Low Info Voter Outreach!

 

Low_Information_Voter_Thoughts

 

Well…at least it’s an attempt to make it understandable…

The Economic Collapse Blog makes an effort to explain our national debt and the dangers involved. Not that it will likely change any minds, but it’s a start!

national-debt-cartoon

 

THE BIGGEST PONZI SCHEME IN THE HISTORY OF THE WORLD

“Did you know that you are involved in the most massive Ponzi scheme that has ever existed?  To illustrate my point, allow me to tell you a little story.  Once upon a time, there was a man named Sam.  When he was younger, he had been a very principled young man that had worked incredibly hard and that had built a large number of tremendously successful businesses.  He became fabulously wealthy and he accumulated far more gold than anyone else on the planet.  But when he started to get a little older he forgot the values of his youth.  He started making really bad decisions and some of his relatives started to take advantage of him.  One particularly devious relative was a nephew named Fred.  One day Fred approached his uncle Sam with a scheme that his friends the bankers had come up with.  What happened next would change the course of Sam’s life forever.

Ben-Bernanke-dollars

 

Even though Sam was the wealthiest man in the world by far, Fred convinced Sam that he could have an even higher standard of living by going into a little bit of debt.  In exchange for IOUs issued by his uncle Sam, Fred would give him paper notes that he printed off on his printing press.  Since the paper notes would be backed by the gold that Sam was holding, everyone would consider them to be valuable.  Sam could take those paper notes and spend them on whatever his heart desired.  Uncle Sam started to do this, and he started to become addicted to all of the nice things that those paper notes would buy him.

Fred took the IOUs that he received from his uncle and he auctioned them off to the bankers.  But there was a problem.  The IOUs issued by Uncle Sam had to be paid back with interest.  When the time came to pay back the IOUs, Uncle Sam could not afford to pay back the debts, pay the interest on those debts, and buy all of the nice things that he wanted.  So Uncle Sam issued even more IOUs than before so that he could get enough notes to pay off his debts.  As time rolled on, this pattern just kept on repeating.  Uncle Sam repeatedly paid off his old debts by taking out even larger new debts.

Meanwhile, since the notes that Uncle Sam was using were backed by gold, everyone else in the world decided to start using them to trade with one another.  This was greatly beneficial to Uncle Sam, because the rest of the world was glad to send him oil, home electronics, plastic trinkets and anything else that Uncle Sam wanted in exchange for his gold-backed notes.

Eventually, however, the rest of the world started to suspect that the number of gold-backed notes that Uncle Sam was issuing far exceeded the amount of gold that Uncle Sam actually had.  So the rest of the world started to trade in their notes for gold.

And by that time Uncle Sam definitely did not have enough gold to back up his notes.  Realizing that the scheme was starting to collapse, one day Uncle Sam announced that his notes would no longer be backed by gold.  But he insisted that the rest of the world should continue using his notes because he was the wealthiest man on the planet and everyone should just trust him.

And the rest of the world did continue to trust him, although it wasn’t the same as before.

As Uncle Sam got greedier and greedier, he started to issue IOUs and spend notes at a rate that nobody ever dreamed possible.  The great businesses that Uncle Sam had built when he was younger were starting to decline, and Uncle Sam started buying far more stuff from the rest of the world than they bought from him.  The rest of the world was still glad to take Uncle Sam’s notes because they used them to trade with one another, but they started accumulating far more notes than they actually needed.

Not sure exactly what to do with mountains of these notes, the rest of the world started to loan them back to Uncle Sam.  It eventually got to the point where Uncle Sam owed the rest of the world trillions of these notes.  Even though the notes were losing value at a rate of close to 10 percent a year, Uncle Sam somehow convinced the rest of the world to loan him notes at an average rate of interest of less than 3 percent a year.

One day Uncle Sam woke up and realized that the amount of debt that he owed was now more than 5000 times larger than it was when Fred had first approached him with this ill-fated scheme.  Uncle Sam now owed more than 16 trillion notes to his creditors, and Uncle Sam had already made future financial commitments of 202 trillion notes that he would never be able to pay.  Meanwhile, the notes that Fred had been printing up for Uncle Sam were now worth less than 5 percent of their original value.  Uncle Sam was becoming concerned because some of his other relatives were warning that this whole scheme was about to collapse.

Sadly, Uncle Sam did not listen to them.  Uncle Sam knew that if he admitted how fraudulent the financial scheme was, the rest of the world would quit sending him all of the things that he needed in exchange for his notes and they would quit lending his notes back to him at super low interest rates.

And if the rest of the world lost confidence in his notes and quit using them, Uncle Sam knew that his standard of living would go way, way down.  That was something that Uncle Sam could not bear to have happen.

When a financial crisis almost caused the scheme to crash in 2008, a desperate Uncle Sam went to Fred and asked for help.  In response, Fred started printing up far more notes than ever before and started directly buying up large amounts of IOUs from Uncle Sam with the notes that he was creating out of thin air.  Fred hoped that the rest of the world would not notice what he was doing.

newUSD

 

It seemed to work for a little while, but then an even worse financial crisis came along.  Once again, Uncle Sam started issuing massive amounts of new IOUs and Fred started printing up giant mountains of new notes to try to fix things, but their desperate attempts to keep the system going were to no avail.  The rest of the world started to realize that they had been sucked into a massive Ponzi scheme, and they lost confidence in the notes that Uncle Sam was using.  Suddenly nobody wanted to lend notes to Uncle Sam at super low interest rates anymore, and people started asking for far more notes in exchange for the things that Uncle Sam wanted.

Uncle Sam’s standard of living dropped dramatically.  Since he could no longer flood the world with his notes, Uncle Sam could not continue to consume far, far more wealth than he produced.  Uncle Sam sunk into a deep depression as he watched the scheme fall apart all around him.

