” sanctioned by the city as a kind of middle ground between living at a street address and on the street. The buildings sit in the corner of a parking lot across from a seafood restaurant, shielded from view by a metal fence. Each shack, painted with one of the bold colors of a Crayola starter pack, offers electricity and a roof sturdier than the tents in Seattle’s increasingly common homeless encampments. Every resident is issued a window fan for the occasional hot day, and the people here hope to receive heaters before winter. But the small collections of potted petunias and pothos that sit in front of their temporary homes are unlikely to survive the city’s harshest months.

Unfortunately, this is probably only just the beginning of this crisis.  Homelessness always explodes during a recession, and many believe that we are rapidly approaching another one.  West coast cities are really struggling to deal with this crisis right now, and it is hard to imagine how they will deal with the tsunami of human suffering that is coming their way once economic conditions begin to sour.

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

15 Signs That The Middle Class In The United States Is Being Systematically Destroyed

If your family is really struggling right now, you are far from alone.  I have been publishing The Economic Collapse Blog for more than eight years, and all throughout that time I have seen the middle class in America get smaller and smaller and smaller.  It is almost as if we are all playing a really bizarre game of musical chairs and every month someone pulls a few more chairs from the game.  Yes, there are some people that have gotten exceedingly wealthy over the past eight years, and most of that wealth is concentrated in places such as New York, Washington D.C. and San Francisco.  But meanwhile, most of the rest of the country has been steadily getting poorer.  Just take a look at Detroit – at one time it had the highest per capita income in the entire nation and now it is a rotting, decaying war zone.  Of course dozens of other formerly great manufacturing cities all over the nation have suffered a similar fate.  Since 2001, we have lost more than 70,000 manufacturing facilities and millions of good paying manufacturing jobs.  Those good paying jobs have been replaced by lower paying “service jobs”, and you can’t support a middle class lifestyle on those types of jobs.

In order to have a thriving middle class, you need middle class jobs, and our country is in desperate need of more of those jobs.  At this point most American families are living on the edge, and more are falling into poverty with each passing month.  The following are 15 signs that the middle class in the United States is being systematically destroyed…

#1 78 million Americans are participating in the “gig economy” because full-time jobs just don’t pay enough to make ends meet these days.

#2 In 2011, the average home price was 3.56 times the average yearly salary in the United States.  But by the time 2017 was finished, the average home price was 4.73 times the average yearly salary in the United States.

#3 In 1980, the average American worker’s debt was 1.96 times larger than his or her monthly salary.  Today, that number has ballooned to 5.00.

#4 In the United States today, 66 percent of all jobs pay less than 20 dollars an hour.

#5 102 million working age Americans do not have a job right now.  That number is higher than it was at any point during the last recession.

#6 Earnings for low-skill jobs have stayed very flat for the last 40 years.

#7 Americans have been spending more money than they make for 28 months in a row.

#8 In the United States today, the average young adult with student loan debt has a negative net worth.

#9 At this point, the average American household is nearly $140,000 in debt.

#10 Poverty rates in U.S. suburbs “have increased by 50 percent since 1990”.

#11 Almost 51 million U.S. households “can’t afford basics like rent and food”.

#12 The bottom 40 percent of all U.S. households bring home just 11.4 percent of all income.

#13 According to the Federal Reserve, 4 out of 10 Americans do not have enough money to cover an unexpected $400 expense without borrowing the money or selling something they own.

#14 22 percent of all Americans cannot pay all of their bills in a typical month.

#15 Today, U.S. households are collectively 13.15 trillion dollars in debt.  That is a new all-time record.

When you think of “poverty in America”, you probably think of our blighted inner cities, but that is not where poverty is growing the fastest.

According to author Scott Allard, it is actually our suburbs where poverty is growing more rapidly than anywhere else…

According to a May report from the Pew Research Center, since 2000, suburban counties have experienced sharper increases in poverty than urban or rural counties.

This is consistent with research across the U.S. over the past decade – as well as my own book, “Places in Need.”

This is why tens of millions of square feet of retail space is being closed down and why formerly great shopping malls all over America now resemble ghost towns.

