For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress. Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists. It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe. The Congress cannot overrule this decision. Neither can Barack Obama. Because it has so much power, many refer to the Federal Reserve as “the fourth branch of government”, but unlike the other three branches of government, there are basically no significant “checks and balances” on the Federal Reserve. If you don’t like the fact that the Federal Reserve is racing in to help big foreign banks survive the European debt crisis that is just too bad. The Federal Reserve pretty much gets to do whatever it wants to do, and the folks over at the Fed simply do not care whether you like that or not. (Read More...)
Dumpster Diving?
Have you ever thought about getting your food out of a trash can? Don’t laugh. Dumpster diving has become a hot new trend in America. In fact, dumpster divers even have a trendy new name. They call themselves “freegans”, and as the economy crumbles their numbers are multiplying. Many freegans consider dumpster diving to be a great way to save money on groceries. Others do it because they want to live more simply. Freegans that are concerned about the environment view dumpster diving as a great way to “recycle” and other politically-minded freegans consider dumpster diving to be a form of political protest. But whatever you want to call it, the reality is that thousands upon thousands of Americans will break out their boots, rubber gloves and flashlights and will be jumping into dumpsters looking for food once again tonight. (Read More...)
Poverty In America: A Special Report
America is getting poorer. The U.S. government has just released a bunch of new statistics about poverty in America, and once again this year the news is not good. According to a special report from the U.S. Census Bureau, 46.2 million Americans are now living in poverty. The number of those living in poverty in America has grown by 2.6 million in just the last 12 months, and that is the largest increase that we have ever seen since the U.S. government began calculating poverty figures back in 1959. Not only that, median household income has also fallen once again. In case you are keeping track, that makes three years in a row. According to the U.S. Census Bureau, median household income in the United States dropped 2.3% in 2010 after accounting for inflation. Overall, median household income in the United States has declined by a total of 6.8% once you account for inflation since December 2007. So should we be excited that our incomes are going down and that a record number of Americans slipped into poverty last year? Should we be thrilled that the economic pie is shrinking and that our debt levels are exploding? All of those that claimed that the U.S. economy was recovering and that everything was going to be just fine have some explaining to do. (Read More...)
20 Signs Of Imminent Financial Collapse In Europe
Are we on the verge of a massive financial collapse in Europe? Rumors of an imminent default by Greece are flying around all over the place and Greek government officials are openly admitting that they are running out of money. Without more bailout funds it is absolutely certain that Greece will soon default on their debts. But German officials are threatening to hold up more bailout payments until the Greeks “do what they agreed to do”. The attitude in Germany is that the Greeks must now pay the price for going into so much debt. Officials in the Greek government are becoming frustrated because the more austerity measures they implement, the more their economy shrinks. As the economy shrinks, so do tax payments and the budget deficit gets even larger. Meanwhile, hordes of very angry Greek citizens are violently protesting in the streets. If Germany allows Greece to default, that is going to start financial dominoes tumbling around the globe and it is going to be a signal to the financial markets that there is a very real possibility that Portugal, Italy and Spain will be allowed to default as well. Needless to say, all hell would break loose at that point. (Read More...)
The Obama Jobs Plan: 10 Reasons Why It Is A Bad Joke
So that was what we have been waiting for? That was what all the hype was about? With a little over a year until the next election, that was the “best shot” that Obama has for fixing the unemployment crisis in this country? The Obama Jobs Plan (also now known as “the American Jobs Act”) is going to cost $447 billion and it is going to do next to nothing to create more jobs. Many Americans were hoping for something bold and new from Obama, but instead what they got was a bad joke. When Obama stated that there is “nothing radical in this bill”, he was not kidding. Instead of addressing the fundamental issues that are causing job loss, Obama wants us to spend half a trillion dollars on measures that will only create a very small number of jobs. Sadly, much of what Obama is proposing actually consists of huge bribes to middle class voters. Obama is trying to keep his own job, and he appears willing to pile up even more debt in order to make that happen. (Read More...)
Do You Now Understand Why You Need To Prepare For Emergencies? This Has Been The Worst Year For Natural Disasters In U.S. History
There has been a natural disaster that has caused at least a billion dollars of damage inside the United States every single month so far this year. According to the National Oceanic and Atmospheric Administration, there have been 10 major disasters in the United States this year. On average, usually there are only about 3 major disasters a year. At this point, disasters are happening inside the United States so frequently that there seems to be no gap between them. We just seem to go from one major disaster to the next. Last year, FEMA declared an all-time record of 81 disasters inside the United States. This year, we are on pace for well over 100. We just got done dealing with Hurricane Irene, and now we are dealing with historic wildfires in Texas and unprecedented flooding up in the northeast part of the country. This has been the worst year for natural disasters in U.S. history, and we still have nearly four months left to go. Hopefully after everything that has happened this year it has become abundantly clear to all of us why we need to prepare for emergencies. The world is becoming an increasingly unstable place, and you never know what is going to happen next. (Read More...)
Giant Sucking Sound Part 2? The NAFTA Of The Pacific Will Soon Allow Millions More American Jobs To Be Shipped Overseas
The United States is negotiating one of the biggest free trade agreements in history and there is barely a peep about it on the news. Years ago, Ross Perot warned that if NAFTA was implemented there would be a “giant sucking sound” as millions of jobs left this country. It turns out that he was right. Starting on Tuesday, the next round of negotiations on the Trans-Pacific Partnership (also known as the “NAFTA of the Pacific”) will begin in Chicago. We have already seen the Obama administration push hard for free trade agreements with Panama, South Korea and Colombia and the administration is making the Trans-Pacific Partnership a very high priority. Membership in the “NAFTA of the Pacific” already includes Brunei, Chile, New Zealand and Singapore. The United States, Australia, Peru, Malaysia and Vietnam are scheduled to join. Canada, Japan and South Korea are also reportedly considering membership. So once this “free trade” agreement is ratified, will we hear another “giant sucking sound” as millions more of our jobs are shipped overseas? (Read More...)
20 Quotes From European Leaders That Prove That They Know That The Financial System In Europe Is Doomed
The financial crisis in Europe has become so severe that it has put the future of the euro, and indeed the future of the EU itself, in doubt. If the financial system in Europe collapses, it is going to plunge the entire globe into chaos. The EU has a larger economy and a larger population than the United States does. The EU also has more Fortune 500 companies that the United States does. If the financial system in Europe breaks down, we are all doomed. An economic collapse in Europe would unleash a financial tsunami that would sweep across the globe. As I wrote about yesterday, the nightmarish sovereign debt crisis in Europe could potentially bring about the end of the euro. The future of the monetary union in Europe is being questioned all over the continent. Without massive bailouts, there are at least 5 or 6 nations in Europe that will likely soon default. The political will for continued bailouts is rapidly failing in northern Europe, so something needs to be done quickly to avert disaster. Unfortunately, as anyone that has ever lived in Europe knows, things tend to move very, very slowly in Europe. (Read More...)