Food Prices Are Rising Aggressively, And Even The Corporate Media Is Admitting That It Is Only Going To Get Worse

Food prices are outrageous now, but they are only going to go higher.  Earlier today, I came across an NBC News article entitled “Get ready for higher grocery bills for the rest of the year”. I thought that it was strange that a piece put out by the corporate media sounded like it could have come straight from my website, because I have been sounding the alarm about higher food prices for quite some time.  Surprisingly, the NBC News article was generally right on point.  Thanks to a variety of factors, food prices have been rising aggressively, and that is going to continue for the foreseeable future.

According to the Labor Department, consumer prices overall were up 0.6 percent from February to March…

Consumer prices shot higher in March, given a boost by a strong economic recovery and year-over-year comparisons to a time when the Covid-19 pandemic was about to throttle the U.S. economy, the Labor Department reported Tuesday.

The consumer price index rose 0.6% from the previous month but 2.6% from the same period a year ago. The year-over-year gain is the highest since August 2018 and was well above the 1.7% recorded in February.

0.6 percent may not sound like that much, but if you multiply that figure by 12 months you get an annualized rate of  7.2 percent.

Of course the government has changed the way the inflation rate is calculated dozens of times over the years, and at this point everyone knows that the official number greatly understates what is really happening in the economy.

In fact, John Williams of shadowstats.com says that if the rate of inflation was still calculated the way that it was back in 1980, it would be over 10 percent right now.

In other words, we have now reached Jimmy Carter levels of inflation.

One of the places where we are really starting to see inflation show up is in food prices.  Here are just a few examples

Before the pandemic began, the national average for a pound of bacon in January 2020 was $4.72. By last month, that price had soared to $5.11, according to exclusive supermarket point of sale data from NielsenIQ. Ground beef is up $5.26 a pound from $5.02. Bread is up $2.66 a loaf from $2.44.

So why are food prices increasing like this?

Yahoo News recently posted an article that listed four explanations

1. Plummeting food production
2. Transportation tumult
3. More eating at home
4. Wild weather

Moving forward, the pandemic will continue to suppress global food production, commodity prices will likely keep climbing, and increasingly wild weather patterns will certainly cause even more damage to crops.

All of these factors are making it more expensive for food companies to operate, and as NBC News has noted, food companies are starting to pass along those costs to consumers…

Issues like higher gas prices, increasing transport costs that get passed on to consumers, especially for items like bread, are only going up as driving increases faster than oil production. So grocery prices are likely to remain on the higher end of estimates for at least the rest of the year, Olvera said. Producers may eventually increase their output in order to capture the heightened demand, but that won’t happen until toward the end of this year, Olvera said.

Of course it isn’t just the United States that is wrestling with these problems.

Food prices are actually rising far more rapidly in much of the rest of the world, and we recently learned that global food prices spiked for a tenth month in a row during March…

Global food commodity prices rose in March, marking their tenth consecutive monthly increase, with quotations for vegetable oils and dairy products leading the rise, the Food and Agriculture Organization of the United Nations (FAO) reported today.

The FAO Food Price Index, which tracks monthly changes in the international prices of commonly-traded food commodities, averaged 118.5 points in March, 2.1 percent higher than in February and reaching its highest level since June 2014.

Those at the very bottom of the economic food chain are being hurt the most by rising food prices.

We have already started to see food riots in some areas, and one relief organization is warning that millions of people in East Africa are now on the verge of starvation

Over 7 million people across six East African countries are at the cusp of starvation as communities have faced existential threats from violence, flooding, the pandemic and locust infestation, the evangelical humanitarian organization World Vision has warned.

Needless to say, all of these developments are perfectly consistent with the warnings that I issued in Lost Prophecies Of The Future Of America.

Even during the best of years, we really struggle to feed the entire planet, and 2021 is definitely not going to be a great year for global food production.

The good news is that there is still plenty of food in our supermarkets right now, and that means that we have a window of opportunity.

I know that food prices may seem ridiculous, but they aren’t ever going to be any lower than they are right now.

