Why the US is in an invisible Depression

[Burt Gummer]

Exactly, but it is a plan that is very deep; many decades old.

 

[Burt Gummer]

Easy to know what destroyed our chance of every being a continuing prosperous nation.

Two words: Central Bankers.

Enjoy every day as if these are the last of the good times because they are ....

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." – Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)

"I believe that banking institutions are more dangerous to our liberties than standing armies." – Thomas Jefferson

"The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating." -Thomas Jefferson

 

[ZigZagZeke]

Before "The Crash" in 2008 the DOW was at 13,000 (+/-). And recently it went back over 13,000. So we're back to where we were before "things went bad".

Not really. Since the value of our dollar is in reality determined by the price of oil ($/brl), we're only at about 9,500 in inflation adjusted dollars.

Aside from that... it's hard for me to believe all the so called suffering when about half of americans are using smart phones. Not cell phones... SMART phones. Smart phones which carry a data plan, plus your month minutes plan. How is it that we're in such a bad financial situation but yet 50% of our population can afford to have a smart phone?

They also have rented furniture, a leased car, a third mortgage, and $30K in credit card balances...and their kids have no shoes.

And that doesn't include iPads, and Kindle Fire's and all the other gadgets. Apple computers, which sells luxury items not necessary for survival, reports 3rd quarter profits of 8.8 billion and declared another dividend.

I've studied Apple daily since 2003, when I bought a couple thousand shares at $14.98 (now ~$600 per share). Had Apple experienced growth in the 3rd quarter in line with prior years they would have had $13B in revenues. Is it a luxury item if you buy a computer that will still be useful and able to run the latest OS after 5-8 years, versus a cheap Windows box that is so malware infested after 2 years that it's cheaper to go buy a new computer than deal with the one you have? Total cost of ownership for Apple products is much less than Wintel boxes.

Our obesity rate is going through the roof. (Hmm.. wonder why health care is so expensive??) How can we be eating so much of we're all so broke? Everyone is out of work and we got no money, but we're still getting fatter?!!

And the same mechanism applies to food. It's actually cheaper to buy a week's worth of healthy food and prepare it than to go to McDonald's every night, but poor people don't see it that way. If you have $10 in your pocket it's hard to go to the store and buy the ingredients for a week's worth of dinners you prepare at home. If you have $10 you can get dinner tonight at McD's very easily. Poor people are constantly faced with paying more per unit because they can't buy in bulk. So yes, the cause of American obesity is mostly poor nutrition that is dictated by economic circumstances.

 

[knuckle Head]

Not really. Since the value of our dollar is in reality determined by the price of oil ($/brl), we're only at about 9,500 in inflation adjusted dollars.



They also have rented furniture, a leased car, a third mortgage, and $30K in credit card balances...and their kids have no shoes.



I've studied Apple daily since 2003, when I bought a couple thousand shares at $14.98 (now ~$600 per share). Had Apple experienced growth in the 3rd quarter in line with prior years they would have had $13B in revenues. Is it a luxury item if you buy a computer that will still be useful and able to run the latest OS after 5-8 years, versus a cheap Windows box that is so malware infested after 2 years that it's cheaper to go buy a new computer than deal with the one you have? Total cost of ownership for Apple products is much less than Wintel boxes.





And the same mechanism applies to food. It's actually cheaper to buy a week's worth of healthy food and prepare it than to go to McDonald's every night, but poor people don't see it that way. If you have $10 in your pocket it's hard to go to the store and buy the ingredients for a week's worth of dinners you prepare at home. If you have $10 you can get dinner tonight at McD's very easily. Poor people are constantly faced with paying more per unit because they can't buy in bulk. So yes, the cause of American obesity is mostly poor nutrition that is dictated by economic circumstances.

