Today, average Americans have less power relative to the monolithic corporate and governmental institutions that dominate our society than at any other point in U.S. history. Sadly, this is not what our founding fathers ever envisioned. Our founding fathers established a government “of the people, by the people, for the people”, but what we have today is very far from that ideal. In America today, wealth and power are very highly concentrated, and if you have neither wealth nor power than most of our politicians really do not have any interest in you. Over the past several decades, those with huge amounts of money and power have been busy rigging the game so that the rest of the money and power slowly but surely funnels into their hands. If current trends continue, the banksters and the corpocracy will eventually own it all. Below you will find 29 statistics about extreme income inequality in America. Sadly, most of these statistics will be out of date in a year or two because wealth and power will be much more concentrated by that time. (Read More...)
The Sky Is Falling, It Is Time To Panic And The U.S. Economy Has Fallen And It Can’t Get Up
So many economists and financial pundits seem absolutely shocked that the U.S. economy is slowing down again. It is as if this latest wave of bad economic data has caught them completely by surprise. Now, in the mainstream media we are seeing all kinds of headlines declaring that the U.S. economy is headed for disaster. But anyone with half a brain could have seen this coming. This year alone, we have seen the worst tsunami in Japanese history, the worst U.S. tornado season in recent memory and the worst Mississippi River flooding in decades. In addition, chaos in the Middle East has pushed the price of oil up to very high levels. Of course all of those things were going to have an effect on the economy. In addition, all of the long-term trends that have been destroying the U.S. economy for decades have not been taken a breather. In fact, the truth is that all of our long-term economic problems have been accelerating. So yes, the sky is falling, it is time to panic and the U.S. economy really has fallen and it really can’t get up. It is just that everyone in the mainstream media seems to have believed that Ben Bernanke and Barack Obama would just sprinkle a bunch of fairy dust on the economy and everything would just magically get better. Well, in the real world things simply do not work that way. (Read More...)
Global Financial Markets Tremble As Bad Economic News Continues To Pour In
As the U.S. economy starts to slow down once again, global financial markets are beginning to tremble. Over the past couple of weeks, all kinds of bad economic news has been pouring in. The ADP jobs report was a “disaster”, the housing numbers are dismal, manufacturing has slowed way down and consumer confidence is dropping like a rock. The Democrats and the Republicans are bickering over the debt ceiling and this is causing a lot of uncertainty as well. All of this bad news is starting to spook investors. On Wednesday, the Dow was down 279 points and the NASDAQ was down 65 points. It was the worst day of the year for the Dow, and many are wondering what is going to happen next if we see even more bad economic data. QE2 is slated to end at the end of the month, and already the bond markets seem to be anticipating QE3. If the U.S. economy enters another significant downturn during the second half of 2011, it seems quite likely that the Federal Reserve would attempt to do something to stimulate the economy and that would probably mean more money printing. (Read More...)
Suddenly Everyone Is Warning About The Next Financial Collapse
Are we about to see a repeat of 2008 (or something even worse)? Suddenly all kinds of people are coming out of the woodwork and warning that we could be on the verge of the next major financial collapse. Of course many economists and financial pundits just enjoy hearing themselves talk, and sometimes they will make outrageous claims just to get attention, but when so many ominous warnings come out all at once it does tend to make one sit up and take notice. The truth is that global financial markets are even more vulnerable today than they were in 2008, and all over the globe we are seeing trouble signs. Japan is trying to recover from the worst natural disaster that they have ever seen and they are dealing with a nuclear crisis that never seems to end. The Europeans are trying to put another bailout package for Greece together and about a half dozen more European nations that are drowning in debt will need bailouts after that. In the U.S., there are all kinds of signs pointing to the collapse of the economy and the politicians in Washington D.C. continue to “kick the can down the road” and hope that our economic problems will somehow fix themselves. Oil prices are incredibly high and turmoil is sweeping the globe. Conditions are certainly developing that could bring about a “perfect storm” and cause another global financial collapse. (Read More...)