I would encourage you to use this window of opportunity to stock up at these relatively low prices, because the price increases are only going to become even more painful as our leaders continue to flood the system with more cash.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The Economic Crisis Caused By This Pandemic Has Dramatically Altered How Americans Are Living Their Lives

This seemingly endless COVID pandemic is causing immense stress for millions of ordinary Americans.  In past articles, I have discussed the fact that surveys have shown that Americans are drinking more alcohol and taking more drugs during this pandemic.  Even more alarming, we have seen suicide rates spike over the past 12 months as well.  Sadly, this isn’t just happening here in the United States.  All over the globe, more people are ending their own lives during this pandemic.  But of course most people aren’t going to go that far.  Instead, most people are just going to quietly struggle along, but in the process many of them are making huge changes to their lifestyles.

For example, this pandemic appears to be greatly affecting both marriage and divorce rates.  Here are just a couple of examples

In Oregon, divorces in the pandemic months of March through December were down about 24% from those months in 2019; marriages were down 16%. In Florida, for the same months, divorces were down 20% and marriages were down 27%.

I can understand why so many Americans are putting off marriage right now.  A wedding can be extremely expensive, and many Americans may be hesitant to permanently tie the knot with so much economic uncertainty in our future.

But why are divorce rates down by so much?

That is a very good question.  Limited access to courts during the lockdowns was certainly one factor, and many Americans are also concerned about what a divorce would mean for them financially

One reason for fewer divorces: In many states, access to courts for civil cases was severely curtailed during the pandemic’s early stages. Another reason, according to marriage counselors, is that many couples backed off from a possibly imminent divorce for fear it would only worsen pandemic-fueled financial insecurity.

Meanwhile, this pandemic has also caused more Americans than ever to put off having children.

In fact, birth rates are way down all over the country

According to a Bloomberg analysis, births decreased by 19 percent in California between December 2019 and December 2020. Data from Florida, Hawaii, Arizona, and Ohio show large declines in birth rates since the pandemic started compared to the previous year’s data, too. A survey conducted by Modern Fertility, a company that sells fertility tests directly to consumers, found that 30 percent of nearly 4,000 people surveyed stated they changed their fertility plans due to COVID-19. One in four of those respondents said they’ve become unsure about having children at all; the most commonly cited reason was uncertainty about the world.

At the beginning of this pandemic, some had suggested that we may see a “baby boom”, but it appears that we are experiencing a “baby bust” instead.

The rising cost of living is causing a tremendous amount of stress for ordinary Americans as well.

Thanks to the crazy spending that Congress has been doing and the reckless money printing that the Federal Reserve has been engaged in, the money supply is skyrocketing and prices are aggressively rising all over the country.

Just look at what has been happening to natural gas prices.  The recent cold snap has created a dramatic spike in demand, and this has pushed natural gas prices to unprecedented levels.  The following comes from Zero Hedge

… we hit the proverbial offerless market where any natgas that was available would be purchased at virtually any price, which is why midcontinent prices such as the Oneok OGT nat gas spot exploded from $3.46 one week ago, to $9 on Wednesday, $60.28 on Thursday and an insane $377.13 on Friday, up 32,000% in a few days. This is one of those places where having a limit up circuit breaker could actually be useful, even though there simply is nowhere near enough product to satisfy demand at any price hence the explosive move.

Hubs across the Midcontinent led the surge in prices again Feb. 12 as weather forecasts predicted the coldest temperatures in more than a decade would hit the region over the upcoming holiday weekend. Platts reported that at locations across Kansas, Oklahoma and Eastern Arkansas, hub prices were trading at single-day record highs around $200 to $300/MMBtu. Regional hubs, which typically service only limited local demand, saw fierce competition among shippers, utilities and end-users looking to meet weekend requirements.

This is a reminder of what can happen when things get crazy.

If a short-term cold spell can cause this much chaos, what would happen during a long-term national emergency?

That is something to think about.

Other Americans don’t need to worry about heating their homes, because this pandemic has forced them to live in their vehicles

Americans are being driven into their vehicles by pandemic-fueled woes. And their ranks are likely to grow as the government safety net frays and evictions and foreclosures rise.

“It’s in times of crisis that the fragility of our systems are laid bare,” said Graham Pruss, a postdoctoral scholar with the Benioff Homelessness and Housing Initiative at the UC San Francisco Center for Vulnerable Populations.