Uncle Sam had once been the wealthiest man on the entire planet, but now he was a broke, tired old man that was absolutely drowning in debt.  Unfortunately, once he was down on his luck the rest of the world did not have any compassion for him.  In fact, much of the rest of the world celebrated the downfall of Uncle Sam.

All of this could have been avoided if Uncle Sam had never agreed to Fred’s crazy scheme.  And once Uncle Sam made the decision to stop backing his notes with gold, it was only a matter of time before the scheme was going to collapse.

Does this little story sound crazy to you?  It shouldn’t.  The truth is that you are involved in such a scheme right now.  In case you haven’t figured it out, “Uncle Sam” is the United States, the “notes” are U.S. dollars, and “Fred” is the Federal Reserve.

 

american-dollar-toilet-paper

 

 

 

Please share this story with as many people as you can.  Our country is headed for complete and total financial disaster, and we need to get people educated about this while there is still time.”

 

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Obliviousness is Bliss…

economic-collapse

I know there are plenty of doomsayers out there. You can disregard their prognostications if you like. However, that being said, you have to admit that our economic circumstances can’t continue. In that, I mean we can continue to live as we have in the past. Ignoring the eventual consequences. Looking to government is not the answer. If anything, government is the chief cause of our dire circumstances. Yet, it presents itself as the savior too many easily accept.

The fellows at The Economic Collapse offer some sobering stats about the REAL state of economic affairs around the world..

18 SIGNS THAT MASSIVE ECONOMIC PROBLEMS ARE ERUPTING ALL OVER THE PLANET!

“This is no time to be complacent.  Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine.  In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing.  Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer.  Just look at what is happening in Europe.  The eurozone is now in the midst of the longest recession that it has ever experienced.  Just look at what is happening over in Asia.  Economic growth in India is the lowest that it has been in a decade and the Japanese financial system is beginning to spin wildly out of control.  One of the only places on the entire planet where serious economic problems have not already erupted is in the United States, and that is only because we have “kicked the can down the road” by recklessly printing money and by borrowing money at an unprecedented rate.  Unfortunately, the “sugar high” produced by those foolish measures is starting to wear off.  We are going to experience a massive amount of economic pain along with the rest of the world – it is just a matter of time.

But for the moment, there are a lot of skeptics out there.

For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead.

Obama__s_Campaign_Lies_by_RedTusker

Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe.

The following are 18 signs that massive economic problems are erupting all over the planet…

#1 The eurozone is now in the midst of its longest recession ever.  Economic activity in the eurozone has declined for six quarters in a row.

#2 Italy’s economy has now been contracting for seven quarters in a row.

#3 Industrial production in Italy has fallen for 15 months in a row.  It has now fallen to its lowest level in about 25 years.

#4 The number of people that are considered to be “seriously deprived” in Italyhas doubled over the past two years.

#5 Consumer confidence in France has just hit a new all-time low.

#6 The number of unemployed workers seeking a job in France has hit a brand new all-time record high.  Many unemployed workers in France are utterly frustrated at this point…

“I’ve sent CVs everywhere, I come to the unemployment agency every day, for 3 or 4 hours to look for work as a truck driver and there’s never anything,” said 42-year old Djamel Sami, who has been unemployed for a year, leaving a job agency in Paris.

#7 Unemployment in the eurozone as a whole has just hit a brand new all-time record high of 12.2 percent.

#8 Youth unemployment continues to soar to unprecedented heights in Europe.  The following is from an article that was recently posted on the website of the Guardian that detailed how bad things are getting in some of the worst countries…

In Greece, 62.5% of young people are out of work, in Spain it’s 56.4%, then Portugal with 42.5%, and then Italy with 40.5%.

#9 Youth unemployment is being partially blamed for the worst rioting that Sweden has seen in many years.  The following is how the Daily Mail described the riots…

Sweden is reeling after a third night of rioting in largely run-down immigrant areas of the capital Stockholm.

In the last 48 hours violence has spread to at least ten suburbs with mobs of youths torching hundreds of cars and clashing with police.

It is Sweden’s worst disorder in years and has shocked the country and provoked a debate on how Sweden is coping with youth unemployment and an influx of immigrants.

LiveLeak-dot-com-e30796813069-husby-kravaller-liten.jpg.resized

#10 An astounding 10 percent of all banking deposits were pulled out of banks in Cyprus during the month of April alone.

Bank robbery a la Cyprus 2013_thumb[3]

#11 Economic growth in India is the slowest that it has been in an entire decade.

#12 Suddenly Australia is experiencing some tremendous economic challenges.  The following quotes are from a recent Zero Hedge article

-“We’re seeing a much sharper contraction in the Australian economy than we’d anticipated four or five months ago”. Coffey MD, John Douglas. The engineering group has seen its shares, which traded above $4 in 2007, hit 10c last week.

-“By 10am, the Fitness First gym in the city is packed full of brokers who’ve had a gutful of sitting at their desk doing nothing – salary cuts are starting and next it will be jobs” Perth broker

-“Oh mate, the funding market is dead. You are now seeing a few deeply discounted rights issues for those that are reaching desperate levels ….. liquidity has completely disappeared” Perth broker

#13 The financial system in Japan is beginning to spin wildly out of control.  The Japanese stock market has now declined about 15 percent from the peak, and many believe that the yen will continue to get weaker and that interest rates in Japan will start to rise significantly.

#14 Global cash flow is declining at a rate not seen since the last recession.  This indicates that we could be headed for a global credit crunch.

