Posts tagged Money

18 Stats That Prove That Government Dependence Has Reached Epidemic Levels

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Source: http://endoftheamericandream.com

By Michael Snyder

18 Stats That Prove That Government Dependence Has Reached Epidemic Levels

 

Did you know that the number of Americans getting benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million?  In other words, the number of people that are taking money out of the system is far greater than the number of people that are putting money into the system.  And did you know that nearly 70 percent of all of the money that the federal government spends goes toward entitlement and welfare programs?  When it comes to the transfer of wealth, nobody does it on a grander scale than the U.S. government.  Most of what the government does involves taking money from some people and giving it to other people.  In fact, at this point that is the primary function of the federal government.

Just check out the chart below.  It comes from the Heritage Foundation, and it shows that 69 percent of all federal money is spent either on entitlements or on welfare programs…

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So when people tell you that the main reason why we are being taxed into oblivion is so that we can “build roads” and provide “public services”, they are lying to you.  The main reason why the government taxes you so much is so that they can take your money and give it to someone else.

We have become a nation that is completely and totally addicted to government money.  The following are 18 stats that prove that government dependence has reached epidemic levels…

#1 According to an analysis of U.S. government numbers conducted by Terrence P. Jeffrey, there are 86 million full-time private sector workers in the United States paying taxes to support the government, and nearly 148 million Americans that are receiving benefits from the government each month.  How long can such a lopsided system possibly continue?

#2 Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin.  But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.

#3 The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

#4 Today, the federal government runs about 80 different “means-tested welfare programs”, and almost all of those programs have experienced substantial growth in recent years.

#5 Back in 1960, the ratio of social welfare benefits to salaries and wages was approximately 10 percent.  In the year 2000, the ratio of social welfare benefits to salaries and wages was approximately 21 percent.  Today, the ratio of social welfare benefits to salaries and wages is approximately 35 percent.

#6 While Barack Obama has been in the White House, the total number of Americans on food stamps has gone from 32 million to nearly 47 million.

#7 Back in the 1970s, about one out of every 50 Americans was on food stamps.  Today, about one out of every 6.5 Americans is on food stamps.

#8 It sounds crazy, but the number of Americans on food stamps now exceeds the entire population of the nation of Spain.

#9 According to one calculation, the number of Americans on food stamps is now greater than the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”

#10 According to a report from the Center for Immigration Studies, 43 percent of all immigrants that have been in the United States for at least 20 years are still on welfare.

#11 Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, more than 70 million Americans are on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

#12 The number of Americans on Medicare is projected to grow from a little bit more than 50 million today to 73.2 million in 2025.

#13 Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.  That comes to approximately $328,404 for each and every household in the United States.

#14 If the number of Americans enrolled in the Social Security disability program were gathered into a single state, it would be the 8th largest state in the entire country.

#15 In 1968, there were 51 full-time workers for every American on disability.  Today, there are just 13 full-time workers for every American on disability.

#16 It is being projected that the number of Americans on Social Security will rise from about 62 million today to more than 100 million in 25 years.

#17 Overall, the Social Security system is facing a 134 trillion dollar shortfall over the next 75 years.

#18 According to the most recent numbers from the U.S. Census Bureau, an all-time record 49.2 percent of all Americans are receiving benefits from at least one government program each month.  Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.

Many will read this and will assume that I am against helping the poor.  That is completely and totally not true.  There will always be people that are impoverished, and this happens for many reasons.  In many cases, people simply lack the capacity to take care of themselves.  It is a good thing to take care of such people, whether the money comes from public or private sources.  In every society, those that are the most vulnerable need to be looked after.

But it is a very troubling sign that the number of people on government assistance is now far, far greater than the number of people with full-time jobs.  This is not a sustainable situation.  The federal government is already drowning in debt, and yet more people become dependent on the government with each passing day.

The long-term solution is to get more Americans working or starting their own businesses, but the federal government continues to pursue policies that are absolutely killing the creation of jobs and the creation of small businesses in this country.  So our epidemic of government dependence is going to continue to get worse.

And many of these programs are absolutely riddled with fraud and corruption.  Just check out the following excerpt from a recent Natural News article

To understand the extent of this fraudulent waste, go no further than Dr. Salomon Melgen, a Florida ophthalmologist who raked in $20.8 million from Medicare in 2012 alone. Dr. Melgen isn’t the only one bathing in the fraud of this crony government program. Medicare dished out over $1 million to almost 4,000 doctors in 2012, according to the new data release analyzed by The Washington Post.
 
