The Gathering Political and Economic Storm

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Johnny Oxygen
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The Gathering Political and Economic Storm

http://www.marketoracle.co.uk/Article26899.html

 

The two and one half years since September 2008 have set the stage for a far worse catastrophe. The Obama administration jammed an $800 billion pork filled stimulus bill down the throats of America, along with home buyer tax credits, loan modification programs, and a healthcare plan that will crush small businesses. The politicians, government bureaucrats, and mainstream media corporate mouthpieces proclaim that their wise and prompt actions averted a Second Great Depression. The government solutions used to "stabilize" the situation have wrought unintended consequences and planted the seeds of further pain and suffering to come. A summary of what has happened in the last few years is in order:

  • On September 18, 2008 the National Debt stood at $9.66 trillion. Today it stands at $14.16 trillion, a 47% increase in 2 1/2 years.
  • The country is running $1.5 trillion annual deficits and will continue to do so for the foreseeable future.
  • The States are running cumulative budget deficits of $130 billion in FY11 and expect deficits of $112 billion in FY12. This is leading to conflicts with unions, higher taxes and mass layoffs of government workers. 
  • The working age population has risen by 5 million, while the number of employed Americans has declined by 6.5 million. The true unemployment rate http://www.shadowstats.com/alternate_data/unemployment-charts has risen from 12% to 22%. 
  • In September 2008 there were 30.8 million Americans on food stamps. Today there are 44 million Americans on food stamps (14% of the U.S. population), a 43% increase in 2 1/2 years. The annual cost has risen by $37 billion, a 100% increase in 2 1/2 years.  
  • Real inflation  http://www.shadowstats.com/alternate_data/inflation-charts bottomed at 5% in early 2009, but has accelerated to 9% today, with further increases baked in the cake.
  • Gasoline prices bottomed out at $1.61 per gallon in January 2009 and have risen to $3.54 per gallon today, a 120% increase in just over two years.
  • Households have lost $6.3 trillion of real estate related wealth since the peak of the housing market. Home prices have fallen for six straight months.
  • Almost 3 million homes have been lost to foreclosure since 2007.
  • There are 11.1 million households or 23.1% of all mortgaged homes, underwater on their mortgages today, with rates above 50% in Nevada, Arizona, California, and Michigan.
  • Fannie Mae and Freddie Mac were taken over by the US government and have lost $170 billion of taxpayer funds so far. Losses are expected to reach $400 billion. Along with the FHA, they continue to prop up a dead housing market with more bad loans.
  • The Federal Reserve balance sheet in September 2008 consisted of $895 billion of US Treasury bonds. Today it totals $2.55 trillion of toxic mortgages bought from Wall Street banks and Treasury bonds being bought under QE2.
  • The Federal Reserve and the Treasury Dept. intimidated the FASB into allowing Wall Street banks to account for worthless mortgage and real estate loans as fully collectible. Magically, insolvent banks became solvent - on paper.
  • The Dow Jones was 11,700 in late August 2008 and today stands at 12,000. The Dow has risen 84% from its March 2009 low. The top 1% wealthiest Americans own 40% of all the stocks in America, so they are feeling much better.
  • In late 2007, a risk averse senior citizen could get a 5% return on a 6 month CD. Today, after two years of no increases in their Social Security payments, a senior citizen can "earn" .38% on a 6 month CD.
  • The Federal Reserve lowered interest rates to 0% in order to allow the Wall Street banks to borrow for free and earn billions without risk.
  • Over 300 smaller banks have been closed by the FDIC, with losses exceeding $50 billion. There are another 900 banks on the verge of insolvency, with estimated future losses of $100 billion.
  • The Federal Reserve initiated QE2 in November 2010, purchasing $70 billion per month of Treasury bonds and attempting to create a stock market rally. They have succeeded in creating a tsunami of energy, food, and commodity price inflation across the globe, sparking revolutions among the desperately poor in the Middle East. 
  • Wall Street banks "earned" record profits of $19 billion in 2010 after nearly destroying the worldwide financial system in 2008 and raping the American taxpayer in 2009.
  • No Wall Street executive has been prosecuted for the fraudulent actions committed by their banks.
  • Wall Street banks handed out $43.3 billion in bonuses in 2009/2010 for a job well done. The average Wall Street employee received a $128,000 bonus in 2010. In 2008, the year they crashed the financial system, they still doled out $17.6 billion in bonuses.
The median household income in 2007 was $52,163. Today the median household income is $46,326, an 11% decline in three years. Real average weekly earnings are lower today than they were in 1971.   
agitating prop's picture
agitating prop
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They may have averted a