Extreme Couponing: Desperate Economic Times Call For Desperate Measures
Even in the midst of a horrific economic decline, there are tools that all of us can use to make the most of our limited resources. This includes doing some things that many of us never imagined that we would do. A couple of months ago I never would have imagined that I would be doing an article on coupons. But in these desperate economic times you have to look for any economic edge that you can get. Did you know that it is possible to get $500 worth of groceries for less than 10 dollars? I didn’t know that either until I started watching a show called “Extreme Couponing” on cable television. I was amazed as I watched person after person get over 95 percent off on their groceries. Personally, I have always thought that clipping coupons was a waste of time. Sure, you might save a few bucks, but I really didn’t think it was worth the time or the effort. Well, my opinion has changed. There are a growing number of people out there that are using coupons to provide all of the groceries that their families need almost for free. In an economic environment where incomes are going down but food prices continue to go up, “extreme couponing” is a financial weapon that virtually anyone can use. (Read More...)
Inflation 2011: Honey – They Shrunk Our Paychecks
Do you ever have the feeling that there are holes in your pockets? These days our money seems to slip through our hands faster than ever. The Federal Reserve keeps telling us that the rate of inflation in 2011 is “close to zero”, and this is causing confusion for many Americans because they are making just as much money as they did in previous years but it doesn’t seem to go nearly as far. So what in the world is going on out there? Well, sadly, the truth is that we really don’t even know what the government considers “inflation” to be anymore. The way that the U.S. government calculates inflation has changed an astounding 24 times since 1978. You see, it is always politically beneficial to have a low inflation rate, so recent administrations have been changing the formula constantly in an attempt to look good. But these days most Americans know something is up. All they have to do is stop at a gas station, go shopping for food or open up their bills. The reality is that inflation in 2011 is about as bad as we saw back in the 1970s, it is just that the government is much less honest about it now. (Read More...)
When Faith In U.S. Dollars And U.S. Debt Is Dead The Game Is Over – And That Day Is Closer Than You May Think
A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt. When that day arrives, the game will be over. Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries. The U.S. dollar has been the default reserve currency of the world for decades. All over the globe it was seen as a strong, stable currency that was desirable for international trade. U.S. government debt has long been considered the “safest debt” in the entire world. Whenever there was a major crisis, investors would flock to U.S. Treasuries because they were considered a rock. Sadly, all of this is now changing. Today the rest of the world is losing faith in the U.S. financial system. In fact, even the United Nations is now warning of the collapse of the dollar. But if the U.S. dollar and U.S. Treasuries collapse, that will be an absolute nightmare for the U.S. economy. If the rest of the world does not want our dollars someday, then what are we going to give them in exchange for all of the oil and all of the cheap imported goods they send us? If the rest of the world does not want our debt someday, then how in the world are we going to be able to continue to consume far, far more wealth than we produce? (Read More...)
Extreme Paranoia
Have you noticed that our entire society operates on fear now? Everyone is afraid of everybody else. We are taught not to trust anyone that we do not know and that we should literally spy on our neighbors because they might be a threat. If you do not participate in all of the extreme paranoia that is going on then supposedly something is wrong with you. In fact, if you are not paranoid like everyone else is then you might be a threat. After all, according to FBI Director Robert Mueller, “homegrown terrorists” represent as big a threat to American national security as al-Qaeda does. But in the midst of all of this extreme paranoia, we have thrown common sense out the window. We are told that it is Islamic extremists that want to attack us, and yet we are so obsessed with being politically correct that the TSA will grope grandma, grandpa and all the little children they can get their hands on but they will allow men in full Islamic dress to walk right through airport security without even being checked. We will put up video cameras to watch schoolchildren eat their lunches and yet we are leaving our borders completely wide open. Thousands of real terrorists could be crossing our borders each day and we would never even know it. But this is what happens when extreme paranoia sets in – people (and governments) start behaving very irrationally. (Read More...)