Posts Tagged ‘Economic Collapse’
Tags: Economic Collapse, Petrodollars, Reserve Currency
Tags: Economic Collapse, Fascism, Obama, The New World Order
“I hope we once again have reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: As government expands, liberty contracts.” ― Ronald Reagan
“But a Constitution of Government once changed from Freedom, can never be restored. Liberty, once lost, is lost forever.” ― John Adams
The Obama re-election dooms the country. It ensures that his philosophy will be imposed for another four years. It ensures the continuing shift away from the Rule of Law, property rights, free men, and free markets.
Obama’s vision of how the world works ensures a dire economy until an economic collapse resets everything. The rest of the world, apparently bigger Obama supporters than U.S. voters, will not be immune from the consequences…
The Fundamentals of Progress
Peace and progress are the children of freedom. The wealth of nations was explained more than two hundred years ago by Adam Smith. Property rights and markets coordinate behavior in a manner that all are made better off by the pursuit of self-interest.
President Obama’s view of the world is in contradiction to anything that has ever succeeded. He believes that elites should manage and direct people’s lives. This fatal conceit, as Friedrich Hayek referred to it, produces failure and misery wherever it is tried.
Ludwig von Mises pointed out that the progress of the West was achieved on a simple idea:
The essential characteristic of Western civilization that distinguishes it from the arrested and petrified civilizations of the East was and is its concern for freedom from the state.
Civilization advanced and prospered on a foundation of private property, defined rights, free men, free markets, and the Rule of Law. Obama’s view is hostile to these pillars of progress despite the lack of evidence of progress for any country that has not adhered to these principles.
There is no evidence of any country which has abandoned these principles ever being able to return to them without major upheaval. Mises observed:
Political ideas that have dominated the public mind for decades cannot be refuted through rational arguments. They must run their course in life and cannot collapse otherwise than in great catastrophe…
The recent election was a prime example of how ratiocination cannot combat ideology. The masses are unable or unwilling to process complex argument in logical fashion. As a result, we reelected a man who does not believe in American values or the principles necessary for progress and well-being. His re-election occurred despite the worst record of domestic and foreign policy outcomes of anyone in the last seven decades.
Where We Are Headed
The United States and Europe have abandoned the fundamentals necessary for progress. Both are hopelessly committed to the failed ideas of Socialism. Both are headed for great catastrophe. The catastrophe extends beyond economic well-being and touches the foundations of society and civilization itself.
We are headed into an economic dark age, where standards of living will continue to decline and may collapse. Societies and civilizations will also regress.
Voluntary cooperation is being replaced by coercion and division. Segments of society are set off against each other. Civilization is regressing toward a Hobbesian outcome:
Whatsoever therefore is consequent to a time of Warre, where every man is Enemy to every man; the same is consequent to the time, wherein men live without other security, than what their own strength, and their own invention shall furnish them withall. In such condition, there is no place for Industry; because the fruit thereof is uncertain; and consequently no Culture of the Earth; no Navigation, nor use of the commodities that may be imported by Sea; no commodious Building; no Instruments of moving, and removing such things as require much force; no Knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continuall feare, and danger of violent death; And the life of man, solitary, poore, nasty, brutish, and short.
Western civilization, once the shining city on the hill, has been tarnished. Western countries have abandoned the principles that made them great and have lost much of their luster. The world may soon be without this beacon of freedom and success.
The Meaning of Obama’s Election
Regarding the specifics of Obama’s reelection, these comments from a perceptive reader, Syrin, are reasonable:
Here’s what this means in my opinion:
1) Obamacare will be fully implemented
2) Biggest tax increase in the history of the world will come January
3) Supreme Court will now be fully liberal
4) We will surrender more of our rights to the UN – guns will be removed
5) The end of the US as we ever knew it
That last one is not hyperbole. I still think the election was stolen as I predicted a 5-10 voter fraud margin, and this is indeed the difference, but why would I make that last point? Here’s why. The gov’t will increase IMMENSELY the next four years. Gov’t employees, union members and welfare dependents will be the BIGGEST VOTING FACTION from now until the end of the US society. We turned into England over night and we will never be able to go back. Exit polls showed overwhelming displeasure with Obamacare and they voted for him anyway. We cannot recover from this.