Jonathan Blum, principal deputy administrator for the Centers for Medicare and Medicaid Services, is calling on the public for help in identifying fraud. He says, “The program is funded by and large by taxpayer dollars. The public has a right to know what it is paying for. We know there is fraud in the system. We are asking for the public’s help to check, to find waste, and to find potential fraud.”

Instead of fixing their own problems, they want us to help them do it.

Just great.

And of course they always want more of our money to help fund these programs.  In fact, according to Americans for Tax Reform, Barack Obama has proposed 442 tax increases since entering the White House…

-79 tax increases for FY 2010
-52 tax increases for FY 2011
-47 tax increases for FY 2012
-34 tax increases for FY 2013
-137 tax increases for FY 2014
-93 tax increases for FY 2015
 
Perhaps not coincidentally, the Obama budget with the lowest number of proposed tax increases was released during an election year: In February 2012, Obama released his FY 2013 budget, with “only” 34 proposed tax increases. Once safely re-elected, Obama came back with a vengeance, proposing 137 tax increases, a personal record high for the 44th President.

The more we feed the monster, the larger and larger it grows.

And yet poverty is not decreasing.  In fact, the poverty rate has been at 15 percent or greater for three years in a row.  That is the first time that has happened in decades.

Barack Obama promised to “transform” America, and yet poverty and government dependence have just continued to grow during his presidency.

Not that anyone really believes anything that he has to say at this point.  In fact, one recent survey found that only 15 percent of Americans believe that Barack Obama always tells the truth and 37 percent believe that he lies “most of the time”…

A Fox News poll released Wednesday shows that six out of every ten Americans believes that President Barack Obama lies to the American people, at least some of the time. A plurality – 37% – say that he lies “most of the time,” while another 24% say he lies “some of the time.” Another 20% say he lies once in awhile, while only 15% say that he never lies.

So what do you think?

This article first appeared here at the The American Dream.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.

 

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Dozens of lawmakers related to big time lobbyists – Billions of dollars in fees (Video)

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Source: http://www.againstcronycapitalism.org

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Dozens of lawmakers related to big time lobbyists – Billions of dollars in fees (Video)

 

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“It’s not just about staying in office because you like the power. It’s about staying in office because it generates huge amounts of cash for your family.”

 

Image credit: http://www.againstcronycapitalism.org
 

Minnesota cops don’t want to legalize medical marijuana for fear they could lose millions

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Source: http://www.againstcronycapitalism.org

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Minnesota cops don’t want to legalize medical marijuana for fear they could lose millions

 

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Pot is by far the most widely used illicit drug used in the United States. It is also bulky, odoriferous, and therefore relatively easy to detect. Much of our national law enforcement budget goes to enforcing the prohibition of cannabis. If marijuana became legal much of this budget would go away. If budgets go away, power goes away. Bureaucracies do not like to lose power. As such some in law enforcement are fighting the liberalization of cannabis laws.

Add in a testing industry and the prison industry which rely on a steady stream of pot busts and it is easy to see why it is that cannabis has remained illegal for as long as it has.

Most illicit drug use in the US is marijuana use. With legalization big time money is lost by established industries.

At ACC we do not condone drug use but we also don’t condone wasting taxpayer money (not to mention intruding into people’s lives) for profit (or for any other reason.) *

(From Rare)

The Minnesota Law Enforcement Coalition’s opposition to marijuana legalization is another case of the drug war run amok.

The coalition, which includes Minnesota Police and Peace Officers Association, Minnesota Chiefs of Police Association, Minnesota Sheriffs Association, Minnesota County Attorneys Association, and Minnesota State Association of Narcotics Investigators, have been as unhelpful as possible with efforts to legalize medical marijuana.

Should the drug become legal, law enforcement stands to lose millions of dollars.

Click here for the article.

* It should be noted that Rare is one of the leading conservative websites on the Net.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

 

Austrian Economics with Glenn Jacobs

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Glenn Jacobs spoke to a group regarding Austian Economics several months back in the video shown below which I had intended to share.  Today I realize that despite the best of intentions and saving the video I had not yet posted the presentation by Glenn Jacobs, published by messengersforliberty, which I would encourage all to watch.  Should you have the opportunity to attend a meeting featuring Glenn Jacobs as speaker I would recommend attending, as you will find him to be a highly personable and intelligent individual, and that you will find your time very well spent.

