Guess who is going to need a bailout right after Spain? The Italian economy is the 8th largest economy on the entire planet and right now it is being absolutely overwhelmed by a tsunami of debt. In an attempt to address this problem, Italy is going down the exact same path that Greece, Portugal and Spain have gone. And so far, we are seeing the exact same results that we have seen in those other countries. Austerity causes economic growth to slow down, and that causes unemployment to soar. When unemployment rises, tax revenues go down and you end up missing your original deficit reduction targets so you have to implement even more austerity measures. It is a vicious cycle that we have seen play out again and again in Greece over the past five years. But unlike Greece, Italy is way too large to be completely bailed out. The truth is that there are only 7 economies on the entire globe that are larger than the Italian economy. Plus, keep in mind that (Read More...)
One economic theory states that we can never have deflation in a long term economy. For prices to deflate would be contrary to the built-in safeguards put forth by the government agencies. The main cause of a deflation would have to be a massive withdrawal of money from the banking system. As long as the money is insured, that is unlikely to happen. I tend to agree with that theory. It is unlikely that prices will go down long term as long as people have confidence in having their money in the banks.
One of the safeguards put into effect in the 30s depended on the negotiation of wages. No one group of wages, but all American Manufacturing was based on Union wages. Inflation and wage increases went hand in hand all through the 50s and to some extent through the 60s. Nonunion people normally could do a “me too” on the backs of Union worker’s negotiations. If a Union member negotiated a contract for $10 an hour plus benefits, companies tended to pay the nonunion worker just a little less. But to remain competitive in attracting people, they had to match the wages fairly close.
In that kind of atmosphere it was natural for more and more money to be printed as wages increased at a rate of at least 4.5 percent per year. (Read More...)
The following list was compiled by “Major Carpenter”, a great friend of the site. I think that you will really enjoy what he has put together. The truth is that the United States is in a serious state of decline, and in a desperate attempt to keep things together, the United States is rapidly being transformed into a totalitarian Big Brother police state. I don’t want to make this introduction too long, so without any further yapping by me, here is the article that Major Carpenter sent over to us the other day…..
I’ve compiled this list of horrors (in no particular order) from two prior lists, one done by U.S. author Naomi Wolf and another by UK writer Dr. Lawrence Britt, as published in the Guardian newspaper.
Sadly, I count all seventeen as aspects of the Untied Status of Amerika today. AKA the “BRA” (Banana Republik of Amerika).
Again, what do WE the PEOPLE do about it?
How many of these do you see as part of a once great country?
1. Powerful And Continuing Nationalism – Fascist regimes tend to make constant use of patriotic mottos, slogans, symbols, songs, and other paraphernalia. Flags are seen everywhere, as are flag symbols on clothing and in public (Read More...)
If you want to get on an airplane in America today, you either have to allow TSA security officials to gawk at your exposed body using the new full body scanners that literally show “everything”, or you must submit to the new “enhanced pat-downs”. These pat-downs are so intrusive that many of those who have experienced them are using the term “sexual assault”. The truth is that TSA officials have been instructed to start using the fronts of their hands to feel the outlines of male and female genitalia during these pat-downs. Not only that, but instead of going over the clothing, in many instances it is being reported that TSA officials are actually reaching down the pants and up the skirts of air travelers. Some TSA officials are doing this hundreds of times a day, and they do not put on clean gloves each time they perform an examination.
This is what America has sunk to. Today, in the “land of the free and the home of the brave”, Americans are groped like farm animals by tyrannical thugs who get to do pretty much whatever they want with us. Things have gotten so bizarre that now even a columnist for Forbes magazine is calling for the TSA to be (Read More...)
It turns out that a lot of pro-Obama organizations ended up receiving a lot of “economic stimulus” money. For example, it is being reported that the Obama administration gave General Electric $24.9 million in grants under the stimulus law. Keep in mind that General Electric was the corporate owner of NBC, MSNBC and CNBC during the 2008 election. These various news outlets were absolutely shameless when it came to promoting Barack Obama during the 2008 election. In fact, MSNBC was more radically pro-Obama than even CNN was (and that is saying a lot). Apparently Barack Obama was quite grateful for all the help. 25 million dollars is one heck of a tremendous thank you gift. General Electric was the primary recipient of 14 separate economic stimulus grants. In addition, the recipients of four other economic stimulus grants hired GE as a contractor. So is this the way that the game of politics is played in 2010? Sadly, the truth is that this is how the game of politics has been (Read More...)
The U.S. economy is dead on its feet and the majority of the American people don’t even know it. Sure, most Americans understand that things are not going well right now, but the vast majority are still convinced that we will “fully recover” at some point. After all, we have always fully recovered and gone on to bigger and better things in the past, haven’t we? Well, unfortunately this time it is different. The very foundations of our economic system are rotting. Yes, unemployment numbers will go up and down and housing numbers will go up and down and inflation will go up and down, but those are not the numbers you should be paying attention to. Instead, if you want the real truth about the U.S. economy, focus on the long-term trends that are at the root of our problems. Every single month, the United States loses jobs and economic assets. Every single month, more wealth flows out of the United States than flows into it. Every single month, the United States goes into a lot more debt. Most other economic statistics are simply symptoms of those three big problems. The truth is that the U.S. economy is bleeding, and the truth is that very few politicians in either party are (Read More...)
America’s national debt is exploding out of control, and still most politicians in Washington D.C. don’t really seem that interested in doing anything about it. Why? Well, the truth is that if the U.S. government reduces government spending that will slow down the economy, and if the economy slows down then Americans will blame the politicians, and if Americans are angry at the politicians then they will be less likely to vote them back into office. So we actually have a system where our politicians have an incentive not to do anything about the national debt. Meanwhile, the exploding debt continues to become a colossal long-term problem that threatens to destroy not only our economy, but our entire way of life. The federal budget deficit has topped $1 trillion with three months still to go in the current budget year. It is projected that the final budget deficit for 2010 will be somewhere in the neighborhood of 1.3 to 1.5 trillion dollars. But can we really (Read More...)
The following is a piece entitled “I’m 63 and I’m Tired” by Robert A. Hall that has been floating around the Internet. It was recently forwarded to us in an email, and we thought that it expressed the emotions that so many Americans are feeling right now that we should post it here.
If you are touched by Mr. Hall’s letter, please send it out to as many of your friends and family as you can….
I’m 63. Except for one semester in college when jobs were scarce and a six-month period when I was between jobs, but job-hunting every day, I’ve worked, hard, since I was 18. Despite some health challenges, I still put in 50-hour weeks, and haven’t called in sick in seven or eight years. I make a good salary, but I didn’t inherit my job or my income, and I worked to get where I am. Given the economy, there’s no retirement in sight, and I’m tired. Very tired.
I’m tired of being told that I have to “spread the wealth” to people who don’t have my work ethic. I’m tired of being told the government will take the money I earned, by force if necessary, and give it to people too lazy to earn it.
I’m tired of being told that I have to pay more taxes (Read More...)