CONSERVATISM AS AN IDEOLOGY IS OVER IN AMERICA ! We are now officially the land of the dependent, jealous and greedy. Punishing success will be codified. No one will go into medicine or any field that takes a lot of time, money sweat and effort to achieve because work and success will no longer be rewarded.
I am serious when I say I will be stunned if the economic collapse doesn’t happen in under two years. This isn’t just an emotional reaction to a loss. These were my thoughts before we knew the results.
Make your peace with your family and prepare.
Where Does This Go?
The mathematics of the debt situation were intractable before the election. Someone truly committed to solving this problem would likely fail because the debt burden has become so large. That assumption will not be tested, because the man elected has no intention of dealing with the issue.
A collapse is now inevitable. Spending will not shrink. Deficits will rise. Taxes will rise. Economic activity will fall. The debt death spiral will strangle economic activity, and ultimately the economy will implode. Societies themselves will likely be sucked into the abyss.
Obama had no viable economic plan for the last four years, and he is still without one. There has been no progress economically. Instead, we are $5 trillion worse off, with nothing to show for it. His spending will continue for the next four years. It is all that he knows.
This election accelerated our spiral toward collapse. Higher spending and more Federal Reserve money-creation will not alter the destination. We are now on the superhighway to ruin. The destination is known; only the estimated time of arrival is not.
Special thanks to Monty Pelerin and American Thinker, located at:
Tags: American Child Poverty, Economic Collapse, Unemployment
75 Economic Statistics from 2012 Almost Too Crazy to Believe…
In December 2008, 31.6 million Americans were on food stamps. Today, a new all-time record of 47.7 million Americans are on food stamps. That number has increased by more than 50 percent over the past four years, and yet the mainstream media still has the gall to insist that “things are getting better”.
Back in the 1970s, about one out of every 50 Americans was on food stamps. Today, about one out of every 6.5 Americans is on food stamps.
According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
According to one recent survey, 55 percent of all Americans have received money from a safety net program run by the federal government at some point in their lives.
Median household income in the U.S. has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
Families that have a head of household under the age of 30 have a poverty rate of 37 percent.
The percentage of working age Americans with a job has been under 59 percent for 39 months in a row.
In September 2009, during the depths of the last economic crisis, 58.7 percent of all working age Americans were employed. In November 2012, 58.7 percent of all working age Americans were employed. It is more then 3 years later, and we are in the exact same place.
When you total up all working age Americans that do not have a job in America today, it comes to more than 100 million.
According to one recent survey, 55 percent of all small business owners in America “say they would not start a business today given what they know now and in the current environment.”
The number of jobs at new small businesses continues to decline. According to economist Tim Kane, the following is how the decline in the number of startup jobs per 1000 Americans breaks down by presidential administration…
Bush Sr.: 11.3
Bush Jr.: 10.8
The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
There are four major U.S. banks that each have more than 40 trillion dollars of exposure to derivatives.
According to the Pew Research Center, 61 percent of all Americans were “middle income” back in 1971. Today, only 51 percent of all Americans are.
The Pew Research Center has also found that 85 percent of all middle class Americans say that it is harder to maintain a middle class standard of living today than it was 10 years ago.
62 percent of all middle class Americans say that they have had to reduce household spending over the past year.
Right now, approximately 48 percent of all Americans are either considered to be “low income” or are living in poverty.
Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.
According to one survey, 77 percent of all Americans are now living paycheck to paycheck at least part of the time.
The average amount of time that an unemployed worker stays out of work in the United States is 40 weeks.
If you can believe it, approximately one out of every four American workers makes 10 dollars an hour or less.