They may have averted a second Great deflationary Depression, with a Great Inflationary Depression. Hyper inflation is the very worst possible outcome and Obama and his minions have set us up for one. Nice article....thanks.

Johnny Oxygen's picture
Johnny Oxygen
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Oh theres enough blame to

Oh theres enough blame to stretch from here to the moon. The Repulicrats, Wallstreet, individuals...seamonkeys you name it.

Doesn't matter anymore.

r101958's picture
r101958
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Did anybody else notice the

Did anybody else notice the USD/Yen flash crash earlier this evening? Went down to about 76.5 and has now worked its way back to about 79.2.....is this another fat finger somewhere?

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r101958
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Here is a site for the Nikkei and the Yen

Link:

http://e.nikkei.com/e/fr/marketlive.aspx

 

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dshields
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USD/JPY
r101958 wrote:

Did anybody else notice the USD/Yen flash crash earlier this evening? Went down to about 76.5 and has now worked its way back to about 79.2.....is this another fat finger somewhere?

I have been watching it all evening.  Pretty interesting.  I do not believe it was a fat finger.

 

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dshields
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tick tock tick tock - the doom clock...

Tick tock tick tock the clock is running.  The dot com bubble popped.  The real estate bubble popped.  The credit bubble popped.  The largest bubble of them all, the debt bubble, was not allowed to pop.  The national banks have kept it from popping by the use of various programs.  They have moved toxic private sector debt to the public sector.  They have "printed" amazing amounts of money of various kinds.  And in the end we had the debt ceiling circus a couple of weeks ago and now the market circus this week.  And still we have nothing from the politicians but a 2.4 trillion blank check to Obama and basically no cuts.  The 12 member "committee" is a joke.  Any thing they come up with will be a joke or be ignored.  The truth is the politicians simply can not cut fed gov spending.  Even the repubs, who I have often stated encouraging words for, can not summon the courage to cut spending.  I don't mean cut the growth of spending, I mean cut spending.

The repubs in the house had the ability to force the fed gov to cut spending.  They passed cut, cap, and balance.  This bill would actually have cut some spending.  The dem controlled senate dismissed it out of hand.  Obama said he would veto it as the balanced budget aspect was intolerable.  How can that be ?  How can having a balanced budget be intolerable.  The repubs should have just gone home and waited.  Either the senate would have brought the bill to the floor and passed it and Obama had signed it or the cuts would have happened when the Treasury ran out of money.  Either way there would have been cuts or a constitutional crisis.  Instead the repubs started negotiating.  They negotiated their position into nothing.  Their solution was to hand Obama a blank check for 2.4 trillion dollars and cut basically nothing.  It was a disaster - or was it ?  Were we set up ?  Did the politicians agree in their "secret negotiations" to do exactly what they did and BS the people on purpose ?  Why were the negotiations not on cspan ?  When Obama was running he said several times that if elected he would have the most transparent administration ever.  That was a blatant lie.  It has been proved many times to be a lie.  One of many.