#15 Real wages continue to decline in the United States.  Even though we are being told that the U.S. is experiencing an “economy recovery”, real weekly earnings have declined from $297.79 in 2010 to $295.49 in 2011 to $294.83 in 2012.  (The preceding calculation is based on 1982-1984 dollars)

#16 Wall Street is buzzing about the fact that “the Hindenburg Omen” appeared at the end of last week.  So exactly what is “the Hindenburg Omen”?  The following are the criteria that are used to determine whether it has appeared or not…

1. The daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.

2. The smaller of these numbers is greater than or equal to 69 (68.772 is 2.2% of 3126). This is not a rule but more like a checksum. This condition is a function of the 2.2% of the total issues.

3. That the NYSE 10 Week moving average is rising.

4. That the McClellan Oscillator ( a market breadth indicator used to evaluate the rate of money entering or leaving the market and interpretively indicate overbought or oversold conditions of the market)is negative on that same day.

5. That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs).

When the Hindenburg Omen makes an appearance, it supposedly means that the U.S. stock market is likely to experience a serious decline within the next 40 days.

hindenburg-omen-thanks-democrats-for-the-impending-stock-mar-political-poster-1282647221

#17 As I wrote about the other day, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years.  That means that lots of “smart money” has been getting out of the market and lots of “dumb money” has been pouring in.

#18 Margin debt on the New York Stock Exchange has set a new all-time high.  The following is from a recent Market Oracle article

Margin debt—that’s the amount of money borrowed to purchase stocks—on the New York Stock Exchange (NYSE) reached its all-time high in April. Margin debt on the NYSE registered at $384.3 billion as the key stock indices hit new record-highs. (Source: New York Stock Exchange web site, last accessed May 29, 2013.) The highest margin debt ever reached prior to this was in July of 2007, when it stood just above $381.0 billion. At that time, just like today, the key stock indices were near their peaks and “buy now before it’s too late” was the prominent theme of the day

Whenever margin debt spikes like this, a stock market crash almost always follows.  If you doubt this, just check out the chart in this article.

Wall Street has had a good couple of years, but it has been a “false prosperity” that has been pumped up by reckless money printing by the Federal Reserve.  Just like all of the other stock market bubbles that we have seen in recent years, this one is going to burst too.  And as Marc Faber recently pointed out, this bubble has been particularly beneficial to the wealthy…

The Fed has been flooding the system with money. The problem is the money doesn’t flow into the system evenly. It doesn’t increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market – things like stocks, bonds, art, wine, jewelry, and luxury real estate.

Money-printing boosts the economy of the people closest to the money flow. But it doesn’t help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.

political-pictures-ben-bernanke-pra

The fact that the U.S. stock market has set new all-time record high after new all-time record high in recent months means very little.  At this point, the stock market has become completely divorced from economic reality.  When this current bubble bursts, the adjustment is going to be very painful.  Wall Street will likely whine and complain and ask for more bailouts, but they may find that authorities are not nearly as sympathetic this time.

Much of the rest of the world is already experiencing the next major wave of the economic collapse.  Reckless money printing by the Fed and reckless borrowing and spending by the federal government may have delayed the inevitable in the United States for a little while, but those measures have also made our long-term problems even worse.

There was one piece of advice that Ben Bernanke included in his commencement speech to students at Princeton recently that I thought was particularly ironic…

“Don’t be afraid to let the drama play out.”

Will he take his own advice when the next great financial crisis strikes the United States?

That seems very unlikely.

Unfortunately, things are not going to be so easy to fix this next time.

What happened back in 2008 was just a preview.”

american-dollar-toilet-paper

What is coming next is going to absolutely shock the world.”

‘The Teflon President’…????

 

 

My contention that Barack Obama will be re-elected hasn’t changed. There’s simply too much ignorance, supported by lies and innuendo from his allies in the media. Too many Americans who lack rational thought processes to understand any different.

That being said, there’s also a LOT out there that buttresses the belief that THIS President is an abject failure…in EVERYTHING! Mike Flynn @ Breitbart has a great piece pointing out…despite what the press has been trumpeting about Romney this month…what a BAD month September has been for Mr. Obama. Can’t argue with that!….and the month isn’t over yet!

PRESIDENT OBAMA’S HORRIBLE SEPTEMBER

“Obama floats from one disaster to the next with barely a mention in the press.”

 

What color is the sky in the political media’s world? Each week this month has begun with some variation of “Romney is doomed.” We’ve had rabid amplification of Romney “gaffes” interspersed with the traditional “campaign infighting” stories. There has also been a dash of trolling for anonymous quotes from “GOP strategists” wringing their hands and predicting defeat in the Fall. Meanwhile, Obama floats from one disaster to another with barely a mention in the press.

Let’s take a moment to recount a few items plaguing the Obama Administration this month alone.

 

 

Economy. The month began with another dismal jobs report. The economy only created a very anemic 96k jobs in August, far below what’s needed to keep pace with population growth. Almost 400k gave up looking for work and left the labor force, which sunk to its lowest level in 30 years.

A host of companies lowered earnings guidance for the next quarter. Most concerning were dramatically lower expectations for economic bellwethers FedEx and Norfolk Southern. These are consistent with the sharp turndowns in manufacturing. The economy is simply going to get worse over the next month.

All of this puts a lie to Obama’s claims that the economy is recovering. It was about a year ago, as every economy coming out of recession does, but it isn’t now. On current trends, we are likely heading into another recession.

 

Fed Action. Ben Bernanke essentially threw up his hands this month, saying “what the hell” and announcing their intention to just keep printing money until the economy comes around. This 3rd round of Quantitative Easing isn’t likely to be any more effective than the first two rounds. Eventually there will be a tidal wave of inflation. The Fed’s hubris is that precisely right before inflation fully kicks in, they will be able to stave it off with interest rate hikes. Of course, that will create its own pain unless growth has become very robust. Regardless, the Fed move is explicit confirmation that the economy is faltering.