When I was growing up, the shopping mall was the place to be for average middle class kids.  My family was middle class and virtually everyone that I knew was middle class.  In fact, I don’t remember any really wealthy or really poor kids in my school at all.

But today most families have little to no financial cushion and are deep in debt.  As a result, discretionary income has really dried up and that means less shopping.

So we are on pace for the worst year for store closings in American history, and yet the mainstream media keeps telling us that the economy is in “good shape”.

That is a load of nonsense.  The numbers don’t lie, and the U.S. economy is never going to be in “good shape” until the middle class starts growing again.

Is there a solution?

Well, the mayor of Stockton, California seems convinced that the solution is just to give people free money.  The following comes from Reuters

Michael Tubbs, the 27-year-old mayor of Stockton, California, has a radical plan to combat poverty in his cash-strapped city: a “no strings” guaranteed basic income of $500 a month for its residents.

Starting in early 2019, Tubbs plans to provide the monthly stipend to a select group of residents as part of a privately funded 18-month experiment to assess how people use the money.

Wouldn’t it be wonderful if we all just started getting big, fat checks from the government every month?

Why didn’t somebody think about this before?

Of course the truth is that we simply cannot afford to do that.  State and local government debt levels have surged to record highs, and the federal government is now 21 trillion dollars in debt.  We are on a path that leads to national suicide, and we desperately need to start living within our means.

We have been consuming far more wealth than we have been producing for a very long time, but we have been doing it for so long that many of us now think that this is “normal”.  Meanwhile, our long-term debt problems continue to escalate and our once thriving middle class continues to shrink.

If we continue to do the same things, we will continue to get the same results, and right now we are in the process of absolutely destroying the greatest economic machine that the world has ever seen.

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

16 Reasons Why You Shouldn’t Live In California

San Francisco Skyline - Public DomainIt has been said that “as California goes, so goes the nation”.  That is why it is such a shame what is happening to that once great state.  At one time, California seemed to be the epicenter of the American Dream.  Featuring some of the most beautiful natural landscapes in the entire world, the gorgeous weather and booming economy of the state inspired people from all over the world to move to the state.  But now people are moving out of the state by the millions, because life in California has literally become a nightmare for so many people.

I certainly don’t have anything against the state personally.  My brother and sister were both born there, and I spent a number of my childhood years in stunning northern California.  When I was younger I would sometimes dream of getting a place on the coast eventually, but for reasons I will discuss below I no longer think that would be advisable.

In fact, if I was living in California today I would be immediately looking for a way to move out of the state unless I specifically felt called to stay.  The following are 16 reasons why you shouldn’t live in California…

#1 The entire California coastline is part of the “Ring of Fire” seismic zone that roughly encircles the Pacific Ocean.  The San Andreas Fault has been described as a “time bomb“, and at some point there will be a catastrophic earthquake that absolutely devastates the entire region.  In fact, a study that was just released says that a “major earthquake” on the San Andreas Fault “is way overdue”

A recently published study reveals new evidence that a major earthquake is way overdue on a 100 mile stretch of the San Andreas Fault from the Antelope Valley to the Tejon Pass and beyond.

Researchers with the U.S. Geological Survey released the results of the years-long study warning a major earthquake could strike soon.

#2 Out of all 50 states, the state of California has been ranked as the worst state for business for 12 years in a row

In what is sounding like a broken record, California once again ranked dead last in Chief Executive magazine’s annual Best and Worst States for Business survey of CEOs – as it has all 12 years the survey has been conducted. Texas, meanwhile, earned the top spot for the 12th straight year.

Among the survey’s subcategories, the 513 CEOs from across the nation ranked California 50th in taxation and regulation, 35th in workforce quality and 26th in living environment, which includes cost of living, the education system and state and local attitudes toward business. Notably, California placed worst among the nine states in the Western region in all three categories.

#3 California has the highest state income tax rates in the entire nation.  For many Americans, the difference between what you would have to pay if you lived in California and what you would have to pay if you lived in Texas could literally buy a car every single year.

