Economy

PICTURE OF DECLINE

A population of illiterate, non-thinking morons can’t possibly obtain good paying jobs. This country spends $12,000 per public school student per year on education and this is the outcome? The factual data presented below paints a picture of an empire in rapid decline. We are too far gone. No amount of money or presidential election is going to change this course. We chose this path in the 1960s and now we will reap the consequences.

Education

In a study of literacy among 20 ‘high income’ countries; US ranked 12^th

Illiteracy has become such a serious problem in our country that 44 million adults are now unable to read a simple story to their children.

50% of adults cannot read a book written at an eighth grade level

45 million are functionally illiterate and read below a 5th grade level

44% of the American adults do not read a book in a year

6 out of 10 households do not buy a single book in a year

According to the Pew Research Center, the median income of middle-class households declined by 4 percent from 2000 to 2014.

The Pew Research Center has also found that median wealth for middle-class households dropped by an astounding 28 percent between 2001 and 2013.

There are still 900,000 fewer middle-class jobs in America than there were when the last recession began, but the population has grown significantly larger since that time.

According to the Social Security Administration, 51 percent of all American workers make less than $30,000 a year.

An astounding 48.8 percent of all 25-year-old Americans still live at home with their parents.

According to the U.S. Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month, and nearly 47 million Americans are living in poverty right now.

In 2007, about one out of every eight children in America was on food stamps. Today, that number is one out of every five.

The median net worth of families in the United States was $137, 955 in 2007. Today, it is just $82,756.

11 Signs That The U.S. Economy Is Rapidly Deteriorating Even As The Stock Market Soars

Even the doomers like Snyder get it wrong about the “soaring” stock market. Why do people believe false narratives rather than observe the pure, cold hard facts? The S&P 500 closed at 2,064 yesterday. It closed at 2,064 on November 21, 2014. The stock market hasn’t gone anywhere in 18 months. I don’t think that can be classified as “soaring”. It has gone nowhere since the Fed turned off the QE tap. As earnings continue to plunge, with no new QE in sight, and the economy in recession for the average person, the PE ratio of the market approaches unsustainable heights. I’m sure this will end well. Right?

Submitted by Michael Snyder via The Economic Collapse blog,

We have seen this story before, and it never ends well. From mid-March until early May 2008, a vigorous stock market rally convinced many investors that the market turmoil of late 2007 and early 2008 was over and that happy days were ahead for the U.S. economy. But of course we all know what happened. It turned out that the market downturns of late 2007 and early 2008 were just “foreshocks” of a much greater crash in late 2008. The market surge in the spring of 2008 was just a mirage, and it masked rapidly declining economic fundamentals. Well, the exact same thing is happening right now. The Dow rose another 222 points on Tuesday, but meanwhile virtually every number that we are getting is just screaming that the overall U.S. economy is steadily falling apart. So don’t be fooled by a rising stock market. Just like in the spring of 2008, all of the signs are pointing to an avalanche of bad economic news in the months ahead. The following are 11 signs that the U.S. economy is rapidly deteriorating…

Continue reading “11 Signs That The U.S. Economy Is Rapidly Deteriorating Even As The Stock Market Soars”

The Washington Post Accuses Stingy Americans Of Ruining Obama’s Recovery

Submitted by Tyler Durden on 05/10/2016 13:37 -0400

Every year it’s the same: some legacy mainstream media mouthpiece muses on how great Obama’s recovery would be… if only it wasn’t for stingy US consumers refusing to spend like the drunken sailors of days gone by. Last June, it was the WSJ’s Jon Hilsenrath who actually wrote a letter to American consumers, confused by their unwillingness to spend and explicitly accused them of being “stingy” even as the “Federal Reserve was counting” on them to spend, spend, spend. For those who have forgotten this absolute pearl, here it is again:

Dear American Consumer,

This is The Wall Street Journal. We’re writing to ask if something is bothering you.

The sun shined in April and you didn’t spend much money. The Commerce Department here in Washington says your spending didn’t increase at all adjusted for inflation last month compared to March. You appear to have mostly stayed home and watched television in December, January and February as well. We thought you would be out of your winter doldrums by now, but we don’t see much evidence that this is the case.

You have been saving more too. You socked away 5.6% of your income in April after taxes, even more than in March. This saving is not like you. What’s up?

We know you experienced a terrible shock when Lehman Brothers collapsed in 2008 and your employer responded by firing you. We know stock prices collapsed and that was shocking too. We also know you shouldn’t have taken out that large second mortgage during the housing boom to fix up your kitchen with granite countertops. You’ve been working very hard to pay off this debt and we admire your fortitude. But these shocks seem like a long time ago to us in a newsroom. Is that still what’s holding you back?

Do you know the American economy is counting on you? We can’t count on the rest of the world to spend money on our stuff. The rest of the world is in an even worse mood than you are. You should feel lucky you’re not a Greek consumer. And China, well they’re truly struggling there just to reach the very modest goal of 7% growth.