 

 

Foreign Policy. The spiking of the football over the death of bin Laden is soooo last year. The muslim world has erupted in protests against the West in response to the actions of the Obama Administration. Our ambassador to Libya and three other Americans were assassinated in a terrorist attack. An attack we were warned about but did nothing to prevent. In response, Obama has embarked on a massive apology campaign over an amateurish video that had next to nothing to do with any of the protests other than serving as a convenient pretext.

Almost worse, the Obama Administration has been caught blatantly lying about the events surrounding the assassinations in Libya. Our UN Ambassador went on the Sunday shows and said there was absolutely no advance warning of the attack. She also claimed it wasn’t really an attack, but a spontaneous protest that unfortunately turned violent. The Administration now admits that everything she said was wrong.

This, though, is perhaps the most damning indictment: Obama learned of the attacks in Libya soon after they began. He then proceeded to decisively…go to bed.

 

 

Afghanistan. Obama campaigned in 2008 on a promise to implement a new “surge” strategy in Afghanistan that would see the US to a clear victory. The last of those “surge” troops left Afghanistan this month, with the US position worse than it was 4 years ago. Last week, in a modern day Tet Offensive, Taliban fighters attacked the main allied base, killing several Americans and destroying 6 (!) fighter jets.

The Obama Administration’s chief strategy in Afghanistan has been to build up an Afghan security force. The US worked with these forces tactically to try to defeat the Taliban. Those efforts are over, however, after several incidents when these security forces, our supposed Allies, murdered several Americans. We will now simply limp out of the country. Not since the 70s has American liked this powerless.

 

Fast and Furious. Last week, the DOJ’s Inspector General released its “investigation” of the Fast and Furious scandal. The reports improbable conclusion was that virtually everyone at DOJ knew about the disastrous program except Eric Holder. An appropriate fall guy has been found within DOJ, but the stench lingers. The IG report also reveals that the White House actively declined to cooperate with the investigation.

 

Campaign. While the media trained every gun in their arsenal against Mitt Romney, Obama lost his convention bounce. A week after the Democrat convention, Obama had enjoyed a 5-6 bounce in his support. Despite the covering fire from the media, that bounce is gone. Obama and Romney are tied in polls from AP and Rasmussen. Obama clings to a 2 point lead among registered voters in the latest Gallup tracking poll. Setting aside some ridiculously skewed national and swing state media polls, the race is tied.

At this point in the campaign in 2008, the McCain campaign was essentially broke and off the air in several key swing states. This year, however, Romney has a big cash advantage over Obama and is set to unload an ad barrage in all the swing states. The very fact that Democrat strongholds like Wisconsin, Pennsylvania, Colorado and Michigan are even considered at least somewhat competitive this year underscores Obama’s vulnerabilities.

Up to this point, Obama has spent $200 million to disqualify Romney from the Presidency. He has benefited from an enormous in-kind contribution from the media seeking to do the same. Yet, the race is where it was before Obama’s ad barrage. And now, Romney’s ad barrage will begin. September will probably be remembered as the Obama campaign’s high-water mark.

Keep in mind, the items above are just the highlights of the problems plaguing the Obama Administration this month. I haven’t mentioned our deteriorating relations with Israel, Iran, Syria or record-high gas prices. The media have probably kept 30 career-making Pulitzer Prizes’ on the table in ignoring them. But, don’t sigh for them my friends. Their zeal for investigations and journalism will return when Romney takes the oath of office in January.

 MORE READING: THE 1997 SPEECH THAT LAUNCHED OBAMA – THE OBAMA YOU DON’T KNOW! @ THE WASHINGTON EXAMINER

 

 

 

 

 

 

 

 

Desperate times, desperate measures..

With the United States literally under assault across a good portion of the world, the Federal Reserve and Ben Bernanke have decided to tamper once again with the nation’s already damaged economy. Yep! Undoubtedly at President Obama’s direction, the dangerously powerful Fed plans on inflicting more harm..to the tune of $40BILLION a month…In essence…they’re just printing more money…and the dollar will suffer. In the meantime, the media is more focused on fabricating the narrative that somehow the collapse of Barak Obama’s Middle East policy is Mitt Romney’s fault…that’s a strange assumption…Especially when the United States HAS NO MIDDLE EAST POLICY UNDER BARACK OBAMA!

The guys at End of the American Dream have put together this analysis that will add fuel to the fires that are already burning…Barack Obama’s plan for a diminished America continues!

From End of the American Dream:

10 Shocking Quotes About What QE3 Is Going To Do To America

Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to be absolutely nightmarish.  The Federal Reserve is hoping that buying $40 billion worth of mortgage-backed securities per month will spur more lending and more economic activity.  But that didn’t happen with either QE1 or QE2.  Both times the banks just sat on most of the extra money.  As I pointed out the other day, U.S. banks are already sitting on $1.6 trillion in excess reserves.  So will pumping them up with more cash suddenly make them decide to start lending?  Of course not.  In addition, QE3 is not likely to produce many additional jobs.  As I showed in a previous article, the employment level did not jump up as a result of either QE1 or QE2.  So why will this time be different?  But what did happen under both QE1 and QE2 is that a lot of the money ended up pumping up the financial markets.  So once again we should see stock prices go up (at least in the short-term) and commodities such as gold, silver, food and oil should also rise.  But that also means that average American families will be paying more for the basic necessities that they buy on a regular basis.  The most dangerous aspect of QE3, however, is what it is going to do to the U.S. dollar.  Most of the rest of the world uses the U.S. dollar to conduct international trade, and by choosing to recklessly print money Ben Bernanke is severely damaging international confidence in our currency.  If at some point the rest of the world rejects the dollar and no longer wants to use it as a reserve currency we are going to be facing a crisis unlike anything we have ever seen before.  The real debate about QE3 should not be about whether or not it will help the economy a little bit in the short-term.  Rather, everyone should be talking about the long-term implications and about how QE3 is going to accelerate the destruction of the dollar.

The following are 10 shocking quotes about what QE3 is going to do to America….

