If
a major economic crisis hit us right now, the vast majority of Americans would
be extremely vulnerable. According to a recent CareerBuilder survey, 40 percent of all Americans live paycheck to paycheck
all of the time, and 77 percent of all Americans live
paycheck to paycheck at least part of the time. This is why there was
such a problem with foreclosures during the last recession. When millions
of Americans suddenly lost their jobs many of them quickly found that they were
unable to pay their mortgages because they had no financial cushions. For
decades, Americans have been trained that it is okay to get into debt up to
their eyeballs and live paycheck to paycheck because times will always be good
and jobs will always be easy to get. Unfortunately, times have changed
and many Americans do not realize that what has worked in the past is not going
to work any longer. Our economy is completely and totally falling apart,
and economic success is no longer defined by whoever is able (Read More....)
Guess
who is going to need a bailout right after Spain? The Italian economy is
the 8th largest economy on the entire planet and right now it is being
absolutely overwhelmed by a tsunami of debt. In an attempt to address
this problem, Italy is going down the exact same path that Greece, Portugal and
Spain have gone. And so far, we are seeing the exact same results that we
have seen in those other countries. Austerity causes economic growth to
slow down, and that causes unemployment to soar. When unemployment rises,
tax revenues go down and you end up missing your original deficit reduction
targets so you have to implement even more austerity measures. It is a
vicious cycle that we have seen play out again and again in Greece over the
past five years. But unlike Greece, Italy is way too large to be
completely bailed out. The truth is that there are only 7 economies on
the entire globe that are larger than the Italian economy. Plus, keep in
mind that the 12th largest economy in the world, Spain, is also on the verge of
formally requesting a bailout. (Read More....)
"You
are being watched. The government has a secret system - a machine - that
spies on you every hour of every day." That is how each episode of
"Person of Interest" on CBS begins.
Most Americans that have watched the show just assume that such a surveillance
network is completely fictional and that the government would never watch us
like that. Sadly, most Americans are wrong. Shocking new details
have emerged this week which prove that a creepy nationwide network of spy
cameras is being rolled out across the United States. Reportedly, these
new spy cameras are "more accurate than modern facial recognition
technology", and every few seconds they send back data from cities and
major landmarks all over the United States to a centralized processing center
where it is analyzed. The authorities believe that the world has become
such a dangerous place that the only way to keep us all safe is to watch what
everyone does all the time. But the truth is that instead of "saving
America", all of these repressive surveillance (Read More....)
A
nightmarish global food crisis is coming. Even though about a billion
people around the planet currently live on the edge of starvation, those of us
that live in the wealthy western nations still have more than enough food to
eat. But it will not always be that way. With each passing year,
the global population goes up while global supplies of fresh water go
down. And you need lots of water to grow food. The
"breadbaskets" of the world, the United States and Russia, are
currently experiencing horrible droughts that scientists tell us are part of a
long-term trend. In fact, some are projecting that the United States will
soon see the return of Dust Bowl conditions. So what will the rest of the
world do when the topsoil in the heartland of the biggest food exporter on the
globe dries up and blows away? Just remember what happened back in 2007
and 2008. Food prices rose rapidly and it sparked massive food riots in
more than two dozen different nations. So what will things look like when
there is a very serious shortage of food around the globe?
On
Thursday, the price of corn hit another brand new record high of $8.28 a bushel
on the Chicago Board of Trade.
Unfortunately,
(Read More....)
I wish I had some good news for
you. But I don't. The U.S. health care system is a complete and
total disaster and it is going to get a lot worse in the years ahead.
Even before Obamacare it was projected that we were going to be facing a
shortage of more than 100,000 doctors by the year 2025, and now hundreds of
thousands more doctors are thinking of leaving the profession because of Obamacare.
Also thanks to Obamacare, health care costs and health insurance premiums are
rising faster than ever and yet the level of care continues to decline.
Our health care system is now totally dominated by government bureaucrats,
health insurance companies and pharmaceutical corporations. The truth is
that the entire industry has become a giant money making scam, and the American
people are being squeezed for every last penny. We spend far more for
health care than anyone else in the world, and the results are pathetic at
best.
The
following are 11 signs that the U.S. health care system is heading straight
down the toilet....
#1 The Coming Doctor Shortage
The
U.S. health care system is facing a critical shortage of doctors in the years
ahead.
Even
without considering the (Read More....)
All over the United States,
rivers, lakes and streams are drying up and are becoming much warmer than
usual. As a result, millions of fish have already died and millions more
will probably die by the end of the summer. In addition, transportation
along the mighty Mississippi and other major rivers has been significantly
slowed down. Incredibly, more than 3,000 high temperature
records have been broken over the last month alone, and the U.S. is enduring
the worst drought that it has seen since the Dust Bowl days of
the 1930s. More than half of the entire continental United States has
been declared to be a "disaster area" by the U.S. Department of
Agriculture, and the price of corn has hit a brand new
record high. Farmers and ranchers all over America are being absolutely
crushed by this crisis. (Read More....)
The following is a joke that was
sent to me the other day. I am not certain who the original author is,
but it is quite funny. I think that it demonstrates the kind of mentality
that Barack Obama and the other socialists in the government have right now....
-----------------------------------
After
winning his latest gold medal, Michael Phelps got a call from Barack
Obama. But it wasn't a call of congratulations. Rather, it was to
remind him that he did not do it by himself....
"If
you won a gold medal, you didn’t do that alone. There was a long line of
government workers, food stamp recipients and drug addicts that swam those
practice laps for you, and allowed you to get where you are."
One
economic theory states that we can never have deflation in a long term economy.
For prices to deflate would be contrary to the built-in safeguards put forth by
the government agencies. The main cause of a deflation would have to be a
massive withdrawal of money from the banking system. As long as the money is
insured, that is unlikely to happen. I tend to agree with that theory. It is
unlikely that prices will go down long term as long as people have confidence
in having their money in the banks.
One
of the safeguards put into effect in the 30s depended on the negotiation of
wages. No one group of wages, but all American Manufacturing was based on Union
wages. Inflation and wage increases went hand in hand all through the 50s and
to some extent through the 60s. Nonunion people normally could do a “me too” on
the backs of Union worker's negotiations. If a Union member negotiated a
contract for $10 an hour plus benefits, companies tended to pay the nonunion
worker just a little less. But to remain competitive in attracting people, they
had to match the wages fairly close.
In
that kind of atmosphere it was natural for more and more money to be printed as
wages increased at a rate of at least 4.5 percent per year. You can go to
almost any book on Finance and Appraisal in the Real Estate Industry for a
practical guide (Read More....)