Not so fast. Those that are publicly declaring that an economic recovery has arrived are ignoring a whole host of numbers that indicate that the U.S. economy is in absolutely horrendous shape. The truth is that the health of an economy should not be measured by how well the stock market is doing. Rather, the truth health of an economy should be evaluated by looking at numbers for things like jobs, housing, poverty and debt. Some of the latest economic statistics indicate that unemployment is getting a little bit worse, that the housing market continues to deteriorate, that poverty in America continues to soar and that our debt problem is worse than ever. If we were truly experiencing the kind of economic recovery that the United States has experienced after every other post-World War II recession we would see a sharp improvement across the board in most of our economic statistics. But that simply is not happening. Sadly, this is about as much of an “economic recovery” as we are going to get because soon the economy will be getting much worse. So enjoy this period of relative stability while you can. (Read More...)
15 Potentially Massive Threats To The U.S. Economy Over The Next 12 Months
We live in a world that is becoming increasingly unstable, and the potential for an event that could cause “sudden change” to the U.S. economy is greater than ever. There are dozens of potentially massive threats that could easily push the U.S. economy over the edge during the next 12 months. A war in the Middle East, a financial collapse in Europe, a major derivatives crisis or a horrific natural disaster could all change our economic situation very rapidly. Most of the time I write about the long-term economic trends that are slowly but surely ripping the U.S. economy to pieces, but the truth is that just a single really bad “black swan event” over the next 12 months could accelerate our economic problems dramatically. If oil was cut off from the Middle East or a really bad natural disaster suddenly destroyed a major U.S. city, the U.S. economy would be thrown into a state of chaos. Considering how bad the U.S. economy is currently performing, it would be easy to see how a major “shock to the system” could push us into the “next Great Depression” very easily. Let us hope that none of these things actually happen over the next 12 months, but let us also understand that we live in a world that has become extremely chaotic and extremely unstable. (Read More...)
Now THAT Is Cold – 19 Signs That America Is Becoming A Very Heartless Place
The economy is not the only thing that is wrong with America. In order for a society to function smoothly, people need to be able to trust one another and be able to expect that most of their fellow citizens will behave in a somewhat civilized manner. Unfortunately, we are starting to see the very fabric of our society slowly unravel all over the nation. The truth is that America is becoming a very heartless place. People simply do not care about one another the way that they used to in this country. Of course there are many exceptions, but the reality is that millions of hearts are going cold from coast to coast. In America today, we are more self-absorbed than ever, more self-centered than ever, and we are more isolated from others than ever. Just think about the number of people that you personally interact with on a regular basis. Unless you are involved with a very large organization such as a school or a church, it is probably a very limited number. Our addiction to entertainment gives us the illusion of being connected to society, but the truth is that Americans spend less time personally interacting with one another than ever before. Meanwhile, Americans are seemingly becoming more arrogant, more prideful, more angry, more brutal, more greedy and more addicted to pleasure than ever before. When you combine millions of very cold hearts with an economy that is rapidly crumbling, that adds up to a whole lot of trouble in the years ahead. (Read More...)
10.7 Percent: Unemployment In Europe Is Worse Than It Was At The Peak Of The Last Recession
The unemployment rate in the eurozone is now 10.7 percent. That is the highest the unemployment rate has been since the introduction of the euro. The unemployment rate in the eurozone never got any higher than 10.2 percent during the last recession. This is very troubling news. It was just recently announced that the eurozone has entered another recession, and already the unemployment rate is hitting new record highs. So how bad are things going to get in the months to come? The truth is that the problems for Europe are just starting. The European sovereign debt crisis continues to get worse, and another major global financial crisis is going to be here way too soon. The EU as a whole has a larger population, a larger banking system and more Fortune 500 companies than the United States does. When the financial system of Europe crashes, the entire world is going to feel it. (Read More...)