Particularly on the west coast, government officials have been setting up huge parking lots where those that live in their vehicles can sleep safely at night.

Many of those that are now sleeping in their vehicles were once living comfortable middle class lifestyles, but now this crisis has changed everything.  Nicholas Atencio and Heather Surovik are two examples

For months, Nicholas Atencio and girlfriend Heather Surovik spent nearly every minute of their lives together in a 2000 Cadillac Escalade.

After Atencio, 33, lost his job as a plumber in May, he and Surovik, 36, delivered for Grubhub by day and at night curled up with their puppy on an air bed in the back of their car parked in a lot in Longmont, Colorado, dreaming of being reunited under one roof with Surovik’s teenage son who was living with his grandmother.

Have you ever spent a night in a vehicle?

If you have, then you already know that it isn’t pleasant.

Unfortunately, once eviction moratoriums are finally lifted all over the country we are going to see the largest tsunami of evictions in American history.

So that means that a lot more people are going to end up sleeping in their vehicles.

These are very troubled times, and they are about to get even more troubled…

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

“I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage”

Despite all the bragging that the mainstream media is constantly doing about the U.S. economy, the truth is that most Americans are deeply struggling right now.  59 percent of us are living paycheck to paycheck, and nearly 50 million Americans are living in poverty.  Sadly, most of those that are living in poverty actually come from a home where at least one person is currently employed.  Millions upon millions of Americans are working as hard as they can, but it simply is not enough to pull them above the poverty line, and it is a very serious national crisis.  Even though employment levels have been relatively stable for the last couple of years, the middle class has continued to disintegrate, and the ranks of the homeless have continued to grow.  Every year the cost of living rises faster than wages are growing, and as a result more U.S. families are being booted out of the middle class on a continual basis.  Many Americans are working two or three jobs in a desperate attempt to make ends meet, but often that isn’t even enough.  And if things are this bad right now, what will things look like once we get deep into the next recession?

Abigail Disney is the granddaughter of the late Roy Disney, and she is exceedingly wealthy, but she does not have any active role with the company her father founded today.

Recently, she heard that employees at Disneyland were having a really rough time making ends meet, and so “she went to Disneyland to see it for herself”

Abigail Disney told the Yahoo News show “Through Her Eyes” that a worker sent her a Facebook message expressing how tragic being employed at the Magic Kingdom has become. So she went to Disneyland to see it for herself.

“Every single one of these people I talked to were saying, ‘I don’t know how I can maintain this face of joy and warmth when I have to go home and forage for food in other people’s garbage,’” Disney, 59, told Yahoo News host and human rights activist Zainab Salbi in an interview posted Monday.

Could you imagine Mickey Mouse and Snow White foraging for food in the dumpster behind an apartment building after a full day of entertaining children?

Apparently this sort of thing is actually happening, and a recent survey of Disney employees discovered that 73 percent of them didn’t make enough money “to pay for basic expenses each month”…

A 2018 survey conducted by on behalf of a group of unions found that nearly three-quarters of full- and part-time employees (73%) said that they didn’t earn enough money working at Disneyland Resort to pay for basic expenses each month. More than half were worried about being evicted, and about one-tenth reported being homeless in the previous two years.

But actually the truth is that the average Disney employee is better off than the average American worker.

Today, the median yearly salary of a Disney employee is $46,127.

According to the Social Security Administration, 50 percent of all American workers make less than $30,533 a year.

Of course the cost of living is much higher in southern California than it is in most of the rest of the nation, and so that must be factored in as well.

Ultimately, anyone that is making less than $50,000 a year is likely to be struggling in this economy, because you simply cannot support a middle class lifestyle for a family of four or more on $50,000 a year at this point.

What makes things so much worse is the fact that most of us are absolutely drowning in debt.  Today, U.S. consumers are nearly 14 trillion dollars in debt, and many of us have already signed up for a lifetime of debt payments before we even leave school.

For example, I recently read about one woman that still owed nearly half a million dollars on her student loans…

Elisha Bokman has been out of school for eight years. Still, her student loan balance is half a million dollars.

Today, for her doctorate degree in naturopathic medicine and master’s in acupuncture from Bastyr University, she owes $499,322.69.

She and her husband struggled to buy a house because of her debt. Eventually, the financial stress led them to a divorce.