 

Austrian Economics with Glenn Jacobs

 

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Published by messengersforliberty

This economic presentation with Glenn Jacobs, aka Kane, was documented on September 5, 2013.

“It really ticks me off when I hear leftists and statists talk about how the free market causes wealth inequality, the free market doesn’t. The free market though out history has allowed poor people to pull themselves up and has given people more socio economic ability to move up and down the socio economic ladder, up, than anything else in history.
Paul Krugman, who is a keynesian economist par excellence, just wants to inflate like crazy, but yet he writes a column for the New York Times and it’s called ‘Conscience of a Liberal’, because he loves poor people despite the fact that he’s the guy that’s killing them, but then he’ll look at someone like me and say you hate the poor. I don’t hate the poor, I hate the fact that they’re poor.”
—Glenn Jacobs

Follow Glenn Jacobs on Twitter: @JacobsReport

 

How Central Banks Cause Income Inequality

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Source: https://mises.org

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How Central Banks Cause Income Inequality

 

6653The gap between the rich and poor continues to grow. The wealthiest 1 percent held 8 percent of the economic pie in 1975 but now hold over 20 percent. This is a striking change from the 1950s and 1960s when their share of all incomes was slightly over 10 percent. A study by Emmanuel Saez found that between 2009 and 2012 the real incomes of the top 1 percent jumped 31.4 percent. The richest 10 percent now receive 50.5 percent of all incomes, the largest share since data was first recorded in 1917. The wealthiest are becoming disproportionally wealthier at an ever increasing rate.

Most of the literature on income inequalities is written by professors from the sociology departments of universities. They have identified factors such as technology, the reduced role of labor unions, the decline in the real value of the minimum wage, and, everyone’s favorite scapegoat, the growing importance of China.

Those factors may have played a role, but there are really two overriding factors that are the real cause of income differentials. One is desirable and justified while the other is the exact opposite.

In a capitalist economy, prices and profit play a critical role in ensuring resources are allocated where they are most needed and used to produce goods and services that best meets society’s needs. When Apple took the risk of producing the iPad, many commentators expected it to flop. Its success brought profits while at the same time sent a signal to all other producers that society wanted more of this product. The profits were a reward for the risks taken. It is the profit motive that has given us a multitude of new products and an ever-increasing standard of living. Yet, profits and income inequalities go hand in hand. We cannot have one without the other, and if we try to eliminate one, we will eliminate, or significantly reduce, the other. Income inequalities are an integral outcome of the profit-and-loss characteristic of capitalism; they cannot be divorced.

Prime Minister Margaret Thatcher understood this inseparability well. She once said it is better to have large income inequalities and have everyone near the top of the ladder, than have little income differences and have everyone closer to the bottom of the ladder.

Yet, the middle class has been sinking toward poverty: that is not climbing the ladder. Over the period between 1979 and 2007, incomes for the middle 60 percent increased less than 40 percent while inflation was 186 percent. According to the Saez study, the remaining 99 percent saw their real incomes increase a mere .4 percent between 2009 and 2012. However, this does not come close to recovering the loss of 11.6 percent suffered between 2007 and 2009, the largest two-year decline since the Great Depression. When adjusted for inflation, low-wage workers are actually making less now than they did 50 years ago.

This brings us to the second undesirable and unjustified source of income inequalities, i.e., the creation of money out of thin air, or legal counterfeiting, by central banks. It should be no surprise the growing gap in income inequalities has coincided with the adoption of fiat currencies worldwide. Every dollar the central bank creates benefits the early recipients of the money—the government and the banking sector — at the expense of the late recipients of the money, the wage earners, and the poor. Since the creation of a fiat currency system in 1971, the dollar has lost 82 percent of its value while the banking sector has gone from 4 percent of GDP to well over 10 percent today.

The central bank does not create anything real; neither resources nor goods and services. When it creates money it causes the price of transactions to increase. The original quantity theory of money clearly related money to the price of anything money can buy, including assets. When the central bank creates money, traders, hedge funds and banks — being first in line — benefit from the increased variability and upward trend in asset prices. Also, future contracts and other derivative products on exchange rates or interest rates were unnecessary prior to 1971, since hedging activity was mostly unnecessary. The central bank is responsible for this added risk, variability, and surge in asset prices unjustified by fundamentals.