You know what ?  I am starting to suspect the repubs are liars also.  Why did they not send Ron Paul, his kid, Bachmann, Judge, and David Stockman down to negotiate with Obama ?  The team sent down there was terrible.  The repubs had the ability to force cuts and they did nothing.  They gave Obama the blank check he wanted and got nothing.  There was no negotiation.  It was a white wash.  It was a lie.  We have been bamboozled.  The out of control spending spree continues.  This is terrible.

Tick tock tick tock - the doom clock...

 

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Damnthematrix
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Beware Of The Patriot Pied Pipers

http://dont-tread-on.me/beware-of-the-patriot-pied-piper/#more-377

The National Tea Party will fail because they have NO idea what they are up against. We have seen this movement mobilize, march and protest the political status quo. Their impact has been felt far and wide. Unfortunately, all of this will fail in the end because the same Elite that control both of the Republicans and Democrats have already begun to infiltrate, corrupt and destroy the National Tea Party. Before I go into how this has been accomplished right underneath our noses, I feel it is important to see how we got here.

Ron Paul’s R3volution of the 2008 campaign was the spark that started the fire of the Freedom Movement and eventually the Tea Party.  He introduced himself to America as the “Champion of the Constitution.”  When he spoke, he focused his arguments on what the Constitution said about the issue and never really focused on himself. (This is a rarity with the narcissistic political landscape.)  This idea driven campaign stood in stark contrast to the sound bite, talking point campaigns of the establishment.  It is crazy that somehow parroting sound bites count as informed and enlightened thoughts.

“First they ignore you…”

Ron Paul’s campaign started slowly as he spread his ideas with grass roots support with the help of the internet.  Mr. Paul did not receive much in the way of main stream media coverage.  With the fawning over the Obama Messiah and Hillary Clinton, there was barely any room for the Republicans.  When the Republicans did get attention, they focused on establishment monkeys like Giuliani and McCain.  Ron Paul was seen as a footnote and completely ignored.

“Then they laugh at you…”

When it came time for the debates, all of the other Republicans mocked Ron Paul and his seemingly old fashioned beliefs in the Constitution.  They openly laughed him as he said that we should not be involved in entangling foreign alliances and policing the world. He was sneered at when he introduced to the debate panel what “blow back” is and why America has lost it’s stature in the world.  He was derided about the economic reality of going further into debt and the destruction of the dollar.  He was jeered at when he suggested that we need less government intrusion in our lives with the War on Terror.

“Then they fight you…”

When it became apparent Ron Paul was a serious contender, raising money and gaining support in spite of the media’s best efforts to stop him.   Both sides of the Republican and Democrat establishment attacked him.  He was called every name in the book.  An isolationist, an anti-Semite, a “wacko,” “a nut,” “a loon,” etc..  They went on to say that he represents the radical fringe element and not a serious candidate.  I felt the most unprofessional attack came from the arrogant George Stephanopoulos at 7:22.  Even Sean Hannity could not spin Ron Paul’s victory at the debates.

“Then you win.” ~Mohandas Gandhi

While Ron Paul’s campaign did not end in Presidential victory, no one can deny that the Freedom Movement and the ensuing Tea Party is starting to dominate the political landscape. This growing and decentralized movement is educating people about everything that made this country great.  The issues are far and wide, everything from the Federal Reserve to immigration.  The truth is getting out there.  <MORE>

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goes211
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Great article.

DTM,

Thanks for the great article.  It makes some great points.

I can hear the moaning now, “but if we don’t work with the Republicans, we will divide the party and the Democrats will win.”   First of all, we have already seen that there is NO difference between the two parties, so who cares.  Secondly, there are currently  42% of the population that does not participate in this charade.   If they thought that there was something to actually vote for, they would get off of their collective asses and vote.  Thirdly, both party’s support is sinking because they are the same sh*t, different day.  Republicans have a sour taste from Bush and Democrats have a sour taste from Obama.  Both parties have promised change and we got more of the same.