The Federal Reserve is counting on you too. Fed officials want to start raising the cost of your borrowing because they worry they’ve been giving you a free ride for too long with zero interest rates. We listen to Fed officials all of the time here at The Wall Street Journal, and they just can’t figure you out.

Please let us know the problem. You can reach us at any of the emails below.

Sincerely,

The Wall Street Journal’s Central Bank Team

-By Jon Hilsenrath

Continue reading “The Washington Post Accuses Stingy Americans Of Ruining Obama’s Recovery”

Americans haven’t gotten a raise in 16 years

Guest Post by John Crudele

Mark Twain is credited with saying “figures don’t lie, but liars figure.” If he were around today Twain’s quote might go something like this: “Figures do lie, and liars figure out how to make people believe them.”

Granted, not as catchy.

But my quote goes a long way toward explaining something that is bothering many political pundits today. President Obama whined last week that he’s not getting enough credit for the economy.

Democrats are besides themselves wondering why Americans are so angry that they might be willing to elect Donald Trump president when the official unemployment rate is only 5%, oil prices are near their lowest level in a decade and the economy has been expanding for seven straight years.

Why aren’t Americans happier?

One of those pundits made me chuckle Tuesday night when he was talking about Trump’s primaries victories in another five states. He suggested that Americans were somehow being brainwashed by the media into thinking the economy was really bad when in fact it was good.

Then, on Thursday, the Commerce Department showed just how good the economy wasn’t. It announced that the Gross Domestic Product grew by an annual rate of just 0.5% in the first three months of 2016.

But that didn’t stop the media from trying to explain away the disappointment.

Continue reading “Americans haven’t gotten a raise in 16 years”

A Walk Back In Time

SUBMITTED BY — ROB IN NOVA SCOTIA

Hi Stucky

It’s a bit long winded but what happened on that climate change fiasco bothered me this week. I need to state my position

Cheers

Rob in Nova Scotia

===========================================

A walk back in Time

I am going to take everyone on a walk back in time. First off I should say that I live in a wonderful corner of the world. There are so many stories to tell.

Today I went for a drive along the shores of the Northumberland Strait in Nova Scotia. Canada. Starting in Arisaig, Antigonish County I headed southwest thru Lismore and on to where I grew up in shadows of the Pictou Coal Fields. But my First stop was in Knoydart where there was a cairn built some years back. Maintained by the locals it is tucked out of the way at the end of a road thru the woods to the shore.

http://www.culloden.ca/

It takes about five minutes to walk into the Cairn. It was constructed to commemorate two men who it is said fought at The Battle of Culloden in 1746. The final confrontation of the Jacobite uprising of 1745 and part of a religious civil war in Britain. In those days the men took a rock from where they lived threw it in a pile before casting their fate in battle. Afterwards those that lived picked up a rock and took it home. The rocks left would then become the Monument to those who died. These men in their later years came to these shores in the exodus from Scotland starting in the 1770’s. Legend has it that they took their rocks with them to the New World. It can’t be proven but it does make for a good story. This year, like years past, on the 16th of April people will gather at the Cairn. To remember those men and others. It will be followed by dinner at the Lismore Community Hall. It is always a great day.

Continue reading “A Walk Back In Time”

Trump Unbound

Guest Post by David Stockman

Even by The Donald’s standards his 95 minute long interview with the Washington Post was remarkable. He let loose so many stray shots as to leave the establishment press clucking in a chorus of disbelief. It undoubtedly started with the stink bomb he lobbied at the ” all is awesome” meme about the US economy and stock market:

Donald Trump said in an interview that economic conditions are so perilous that the country is headed for a “very massive recession” and that “it’s a terrible time right now” to invest in the stock market, embracing a distinctly gloomy view of the economy that counters mainstream economic forecasts.

The New York billionaire dismissed concern that his comments — which are exceedingly unusual, if not unprecedented, for a major party front-runner — could potentially affect financial markets.

Now there’s an irony. Presumably the last paragraph was written by Bob Woodward who was once the bête noir of the Washington/Wall Street establishment. But like nearly everyone else in the Imperial City he has been drinking the Cool-Aid for so many decades that he was apparently shocked by Trump’s unfiltered bit of truth-telling about an economy that is failing 90% of the American public.

Worse still, Woodward was apparently dumbfounded that Trump didn’t self-censor his thoughts about the economic troubles ahead for fear of unsettling the Wall Street casino.

That’s right. The cult of the stock market and the notion that the Fed literally controls and powers the US economy through the transmission belt of Wall Street and soaring financial asset prices has gotten so deeply embedded in the establishment narrative that even the pedigreed left-wing of the journalistic establishment has been coopted into reflexively chanting the meme.

Continue reading “Trump Unbound”

FOURTH TURNING UPDATE WITH NEIL HOWE

Talk about comprehensive. Neil Howe gives his opinion about everything he thinks will happen in this crucial year of 2016. He isn’t optimistic. He is in the midst of writing a new book called The First Turning. I hope we make it there.