Well I have to disagree with the last part of this about the poor people, most that go to McDonalds and going to get a quick meal because they are hungry and are not thinking out a week or two, I have been down a couple of times and each time I would go and by Mac n cheese, hot dogs, instant oatmeal and such very low in cost, easy to prepare, very filling, but I when I got a little earning I would always save a couple of buckets and go to McDonalds and get a couple of double cheese burgers off the dollar menu, it kept my spirits and was very filling. I also ate a lot of ramen noodles, peanut butter and such then again cheap filling and qucik calories.

The problem I see with a lot of poor is at most will not take the mass transit for $.50 cents out their neighborhood to the edge of town and by foold at an Aldi, instead buy it the local beer or wine store that also carries a few groceries and easily pay 4 times as much for it.

I would note that was kept up the stock market is not our booming economy but QE1, QE2 and ever lasting promise of a QE3, which the printing of more money, equaling more debt, more interest, higher prices thereby widening the gap of the have and have not, but wall street likes it because it looks and gives them more $$ to play with.

QE's are not answers but can kicking down the road.

 

[Burt Gummer]

http://www.thedailysheeple.com/prep...danger-that-is-facing-every-american-2_082012

Our day is reckoning is coming. The rest of the world will be shaken by our fall, but then eventually will be much better off without us.

 

[Trailboss]

I don't know that we will ever see a complete collapse, rather I suspect we will go through a decline similar to what has happened to England and Europe. Look at Detroit for another example closer to home. As manufacturing moves out of the country, as jobs are lost, drug use goes up, crime goes up, poverty goes up, government dependency goes up. One day we will look similar to the british. Crumbling infrastructure, impoverished people, lost hope for any better future. It is gradual but it is constant and it is coming. If you live within these borders, you will live out the decline.

 

[Burt Gummer]

When you own the government you don't have to worry about nuisances like prosecution.

 

[knuckle Head]

One-third of states tap charities to help fund welfare | WashingtonExaminer.com

U.S. banks told to make plans for preventing collapse <broken link removed>

<broken link removed>

 

[ATCclears]

Mish's Global Economic Trend Analysis: Reader Question: Could Obama Balance the Budget by Getting the Wealthy to Pay Their "Fair Share"?

This is the most well-written article I've seen on the deficit mess in the US. No politician (regardless of party affiliation) will do what it takes to seriously cut spending across the board.

Buckle in, folks. It's not if the music will stop, but when. I estimate 12-18 months.

Peter

 

[knuckle Head]

Here is something to think about, make your own decision as what affect it is going ot have corn, beef, poultry, porks and fuel prices if we keep the mandatory 5% or 10% ethanol requirement we current have.

Just got of the phone with a cow farmer in south central Missouri, it is so dry they are having their ponds cleaned out dug a little deeper and wider, 2 are cleaned waiting for rain, the remaining are being done one after another 7 more to go. They have several fields scattered on a 10 mile stretch of road, only one is greener enough to support cows on its own, rest are getting water from wells and troughs, they have been feeding hay and feed for a month in some fields *this normally does not start until Novemebr or so, (I lived there and rented a small old farm house, from them for five years), but 8 out of 9 fields are too dry to support cows, round bails are going for $80.00 ea. normally cost $35.00 to $45.00 high end late in season is $55.00. They bought hay and had trucked in for winter from as far away as Miisissipppi or South Dakota, which is not unheard of but definitely not the norm.

They ordered a lot of corn silage, the corn too bad to harvest or even get seed out of for next year in many fields. They are banking on the price of beef being much, much higher next year many have flooded the market to keep from feeding them. after the gluttened market starts to balance, it will then suddenly start to rise dramatically.

Same exact or similar info., I got from someone in Kansas City, KS two weeks ago.