Not even bankruptcy will erase those loans, and they will haunt her for decades to come.

Millions upon millions of Americans are silently suffering as they wrestle with their desperate financial circumstances, and this is happening while things are still relatively good.

But now we are heading into a new economic downturn, and much of the country can see what is happening

Middle-class Americans are less optimistic about their economic prospects than they were just six months ago, according to a new report from CUNA Mutual Group.

Although the majority of those polled said they feel relatively stable overall, they graded their chances of achieving the American dream as a “C,” down from a “B-minus” in the fall, the insurance provider found. Close to half were increasingly concerned about an upcoming recession.

Economic conditions are not going to get any better than they are right now, and what we are heading for is going to be very painful.

I can definitely understand that people are very frustrated that they cannot make a decent living even though they are working extremely hard, but how much more frustrated will they be when they don’t have any jobs at all?

For decades we have been painting ourselves into a corner, and we have wrecked the great economic machine that was handed down to us by previous generations.

Now a day of reckoning is at hand, and it will eventually result in the greatest economic temper tantrum that our nation has ever seen.

About the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Are You Better Off This Thanksgiving Than You Were Last Thanksgiving?

Thanksgiving Dinner - Photo by Marcus QuiqmireAre you in better shape financially than you were last Thanksgiving?  If so, you should consider yourself to be very fortunate because most Americans are not.  As you chow down on turkey, stuffing and cranberry sauce this Thursday, please remember that there are millions of Americans that simply cannot afford to eat such a meal.  According to a shocking new report that was just released by the National Center on Family Homelessness, the number of homeless children in the U.S. has reached a new all-time high of 2.5 million.  And right now one out of every seven Americans rely on food banks to put food on the table.  Yes, life is very good at the moment for Americans at the top end of the income spectrum.  The stock market has been soaring and sales of homes worth at last a million dollars are up 16 percent so far this year.  But most Americans live in a very different world.  The percentage of Americans that are employed is about the same as it was during the depths of the last recession, the quality of our jobs continues to go down, the rate of homeownership in America has fallen for seven years in a row, and the cost of living is rising much faster than paychecks are.  As a result, the middle class is smaller this Thanksgiving than it was last Thanksgiving, and most Americans have seen their standards of living go down over the past year.

In 2014, there are tens of millions of Americans that are anonymously leading lives of quiet desperation.  They are desperately trying to hold on even though things just keep getting worse.  For example, just consider the plight of 49-year-old Darrell Eberhardt.  Once upon a time, his job in a Chevy factory paid him $18.50 an hour, but now he only makes $10.50 an hour and he knows that he probably would not be able to make as much in a new job if he decided to leave…

For nearly 20 years, Darrell Eberhardt worked in an Ohio factory putting together wheelchairs, earning $18.50 an hour, enough to gain a toehold in the middle class and feel respected at work.

He is still working with his hands, assembling seats for Chevrolet Cruze cars at the Camaco auto parts factory in Lorain, Ohio, but now he makes $10.50 an hour and is barely hanging on. “I’d like to earn more,” said Mr. Eberhardt, who is 49 and went back to school a few years ago to earn an associate’s degree. “But the chances of finding something like I used to have are slim to none.”

Of course you can’t support a family on $10.50 an hour.

You can barely support one person on $10.50 an hour.

But there are many men out there that would absolutely love to switch positions with Darrell Eberhardt.  At this point, one out of every six men in their prime working years (25 to 54) does not have a job.  That is an absolutely crazy number.

And of course just because you “have a job” does not mean that things are going well.  The number of Americans that are “working part-time involuntarily” has risen by over 50 percent since the beginning of the last recession.  There are millions of hard working Americans that would love to get a full-time job if they could land one.  But these days “decent jobs” are in short supply.

For example, CNN recently profiled the story of college graduate Meghan Brachle…

Meghan would love to be a music teacher or play full-time in an orchestra. She studied music at Loyola University in New Orleans and plays the flute.

Instead, Meghan works a slew of part-time jobs and receives no benefits.

She is a cashier at Whole Foods, a substitute teacher, a flute tutor and an administrative assistant at a non-profit.