The banking sector has been able to significantly increase its profits or claims on goods and services. However, more claims held by one sector, which essentially does not create anything of real value, means less claims on real goods and services for everyone else. This is why counterfeiting is illegal. Hence, the central bank has been playing a central role as a “reverse Robin Hood” by increasing the economic pie going to the rich and by slowly sinking the middle class toward poverty.

Janet Yellen recently said “I am hopeful that … inflation will move back toward our longer-run goal of 2 percent, demonstrating her commitment to an institutionalized policy of theft and wealth redistribution.” The European central bank is no better. Its LTRO strategy was to give longer term loans to banks on dodgy collateral to buy government bonds which they promptly turned around and deposited with the central bank for more cheap loans for more government bonds. This has nothing to do with liquidity and everything to do with boosting bank profits. Yet, every euro the central bank creates is a tax on everyone that uses the euro. It is a tax on cash balances. It is taking from the working man to give to the rich European bankers. This is clearly a back door monetization of the debt with the banking sector acting as a middle man and taking a nice juicy cut. The same logic applies to the redistribution created by paying interest on reserves to U.S. banks.

Concerned with income inequalities, President Obama and democrats have suggested even higher taxes on the rich and boosting the minimum wage. They are wrongly focusing on the results instead of the causes of income inequalities. If they succeed, they will be throwing the baby out with the bathwater. If they are serious about reducing income inequalities, they should focus on its main cause, the central bank.

In 1923, Germany returned to its pre-war currency and the gold standard with essentially no gold. It did it by pledging never to print again. We should do the same.

 


About the Author

Frank Hollenbeck

Frank Hollenbeck teaches finance and economics at the International University of Geneva. He has previously held positions as a Senior Economist at the State Department, Chief Economist at Caterpillar Overseas, and as an Associate Director of a Swiss private bank. 

 

Image credit: https://mises.org

 

Blame baby boomers for the financial crisis, says PJ O’Rourke: ‘We invented playing with money’ [VIDEO]

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Source: http://www.againstcronycapitalism.org

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Blame baby boomers for the financial crisis, says PJ O’Rourke: ‘We invented playing with money’ [VIDEO]

 

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For the most part they do deserve the blame. However it was Nixon who ushered in the totally fiat dollar. Before him Roosevelt and company built the New Deal which set us on the current course to insolvency and an all pervasive state. So there’s plenty of blame to go around.

However it is fair to say that the baby boomers were particularly enamored with “living for today.” As divorce rates, savings rates, and the current trend toward mortgages in retirement attest.

It’s understandable to some extent. Living under the constant threat of nuclear annihilation would make any generation act a little crazy. Throw in LSD and disco and one has a recipe for broad societal loopiness.

Unfortunately we are the ones who are going to have to clean up after the party. Someone has got to do it.

(From The Daily Caller)
 
“Rightly, quite rightly,” O’Rourke said. “We are the generation who invented playing with money, you know. People use to save it or lose it, but mostly they spend it, not often, but if you could. We were the first t0 come up with playing with money. In fact, a lot of what has gone on in the world has to do with the baby boomers infinite, youthful sense of play. We are forever the puppies of the universe, and sometimes thats good. You know, we don’t fight for real, like grown-up dogs do, very much. We include all of the other puppies in our play.

Click here for the article and video.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

Warfare, Welfare, and Wonder Woman — How Congress Spends Your Money

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Source: http://the-free-foundation.org

By Ron Paul

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Warfare, Welfare, and Wonder Woman — How Congress Spends Your Money

 

Supporters of warfare, welfare, and Wonder Woman cheered last week as Congress passed a one trillion dollar “omnibus” appropriation bill. This legislation funds the operations of government for the remainder of the fiscal year. Wonder Woman fans can cheer that buried in the bill was a $10,000 grant for a theater program to explore the comic book heroine.

That is just one of the many outrageous projects buried in this 1,582 page bill. The legislation gives the Department of Education more money to continue nationalizing education via “common core.” Also, despite new evidence of Obamacare’s failure emerging on an almost daily basis, the Omnibus bill does nothing to roll back this disastrous law.

Even though the Omnibus bill dramatically increases government spending, it passed with the support of many self-described “fiscal conservatives.” Those wondering why anyone who opposes increasing spending on programs like common core and Obamacare would vote for the bill, may find an answer in the fact that the legislation increases funding for the “Overseas Continuing Operations” — which is the official name for the war budget — for the first time since 2010. This $85 billion war budget contains $6 billion earmarked for projects benefiting Boeing, Lockheed-Martin, and other big defense contractors.

