The Economic Collapse
January 15, 2010
The vast majority of the talking heads
on television are still speaking of the current economic collapse as if it is a
temporary “recession” that will soon be over. So far, the vast majority
of the American people seem to believe this as well, although for many
Americans there is a very deep gnawing in the pit of their stomachs that is
telling them that there is something very, very wrong this time
around. The truth is that the foundations of the U.S. economy have
been destroyed by an orgy of government, corporate and individual debt that has
gone on for decades. It was the greatest party in the history of the
world, but now the party is over. The following are 11 signs from just
this past month that show that the U.S. economy is headed into the
toilet and will not be recovering….
#1) When even Wal-Mart is closing
stores you know things are bad. Wal-Mart announced on Monday that it will close 10 money-losing Sam’s Club stores
and will cut 1,500 jobs in order to reduce costs. So if even
Wal-Mart has to shut down stores, what chance do other retailers have?
#2) Americans are going broke at a
staggering pace. 1.41 million Americans filed for personal bankruptcy in
2009 – a 32 percent increase over 2008.
#3) American workers are working harder
than ever and yet making less. After adjusting for inflation, pay for
production and non-supervisory workers (80 percent of the private
workforce) is 9% lower than it was in 1973. But
those Americans who do still have jobs are the fortunate ones.
#4) Unemployment is absolutely
exploding all over the United States. Minority groups have been hit
particularly hard. For example, unemployment on many U.S. Indian
reservations is over 80 percent.
#5) Unfortunately the employment situation is showing no signs
of turning around. December was actually the worst month for U.S. unemployment
since the so-called ”Great Recession” began.
#6) So just how bad are things when
compared to past recessions? During the 2001 recession, the U.S.
economy lost 2% of its jobs and it took four years to get them back. This
time the U.S. economy has lost more than 5% of its jobs and there is
no sign that the bleeding of jobs will stop any time soon.
#7) Can you imagine trying to get your
first job in this economic climate? Our young men and women either can’t
get work or have given up on work altogether. The percentage
of Americans 16 to 24 who have jobs is 13 percent lower than ten years ago.
#8) So where did all the jobs go?
Over the past few decades we have allowed the corporate giants to ship
mountains of American jobs overseas, and there are signs that this trend is
only going to get worse. In fact, Princeton University economist Alan S.
Blinder estimates that 22% to 29% of all current U.S. jobs will be offshorable within two decades.
So get ready for even more of our jobs to be shipped off to Mexico, China and
India.
#9) All of these job losses are leading
to defaults on mortgages. Over the past couple of years we have seen the
American Dream in reverse. According to a report that was just
released, delinquent home loans at government-controlled mortgage finance
giants Fannie Mae and Freddie Mac surged 20 percent from July through September.
#10) But that is nothing compared to
what is coming. A massive “second wave” of mortgage defaults is getting
ready to hit the U.S. economy starting in 2010. In fact, this “second
wave” is so frightening that even 60 Minutes is reporting on it.
#11) Meanwhile, the Federal Reserve has
announced that it made a record profit of $46.1 billion in
2009. Apparently during this economic crisis it is
a very good time to be a bankster.