The US recovery is so strong, that Family Dollar is closing 370 stores!
When I learned of this, I was quite stunned.
If nothing is done about the long-term trends that are slowly strangling the middle class to death, this will just be the beginning.
We will see millions more Americans lose their jobs, millions more Americans lose their homes and millions more Americans living in poverty.
The United States is being fundamentally transformed, and very few people are doing much of anything to stand in the way of this transformation. Decades of incredibly foolish decisions are starting to catch up with us, and unless something dramatic is done right away, all of these problems will soon get much, much worse.
The US recovery is so strong, that Family Dollar is closing 370 stores!
Do you think that the price of food is high right now?
Just wait. [Read more...]
All of a sudden, the Nasdaq is absolutely tanking. On Monday, it fell more than 1 percent after dropping 3.6 percent on Thursday and Friday combined. At this point, the Nasdaq is off to the worst start to a year that we have seen since 2008, and we all remember what happened back then.
Whatever is causing this decline, it is starting to get alarming. The Nasdaq just experienced its largest three day fall since November 2011. [Read more...]
How long can America continue to burn up wealth? How long can this nation continue to consume far more wealth than it produces? The trade deficit is one of the biggest reasons for the steady decline of the U.S. economy, but many Americans don’t even understand what it is. Basically, we are buying far more stuff from the rest of the world than they are buying from us. That means that far more money is constantly leaving the country than is coming into the country. In order to keep the game going, we have to go to the people that we bought all of that stuff from and ask them to lend our money back to us. Or lately, we just have the Federal Reserve create new money out of thin air. This is called “quantitative easing”. Our current debt-fueled lifestyle is dependent on this cycle continuing. In order to live like we do, we must consume far more wealth than we produce. If someday we are forced to only live on the wealth that we create, it will require a massive adjustment in our standard of living. We have become great at consuming wealth but not so great at creating it. But as a result of running gigantic trade deficits year after year, we have lost tens of thousands of businesses, millions upon millions of jobs, and America is being deindustrialized at a staggering pace. [Read more...]
According to stunning new numbers just released by the federal government, nine of the top ten most commonly held jobs in the United States pay an average wage of less than $35,000 a year. When you break that down, that means that most of these workers are making less than $3,000 a month before taxes. And once you consider how we are being taxed into oblivion, things become even more frightening. Can you pay a mortgage and support a family on just a couple grand a month? Of course not. In the old days, a single income would enable a family to live a very comfortable middle class lifestyle in most cases. But now those days are long gone.
You can’t have a middle class without middle class jobs, and we have witnessed a multi-decade decline in middle class jobs in the United States. As long as this trend continues, the middle class is going to continue to collapse.
Making money in the stock market is supposed to be about making wise investment decisions. It isn’t supposed to be about finding a glitch in a video game and exploiting it. But that is essentially what these high frequency traders have done. They have spent an extraordinary amount of time and energy figuring out ways to make pennies (or sometimes just fractions of a penny) on the trades that the rest of us make.
Fortunately, this practice was exposed in front of the entire world by 60 Minutes the other night. Steve Kroft interviewed a former trader named Michael Lewis that just released a new book entitled “Flash Boys” that is all about the evils of high frequency trading.
On Wall Street, there are winners and there are losers. Most of the time, “the little guys” end up losing.
But at least they could try to have a system that at least has the appearance of fairness. As long as high frequency trading exists, that will never be the case.
We are all being taxed into oblivion. It is like death by a thousand paper cuts. Our politicians have become extremely creative in finding ways to extract money from all of us, and most Americans don’t even realize what is being done to them. By the time it is all said and done, a working portion of the US population ends up paying more than half of what they earn to the government. That is fundamentally wrong, but nothing will be done about it until people start demanding change. The following is a list of 97 taxes Americans pay every year… [Read more...]
What should be done with a 29-year-old welfare parasite that believes that in addition to practicing with his rock band, his main job in life is to “make sure the sun’s up and the girls are out”? Most people that receive government assistance truly need the help and do not abuse the system, but there are definitely others that do abuse the system and do not make any excuses for doing so. When 29-year-old Jason Greenslate was recently asked if he would be willing to take a job driving a truck in North Dakota for $80,000 a year, he said that he would not. He would rather keep purchasing sushi and lobster with his EBT card and hanging out with his rock band. Greenslate seems very happy with his taxpayer-funded lifestyle, and he says that he wants “to thank the United States of America, and the situation — the way things are set up”. Is this really what we pay taxes for? The rest of us are taxed into oblivion so that we can fund the endless partying of parasites like Jason Greenslate? What in the world is happening to this country? [Read more...]