Ever since “sequestration” went into effect at the beginning of last year, the military-industrial complex’s congressional cheering session has complained that sequestration imposed “draconian cuts” on the Pentagon that will “decimate” our military — even though most of the “cuts” were actually reductions in the “projected rate of growth.” In fact, under sequestration, defense spending was to increase by 18 percent over ten years, as opposed to growing by 20 percent without sequestration.

Many of the defenders of increased war spending are opponents of welfare, but they are willing to set aside their opposition to increased welfare spending in order to increase warfare spending. They are supported in this position by the lobbyists for the military-industrial complex and the neoconservatives, whose continued influence on foreign policy is mystifying. After all, the neocons were the major promoters of the disastrous military intervention in Iraq.

While many neocons give lip service to limiting domestic spending, their main priority remains protecting high levels of military spending to maintain an interventionist foreign policy. The influence of the neocons provides intellectual justification for politicians to vote for ever-larger military budgets — and break the campaign promises to vote against increases in spending and debt.

Fortunately, in recent years more Americans have recognized that a constant defense of liberty requires opposing both war and welfare. Many of these Americans, especially the younger ones, have joined the intellectual and political movement in favor of limiting government in all areas. This movement presents the most serious challenge the bipartisan welfare-warfare consensus has faced in generations. Hopefully, the influence of this movement will lead to bipartisan deals cutting both welfare and warfare spending.

The question facing Americans is not whether Congress will ever cut spending. The question is will the spending be reduced in an orderly manner that avoids inflecting massive harm on those depending on government programs, or will spending be slashed in response to an economic crisis caused by ever-increasing levels of deficit spending. Because politicians are followers rather than leaders, it is ultimately up to the people what course we will take. This is why it is vital that those of us who understand the dangerous path we are currently on do all we can to expand the movement for liberty, peace, and prosperity.

Lobbyists Cheer Boehner and Ryan for Expanding Government in Deal

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Source: http://www.againstcronycapitalism.org

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Lobbyists Cheer Boehner and Ryan for Expanding Government in Deal

 

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There is a clear line which has been drawn in the dirt of Washington DC. On one side there are the lobbyists, the #oldmedia, and the establishment political machines. On the other side are the people calling for a truly smaller government.

The thought that government would shrink, even a government which is as bloated and debt ridden as our own, is beyond the pale for those whose business it is to extract wealth from taxpayers. That’s why the lobbyists in Downtown DC have cheered the budget deal.

Think about it. A large part of K Street has built a career on buying the GOP, and now the Tea Party is just going to take over the place? Who do these small government people think they are anyway? This is “our town.” This is our party, and frankly the party has been rocking for decades. So long as government grows everyone can get a piece for themselves–everyone in Washington DC anyway. Why would anyone want to stop this? Principals are great and all, but we are here to get paid! Principals are for poor people.

And that is what they think.

(From Breitbart.com)
 
Grassroots conservative groups have fired back. Club for Growth has responded by pointing out, “Corporations are some of the biggest seekers of welfare in this country.” Heritage Action for America, meanwhile, has commented, “The fact that K Street is applauding confirms that the deal was bad, and Speaker Boehner’s comments confirm conservatives’ worst suspicions about Washington — that the game is rigged.”

Click here for the article.

Image credit: http://www.againstcronycapitalism.org


Nick Sorrentino
About Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org. A political and communications consultant with clients across the political spectrum, he lives just outside of Washington DC where he can keep an eye on Leviathan.

 

Black Friday: A Shameful Orgy Of Materialism For A Morally Bankrupt Nation

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Source: http://theeconomiccollapseblog.com

By Michael Snyder

 

Black Friday: A Shameful Orgy Of Materialism For A Morally Bankrupt Nation

 

Black-Friday-2013-300x300It has been called “America’s most disturbing holiday”.  Black Friday is the day when millions of average Americans wait outside retail stores in the middle of the night in the freezing cold to spend more money that they do not have for more cheap Chinese-made products that they do not need.  It is a day when the rest of the world makes fun of Americans for behaving like “rabid animals” and “zombies” as we indulge in a tsunami of greed.  It truly is a shameful orgy of materialism for a morally bankrupt nation.  It is being projected that approximately 140 million Americans will participate in this disgusting national ritual this year.  Sadly, most of them have absolutely no idea that they are actively participating in the destruction of the economic infrastructure of the United States.  If you don’t understand why this is true, please be sure to read this entire article all the way to the end.