Even with all of her hard work, Brachle and her husband often really struggle to pay the bills

With inconsistent hours, Meghan monthly income fluctuates between $1,000 and $3,000. Even with her husband’s teaching salary, the couple sometimes struggles to cover the $3,600 of monthly expenses they have.

“It’s very stressful,” Meghan, a college graduate, says. “I think about all the job applications I’ve turned in and all the interviews I’ve been on and all the other people who are in the same situation, looking for those same [full-time] jobs. It’s frustrating.”

Sadly, a lot of these part-time employers know that their employees desperately need these jobs and are using that leverage to treat them very poorly.

For example, it is being reported that any KMart employees that do not show up for work on Thanksgiving will be automatically fired.

What kind of nonsense is that?

And around the country at Wal-Mart stores, food drives are being held for “needy employees“.

So why wouldn’t Wal-Mart just pay their workers enough so that they could afford to take care of themselves in the first place?

Most people don’t realize this, but approximately one out of every four part-time workers in America is currently living below the poverty line.  Many of them are working as hard as they can and still can’t make enough to take care of themselves.

Meanwhile, our paychecks are getting stretched further and further with each passing month.

When you don’t make much money, every dollar is precious.  And when food prices go up substantially, it can be very painful.  Unfortunately, that is precisely what is happening right now…

-From September to October, the price of a pound of Turkey rose from $1.58 to $1.66.  That represents a 5.2 percent price increase in just one month.

-The price of a pound of ground beef has just risen to a brand new record high of $4.15 a pound, and more price increases are on the way.  The U.S. Department of Agriculture is projecting that U.S. beef production will drop by another 1 billion pounds next year due to a variety of factors including the horrific multi-year drought out west.

-The entire planet is bracing for a huge chocolate shortage, and this threatens to push the price of chocolate beyond the reach of many American families…

Start hoarding those Hershey’s Kisses and stockpile your Snickers: The world could soon experience a chocolate shortage.

Mars Inc. and Barry Callebaut, two of the world’s largest chocolate makers, say that’s the path we’re headed down. They cite a perfect storm of factors: Less cocoa is being produced as more and more people are devouring chocolate.

In 2013, consumers ate about 70,000 metric tons more cocoa than was produced, The Washington Post reports, and that deficit could go up to 1 million metric tons by 2020. The Ivory Coast and Ghana produce more than 70 percent of the world’s cacao beans, and both countries are experiencing dry weather that limits growth. To make things worse, a fungal disease called frosty pod has destroyed 30 to 40 percent of global cocoa production.

As a result of all of the things that I have just discussed above, more Americans than ever are being forced to turn to the government for assistance.  Today, the number of Americans getting a check from the government each month is at an all-time high, and at this point Americans collectively get more money from the government than they pay in taxes.  For much, much more on this, please see my recent article entitled “21 Facts That Prove That Dependence On The Government Is Out Of Control In America“.

So if things are going well for you this Thanksgiving, you should be truly thankful.

For most of the country, things just continue to get even worse.  And if the next major wave of our economic crisis arrives next year like many are projecting, this may just be the beginning of our economic pain.

50 Percent Of American Workers Make Less Than 28,031 Dollars A Year

Real Median Household Income 2014The Social Security Administration has just released wage statistics for 2013, and the numbers are startling.  Last year, 50 percent of all American workers made less than $28,031, and 39 percent of all American workers made less than $20,000.  If you worked a full-time job at $10 an hour all year long with two weeks off, you would make $20,000.  So the fact that 39 percent of all workers made less than that amount is rather telling.  This is more evidence of the declining quality of the jobs in this country.  In many homes in America today, both parents are working multiple jobs in a desperate attempt to make ends meet. Our paychecks are stagnant while the cost of living just continues to soar.  And the jobs that are being added to the economy pay a lot less than the jobs lost in the last recession.  In fact, it has been estimated that the jobs that have been created since the last recession pay an average of 23 percent less than the jobs that were lost.  We are witnessing the slow-motion destruction of the middle class, and very few of our leaders seem to care.

The “average” yearly wage in America last year was just $43,041.  But after accounting for inflation, that was actually worse than the year before

American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.

Average pay for 2013 was $43,041 — down $79 from the previous year when measured in 2013 dollars. Worse, average pay fell $508 below the 2007 level, my analysis of the new Social Security Administration data shows.

Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services.

Average pay declined in 59 of the 60 levels of worker pay the government reports each October.

And please keep in mind that “average pay” is really skewed by the millionaires and billionaires at the top end of the spectrum.

Median pay in 2013 was just $28,031.02.  That means that 50 percent of American workers made less than that number, and 50 percent of American workers made more than that number.

Here are some more numbers from the report that the Social Security Administration just released…

-39 percent of American workers made less than $20,000 last year.

-52 percent of American workers made less than $30,000 last year.

-63 percent of American workers made less than $40,000 last year.

-72 percent of American workers made less than $50,000 last year.

I don’t know about you, but those numbers are deeply troubling to me.

It has been estimated that it takes approximately $50,000 a year to support a middle class lifestyle for a family of four, and so the fact that 72 percent of all workers make less than that amount shows how difficult it is for families that try to get by with just a single breadwinner.

The way that our economy is structured now, both parents usually have to work as hard as they can just to pay the bills.

But there was one group of Americans that did see their incomes actually increase last year.

Those making over 50 million dollars had their pay increase by an average of $12.8 million in 2013.

For everyone else, the news was not good.

And of course this is a trend that has been going on for a long time.

Posted below is a chart that comes from the Federal Reserve.  It shows how real median household income in the United States has declined since the year 2000…

Real Median Household Income 2014

Meanwhile, the cost of living has continued to rise at a steady pace.

Needless to say, this is putting a tremendous squeeze on the middle class.  With each passing day, more Americans are losing their spots in the middle class and this has pushed government dependence to an all-time high.  According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month.  This is completely and totally unsustainable, but our long-term economic problems just keep getting worse.

Our politicians have stood by as millions upon millions of good paying jobs have been shipped out of the country.  Millions of other middle class jobs have been lost to technology.  This has resulted in intense competition for the middle class jobs that remain.

And at this point we are even losing lots of lower paying retail jobs.  For example, it is being reported that Sears plans to close 110 more stores and lay off more than 6,000 workers.  Sears says that the report “isn’t accurate”, but it isn’t denying that stores will be closed either…

In an email to USA Today, Sears spokesman Howard Riefs said the store count and closures “isn’t accurate,” but did not provide store closures or layoff numbers.

“As we stated in our (second quarter earnings report), we disclosed that we would be closing unprofitable stores as leases expire and in some cases will accelerate closings when it is economically prudent. And that we would consider closing additional stores during the remainder of the year,” Riefs said. “Make no mistake, we believe the store will continue to play an integral role in our transformation, however, if a store is not generating a profit, it is straightforward that the store should be considered for closure.”

No matter how many stores Sears does end up closing over the next few months, the truth is that our economy is a complete and total mess at this point.

Our politicians and the mainstream media are trying to put a happy face on everything, but the cold, hard numbers prove that we are not anywhere close to where we were prior to the last recession.

Because it is so difficult to find a good job in America today, I often recommend to people that they should consider starting their own businesses.

But thanks to the bureaucratic control freaks in the Obama administration and in our state governments, small business ownership in America today is at an all-time low.  It is almost as if they don’t want the “little guy” to win.  Every avenue of prosperity for the middle class is under assault, and there does not appear to be much hope that this will change any time soon.

And the truly frightening thing is that this is about as good as things are going to get for the middle class.  We are rapidly approaching the next major wave of our long-term economic decline, but that is a topic for a future article.

19 Signs That The U.S. Consumer Is Tapped Out

Spare ChangeYou can’t get blood out of a rock.  Traditionally the United States has had a consumer-driven economy, but now years of declining incomes and rising debts are really starting to catch up with us.  In order to have an economy that is dependent on consumer spending, you need to have a large middle class.  Unfortunately, the U.S. middle class is steadily shrinking, and unless that trend is reversed we are going to see massive economic changes in this country.  For example, in poor neighborhoods all over America we are seeing bank branches, car dealerships and retail stores close down at an alarming rate.  If you didn’t know better, you might be tempted to think that “Space Available” was the hottest new retailer in some areas of the nation.  On the other hand, if you live in San Francisco, New York City or Washington D.C., things are pretty good for the moment.  But as a whole, the condition of the U.S. consumer continues to decline.  Incomes are going down, the cost of living is going up, and debts are skyrocketing.  The following are 19 signs that the U.S. consumer is tapped out…

#1 Real disposable income per capita continues to fall.  In the fourth quarter of 2012, it was sitting at $37,265.  By the time that the fourth quarter of 2013 had come around, it had dropped to $36,941.  That means that average Americans have less money to go shopping with than they did previously.

