The
Bankruptcy Of The Planet Accelerates 24 Nations Are Currently Facing A Debt
Crisis
There
has been so much attention on Greece in recent weeks, but the truth is that
Greece represents only a very tiny fraction of an unprecedented global debt
bomb which threatens to explode at any moment. As you are about to see,
there are 24 nations that are currently facing a full-blown debt crisis, and
there are 14 more that are rapidly heading toward one. Right now, the
debt to GDP ratio for the entire planet is up to an all-time record high of 286 percent, and globally there is approximately
200 TRILLION dollars of debt on the books. That breaks down to about
$28,000 of debt for every man, woman and child on the entire planet. And
since close to half of the population of the world lives on less than 10
dollars a day, there is no way that all of this debt can ever be repaid.
The only solution under our current system is to kick the can down the road
for as long as we can until this colossal debt pyramid finally collapses in
upon itself. (Read More....)
12
Ways The Economy Is Already In Worse Shape Than It Was During The Depths Of The
Last Recession
Did you know that the percentage
of children in the United States that are living in poverty is actually
significantly higher than it was back in 2008? When I write about an economic collapse, most people think of a
collapse of the financial markets. And without a doubt, one is coming very shortly, but let us
not neglect the long-term economic collapse that is already happening all
around us. In this article, I am going to share with you a bunch of
charts and statistics that show that economic conditions are already
substantially worse than they were during the last financial crisis in a whole
bunch of different ways. Unfortunately, in our 48 hour news cycle world,
a slow and steady decline does not produce many sexy headlines. Those of us that
are news junkies (myself included) are always looking for things that will
shock us. But if you stand back and take a broader view of things, what
has been happening to the U.S. economy truly is quite shocking. The
following are 12 ways that the U.S. economy is already in worse shape than it
was during the depths of the last recession
(Read More....)
#1 Back in 2008, 18 percent of all Americans kids were
living in poverty. This week, we learned that number has now risen to 22 percent
There
are nearly three million more children living in poverty today than during the
recession, shocking new figures have revealed.
Nearly
a quarter of youngsters in the US (22 percent) or around 16.1 million
individuals, were classed as living below the poverty line in 2013.
This
has soared from just 18 percent in 2008 during the height of the economic crisis, the Casey
Foundations
2015 Kids Count Data Book reported.
#2 In early 2008, the
homeownership rate in the U.S. was hovering around 68 percent. Today, it
has plunged below 64 percent. Incredibly, it has not been this low in
more than 20 years. Just look at this chart the homeownership rate
has continued to plummet throughout Obamas economic recovery
#3 While Barack Obama
has been in the White House, government dependence has skyrocketed to levels
that we have never seen before. In 2008, the federal government was
spending about 37 billion dollars a year on the
federal food stamp program. Today, that number is above 74 billion dollars. If the
economy truly is recovering, why is government dependence so much higher than it
was during the last recession?
#4 On the chart
below, you can see that the U.S. national debt was sitting at about 9 trillion
dollars when we entered the last recession. Since that time, the debt of
the federal government has doubled. We are on the exact same path that
Greece has gone down, and what you are looking at below is a recipe for
national economic suicide
#5 During Obamas recovery, real median household
income has actually gone down quite a bit. Just prior to the last
recession, it was above $54,000 per year, but now it has dropped to about
$52,000 per year
#6 Even though our
incomes are stagnating, the cost of living just continues to rise
steadily. This is especially true of basic things that we all purchase
such as food. As I wrote about earlier this year, the price of ground
beef in the United States has doubled since the last recession.
#7 In a healthy
economy, lots of new businesses are opening and not that many are being forced
to shut down. But for each of the past six years,
more businesses have closed in the United States than have opened. Prior
to 2008, this had never happened before in all of U.S.
history.
#8 Barack Obama is
constantly telling us about how unemployment is going down, but the truth is that
the percentage of working age Americans that are either working or
considered to be looking for work has steadily declined since the end of the
last recession
#9 Some have
suggested that the decline in the labor force participation rate is due to
large numbers of older people retiring. But the reality of the matter is
that we have seen a spike in the inactivity rate for Americans in their prime
working years. As you can see below, the percentage of males between the
ages of 25 and 54 that arent working and that arent looking for work has
surged to record highs since the end of the last recession
#10 A big reason why
we dont
have enough jobs for everyone is the fact that millions upon millions of good
paying jobs have been shipped overseas. At the end of Barack Obamas first year in office,
our yearly trade deficit with China was 226 billion dollars. Last
year, it was more than 343 billion
dollars.
#11 Thanks to all of
these factors, the middle class in America is dying. In 2008, 53 percent of all Americans
considered themselves to be middle class. But by 2014, only 44 percent of all Americans still
considered themselves to be middle class.
When
you take a look at our young people, the numbers become even more
pronounced. In 2008, 25 percent of all Americans in the 18 to 29-year-old
age bracket considered themselves to be lower class. But in 2014, an astounding 49 percent of all Americans in that age
range considered themselves to be lower class.
#12 This is something
that I have covered before, but it bears repeating. The velocity of money
is a very important indicator of the health of an economy. When an
economy is functioning smoothly, people generally feel quite good about things
and money flows freely through the system. I buy something from you, then
you take that money and buy something from someone else, etc. But when an
economy is in trouble, the velocity of money tends to go down. As you can
see on the chart below, a drop in the velocity of money has been associated
with every single recession since 1960. So why has the velocity of money
continued to plummet since the end of the last recession?
If
you are waiting for an economic collapse to happen, you can stop
waiting.
One
is unfolding right now before our very eyes.
But
what most people really mean when they ask about these things is that they are
wondering when the next great financial crisis will happen. And as I
discussed yesterday, things are lining up in textbook fashion for one
to happen in our very near future.
Once
the next great financial crisis does strike, all of the numbers that I just
discussed above are going to get a whole lot worse.
So
as bad as things are now, the truth is that this is just the beginning of the
pain.
4
Things That Are Happening Today That Indicate That A Deflationary Financial
Collapse Is Imminent
When financial markets crash, they do not do so in a vacuum. There are
always patterns, signs and indicators that tell us that something is about to
happen. In this article, I am going to share with you four patterns that
are happening right now that also happened just prior to the great financial
crisis of 2008. These four signs are very strong evidence that a
deflationary financial collapse is right around the corner. Instead of
the hyperinflationary crisis that so many have warned about, what we are about
to experience is a collapse in asset prices, a massive credit crunch and a
brief period of absolutely crippling deflation. The response by national
governments and global central banks to this horrific financial crisis will
cause tremendous inflation down the road, but that comes later. What
comes first is a crisis that will initially look a lot like 2008, but will
ultimately prove to be much worse. The following are 4 things that are
happening right now that indicate that a deflationary financial collapse is imminent
(Read More....)