The amount of merchandise that is purchased on Black Friday is absolutely staggering.  For example, just consider how much stuff is sold at Wal-Mart alone

Wal-Mart said it recorded more than 10 million register transactions between 6 p.m. and 10 p.m. Thursday in its stores and nearly 400 million page views that day on walmart.com. It sold 2.8 million towels, 2 million televisions, 1.4 million tablets, 300,000 bicycles and 1.9 million dolls. Big-ticket electronics like big-screen TVs and new videogame consoles were among the top sellers.

But each and every year, Black Friday also seems to bring out the worst in many people, and this year was certainly no exception.  The following are just a few of the national headlines about the rioting and the violence that we witnessed…

-”Holiday shopping season kicks off with fights, arrests

-”Violence flares as shoppers slug it out for best Black Friday deals

-”Watch Screaming Mobs Fight Over Televisions At Wal-Mart

-”Two Arrested After Stabbing Over Parking Space At Wal-Mart

-”Rialto Walmart Thanksgiving brawl sends one police officer to hospital

-”Walmart Ejects Customer For Filming Violent ‘Black Thursday’ Mobs

-”Cops: Shoplifting suspect shot after dragging officer

And sometimes the violence extends out into the parking lots and into the surrounding neighborhoods.  In Las Vegas, a man that was carrying a big-screen television home from Target was shot in the leg…

According to police, a man purchased a big-screen television from the Target store near Flamingo Rd. and Maryland Pkwy. While he was walking to a nearby apartment complex, a man approached and fired a warning shot, causing the victim to drop the television, police said.
 
Officers tell 8 News NOW the gunman then took the television to a nearby car that was waiting, where a second man helped the gunman load the TV into the car.
 
The victim approached the two men and tried to get the television back. That prompted the gunman to fire several more rounds, shooting the victim in the leg.

Every year I go over to YouTube to check out the madness that breaks out on Black Friday night all over the nation.  Posted below is the best compilation video from Black Friday that I could find.  In particular, I love how this video compares American shoppers to zombies…

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And there is one more video that I wanted to share with you.  In this video, activist Mark Dice dresses up like Santa Claus and mocks Black Friday shoppers for being “parasites” and for ruining Thanksgiving…

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Meanwhile, as retail stores all over America actively encourage this zombie-like behavior, police are actually cracking down on other groups of Americans that are actively trying to make this country a better place.  For example, a Christian group in Lake Worth, Florida was kicked out of a public park for trying to feed the homeless on Thanksgiving.  Of course this kind of thing happens all the time.  In fact, dozens of major cities all over the country have now passed laws that make it illegal to feed the homeless.  For much more on this, please see my previous article entitled “One Lawmaker Is Literally Smashing The Belongings Of The Homeless With A Sledgehammer“.

At the beginning of this article, I stated that those who go shopping on Black Friday “are actively participating in the destruction of the economic infrastructure of the United States”.

How could that possibly be?

Aren’t they helping the economy by spending their money?

Actually, it isn’t that simple.

Just think about it for a moment.  Where are most of the “advertised specials” that people go crazy over on Black Friday actually made?

If you guessed “China”, you would be correct.  In fact, it is very difficult to find any “Black Friday specials” that are actually made in the United States.

When you buy stuff made in China, you support workers and businesses in China.  As I mentioned in a recent article, the U.S. economy loses approximately 9,000 jobs for every 1 billion dollars of goods that are imported from overseas.

Overall, the U.S. has run a total trade deficit with the rest of the world of more than 8 trillion dollars since 1975.

So when you look around and see lots of unemployed people, it should not be a surprise to you.

Right now, the labor force participation rate is at a 35-year-low and more than 102 million working age Americans do not have a job.  That number has increased by 27 million just since the year 2000.

Because the American people are not supporting American businesses, our formerly great manufacturing cities are being transformed into rotting, festering hellholes.  Just take a look at Detroit.  At one time Detroit had the highest per capita income in the entire nation, but now it is a dying, bankrupt ghost town.

And of course this is happening to manufacturing cities all over the nation.  Since 2001, more than 56,000 manufacturing facilities in the U.S. have permanently shut down and we have lost millions upon millions of good paying manufacturing jobs.