Inflation Is A Hidden Tax And The Federal Reserve Is Taxing The Living Daylights Out Of Us
Ronald Reagan once famously declared that inflation is a tax, but sadly most Americans did not really grasp what he was talking about. If the American people truly understood what inflation was doing to them, they would be screaming bloody murder about monetary policy. Inflation is an especially insidious tax because it is not just a tax on your income for one year. It is a continual tax on every single dollar that you own. As your money sits in the bank, it is constantly losing value. Over time, the effects of inflation can be absolutely devastating. For example, if you put 100 dollars in the bank in 1970, those same dollars today would only have about 17 percent of the purchasing power that they did back then. In essence, you were hit by an 83 percent “inflation tax” and all you did was leave your money in the bank. So who is responsible for this? Well, the Federal Reserve controls monetary policy in the United States, and the inflationary monetary policy that the Fed has gotten all of us accustomed to is taxing the living daylights out of us. This is madness, and it needs to stop. (Read More...)
20 Economic Statistics To Use To Wake Sheeple Up From Their Entertainment-Induced Comas
The Dow has closed above 13,000 for the first time since 2008, and the mainstream media is declaring that a strong economic recovery is underway. Barack Obama is telling anyone who will listen that his economic policies are a huge success, and U.S. consumers are piling up astounding amounts of new debt. Unfortunately, this euphoria about the economy will be short-lived. None of the long-term problems that are destroying the U.S. economy have been solved. In fact, there are dozens of statistics that can be quoted that prove that the U.S. economy is in far worse shape than it was when the recession supposedly ended. If dramatic changes are not made very rapidly, our nation is going to smash directly into an economic brick wall. Sadly, most Americans are so addicted to entertainment that they have no idea what is about to happen. Most of them are “sheeple” that are content to trust that the “experts” know exactly how to fix our problems as they continue to enjoy their entertainment-induced comas. After all, it is much easier to turn on “American Idol” or “Dancing With The Stars” than it is to think about debt ratios and monetary policy. But that doesn’t mean that we should not try to wake the sheeple up. It just means that it will not be easy. (Read More...)
20 Signs That Dust Bowl Conditions Will Soon Return To The Heartland Of America
For decades, the heartland of America has been the breadbasket of the world. Unfortunately, those days will shortly come to an end. The central United States is rapidly drying up and dust bowl conditions will soon return. There are a couple of major reasons for this. Number one, the Ogallala Aquifer is being depleted at an astounding pace. The Ogallala Aquifer is one of the largest bodies of fresh water in the entire world, and water from it currently irrigates more than 15 million acres of crops. When that water is gone we will be in a world of hurt. Secondly, drought conditions have become the “new normal” in many areas of Texas, Oklahoma, Kansas and other states in the middle part of the country. Scientists tell us that the wet conditions that we enjoyed for several decades after World War II were actually the exception to the rule and that most of time time the interior west is incredibly dry. They also tell us that when dust bowl conditions return to the area, they might stay with us a lot longer than a decade like they did during the 1930s. Unfortunately, without water you cannot grow food, and with global food supplies as tight as they are right now we cannot afford to have a significant decrease in agricultural production. But it is not just the central United States that is experiencing the early stages of a major water crisis. Already many other areas around the nation are rapidly developing their own water problems. As supplies of fresh water get tighter and tighter, some really tough decisions are going to have to be made. Fresh water is absolutely essential to life, and it is going to become increasingly precious in the years ahead. (Read More...)
America 1950 vs. America 2012
Would you rather live in the America of 1950 or the America of 2012? Has the United States changed for the better over the last 62 years? Many fondly remember the 1950s and the 1960s as the “golden age” of America. We emerged from World War II as the wealthiest and most powerful nation on the planet. During that time period, just about anyone that wanted to get a job could find a job and the U.S. middle class expanded rapidly. Back in 1950, America was still considered to be a “land of opportunity” and the economy was growing like crazy. There was less crime, there was less divorce, the American people had much less debt and the world seemed a whole lot less crazy. Most of the rest of the world deeply admired us and wanted to be more like us. Of course there were a lot of things that were not great about America back in 1950, and there are many things that many of us dearly love that we would have to give up in order to go back and live during that time. For example, there was no Internet back in 1950. Instead of being able to go online and read the articles that you want to read, your news would have been almost entirely controlled by the big media companies of the day. So there are definitely some advantages that we have today that they did not have back in 1950. But not all of the changes have been for the better. America is in a constant state of change, and many are deeply concerned about where all of these changes are taking us. (Read More...)