#4 The state government in Sacramento seems to go a little bit more insane with each passing session.  This time around, they are talking about going to a single-payer healthcare system for the entire state that would cost California taxpayers 40 billion dollars a year

On Friday, State Senator Ricardo Lara introduced legislation that would transition California’s healthcare into a single-payer system. (RELATED: Read what a retired colonel said about the real purpose of Obamacare). The system would be very similar to the healthcare system currently in place in Canada and would cost California taxpayers roughly $40 billion for the first year alone. Given the poor economic climate California has already created for itself, this will no doubt be just one more burden on the people of California, and one step closer towards total bankruptcy.

Micah Weinberg, the president of the Economic Institute at the Bay Area Council, raised concerns over the financial consequences of the proposed legislation. “Where are they going to come up with the $40 billion?” he asked. He went on to suggest that adopting a state level single-payer system is “just not feasible to do as a state.”

#5 The traffic in the major cities just keeps getting worse and worse.  According to USA Today, Los Angeles now has the worst traffic in the entire world, and San Francisco is not far behind.

#6 A lot of money is being made in Silicon Valley these days (at least for now), but poverty is also exploding in the state.  In desperation, homeless people are banding together to create large tent cities all over the state, and the L.A. City Council recently asked Governor Jerry Brown “to declare homelessness a statewide emergency“.

#7 Thanks to unchecked illegal immigration, crime is on the rise in many California cities.  The drug war that has been raging for years in Mexico is increasingly spilling over the border, and many families have moved out of the state for this reason alone.

#8 California is one of the most litigious states in the entire nation.  According to the U.S. Chamber Institute for Legal Reform, the “lawsuit climate” in California is ranked 47th out of all 50 states.

#9 Every year wildfires and mudslides wreak havoc in the state.  Erosion is particularly bad along the coast, and I have previously written about how some portions of the California coastline are literally falling into the ocean.

#10 California has some of the most ridiculous housing prices in the entire country.  Due to a lack of affordable housing rents have soared to wild extremes in San Francisco, where one poor engineer was actually paying $1,400 a month to live in a closet.

#11 All over the state, key infrastructure is literally falling to pieces.  Governor Jerry Brown recently issued a list of key projects that needed to be done as soon as possible, and the total price tag for that list was 100 billion dollars.  Of course that list didn’t even include the Oroville Dam, and we all saw what happened there.

#12 Radiation from the ongoing Fukushima nuclear disaster continues to cross the ocean and wash up along the California coastline.  The impact of this crisis on the health of those living along the west coast could potentially be felt for generations.

#13 Illegal drug use in the state is on the rise again, and emergency rooms are being flooded by heroin overdose victims.

#14 On top of everything else, it is being reported that Russia is “quietly ‘seeding’ the U.S. shoreline with nuclear ‘mole’ missiles”.  The following comes from retired colonel and former Russian defense ministry spokesman Viktor Baranetz

“What are these mysterious ‘asymmetrical responses’ that our politicians and generals speak about so often? Maybe it’s a myth or a pretty turn of phrase? No! Our asymmetrical response is nuclear warheads that can modify their course and height so that no computer can calculate their trajectory. Or, for example, the Americans are deploying their tanks, airplanes and special forces battalions along the Russian border. And we are quietly ‘seeding’ the U.S. shoreline with nuclear ‘mole’ missiles (they dig themselves in and ‘sleep’ until they are given the command)[…]

“Oh, it seems I’ve said too much. I should hold my tongue.”

Hopefully what Baranetz is claiming is not accurate, because if it is even partly true the implications are absolutely staggering.

#15 North Korea is a major nuclear threat as well.  It is being reported that the North Koreans are developing an ICBM that could potentially reach the west coast of the United States…

Defense officials have warned that North Korea is on the brink of producing an ICBM that could target the United States. North Korean leader Kim Jong Un announced in January during his New Year’s address that Pyongyang had “entered the final stage of preparations to test-launch” an ICBM that could reach parts of the United States.

#16 Someday a very large earthquake will produce a major tsunami on the west coast.  According to the Los Angeles Times, one study found that a magnitude 9.0 earthquake along the Cascadia fault could potentially produce a massive tsunami that would “wash away coastal towns”…

If a 9.0 earthquake were to strike along California’s sparsely populated North Coast, it would have a catastrophic ripple effect.