Paul

#1 Ron Paul

“It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.”

Schiff

“This is a disastrous monetary policy; it’s kamikaze monetary policy”

Pento

#3 Michael Pento, The Founder Of Pento Portfolio Strategies

“This is the nuclear option for them. This is a never-ending weapon that is being fired at the middle class”

Trump

#4 Donald Trump

“People like me will benefit from this.”

Randazzo

#5 Economist Anthony Randazzo

“Quantitative easing—a fancy term for the Federal Reserve buying securities from predefined financial institutions, such as their investments in federal debt or mortgages—is fundamentally a regressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality formed by crony capitalism. And it is hurting prospects for economic growth down the road by promoting malinvestments in the economy.”

Williams

#6 John Williams Of Shadowstats.com

“That’s absolutely nonsense.  The Fed is just propping up the banks.”

Faber

#7 Marc Faber

“I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down.”

Swonk

#8 Mesirow Financial Chief Economist Diane Swonk

“I think this will end up being a trillion-dollar commitment by the Fed”

Bernanke

#9 Federal Reserve Chairman Ben Bernanke

“I want to be clear — While I think we can make a meaningful and significant contribution to reducing this problem, we can’t solve it. We don’t have tools that are strong enough to solve the unemployment problem”

#10 Credit Rating Agency Egan-Jones

“[T]he FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of MBS does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US….”

We have reached a major turning point in the financial history of the United States.

It would be hard to overstate how much damage that QE3 could potentially do to our financial system.  If the rest of the world decides at some point that they no longer have confidence in our dollars and our debt then we are finished.

Sadly, the mainstream media does not seem to understand this, and most Americans gleefully believe whatever the mainstream media tells them.

So what do you think about QE3?….comment here: End of the American Dream

Frustration!….AND ‘ THANKS, Obama!’

As difficult as it is at times, I like to think clear thinking will prevail in most of us. The reality is, I know better.

Today still sees Rep. Todd Akin (R-MO) still in the race for United States Senate. Stubbornness prevailed in his case. Well, maybe not stubbornness..but..cluelessness. He has single handedly managed to change what SHOULD be the election’s CENTRAL ISSUE: Barack Obama….to him. And for that, Republicans may very well suffer nationwide. Including Mitt Romney.

It’s hard to invest your support when you see it wasted..squandered…as your recipient of said support implodes. Foolishly over the years, the Republican party continually struggles to impose their cherished social narrative upon the country as a whole. That tactic is a failure. Even more so today than it ever was. Personal values and beliefs that one maintains are definitely of certain value. But constantly attempting to impose them upon others is a “no win” situation. That will never change.

So…when the focus should be on the abysmal failure that is Barack Obama..we have inane remarks from simplistic morons like Todd Akin becoming the focus of the news…the center of attention. What does it take for the Republican party to realize their moralistic mantra will be their downfall?…As more and more Americans realize what REALLY matters, the party that prizes individual liberty needs to seriously consider what their agenda is doing.

To turn the focus ON what really matters...The End of the American Dream blog puts the emphasis on what should really concern us!….

THANKS OBAMA! – HERE ARE 24 STATS THAT SHOW HOW YOU HAVE ROYALLY MESSED UP OUR ECONOMY!

Under Barack Obama, the U.S. economy has performed worse than it did under any other president since the end of the Great Depression.  After every other recession since World War II, the U.S. economy always regained what was lost and got even stronger before the next recession began.  During this “economic recovery”, we have not even come close to getting back to where we were in 2008.  In fact, the number of Americans living in poverty and the number of Americans that are dependent on the government both continue to explode even as Barack Obama runs up trillions of dollars of new debt.  Anyone that believes that Barack Obama is going to “fix the economy” if he is given another four years in the White House has taken way too many sips of the Obama kool-aid.  The truth is that Barack Obama is not going to save you.  Barack Obama has royally messed up our economy (along with a lot of other things) and that is not something we should be thanking him for.

Yes, Barack Obama is not solely responsible for the economy.  In fact, he does not even have the most influence over the direction of the economy.

However, if he had been willing or able to actually do what was necessary to fix the economy, he certainly had ample opportunity.

For example, the Democrats had full control of Congress during Obama’s first two years in office.

They were in a position to push through just about anything that they wanted to.

But just about everything that did get through Congress during those two years was full of really, really bad ideas.

More importantly, Barack Obama has done absolutely nothing to stand in the way of the nightmarish policies of the Federal Reserve.

Yes, the Federal Reserve does have more power over the U.S. economy than Barack Obama does.

But Barack Obama has made no moves to reign in the Fed or to stop their idiotic policies.

In fact, Obama has had nothing but good things to say about Federal Reserve Chairman Ben Bernanke, and he nominated Bernanke for another term.

Talk about stupid.

If you were the owner of a pro football team and your coach had lost every game for several years in a row would you give him a new contract?

Of course not.

But even though Federal Reserve Chairman Ben Bernanke has a track record of failure that would make the Washington Generals blush, Obama has given Bernanke his unquestioning support.

Obama insists that it would be a really bad idea to ever question the “independence” of the Fed.  Obama believes that it is a good thing that U.S. monetary policy is determined by a panel of “experts” that work for a secretive organization that has no direct accountability to the American people whatsoever.

Yet their decisions have a huge impact on all our lives every single day.

So since Barack Obama has steadfastly refused to stand up to the Federal Reserve and has had nothing but wonderful things to say about Federal Reserve Chairman Ben Bernanke, it is fair to hold Obama at least partially responsible for the nightmarish economic conditions that Fed policies have helped create.

In the final analysis, basically every single decision that Barack Obama has made regarding the economy has been wrong.  He has added trillions to our debt while flushing our economic future down the toilet at the same time.

Thanks Obama – you really have been awful.