According to the U.S. Census Bureau, an all-time record 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government. Back in 1983, that number was less than 30 percent.
Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even count Social Security or Medicare. Overall, there are almost 80 different “means-tested welfare programs” that the federal government is currently running.
When you account for all government transfer payments and all forms of government employment, more than half of all Americans are now at least partially financially dependent on the government.
Barack Obama has been president for less than four years, and during that time the number of Americans “not in the labor force” has increased by nearly 8.5 million. Something seems really “off” about that number, because during the entire decade of the 1980s the number of Americans “not in the labor force” only rose by about 2.5 million.
Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
According to USA Today, many Americans have actually seen their water bills triple over the past 12 years.
There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
Right now, approximately 25 million American adults are living with their parents.
As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all U.S. adults were married.
At this point, only 24.6 percent of all jobs in the United States are good jobs.
Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.
If you can believe it, one out of every seven Americans has at least 10 credit cards.
It is being projected that half of all American children will be on food stamps at least once before they turn 18 years of age.
More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.
If you can believe it, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed last year.
The U.S. economy continues to trade good paying jobs for low paying jobs. 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
Our trade deficit with China in 2011 was $295.5 billion. That was the largest trade deficit that one country has had with another country in the history of the planet.
The United States has lost an average of approximately 50,000 manufacturing jobs a month since China joined the World Trade Organization in 2001.
According to the Economic Policy Institute, America is losing half a million jobs to China every single year.
The U.S. tax code is now more than 3.8 million words long. If you took all of William Shakespeare’s works and collected them together, the entire collection would only be about 900,000 words long.
According to the IMF, the global elite are holding a total of 18 trillion dollars in offshore banking havens such as the Cayman Islands.
The value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.
2012 was the third year in a row that the yield for corn has declined in the United States.
Experts are telling us that global food reserves have reached their lowest level in almost 40 years.
One recent survey discovered that 40 percent of all Americans have $500 or less in savings.
If you can believe it, one recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies.
Medical costs related to obesity in the United States are estimated to be approximately $147 billion a year.
Today, the wealthiest 1 percent of all Americans own more wealth than the bottom 95 percent combined.
The wealthiest 400 families in the United States have about as much wealth as the bottom 50 percent of all Americans combined.
The six heirs of Wal-Mart founder Sam Walton have a net worth that is roughly equal to the bottom 30 percent of all Americans combined.
At this point, the poorest 50 percent of all Americans collectively own just 2.5% of all the wealth in the United States.
Nearly 500,000 federal employees now make at least $100,000 a year.
If you can believe it, there are 77,000 federal workers that make more than the governors of their own states do.
Nearly 15,000 retired federal workers are collecting federal pensions for life worth at least $100,000 annually. The list includes such names as Newt Gingrich, Bob Dole, Trent Lott, Dick Gephardt and Dick Cheney.
U.S. taxpayers spend more than 20 times as much on the Obamas as British taxpayers spend on the royal family.
Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began.
If Bill Gates gave every single penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for about 15 days.
During fiscal year 2012, 62 percent of the federal budget was spent on entitlements.
Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid.
It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
Thanks to our foolish politicians (including Obama), Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for each and every household in the United States.
Amazingly, the U.S. national debt is now up to 16.3 trillion dollars. When Barack Obama first took office the national debt was just 10.6 trillion dollars.
During the first four years of the Obama administration, the U.S. government accumulated about as much debt as it did from the time that George Washington took office to the time that George W. Bush took office.
Today, the U.S. national debt is more than 5000 times larger than it was when the Federal Reserve was originally created back in 1913.
Special thanks to The Economic Collapse Blog, located at: http://theeconomiccollapseblog.com
Tags: Class War, Economic Collapse, George Soros, Martial Law
When George Soros talks, people listen. He’s the investor who still holds the record for making more money in a single day’s trading than anyone. He pocketed $1 billion betting against the British pound on “Black Wednesday” in 1992, when sterling lost 20 percent of its value in less than 24 hours and crashed out of the European exchange-rate mechanism. In the UK they call him “the man who broke the Bank of England.”