 

[Burt Gummer]

22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers

 

[RVTECH]

I don't usually chime in on economic discussions but I have been considering another problem growing for the last 30+ years. Some of you may not agree, and I may be wrong and correct me if I am but look at the huge amounts of money that is spent on entertainment & sports without any real return to the economy. A sports figure is paid an insurmountable amount of money and where does it go? illicit relationships, drugs and to other non-positive sources? Look how many wind up in jail and are filthy rich! A pro football player in the 70's might have been making 25 K a year. Look at the amount of money movie stars are paid as opposed to what they were just 20 years ago and where is the positive result of these massive amounts of money? Ok so some people are employed in the entertainment and sports industry as a result but most of us only see the movie at the crappy theaters or see sports crap sold in Wal-Mart or Fred Meyer. I simply do not see too many positive economical results of the 100s of percent increases in the income of entertainment and sports figures over a relatively short amount of time. Maybe an 'entertainment and sports income' tax should be levied on those few making the horrific amounts they are to at least offset the taxes some pay to build stadiums for them to make these amounts is. Like I said I may be way off here and please educate me if I am.

 

[knuckle Head]

It keeps the sheeple entertained, occupied and at odds with one another, you are too logical as myself.

Take away the sheeples entertained and distractions and they discover what you are really up to.

 

[mrblond]

as far as what the sports team owners are paying players its embarrassing to me as an American but then again its a free market. A superstar will bring in more fans then a average player. As far as I am concerned atleast they are paying players and creating jobs. If they didn't own a team, their money would simply sit offshore or become invested in another billionaires company in order to make more money.
Id much rather they lowered ticket prices and the players took less than how it is now.

 

[beavertonbuck]

I don't usually chime in on economic discussions but I have been considering another problem growing for the last 30+ years. Some of you may not agree, and I may be wrong and correct me if I am but look at the huge amounts of money that is spent on entertainment & sports without any real return to the economy. A sports figure is paid an insurmountable amount of money and where does it go? illicit relationships, drugs and to other non-positive sources? Look how many wind up in jail and are filthy rich! A pro football player in the 70's might have been making 25 K a year. Look at the amount of money movie stars are paid as opposed to what they were just 20 years ago and where is the positive result of these massive amounts of money? Ok so some people are employed in the entertainment and sports industry as a result but most of us only see the movie at the crappy theaters or see sports crap sold in Wal-Mart or Fred Meyer. I simply do not see too many positive economical results of the 100s of percent increases in the income of entertainment and sports figures over a relatively short amount of time. Maybe an 'entertainment and sports income' tax should be levied on those few making the horrific amounts they are to at least offset the taxes some pay to build stadiums for them to make these amounts is. Like I said I may be way off here and please educate me if I am.

You or I have no business telling other people how to spend there money. The owner's are shelling out that type of money because those stars are putting butts in the seat. Think about all the businesses involved; all the food vendors supplying the event and the textile companies making jerseys.

One thing that I have to disagree on is this idea that manufacturing is somehow special and must make up a certain portion of our labor market. The manufacturing that has gone overseas is almost always been low value added, simple manufacturing jobs. If you look at our high tech industries they continue to manufacture here in the US. The job market shifts sometimes and the adjustment is hard but gets better.

My biggest concern is that we are going to experience a Greek event. Benjamin Franklin once said that, "Once people people find out that they can vote themselves money, that will herald the end of the republic." Both parties are guilty of handing out money to people who vote for them. They grandstand about wanting to reform the system but just pay lip service.

 

[getreadyportland]

The American people decided some time ago that they weren't willing to pay for products made in America, so American manufacturing companies moved off-shore. Now we all buy crap from China, and American manufacturing jobs are most likely gone for good.

Bush didn't do this and neither has Obama. We all did it to ourselves. If you aren't willing to pay an American worker to pick your fruit, build your TV set, or put together your new car, then quit playing the blame game. the fault for this mess is looking back at you in the mirror.

Good news! There is a great website where if you really do care about American products and are able to support American jobs.. you can find just about anything here.. Made in the USA Products Directory

Also on buying your food local.. no better job to support than an American farmer!
Shop your local farmers markets, get a CSA, buy your beef by the side or the whole cow..

If your in the market for a smart phone or tablet the Google Nexus 7 line is manufactured here in the us. http://www.nytimes.com/2012/06/28/t...facturing-in-the-us-a-try.html?pagewanted=all

If you are looking for a new TV for the Man Cave.. have no fear Element Electronics out of Detroit is making some great TV's Element Electronics

My point is that WE have the power to shift jobs back to America!

