The Collapse of the American Economy Has Begun

The Common Sense Show
by Dave Hodges

Susan Duclos  and Stefan Stanford recently interviewed “V” the Guerrilla Economist and the following information was revealed in this landmark interview:

The process of undermining the US dollar is well on schedule as well; more than 105 countries have decided that the dollar no longer works for them, joining Russia, China and other BRICS nations in leaving the dollar as the entire world comes to the realization that America’s leaders are insane. Their recklessness and evil ways have left tremendous shame upon our nation. Though there has been much manipulation and propping up, but that is only setting us up for the inevitable massive crash.

“V” begins by updating us on recent information that he has received from his 4-Star General source and warns that events are still on schedule, a schedule that he previously warned would leave the US dollar ‘undermined’ by 2015 and the US ceasing to exist as a nation by 2017“.

The interview can be accessed through the following link. I highly recommend listening to this interview.

 

 

On the surface, these claims appear to border on hysteria. However, as history has proven, time and time again, that Susan Duclos, Stefan Stanford and “V” are to always be taken seriously when revealing controversial information.

Subsequently, I proceeded to find confirming, or disconfirming evidence, that these claims are accurate and should taken seriously by all Americans. Both the direct and ancillary evidence serves as overwhelming in support of V’s claims and Susan’s reporting.

Halfway to Economic Armageddon

“V’s” claims notwithstanding, the American economy is already in severe danger as we consider the following facts.

There are 35 states in this country in which it is better to accept welfare than work at an entry level job. Much like crack cocaine or heroin addicts, much of our nation is hopelessly addicted to living in the welfare state or on unsustainable levels of credit.

welfare by state

From a micro perspective, the personal economic health of America is abysmal. According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income”. Stunningly, more than 100 million Americans are enrolled in at least one welfare program run by the federal government, not including the massive entitlement programs of Social Security or Medicare. The number of people on food stamps has grown to 47.79 million Americans. In 2008, when Obama first took office, only 32 million Americans were on food stamps. Approximately, 20.2 million Americans spend more than half of their incomes on housing, which represents a 46% increase from 2001. Parents under the age of 30 experience poverty rates consisting of 37 percent. The number of Americans living in poverty has grown to one out of every six US citizens.

The above information could be considered to be the good news. What follows is grim.

 

Watch the Credit Swap Derivatives

In the United States, credit swap derivatives created national debt totals of over one quadrillion dollars. That is one thousand trillion dollars! The entire GDP of the planet is estimated at $66 trillion dollars. And somehow, in the infinite wisdom of Congress in 2008, we falsely and naively believed that a $750 billion transfer of wealth (i.e., Bailout #1) was magically going to save the economy and the collective futures of the American middle class. Please let me repeat that the most conservative estimate is that the derivatives debt is 10 times greater than the GDP of the entire world. Most economists estimate the number to be 16 times greater that the GDP of the planet!    

In short, the debt created by futures speculation is approximately 10-16 times greater than the sum total of the entire wealth on the planet! It would not matter if the debt was only two times the GDP of the planet, we do not have the capacity to pay down this debt. The interest on the debt is growing faster than the rise in national revenue. And we think we are going to climb out of this? Let’s take a moment and discuss the derivatives debt. 

Five of the “too big to fail” banks in the United States that have more than 40 trillion dollars in exposure to derivatives. The national debt is sitting at a grand total of almost 18 trillion dollars. The sum of 40 trillion dollars is almost unfathomable.

Credit swap derivatives trading is not too different from betting on baseball or football games. It is gambling, it is a Ponzi scheme and Wall Street bankers should be in jail. However, this is the new economic landscape of America. The name of the game is the “Last American Garage Sale” where these bankers are positioning to steal all the assets possible before the collapse.

 

credit swaps

 

Please note that under the category, in the above illustration, “Widgets “R” US Corp“, the banks loan the money. In other words, if this Ponzi scheme fails, the banks which underwrite and guarantee the entire process, will eventually fail!

The credit swap derivatives are bad enough, but when we carry over the economic implications to the health of the banking system, the banks are bordering on total collapse along with all of your saved earnings.

 

Most Americans Think That Their Deposits Are Safe

Some readers have written to me and have dutifully reminded me that the FDIC is at their bank standing guard over their deposits. How woefully and depressingly ignorant is that statement?

The FDIC does not have the money to cover your deposits as it has only $25 billion in its deposit insurance fund. By law, the FDIC is required to keep a balance equivalent to only 1.15% of insured deposits on hand. Yes, America, that means that less than 2% of your deposits are covered.

Others have pointed out to me that the Dodd-Frank Act (Section 716) now bans taxpayer bailouts of most speculative derivatives activities. You remember the derivatives don’t you? They were the imaginary wealth that was built upon more imaginary wealth but were guaranteed with hard assets backed by the banks. When this house of cards collapsed, it pulled the banks down and led to the series of bailouts which has devastated our economy.


Therefore, when your bank defaults, and it will, the depositors as well as the banks will turn to the FDIC for relief. The FDIC will have no choice but to draw upon its credit line in order to cover a BofA, Wells Fargo and JP Morgan derivatives bust which has been co-mingled with savings account funds. The resulting effect is that this will require a taxpayer bailout to cover the credit line.This will negate the safety from the bailouts that the public thought that they were receiving under the Dodd-Franks bill of no more bailouts.