Soros knows a thing or two about destabilization and “far from equilibrium” situations. He’s been on the giving and receiving ends of both. From surviving the Nazi occupation of Hungary during World War II, to single-handedly crashing the currencies of entire nations, the experience he brings to the table should not be ignored.
Mr. Soros knows what he’s talking about. He is connected to all of the major players on all levels – economic, financial, political – you name it. If there’s anyone who knows what’s coming our way next, it’s George Soros.
In a recent Newsweek interview, this is what he had to say about the immediate future of the United States:
“I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” Soros says.“We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression.”
He is more concerned with surviving than staying rich. “At times like these, survival is the most important thing,” he says. He doesn’t just mean it’s time to protect your assets. He means it’s time to stave off disaster. As he sees it, the world faces one of the most dangerous periods of modern history—a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots in the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether.
“We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system,” he says.
Soros’s warning is based as much on his own extraordinary personal history as on his gut instinct for market booms and busts. “I did survive a personally much more threatening situation, so it is emotional, as well as rational,” he acknowledges. Soros was just 13 when Nazi soldiers invaded and occupied his native Hungary in March 1944.
In only eight weeks, almost half a million Hungarian Jews were deported, many to Auschwitz. He saw bodies of Jews, and the Christians who helped them, swinging from lampposts, their skulls crushed. He survived, thanks to his father, Tivadar, who managed to secure false identities for his family. Later, he watched as Russian forces ousted the Nazis and a new totalitarian ideology, communism, replaced fascism. As life got tougher during the postwar Soviet occupation, Soros managed to emigrate, first to London, then to New York.
Soros draws on his past to argue that the global economic crisis is as significant, and unpredictable, as the end of communism. “The collapse of the Soviet system was a pretty extraordinary event, and we are currently experiencing something similar in the developed world, without fully realizing what’s happening.”
To Soros, the spectacular debunking of the credo of efficient markets—the notion that markets are rational and can regulate themselves to avert disaster — “is comparable to the collapse of Marxism as a political system. The prevailing interpretation has turned out to be very misleading. It assumes perfect knowledge, which is very far removed from reality. We need to move from the Age of Reason to the Age of Fallibility in order to have a proper understanding of the problems.”
Understanding, he says, is key. “Unrestrained competition can drive people into actions that they would otherwise regret. The tragedy of our current situation is the unintended consequence of imperfect understanding. A lot of the evil in the world is actually not intentional. A lot of people in the financial system did a lot of damage without intending to.” Still, Soros believes the West is struggling to cope with the consequences of evil in the financial world just as former Eastern bloc countries struggled with it politically. Is he really saying that the financial whizzes behind our economic meltdown were not just wrong, but evil? “That’s correct.”
To many, the idea of Soros lecturing the world on “evil” is, well, rich. Here, after all, is an investor who proved—and profited hugely from—the now much-derided notion that the market, or in his case a single investor, is more powerful than sovereign governments. He broke the Bank of England, destroyed the Conservative Party’s reputation for economic competence, and reduced the value of the pound in British consumers’ pockets by one fifth in a single day. Soros the currency speculator has been condemned as “unnecessary, unproductive, immoral.” Mahathir Mohamad, former prime minister of Malaysia, once called him “criminal” and “a moron.”
In the U.S., where the right still has not forgiven him for agitating against President George W. Bush and the “war on terror” after 9/11, which he described as “pernicious,” Soros predicts that economic and social divisions will deepen. As anger rises, riots in the streets of American cities are inevitable. “Yes, yes, yes,” he says, almost gleefully.“It’s already started,”
The response to the unrest could be more damaging than the violence itself. “It will be an excuse for cracking down and using strong-arm tactics to maintain law and order, which, carried to an extreme, could bring about a repressive political system, a society where individual liberty is much more constrained, which would be a break with the tradition of the United States.”