Via John Mauldin

The Big Picture

January 2016 Report

All signs point to 2016 being a momentous year on every front, from the shuddering global economy to the stormy upcoming election season. How will the world look by year’s end? BP interviewed Saeculum Research Founder and President Neil Howe to get his take on what’s ahead. (This is an expanded version of the interview we published as a Social Intelligence report on January 6, 2016.)

BP: Neil, 2016 sure began with some big headlines, didn’t it?

NH: Yes, the year began with a bang—and not in a good way. Both the Dow and the S&P 500 suffered their worst 5-day and 10-day start to a year in history. With the market down roughly 8%, we are suddenly back to the “correction” lows of late last summer. China’s Shanghai market entered free fall, with circuit breakers stopping trading on January 6 after only 29 minutes. Beijing had to intervene massively to keep the CNY from following suit. Meanwhile, most of the Sunni Arab nations abruptly broke off diplomatic relations with Iran. And North Korea successfully tested an H bomb, which—Dear Leader Kim Jong Un helpfully, if not quite accurately, reminded the media—“is capable of wiping out the whole territory of the U.S. all at once.”

BP: Wow. “Bang” may be just the right word. Neil, could you give us a sense of what everybody is going to be talking about in 2016?

NH: In January, analysts always predict how the economy will perform over the coming year. Now is no different, especially with the big December announcement that the Federal Reserve is raising short-term interest rates by 25 basis points to between 0.25 and 0.5%. The Fed boldly suggests that interest rates may close in on 1.4% by the end of 2016 and 2.4% by the end of 2017. Spoiler alert: I think this is delusional. The global economy is in no condition to take this medicine. My very safe prediction is that the Fed will either stall or back down. And the risk of U.S. recession by the end of the year? It’s higher than most are estimating: I’d say roughly 50-50.

Abroad, there are signs of progress in international relations, but the overall geopolitical outlook is dangerous. The Middle East has become a maelstrom. Europeans are voting for leaders who want to dismantle Europe. Putin seems to enjoy doing whatever he damn well wants to—while boasting off-the-chart popularity ratings at home. Meanwhile, Americans are left wondering why their country no longer plays a leadership role in world affairs.

These issues only raise the stakes for the upcoming elections. Not that Americans needed more reason to pay attention: Ever since the first slate of primary debates last summer, we haven’t been able to take our eyeballs off this race. We have the prospect of seeing another Clinton in the White House, a highly polarized presidential campaign season, and—oh yeah—Donald Trump endlessly in the headlines.

BP: OK, let’s focus on the economy. You sound a bit more downbeat than most.

Continue reading “FOURTH TURNING UPDATE WITH NEIL HOWE”

Falling Oil Prices Not the Reason for U.S.’s Economic Woes

Guest Post by Antonius Aquinas

The dramatic fall in the global price of oil is being cited by the financial press, government officials, and academia as the catalyst for the recent abysmal U.S. economic data which shows that the economy is, in all likelihood, sliding into a recession or worse.

While falling oil prices sound like a plausible explanation for the abysmal financial numbers, anyone with a modicum of economic sense (which excludes much of the financial Establishment) can see that it is merely a smokescreen to obfuscate the real culprit.

The fall in oil prices, while detrimental to many oil producers, should actually be a boon for the rest of the economy, especially those industries that are heavily reliant on energy. Lower fuel prices mean lower production costs leading to, ceteris paribus, greater output.

For consumers, lower oil prices mean lower utility bills and cheaper gasoline, both of which mean more disposable income for either savings or more consumption. Why would greater disposable income lead to a recession?

Continue reading “Falling Oil Prices Not the Reason for U.S.’s Economic Woes”

Epocalypse When? When markets crash upward

Guest Post by David Haggith at the Great Recession Blog

The Fed’s rise in rates has turned my counterintuitive predictions true by resulting in a rapid rise in the stock market. Trading only had about an hour and half left after the Fed put out its word; so, the Dow only rose about 200 points. I wouldn’t be surprised to see the euphoria kick in full force today and rocket toward something remarkable like 700 points.

How do soaring stocks square with my predictions of an economic apocalypse?

US stocks are rising on pure adrenaline. Nothing changed in a positive direction economically because of the Fed’s announcement. A rise in rates isn’t economic stimulus. Companies didn’t start making more money. Global recession didn’t slow down. Customers didn’t start buying more Christmas toys or all run out and buy a car. Employment didn’t jump upward.

In fact, the main data that came out on Wednesday was all about growing recession in the US:

Industrial production came in at the Econoday low forecast, down a very sharp 0.6 percent in November. This is the biggest drop in 3-1/2 years. Utility output fell a monthly 4.3 percent after falling 2.8 percent in October. Mining, reflecting low commodity prices and contraction in energy extraction, has also been week [sic.], down 1.1 percent for a third straight decline. (Bloomberg)

And I’ll let NewsMax summarize the main economic news of the previous two days:

Oil prices plunged, junk bonds hit a two-and-a-half-year low, stocks took a nearly 4 percent hit, a junk bond fund halted withdrawals, the country’s biggest pipeline operator cut its dividend by 75 percent and two of the biggest mining companies in the world suspended theirs completely.

Continue reading “Epocalypse When? When markets crash upward”