What would you do if the Internet or the power grid went down for over a year? Our key infrastructure, including the Internet and the power grid, is far more vulnerable than most people would dare to imagine. These days, most people simply take for granted that the lights will always be on and that the Internet will always function properly. But what if all that changed someday in the blink of an eye? According to the Federal Energy Regulatory Commission’s latest report, all it would take to plunge the entire nation into darkness for more than a year would be to knock out a transformer manufacturer and just 9 of our 55,000 electrical substations on a really hot summer day.
“Destroy nine interconnection substations and a transformer manufacturer and the entire United States grid would be down for at least 18 months, probably longer.“
Is the price of copper trying to tell us something? Traditionally, “Dr. Copper” has been a very accurate indicator of where the global economy is heading next. In 2008 the price of copper dropped from nearly $4.00 to under $1.50 in just a matter of months. And now it appears that another big decline in the price of copper is beginning.
Nobody knows the exact date when the next stock market crash will happen. But one thing is for certain – this massive stock market bubble will burst at some point, and when it does our economy is far less equipped to handle it than it was the last time.
Based on my research, I am entirely convinced that the coming economic crisis is going to be substantially worse than the last one, and that is very bad news for the United States.
You can’t get blood out of a rock. Traditionally the United States has had a consumer-driven economy, but now years of declining incomes and rising debts are really starting to catch up with us. In order to have an economy that is dependent on consumer spending, you need to have a large middle class. Unfortunately, the U.S. middle class is steadily shrinking, and unless that trend is reversed, we are going to see massive economic changes in this country. For example, in poor neighborhoods all over America we are seeing bank branches, car dealerships and retail stores close down at an alarming rate. If you didn’t know better, you might be tempted to think that “Space Available” was the hottest new retailer in some areas of the nation. On the other hand, if you live in San Francisco, New York City or Washington D.C., things are pretty good for the moment. But as a whole, the condition of the U.S. consumer continues to decline. Incomes are going down, the cost of living is going up, and debts are skyrocketing.
When the next great financial crisis does strike, it is going to be absolutely disastrous. We are in far worse financial shape than we were in 2008, and this next round of financial trauma could truly be the “knockout blow” for the U.S. economy.
The following are 19 signs that the U.S. consumer is tapped out… [Read more...]
None of the problems that caused the last financial crisis have been fixed. In fact, they have all gotten worse. The total amount of debt in the world has grown by more than 40 percent since 2007, the too big to fail banks have gotten 37 percent larger, and the colossal derivatives bubble has spiraled so far out of control that the only thing left to do is to watch the spectacular crash landing that is inevitably coming.
Unfortunately, most people do not know the information that you are about to read. Most people just assume that the politicians and the central banks have fixed the issues that caused the last great financial crisis. But the truth is that we are in far worse shape than we were back then.
When this financial bubble finally bursts, the devastation that we will witness is likely to be absolutely catastrophic. [Read more...]
Is the U.S. economy steamrolling toward another recession? There are an increasing number of indications that we are rapidly plunging into another major economic slowdown.
While it appears that Putin may have already initiated sanctions against the US with the halting of Russian ammunition exports to the US, let us hope that a full-blown economic war between the United States and Russia is averted. Our economy is hurting enough as it is.
But no matter how things with this crisis in Ukraine play out, it looks like hard times are ahead for the U.S. economy. Unfortunately, most Americans never learned the lessons that they should have learned back in 2008.
They just assume that the federal government and the Federal Reserve have fixed our problems and have everything under control, so they are not preparing for the next great crisis.
In the end, tens of millions of Americans will be absolutely devastated when they get absolutely blindsided by what is coming.
The following are the top 12 signs that the U.S. economy is heading toward another recession…
So much for “isolating” Russia. The Chinese government is publicly siding with Russia on the crisis in Ukraine, and that is very bad news for the United States. Not only does it mean that the U.S. is essentially powerless to do anything about the situation in Ukraine, it also means that Russia and China are starting to understand how much economic leverage that they really have. Yes, the Obama administration can threaten to slap “sanctions” on Russia or threaten to kick Russia “out of the G8“, but those actions would not actually hurt too much. On the other hand, Russia and China hold approximately 25 percent of all foreign-owned U.S. debt, and if they started massively dumping U.S. debt it could rapidly create a nightmare scenario. If Russia and China got together and decided to kill the petrodollar, they could do it almost overnight.
So when it comes to Ukraine, it is definitely not the United States that has the leverage. [Read more...]
Bitcoin is a virtual currency that has no intrinsic value. The only thing giving bitcoin value is the faith that people have in it, and now that faith has been shattered.
This week, the most prominent bitcoin exchange in the entire world, Mt. Gox, totally collapsed. At one time, Mt. Gox boasted more than a million accounts and it accounted for approximately 25 percent of all global bitcoin trading. But now the website has been taken down, there are rumors of catastrophic losses, and many investors are concerned that they will lose ALL of their money. In fact, according to one report, investors could be facing total losses of up to 367 million dollars.
A fool and his digital money are soon parted. [Read more...]