We have the power to support local business. We just have to choose to do it.. and sometimes that means we have to do a little homework and shell out a few extra bucks..

Things in our store made in the USA
Mountain House, Alpine Aire, Rainy Day foods freeze dried and dehydrated foods. Stove Tec carry bags, Adventure Medical Kits, Naturokits (Portland Company) and quite a few more!

 

[knuckle Head]

Well I own what I hope to my last vehicle conceived out of Detroit, and I grew up there worked there most of my life and my Dad retired from GM, so this is really hard for me say, but reality is reality. Ford screwed me bad in the 80's, chrysler screwed many of my friends, and now the GMS truck is crap and they cannot seem to fix it so they are telling its normal, I had a few friends and evens trange drive it and say they would buy one because of it, not only that my family takes very good care of our vehicles and those that own the big three have to replace water pumps, fuel pumps, brakes and many other items between 7k miles and 125k miles, while the toyota and honda owners have a 175k to 225k and same parts are original.

But do not blame unions, workers, or people who buy goods made here in america or overseas that is better quality and the company treats the customers like they have a brain. It is the people in management who make the decisions, to cheapen the product use inferior materials or agree to a unions demands.

Its your $$$$ you decide how and where to spend and I will do the same with $$$$,

 

[Burt Gummer]

It keeps the sheeple entertained, occupied and at odds with one another, you are too logical as myself.

Take away the sheeples entertained and distractions and they discover what you are really up to.

"The world is full of all sorts of planned distractions, sporting events, games and entertainments to keep the human mind busy. Busy so you don't do too much thinking. So you'll never take the time to figure out that there are a few people who are really running the show, controlling your life, deciding what will happen to you next." "Here little boy, go play with your ball outside while the adults stay in here and talk about things" - J. Maxwell

 

[knuckle Head]

"The world is full of all sorts of planned distractions, sporting events, games and entertainments to keep the human mind busy. Busy so you don't do too much thinking. So you'll never take the time to figure out that there are a few people who are really running the show, controlling your life, deciding what will happen to you next." "Here little boy, go play with your ball outside while the adults stay in here and talk about things" - J. Maxwell

BURT,

You have one heck of a way of clearly stating the obvious that the people I see daily are clueless too.

I don't mind saying that the majority of the sheeple I work around clearly fit that category,

There some days you could lead them around like I led cows into a corral with shaking an empty grain feed bag, the cow were so use to being fed minerals, salt and grains poured in a trough that when they saw a feed bag they associated with goodies, even though it they see it was obviously.

It reminds me of our dollar, people know something is not right about it, but they keep on putting their faith in it. Like those cows following me with an empty feed bag.

 

[Burt Gummer]

Normalcy Bias - that sums it all up. People simply cannot imagine or understand that there lives are going to be turned upside down in the months or very short years ahead. Time flies by so fast and in either case life changing, planned events are right around the corner. The American middle class, our standard of living and dreams are going to vaporize.

There is substantial evidence that the first stages of SHTF will be hitting us later this year, and no, not talking about Dec 21st or some prophesy. Just almost daily there is new evidence that something big is around the corner. I personally would guess that our owners will just continue to vampire us to death for a while and then push us off the cliff sometime in late 2013-2014. I've thought that since around 2005. Being mentally prepared to accept what is coming is just as important as any preps or ammo, etc.

We have an advantage as individuals because we are not fish in a fishbowl. Perhaps prepping is futile, but 98% of the sheeple are so naive, so unprepared in every way they won't have much of a chance at all. The key word is individual since it is far too late to expect any possible changes to the system. Voting, caring about puppet A vs puppet B, or all the distractions that the ill informed care about are just wastes of time. The Titanic is going down once again 100 years later or so, but this time it is us. Any life raft you can build is better than none at all.

In the meantime try to enjoy life the best you can because these are the last of the good times.