The following are 24 stats that show just how much Obama has royally messed up our economy….

#1 Under Bill Clinton, the average unemployment rate was 5.2 percent.  Under George W. Bush, the average unemployment rate was 5.3 percent.  Under Barack Obama, things have been much worse. The month after he took office the unemployment rate rose above 8 percent and it has stayed there ever since.

#2 Under Barack Obama, the velocity of money (a very important indicator of economic health) has plunged to a post-World War II low.

#3 Real median household income has decreased by more than 4000 dollars since Barack Obama entered the White House.

#4 The United States has plenty of oil and we should not have to import it from the Middle East.  Unfortunately, Barack Obama has an absolutely nightmarish energy policy.  Under Bill Clinton, the number of drilling permits approved rose by 58 percent.  Under George W. Bush, the number of drilling permits approved rose by 116 percent.  Under Barack Obama, the number of drilling permits approved decreased by 36 percent.

#5 When Barack Obama took office, the average price of a gallon of gasoline was $1.85.  Today, the average price of a gallon of gasoline is $3.71.

#6 Under Barack Obama, the United States has lost more than 300,000 education jobs.

#7 Since Barack Obama became president, the number of long-term unemployed Americans has risen from 2.7 million to 5.2 million.

#8 For the first time in the post-World War II era, the employment-population ratio has not bounced back after a recession.  The percentage of working age Americans with a job has been below 59 percent for 35 months in a row.

#9 While Barack Obama has been president, U.S. home values have fallen by another 12 percent.

#10 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.

#11 Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.  Thanks Obama.

#12 When Barack Obama first entered the White House, an ounce of gold was going for about $850.  Today, the price of gold is over $1630 an ounce.

#13 Since 2008, our economy has lost 1.3 million jobs while at the same time 3.6 million more Americans have been added to Social Security’s disability insurance program.

#14 The number of Americans on food stamps has grown from 31.9 million when Barack Obama took office to 46.4 million today.  How much more “hope and change” are we going to be able to endure?

#15 As I wrote about the other day, it is being projected that Obamacare will add16 million more Americans to the Medicaid rolls.

#16 If you can believe it (and this really is hard to believe), more than half of all Americans are now at least partially financially dependent on the government.

#17 The total amount of money that the federal government gives directly to the American people has grown by 32 percent since Barack Obama became president.

#18 Under Barack Obama, federal spending as a percentage of GDP (25 percent) is the highest that it has been since World War II.

#19 The Obama administration has been spending money on some of the most insane things imaginable.  For example, in 2011 the Obama administration spent$592,527 on a study that sought to figure out once and for all why chimpanzees throw poop.

#20 The U.S. government has run a budget deficit of well over a trillion dollarsevery single year under Barack Obama.

#21 Under Barack Obama, U.S. debt was downgraded from AAA status for the first time ever.

#22 Since Barack Obama took office, the U.S. national debt has increased by 50 percent.

#23 Since Barack Obama became president, the U.S. national debt has increased by an average of more than $64,000 per taxpayer.

#24 During the Obama administration, the U.S. national debt has grown more than it did from the time that George Washington became president to the beginning of Bill Clinton’s second term as president.

This election cycle should have been a slam dunk for Mitt Romney. If nothing more than the fact the he is NOT Barack Obama.

‘We tried our plan – and it worked!’

Well, I guess you could say that….if the continued destruction of the U.S. economy is your goal….Yes, that STUPID line from our DANGEROUS President is a highlight of the latest from The Economic Collapse…

What does it take for more Americans to wake up to the reality of the harm Mr. Obama continues to instill upon this country? I simply find it beyond normal comprehension that rewarding this man with four more years in the White House is the answer to our problems! Is Mitt Romney? Who knows! At least he deserves the chance to prove himself. It’s an absolute CERTAINTY Mr. Obama will maintain the same misguided and destructive course. We know that. He is simply unable to run on his record because NOTHING his administration has sponsored or fostered has proven beneficial to our nation! NOTHING! So his campaign paints a distorted picture of Mr. Romney’s record peppered with outright lies.

Back to the matter at hand…As if you need further proof, here are more examples we continue to head in the WRONG direction!

 

17 Reasons Why Those Hoping For A Recession In 2012 Just Got Their Wish

If you were hoping for a recession in 2012, then you are going to be very happy with the numbers you are about to see.  The U.S. economy is heading downhill just in time for the 2012 election.  Retail sales have fallen for three months in a row for the first time since 2008, manufacturing activity is dropping like a rock, sales of new homes are declining again, consumer confidence has moved significantly lower and a depressingly small percentage of businesses anticipate hiring more workers in the coming months.  Even though the Federal Reserve has been wildly pumping money into the financial system and even though the federal government has been injecting gigantic piles of borrowed cash into the economy, we still haven’t seen an economic recovery.  In fact, we appear to be on the verge of yet another major downturn.  In California the other night, Barack Obama told supporters that “we tried our plan — and it worked“, but only those that are still drinking the Obama kool-aid would believe something so preposterous.  The truth is that the U.S. economy has been steadily declining for many years and now we have reached another very painful recession.

 

And don’t let the second quarter GDP number on Friday fool you.  Analysts are expecting to see GDP growth of about 1.4 percent for the second quarter, but the only reason for our very small amount of “economic growth” is because the economy has been flooded with new dollars.

Let me give you an example.  If I could go out overnight and magically double the bank accounts of every single American, would we all be twice as wealthy?

No, because there would be twice as many dollars now chasing the same amount of goods and services.  The price of those goods and services would soon rise dramatically to reflect this new reality.

With all of those new dollars spinning around in the economy it would look like “economic growth” was going through the roof, but in reality the amount of real economic activity would be about the same.

So whenever we talk about GDP, we need to adjust it for inflation.

And as I noted the other day, after adjusting for inflation the U.S. economy has been continually experiencing negative economic growth since about 2005.