Most importantly, I believe the Freedom Movement has issues that cross all parties.  First and foremost, the Federal Reserve.  The Federal Reserve System has enslaved our nation in debt.  The Freedom Movement could free 330 million debt slaves by ending the Fed’s usurious, fractional reserve, debt based money system.  We could establish debt free money system like Ben Franklin’s successful Colonial Script, or Lincoln’s Greenbacks.  That one issue alone would alleviate so much pressure on our society.  Other issues like immigration, unfair trade, and ending the wars reach across to many more people than one is lead to believe.

Damnthematrix's picture
Damnthematrix
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Growing Demand for Expensive Bunkers in Uncertain Times

http://www.wealthwire.com/news/global/1141
Modern Day Noah's Arks: Growing Demand for Expensive Bunkers in Uncertain Times

Posted by Brittany Stepniak - Friday, May 13th, 2011

By Brittany Stepniak
When you're in the business of building bunkers, global disasters, terrorism, and even the threat of an apocolypse can cause your profits to surge. Certainly, this couldn't be more true at this very moment in time. A time when people fear the end is near.

There seems to be a fine line between sci-fi and real-life, and the line is thinning exponentially as 2012 approaches. Smart innovators are catching on, and capitalizing on the opportunity.

Tsunamis, 9.0 magnitude earthquakes, escalating violence and terrorist attacks, nuclear power plant exlposions, the energy crisis, and climate changes are all real issues making real people consider protecting themselves and their families in the wake of complete devastation.

In lieu of escalating complications and troubles of the past few decades, the end-of-world commentary isn't nearly as Hollywood-esque as it once was. As we continue through 2011 with disaster after disaster plaguing a worldwide community, some people are taking the ancient predicitions quite seriously. Those who take it seriously and are rich enough, are absolutely investing in building their own safey nets. Underground bunkers.

<MORE>

ao's picture
ao
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goes211 wrote: DTM, Thanks
goes211 wrote:

DTM,

Thanks for the great article.  It makes some great points.

I can hear the moaning now, “but if we don’t work with the Republicans, we will divide the party and the Democrats will win.”   First of all, we have already seen that there is NO difference between the two parties, so who cares.  Secondly, there are currently  42% of the population that does not participate in this charade.   If they thought that there was something to actually vote for, they would get off of their collective asses and vote.  Thirdly, both party’s support is sinking because they are the same sh*t, different day.  Republicans have a sour taste from Bush and Democrats have a sour taste from Obama.  Both parties have promised change and we got more of the same.

Most importantly, I believe the Freedom Movement has issues that cross all parties.  First and foremost, the Federal Reserve.  The Federal Reserve System has enslaved our nation in debt.  The Freedom Movement could free 330 million debt slaves by ending the Fed’s usurious, fractional reserve, debt based money system.  We could establish debt free money system like Ben Franklin’s successful Colonial Script, or Lincoln’s Greenbacks.  That one issue alone would alleviate so much pressure on our society.  Other issues like immigration, unfair trade, and ending the wars reach across to many more people than one is lead to believe.

Agreed.  Excellent article DTM and I love the cartoon.  End The Fed.

P.S. Where's DrKrbyLuv?

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ao
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dshields wrote: You know
dshields wrote:

You know what ?  I am starting to suspect the repubs are liars also. 

Allow me to hasten your enlightenment ... they are.

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dshields
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ao wrote: dshields
ao wrote:
dshields wrote:

You know what ?  I am starting to suspect the repubs are liars also. 

Allow me to hasten your enlightenment ... they are.

It sure seems that way - at least the main stream repubs that are in power are.  The so called "debt debate" was a scam.  They scammed us. Right up front right on TV.  The repubs could have forced spending cuts if they wanted to.  They did not do it.  They made a bunch of noise and then gave Obama a blank check for 2.4 trillion dollars and turned around and ran as fast as they could.  All you could see was ass and elbows.  Terrible.  The one big chance we had to start getting spending under control was blown on purpose. It is shameful...

 

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