A giant tsunami created by the quake would wash away coastal towns, destroy U.S. 101 and cause $70 billion in damage over a large swath of the Pacific coast. More than 100 bridges would be lost, power lines toppled and coastal towns isolated. Residents would have as few as 15 minutes notice to flee to higher ground, and as many as 10,000 would perish.

Scientists last year published this grim scenario for a massive rupture along the Cascadia fault system, which runs 700 miles off shore from Northern California to Vancouver Island.

Over the past decade, approximately five million people have moved away from California.

After reading this article, perhaps you have a better understanding why so many people are getting out while they still can.

To me, one of the greatest concerns is the rise in seismic activity that we are seeing all over the world.  In my latest book I express my belief that the United States will be greatly affected by this increase in seismic activity, and California is going to get hit harder than just about anywhere else.

Once again, I don’t have anything against California or the people that live there.  It is such a beautiful place, and it once held so much promise.

Unfortunately that promise has been shattered, and there is a mass exodus out of the state as families flee the horrific nightmare that California is in the process of becoming.

Why The Earthquake Near San Francisco Is Just The Start Of The Shaking In California

Tectonic Plates - WikipediaIf you thought that the earthquake that struck northern California on Sunday was something, just wait until you see what is coming in the years ahead.  As you will read about below, we live at a time when earthquake activity is dramatically increasing.  This is especially true of the “Ring of Fire” which runs roughly along the outer perimeter of the Pacific Ocean.  Approximately 81 percent of all big earthquakes occur along the Ring of Fire, and the entire west coast of the United States falls within the danger zone.  Over the past few years, we have seen huge earthquake after huge earthquake strike various areas along the Ring of Fire, but up until now the California coastline has mostly been spared.  However, there are indications that this may be about to change in a big way.

Early on Sunday, a 6.1 magnitude earthquake struck the heart of wine country.  It was the largest earthquake to hit northern California in 25 years.  More than 120 people were injured, scores of buildings were damaged and Governor Jerry Brown declared a state of emergency.

It is being projected that the economic loss from this earthquake will exceed a billion dollars.  Since the initial quake, there have been more than 60 aftershocks, and residents are very much hoping that the worst is over.  The following is how the damage caused by the earthquake was described by CNN

“Everything and everyone in Napa was affected by the quake. My house, along with everybody else’s, is a disaster. It looks like somebody broke in and ravaged the place, room by room.” said CNN iReporter Malissa Koven, who was awakened by the shaking at about 3:20 a.m.

“Anything and everything that could fall, did,” she said.

The damage in Napa is “fairly significant,” said Glenn Pomeroy, the CEO of the California Earthquake Authority, who surveyed the area Sunday afternoon.

“The downtown area is hardest hit, probably because of the age of construction down there,” Pomeroy said. In the residential areas, he is “seeing a lot of chimneys that’ve come crashing down.”

That sounds pretty bad, right?

But remember, this was only a 6.1 magnitude earthquake.  As Wikipedia explains, a 7.0 magnitude earthquake would be many times more powerful…

The Richter magnitude scale (also Richter scale) assigns a magnitude number to quantify the energy released by an earthquake. The Richter scale is a base-10 logarithmic scale, which defines magnitude as the logarithm of the ratio of the amplitude of the seismic waves to an arbitrary, minor amplitude.

As measured with a seismometer, an earthquake that registers 5.0 on the Richter scale has a shaking amplitude 10 times greater than that of an earthquake that registered 4.0, and thus corresponds to a release of energy 31.6 times greater than that released by the lesser earthquake.

And the earthquake that happened on Sunday would not even be worth comparing to an 8.0 or a 9.0 quake.  In fact, one study concluded that a 9.0 magnitude earthquake along the Cascadia fault could potentially produce a giant tsunami that would “wash away coastal towns”…

If a 9.0 earthquake were to strike along California’s sparsely populated North Coast, it would have a catastrophic ripple effect.