#2 In January, real disposable income in the U.S. experienced the largest year over year decline that we have seen since 1974.

#3 As disposable income decreases, major retailers are closing thousands of stores all over the country.  Some are even calling this “a retail apocalypse“.

#4 From September 2013 to January 2014, the personal saving rate in the United States dropped by a staggering 16 percent.

#5 During the fourth quarter of 2013, we witnessed the largest increase in consumer debt in this country that we have seen since 2007.

#6 Fewer Americans are applying for mortgages these days.  In fact, the MBA Purchase Applications Index is now the lowest that it has been since 1995.

#7 Overall, the rate of homeownership in the United States has fallen for eight years in a row.

#8 Many Americans are finding it increasingly difficult to afford a new car or truck.  The following comes from a recent CNBC article

A new study shows the average household in 24 of America’s 25 largest metropolitan areas cannot afford to pay for the average priced new car or truck.

“Just because you can manage the monthly payment doesn’t mean you should let a $30,000 or $40,000 ride gobble up such a huge share of your paycheck,” said Mike Sante, managing editor of Interest.com. “Many people are spending money on a car payment that they could be saving.”

#9 Incredibly, 56 percent of all Americans now have “subprime credit” at this point.

#10 Total consumer credit has risen by a whopping 22 percent over the past three years.

#11 In the third quarter of 2007, the student loan delinquency rate was 7.6 percent.  Today, it is up to 11.5 percent.

#12 Overall, U.S. consumers are $11,360,000,000,000 in debt.

#13 While Barack Obama has been in the White House, median household income in the United States has fallen for five years in a row.

#14 U.S. workers are taking home the smallest share of the income pie that has ever been recorded.

#15 One recent study found that about 60 percent of the jobs that have been “created” since the end of the last recession pay $13.83 or less an hour.

#16 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then.

#17 According to one recent survey, only 35 percent of all Americans say that they are better off financially than they were a year ago.

#18 In 2008, 25 percent of all Americans in the 18 to 29-year-old age bracket considered themselves to be “lower class”.  In 2014, an astounding 49 percent of them do.

#19 The poverty rate in America has been at 15 percent or above for 3 consecutive years.  That is the first time that has happened since 1965.

Despite what the mainstream media keeps telling them, most Americans know on a gut level that there is something fundamentally wrong with our economy.

According to Gallup, “Unemployment/Jobs” is the number one issue that Americans care about these days and the “Economy in general” is the number three issue that Americans care about these days.

Most people just want to work hard, make a decent living and take care of their families.

Sadly, that is becoming increasingly difficult to do.

And the numbers that I have shared above only tell part of the story.  For a more personal side to all of this, I encourage you to read my previous article entitled “10 Stories From The Cold, Hard Streets Of America That Will Break Your Heart” if you have not done so already.

The really bad news is that this is about as good as things are going to get for the U.S. economy.  The long-term trends that are eating away at our economy like cancer are intensifying, and our “leaders” just continue to act as if “business as usual” will somehow get the job done.

Most of them don’t even realize that time is running out.

As I discussed yesterday, there is a lot of evidence that the massive financial bubble that the Federal Reserve has inflated is getting ready to burst.

When the next great financial crisis does strike, it is going to be absolutely disastrous.  We are in far worse financial shape than we were back then, and this next round of financial trauma could truly be the “knockout blow” for the U.S. economy.

Let us hope for the best, but let us also prepare for the worst.

Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination

Redd Fox HypnotizedIf you believe that there is high inflation in the United States, you are just imagining things.  That is the message that the U.S. government and the Federal Reserve would have us to believe.  You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year.  This is one of the smallest cost of living increases that we have ever seen.  The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now.  Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is.  The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower.  According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.  But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control.  Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing.  It is a giant scam, but most Americans are falling for it.