Back in the 1980s, more than 20 percent of the jobs in the United States were manufacturing jobs.  Today, only about 9 percent of the jobs in the United States are manufacturing jobs.

Good job America.  And the following are some more facts from one of my previous articles about how our massively bloated trade deficit is absolutely killing our economy…

-There are less Americans working in manufacturing today than there was in 1950 even though the population of the country has more than doubled since then.

-Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

-When NAFTA was pushed through Congress in 1993, the United States had a trade surplus with Mexico of 1.6 billion dollars.  By 2010, we had a trade deficit with Mexico of 61.6 billion dollars.

-Back in 1985, our trade deficit with China was approximately 6 million dollars (million with a little “m”) for the entire year.  In 2012, our trade deficit with China was 315 billion dollars.  That was the largest trade deficit that one nation has had with another nation in the history of the world.

-According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

-According to Professor Alan Blinder of Princeton University, 40 million more U.S. jobs could be sent offshore over the next two decades if current trends continue.

Unfortunately, most Americans never stop to think about what happens when we buy stuff from China.

When we buy stuff from them, our money goes over there.

At this point, they are sitting on trillions of our dollars and they have purchased more than a trillion dollars of our debt.

Up until now, Chinese demand for our dollars has helped keep the value of the U.S. dollar artificially high.  This is one of the reasons why Wal-Mart can sell you those Chinese imports so inexpensively.

And up until now, Chinese demand for our debt has helped keep long-term interest rates artificially low.  So the U.S. government has been able to borrow money at ridiculously low interest rates and U.S. home buyers have been able to get mortgage rates that are well below the real rate of inflation.

But no irrational state of affairs ever lasts indefinitely, and the Chinese recently announced that they are going to quit stockpiling U.S. dollars.  Many analysts believe that this means that the Chinese will soon stop stockpiling U.S. debt as well.

So enjoy those super cheap “Black Friday specials” while they last.  That era is rapidly coming to an end.

Now that the Chinese have stolen tens of thousands of our businesses, millions of our jobs and trillions of our dollars, perhaps they feel that there is not much more looting to be done.  Our economic infrastructure has been essentially gutted at this point.  Moving forward, China can afford to let the value of the U.S. dollar fall and the value of their own currency rise because even Barack Obama admits that “those jobs are never coming back”.

And every single American that went shopping on Black Friday and bought Chinese-made goods actively participated in the ongoing destruction of the U.S. economy.

Good job America.  You are a nation that is utterly consumed by materialism and greed, and you don’t even realize that you are destroying yourself with your own foolishness.

This article first appeared here at the Economic Collapse Blog.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here


Image credit: http://theeconomiccollapseblog.com
 

The Money Changers Serenade: A New Plot Hatches

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Source: http://www.paulcraigroberts.org

By Dr. Paul Craig Roberts

The Money Changers Serenade: A New Plot Hatches

 

Former Treasury Secretary Timothy Geithner, a protege of Treasury Secretaries Rubin and Summers, has received his reward for continuing the Rubin-Summers-Paulson policy of supporting the “banks too big to fail” at the expense of the economy and American people. For his service to the handful of gigantic banks, whose existence attests to the fact that the Anti-Trust Act is a dead-letter law, Geithner has been appointed president and managing director of the private equity firm, Warburg Pincus and is on his way to his fortune.

A Warburg in-law financed Woodrow Wilson’s presidential campaign. Part of the reward was Wilson’s appointment of Paul Warburg to the first Federal Reserve Board. The symbiotic relationship between presidents and bankers has continued ever since. The same small clique continues to wield financial power.

Geithner’s career is illustrative. In the 1980s, Geithner worked for Kissinger Associates. In the mid to late 1990s, Geithner served as a deputy assistant Treasury secretary. Under Rubin and Summers he moved up to undersecretary of the Treasury.

From the Treasury he went to the Council on Foreign Relations and from there to the International Monetary Fund (IMF). From there he was appointed president of the Federal Reserve Bank of New York, where he worked to make banks more profitable by allowing higher ratios of debt to capital, thus contributing to the financial crisis.

Geithner arranged the sale of the failed Wall Street firm of Bear Stearns, helped with the taxpayer bailout of AIG, and rejected saving Lehman Brothers from bankruptcy in order to create the crisis atmosphere needed to more fully subordinate US economic policy to the needs of the few large banks.