So let’s not deceive ourselves.  The U.S. economy has been declining for a long time.

But soon even non-inflation adjusted GDP will turn negative.  We will probably see a slightly positive number for the second quarter, and the number will likely go negative either in the third quarter or the fourth quarter.

Economists will debate when this new recession officially “began” just like they do with every recession, but it doesn’t take a genius to figure out what is happening to our economy right now.

The following are 17 reasons why those hoping for a recession in 2012 just got their wish….

1. U.S. retail sales have declined for three months in a row.  This is the first time this has happened since 2008.  Every other time this has happened in U.S. history (except for once) this has signaled that the U.S. economy was either already in a recession or was about to enter one.

2. The Philadelphia Fed index of manufacturing activity contracted for the third month in a row during July.  According to the Financial Post, this is a very bad sign….

Seven out of eight times when the average reading has been that low (-11.8) for that long the U.S. economy has tipped into recession.

3. Manufacturing activity in the mid-Atlantic region has also declined for three months in a row.  In fact, the only time in the past decade when manufacturing activity in the mid-Atlantic has fallen more dramatically was during the last recession.

4. A factory index calculated by the Institute for Supply Management has fallen to its lowest level since June 2009.

5. The Conference Board index of leading economic indicators has fallen for two of the past three months.

6. According to a recent survey conducted by the Conference Board, only 17 percent of CEOs had a positive view of the economy during the second quarter of 2012.  During the first quarter of 2012, 67 percent did.

7. Gallup’s U.S. Economic Confidence Index is now the lowest that it has beensince January.

8. Optimism among small business owners has declined in three of the last four months and is now at its lowest level since last October.

9. Believe it or not, the amount of waste being carted around on trains in the United States has an 82 percent correlation with U.S. economic growth.  Unfortunately, right now the number of garbage carloads on trains is falling dramatically.

10. Sales of previously occupied homes dropped by 5.4 percent during June.

11. Sales of new homes declined by 8.4 percent during June.  At this point new home sales are less than a third of what they were during the boom years.

12. An increasing number of Americans are relying on high interest “payday loans” to pay the rent and put food on the table.

13. Far more companies are defaulting on their debts this year than last year.

14. According to the U.S. Labor Department, the unemployment rate fell in 11 states and Washington, D.C. last month, but it rose in 27 states.

15. The unemployment rate in New York City is now back up to 10 percent.  That equals the peak unemployment rate in New York City during the last recession.

16. The teen unemployment rate in Washington D.C. right now is 51.7 percent.

17. A recent survey conducted by the National Association for Business Economics found that only 23 percent of all U.S. companies plan to hire more workers over the next 6 months.  When the same question was asked a few months ago that number was at 39 percent.

All of those are very powerful pieces of evidence that a new recession has started.

But do you want to know one of my favorite indicators that the U.S. economy is sliding into recession?

In a previous article, I noted that Federal Reserve Chairman Ben Bernanke made the following statement to Congress recently: “At this point we don’t see a double dip recession. We see continued moderate growth.”

As I mentioned the other day, Bernanke has a track record of failure that is absolutely embarrassing.  Back on January 10, 2008 Bernanke made the following statement….

“The Federal Reserve is not currently forecasting a recession.”

That turned out to be a great call, didn’t it?

On June 10, 2008 he doubled down on his call that the U.S. economy was going to avoid a recession….

“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”

Just before Fannie Mae and Freddie Mac collapsed Bernanke made this statement….

“The GSEs are adequately capitalized. They are in no danger of failing.”

And there are dozens of other examples just like these.

This is the guy running our economic system.

I am very critical of the Federal Reserve, but there are very good reasons for this.

The Federal Reserve is running our economy into the ground, and we need to pound this into the heads of the American people so that they will wake up and demand change.

Perhaps this next recession will be painful enough to wake people up.

The Wall Street Journal is already even using the “D word” to describe what we are experiencing.  Just today, the Wall Street Journal ran an article that asked this question: “Do Two Recessions Equal One Depression?

Sadly, this is just the leading edge of what is coming.  By the time 2014 or 2015 rolls around, we are going to look back and long for the “good old days” of 2011 and 2012.

Over the next few years, the unemployment rate is going to skyrocket and poverty in the United States is going to get a whole lot worse.

Now is not the time to goof off.  Now is the time to work really hard to get yourself and your family into the best position that you can for the storm that is coming.

Nothing is going to stop the terrible economic crisis that is coming, but at least we can get prepared for it.

There is hope in being prepared.

Sadly, most people will never even see the next crisis coming until they get blindsided by it.

 

 

 

The Most DESTRUCTIVE force in the American economy…

 

“I have to be allowed to inflict as much damage as possible…”

No…it’s not Barack Obama…though he’s a BIG part of it..it’s Ben Bernanke and the Federal Reserve!…

The guys at The Economic Collapse shed some light on this damaging influence on our monetary policy…

The Audit The Fed Bill Gets Passed By The House But Obama And The Democrats Are Going To Kill It

On Wednesday, Ron Paul’s bill to audit the Federal Reserve was overwhelmingly passed by the U.S. House of Representatives.  The vote was 327 to 98.  You would think that a bill with such overwhelming support would easily become law.  But it won’t, because Barack Obama and the Democrats plan to kill it.  Senate Majority Leader Harry Reid has already said that the Senate will not even consider the bill.  But of course if Barack Obama called Harry Reid and told him that he wants this bill to get through the Senate so that he could sign it then Harry Reid would be singing a much different tune.  Sadly, we all know that is not going to happen.  Barack Obama’s good buddy Ben Bernanke called the Audit the Fed bill a “nightmare scenario” last week, and Obama is certainly not going to do anything to upset Bernanke – especially this close to the election.  Obama needs Bernanke to do everything that he possibly can to stimulate the economy so that Obama will look as good as possible in November.  The sad truth is that there is absolutely no chance that the Audit the Fed bill will become law and that is a crying shame.