Meanwhile, the prices of the things that most Americans buy on a regular basis just keep going up.  The following are just a few examples of price inflation that we have seen lately…

-McDonald’s has killed the dollar menu because it is becoming impossible to “make any money selling burgers for $1“.

But don’t worry – the government says that the inflation you see is just your imagination.

-Amazon.com has raised the minimum order size required for free shipping from $25 to $35.

But don’t worry – you can afford to order more stuff thanks to the great new job that you got during this “economic recovery”.

-It is being projected that those using natural gas to heat their homes will see their heating costs rise by 13 percent this winter.

But don’t worry – “global warming” should kick in to high gear any day now.

-The price of chocolate has gone up by 45 percent since 2007, and it is being projected that it will now be increasing at an even faster pace.

But don’t worry – eating chocolate is bad for you anyway.

-Thanks to Obamacare, the health insurance premiums of many American families are absolutely skyrocketing.  As I wrote about the other day, one family down in Texas just got a letter informing them that their health insurance premiums are going up by 539 percent.

But don’t worry – this is just “health care reform” in action.

Meanwhile, things just continue to get tougher for middle class American families.  Household incomes have actually been declining for five years in a row and total consumer credit has risen by a whopping 22 percent over the past three years.

The quality of our jobs continues to go down and our paychecks are not keeping up with inflation.  In fact, 40 percent of all U.S. workers are now making less than what a full-time minimum wage worker made back in 1968 after you account for inflation.

So what do the “authorities” say that the solution to our problems is?

They want even more inflation of course.  According to CNBC, many Federal Reserve officials (including Janet Yellen) believe that what the U.S. economy really needs is a lot more inflation…

Inflation is widely reviled as a kind of tax on modern life, but as Federal Reserve policy makers prepare to meet this week, there is growing concern inside and outside the Fed that inflation is not rising fast enough.

Some economists say more inflation is just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment.

The Fed has worked for decades to suppress inflation, but economists, including Janet Yellen, President Obama’s nominee to lead the Fed starting next year, have long argued that a little inflation is particularly valuable when the economy is weak. Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly.

The rest of that article goes on and on about how wonderful inflation is for an economy and about how the U.S. economy desperately needs some more of it.

Well, if that was actually true, then the Weimar Republic should have had one of the best economies in the history of mankind.

But this inevitably happens when a nation starts producing fiat currency that is backed by absolutely nothing.  There is always a temptation to just print a little bit more.

In the end, we are going to be destroyed by our own foolishness.  We have the de facto reserve currency of the planet, and the rest of the world has trusted it for decades.  But now we are systematically destroying our currency, and the rest of the globe is looking on in horror.

If you want to see a very good example of the impact that inflation has had on our economy in recent years, just check out this amazing chart which shows what the Federal Reserve’s reckless policies have done to the prices of commodities.

Ultimately, the U.S. dollar will be destroyed, and we will have done it to ourselves.

Many people are attempting to protect themselves against this inevitability by putting a lot of their money into hard assets such as gold and silver, but before you do that you might want to make sure that you don’t have a vengeful spouse that will toss it all into a dumpster someday.  The following is from a recent New York Post article

A Colorado man was so angry at his ex-wife for divorcing him that he had the couple’s life savings of $500,000 converted to gold — then tossed it in a dumpster so she couldn’t have any of it, the Colorado Springs Gazette reports.

In June, Earl Ray Jones, 52, of Divide, Colorado, was ordered by a judge to pay $3,000 a month to the woman he’d been married to for 25 years, so he pillaged the couple’s retirement account and had it converted into 22 pounds worth of gold and silver bars,  the paper reports.

Jones claims he then tossed the modern-day treasure into a dumpster behind a motel, where he had been living temporarily, later telling the judge he had no money to give his ex-wife, according to the paper.

Did that story make you smile?  It sure did the trick for me.

But that story is also a picture of what the Federal Reserve is doing with our dollar.

Our currency has been used for decades by almost everyone else around the planet.  In fact, more U.S. dollars are used outside of our country than inside of it.

But now the Federal Reserve is systematically trashing the dollar and the rest of the globe is starting to lose faith in it.

Instead of realizing their mistakes, Fed officials say that we need to create even more inflation and they just keep on wildly printing more money.

In the end, we will all pay a great price for their foolishness.