Rubin, a 26-year veteran of Goldman Sachs, was rewarded by Citibank for his service to the banks while Treasury Secretary with a $50 million compensation package in 2008 and $126,000,000 between 1999 and 2009.

When a person becomes a Treasury official it is made clear that the choice is between serving the banks and becoming rich or trying to serve the public and becoming poor. Few make the latter choice.

As MIchael Hudson has informed us, the goal of the financial sector has always been to convert all income, from corporate profits to government tax revenues, to the service of debt. From the bankers standpoint, the more debt the richer the bankers. Rubin, Summers, Paulson, Geithner, and now banker Treasury Secretary Jack Lew faithfully serve this goal.

The Federal Reserve describes its policy of Quantitative Easing — the creation of new money with which the Fed purchases Treasury debt and mortgage backed securities — as a low interest rate policy in order to stimulate employment and economic growth. Economists and the financial media have parroted this cover story.

In contrast, I have exposed QE as a scheme for pumping profits into the banks and boosting their balance sheets. The real purpose of QE is to drive up the prices of the debt-related derivatives on the banks’ books, thus keeping the banks with solvent balance sheets.

Writing in the Wall Street Journal (“Confessions of a Quantitative Easer,” November 11, 2013), Andrew Huszar confirms my explanation to be the correct one. Huszar is the Federal Reserve official who implemented the policy of QE. He resigned when he realized that the real purposes of QE was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.” (See: www.paulcraigroberts.org )

This vast con game remains unrecognized by Congress and the public. At the IMF Research Conference on November 8, 2013, former Treasury Secretary Larry Summers presented a plan to expand the con game.

Summers says that it is not enough merely to give the banks interest free money. More should be done for the banks. Instead of being paid interest on their bank deposits, people should be penalized for keeping their money in banks instead of spending it.

To sell this new rip-off scheme, Summers has conjured up an explanation based on the crude and discredited Keynesianism of the 1940s that explained the Great Depression as a problem caused by too much savings. Instead of spending their money, people hoarded it, thus causing aggregate demand and employment to fall.

Summers says that today the problem of too much saving has reappeared. The centerpiece of his argument is “the natural interest rate,” defined as the interest rate at which full employment is established by the equality of saving with investment. If people save more than investors invest, the saved money will not find its way back into the economy, and output and employment will fall.

Summers notes that despite a zero real rate of interest, there is still substantial unemployment. In other words, not even a zero rate of interest can reduce saving to the level of investment, thus frustrating a full employment recovery. Summers concludes that the natural rate of interest has become negative and is stuck below zero.

How to fix this? The way to fix it, Summers says, is to charge people for saving money. To avoid the charges, people would spend the money, thus reducing savings to the level of investment and restoring full employment.

Summers acknowledges that the problem with his solution is that people would take their money out of banks and hoard it in cash holdings. In other words, the cash form of money provides consumers with a freedom to save that holds down consumption and prevents full employment.

Summers has a fix for this: eliminate the freedom by imposing a cashless society where the only money is electronic. As electronic money cannot be hoarded except in bank deposits, penalties can be imposed that force unproductive savings into consumption.

Summers’ scheme, of course, is a harebrained one. With governments running huge deficits, who would purchase bonds at negative interest rates? How would pension and retirement funds operate? Would they also be subject to an annual percentage confiscation?

We know that the response of consumers to the long term decline in real median family income, to the loss of jobs from labor arbitrage across national borders (jobs offshoring), to rising homelessness, to cuts in the social safety net, to the transformation of their full time jobs to part time jobs (employers’ response to Obamacare), has been to reduce their savings rate. Indeed, few have any savings at all. The US personal saving rate is currently 2 percentage points, about 30%, below the long term average. Retired people, unable to earn any interest on their savings from the Fed’s zero interest rate policy, are being forced to draw down their savings in order to pay their bills.

Moreover, it is unclear whether the savings rate is an accurate measure or merely a residual of other calculations. With so many people having to draw down their savings, I wouldn’t be surprised if an accurate measure showed the personal savings rate to be negative.

But for Summers the plight of the consumer is not the problem. The problem is the profits of the banks. Summers has the solution, and the establishment, including Paul Krugman, is applauding it. Once the economy officially turns down again, watch out.

This column first appeared as a Trend Alert, Trends Research Institute

Reprinted with permission from www.paulcraigroberts.org


 

About Dr. Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. His latest book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is now available.

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