Ron Paul

 

 

Obama and Reid

 

So why is an audit of the Federal Reserve so important?

Why does Federal Reserve Chairman Ben Bernanke consider an audit of the Federal Reserve to be a “nightmare scenario” that must be avoided at all costs?

Well, perhaps it is because there has never been a true comprehensive audit of the Federal Reserve since it was created back in 1913.

The Federal Reserve has more power over the economy than anyone else in the country does, and yet they are virtually unaccountable and the American people have very little idea what has been going on behind closed doors over at the Fed for the past 100 years.

A very limited audit of the Fed that was passed a couple of years ago that examined transactions during the last financial crisis discovered that the Federal Reserve had actually loaned out more than 16 trillion dollars in nearly interest-free money to the “too big to fail” banks between 2007 and 2010.

Keep in mind that U.S. GDP for the entire year of 2011 was only slightly more than 15 trillion dollars.

The Federal Reserve loaned out trillions upon trillions of dollars to their friends and never told the American people about it.

Whoa.

You would think that Congress would be quite eager to see what else has been going on over at the Federal Reserve.

But instead, many Democrats are completely and utterly opposed to auditing the Fed any further.

Barney Frank

U.S. Representative Barney Frank (a Democrat) seemed to regard the bill as a joke even after it overwhelmingly passed in the House.  Frank stated that “nobody here thinks this will ever become law“.

According to Politico, there is zero chance that the bill will get through the U.S. Senate….

Senate Majority Leader Harry Reid (D-Nev.) has said the Senate will not consider the bill, effectively killing its chances of becoming law.

But we all know that if Obama wanted this bill to become law that it would be a done deal.

If Barack Obama came out tomorrow in front of the television cameras and declared his support for this bill it would sail right through the Senate.

Unfortunately, the Obama administration has made it very clear that it considers a comprehensive audit of the Federal Reserve to be a really, really bad idea.

Geithner

For example, Treasury Secretary Timothy Geithner once stated that auditing the Fed is a “line that we don’t want to cross” and that if we did audit the Fed it would be “problematic for the country”.

So what exactly did he mean by that?

That is a very good question.

In any event, people should take this as an opportunity to confront Barack Obama about the Audit the Fed bill wherever he goes.

Perhaps Obama will prove me wrong.

Perhaps Obama will show that he is willing to stand up to the Federal Reserve.

In fact, if Obama gets this bill pushed through Congress and signs it into law, I will not criticize him for an entire month.

But we all know that will never happen.

The Federal Reserve is going to be able to continue to keep their secrets hidden from the American people.

The following is what Ron Paul had to say following the vote on Wednesday….

“I think the whole idea that they can deal in trillions of dollars and know that nobody is allowed to ask them a question is a moral hazard.”

And Ron Paul is right.

If the Federal Reserve can zap trillions of dollars into existence out of thin air and loan that money to their friends at the big banks and to central banks in other countries, then it should not be too much to ask them to be accountable to the American people.

Over the coming months, the American people will heatedly debate whether Barack Obama or Mitt Romney would be better for the U.S. economy.

But the truth is that the Federal Reserve has far more power over the U.S. economy than the president of the United States does.

The Federal Reserve has been called the “fourth branch of government” because of how much power it has.  The Federal Reserve sets our interest rates, it determines the level of our money supply, it regulates and secretly bails out our banks, it determines the “target rates” for unemployment and inflation, and every small move the Fed makes causes global financial markets to swing wildly.

The Federal Reserve does all of this without ever having to be accountable to the American people.  In fact, whenever a bill is introduced that would shed some light on their activities they whine and cry about how important their “independence” is.

In a previous article, I described how preposterous this all is….

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to.  Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress.  Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit.  Does that sound preposterous?  Well, such an organization actually exists.

The American people need to stand up and demand an audit of the Federal Reserve.

We deserve to know what is going on over there.

“..and I solemnly swear to damage the United States economy to the best of my ability…”

 

Sadly, the mainstream media makes it sound as if hell has a better chance of freezing over than this bill does of becoming law.  The following is from a USA Today article that was posted on Wednesday….

The bill stands no chance of becoming law because the Democratic-controlled Senate will not take it up. The vote, however, served as a symbolic swan song for Paul, who is not seeking re-election. It is also an indicator of how Paul’s economic views have gone more mainstream, particularly within the Republican Party, in the wake of the 2008 financial crisis that shook Americans’ confidence in Wall Street and the federal government.

Well, let us hope that this kind of a bill keeps getting introduced in Congress.

Perhaps someday we actually will get a real audit of the Federal Reserve.

When that happens, the following is a list of questions that I would like to see asked by those auditing the Fed….

If the Federal Reserve is supposed to prevent shocks to our economy, then why have there been 10 different economic recessions since 1950 and why are we about to enter another one?

Was the Federal Reserve involved in the manipulation of Libor?

What role did the Federal Reserve playing in creating the housing bubble that resulted in an unprecedented housing crash?

Why has the value of the U.S. dollar fallen by 83 percent since 1970?

Why is the Federal Reserve paying U.S. banks not to lend money?

Why did Barack Obama nominate Ben Bernanke for a second term as head of the Federal Reserve when Bernanke has a track record of failure that makes the Chicago Cubs look like a roaring success?

Why is the U.S. national debt more than 5000 times larger than it was when the Federal Reserve was created in 1913?

Why were the Federal Reserve and the personal income tax both pushed through Congress in the same year in 1913?

Why does the Federal Reserve argue that it is “not an agency” of the federal government in court?

Why do all 187 nations that belong to the IMF have a central bank?

Do you have any other questions that you would like to have asked during an audit of the Federal Reserve?