A giant tsunami created by the quake would wash away coastal towns, destroy U.S. 101 and cause $70 billion in damage over a large swath of the Pacific coast. More than 100 bridges would be lost, power lines toppled and coastal towns isolated. Residents would have as few as 15 minutes notice to flee to higher ground, and as many as 10,000 would perish.

Scientists last year published this grim scenario for a massive rupture along the Cascadia fault system, which runs 700 miles off shore from Northern California to Vancouver Island.

And when we think about “the Big One” hitting California, most of the time we think about southern California.  The most famous fault line in southern California is the San Andreas fault, but the truth is that many experts are far more concerned about the Puente Hills fault line.  According to one seismologist, that is the fault that would be most likely to “eat L.A.” and cause hundreds of billions of dollars in economic damage…

Video simulations of a rupture on the Puente Hills fault system show how energy from a quake could erupt and be funneled toward L.A.’s densest neighborhoods, with the strongest waves rippling to the west and south across the Los Angeles Basin.

According to estimates by the USGS and Southern California Earthquake Center, a massive quake on the Puente Hills fault could kill from 3,000 to 18,000 people and cause up to $250 billion in damage. Under this worst-case scenario, people in as many as three-quarters of a million households would be left homeless.

So don’t get too excited about what happened on Sunday.  Scientists assure us that it is only a matter of time before “the Big One” hits California.

In fact, the 6.1 magnitude earthquake that hit northern California on Sunday was not even the largest earthquake along the Ring of Fire this weekend.  According to the U.S. Geological Survey, a 6.4 magnitude earthquake shook the area around Valparaiso, Chile on Saturday and a 6.9 magnitude earthquake struck Peru on Sunday.

As I mentioned above, we have moved into a time when seismic activity is steadily rising.  It has gotten to the point where even the mainstream media cannot ignore it anymore.  For example, just check out the following excerpt from a recent CBS News report…

The average rate of big earthquakes — those larger than magnitude 7 — has been 10 per year since 1979, the study reports. That rate rose to 12.5 per year starting in 1992, and then jumped to 16.7 per year starting in 2010 — a 65 percent increase compared to the rate since 1979. This increase accelerated in the first three months of 2014 to more than double the average since 1979, the researchers report.

Something is happening that scientists don’t understand, and that is a little scary.

As I wrote about the other day, earthquake activity seems to particularly be increasing in the United States.  While the west has been relatively quiet, the number of earthquakes in the central and eastern portions of the nation has quintupled over the past 30 years…

According to the USGS, the frequency of earthquakes in the central and eastern U.S. has quintupled, to an average of 100 a year during the 2011-2013 period, up from only 20 per year during the 30-year period to 2000.

Most of these quakes were minor, but research published by the USGS earlier this year demonstrated that a relatively minor magnitude 5.0 quake caused by wastewater injection after conventional oil drilling triggered a much bigger, 5.7 magnitude quake in Prague, Okla.

“We know the hazard has increased for small and moderate size earthquakes. We don’t know as well how much the hazard has increased for large earthquakes. Our suspicion is it has but we are working on understanding this,” said William Ellsworth, a scientist with the USGS.

What in the world could be causing this to happen?

Oklahoma, which used to rarely ever have significant earthquakes, has experienced over 2,300 earthquakes so far in 2014.

That is absolutely staggering.

And of course volcanic activity has been rising all over the planet as well.  In 2013, the number of eruptions around the globe set a new all-time high, and right now persistent rumbling under Iceland’s Bardarbunga volcano has much of Europe on alert

For more than a week the earth has been rumbling beneath Iceland’s looming Bardarbunga volcano. The almost continuous small earthquakes led the government to activate its National Crisis Coordination Centre this week and block off access to the largely uninhabited region around the Bardarbunga caldera.

Major airlines are making contingency plans for a potential eruption that could throw dust into the atmosphere and disrupt flight paths between North America and Europe.

Some scientists are saying that if that volcano erupts, it “could trigger Britain’s coldest winter ever“.

Clearly something is happening.

All over the world seismic activity is on the rise.

That means that the shaking in California (and in much of the rest of the world) may soon get a whole lot worse.

So what do you think is causing all of this?  Please share what you think by posting a comment below…

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