What very few people are talking about, and as is the case with all credit lines, this money will have to be paid back. Therefore, the coming default of the FDIC, used to cover the derivatives debt, will become the excuse for another taxpayer bailout. And on and on it goes.

BANKSTERS A
When the last instrument has been looted and then deflated, where do you think that will leave you and your computerized digits that represent the bulk of your self-built financial empire? All of your life, most of you have worked for banker backed interest in some capacity and now, these banksters are stealing back the pittance they paid you in the first place. Where’s Karl Marx when you need him? Bank depositors of the world, unite!

More Bad News

With the banks in debt to the tune of $40 trillion dollars, the pension system is also at risk because the banks and their related financial investment firms underwrote the Credit Swap Derivatives. Moody’s warns in its latest report on the state of public pension systems. As Bloomberg reports, “The 25 biggest systems by assets averaged a 7.45% return from 2004 to 2013, but liabilities tripled over the same period leaving them facing a $2 trillion shortfall as investment returns can’t keep up with ballooning obligations”. The top 25 funds account for 40% of the entire US public pension system. Bloomberg further reports that “The 25 largest U.S. public pensions face about $2 trillion in unfunded liabilities, showing that investment returns can’t keep up with ballooning obligations”, according to Moody’s Investors Service. Americans will be working until they drop dead because, very soon, there will be no such thing as a pension. Very soon, most of these Americans will not have any job to go to.

When this house of cards comes crashing down, how do you think the government will deal with the situation? If you have not listened to V’s interview, I would suggest you do so now.

 

When Will the Economic Collapse Happen?

The collapse has already started. With 105 nations running from the U.S. dollar as a reserve currency, there is nothing left to back up the dollar. Our currency will hyper-inflate and America’s economy will make the crash of the Weimar Republic look like a picnic.

A German woman in the 1923 Weimar Republic purchasing a loaf of bread. This time is almost upon the American people.

A German woman in the 1923 Weimar Republic purchasing a loaf of bread. This time is almost upon the American people.

Certainly, even the most ardent sheep understand what the economic collapse of the Weimar Republic led to. What makes us think things are going to be any different?

The crash of the Weimar Republic led to this.

The crash of the Weimar Republic led to this. Can America’s eventual outcome be any different?

Conclusion

Why did George H.W. Bush build a 100,000 acre ranch in Paraguay? Why is NORTHCOM, a combat organization, engaging in continuing the nonstop urban riot control training? Why are UN military vehicles on our soil? Why did FEMA and DHS schedule 10 disaster drills between September 25th and November 13th? Why are former FEMA and DHS agents, as well as many bankers going into hiding in prepared communities?

Are we to believe that all of these factors are unrelated? It is looking more and more like the bail-out money, which was no more than the private theft of public money, is actually doing what the name implies, it is bailing out corporate executives in advance of the coming crash. America is being forced to fund the getaway gifts for those that have stolen so much from the American people!

america burningFactor in the coming Ebola outbreak and the possibility of an EMP attack, the misery factor immediately and exponentially compounds. The American economy is on fire and the only remnants of what once was is a few hollowed out and charred structures.

Once they have our hard assets,the absolute and final crash and burn of the economy will occur and it will be anarchy in the streets. And more of V’s dire predictions, regarding a post-collapse America will undoubtedly come to pass.

The Common Sense Show

Smoking Gun Evidence That The New York Fed Serves The Interests Of Goldman Sachs

The Economic Collapse
by Michael Snyder

Goldman Sachs And The New York Fed - Public DomainFor years, many people have suspected that the New York Fed is more or less controlled by the “too big to fail” banks.  Well, now we have smoking gun evidence that this is indeed the case.  A very brave lawyer named Carmen Segarra made a series of audio recordings while she was working for the New York Fed.  The 46 hours of meetings and conversations that she recorded are being called “the Ray Rice video for the financial sector” because of the explosive content that they contain.  What these recordings reveal are regulators that are deeply afraid to do anything that may harm or embarrass Goldman Sachs.  And it is quite understandable why Segarra’s colleagues at the New York Fed would feel this way.  As a recent Bloomberg article explained, it has become “common practice” for regulators to leave “their government jobs for much higher paying jobs at the very banks they were once meant to regulate.”  If you think that there is going to be a cushy, high paying banking job for you at the end of the rainbow, you are unlikely to do anything that will mess that up.

To say that the culture at the New York Fed is “deferential” to big banks such as Goldman Sachs would be a massive understatement.

When Carmen Segarra was first embedded at Goldman Sachs, she was absolutely horrified by what she was seeing and hearing.  But her superiors were so obsessed with covering up for Goldman that they actually pressured her to alter the notes that she took during meetings

The job right from the start seems to have been different from what she had imagined: In meetings, Fed employees would defer to the Goldman people; if one of the Goldman people said something revealing or even alarming, the other Fed employees in the meeting would either ignore or downplay it. For instance, in one meeting a Goldman employee expressed the view that “once clients are wealthy enough certain consumer laws don’t apply to them.” After that meeting, Segarra turned to a fellow Fed regulator and said how surprised she was by that statement — to which the regulator replied, “You didn’t hear that.”

This sort of thing occurred often enough — Fed regulators denying what had been said in meetings, Fed managers asking her to alter minutes of meetings after the fact — that Segarra decided she needed to record what actually had been said.

Needless to say, someone like Segarra that did not “go along with the program” was not going to last long at the New York Fed.

After only seven months, she was fired

In 2012, Goldman was rebuked by a Delaware judge for its behaviour during a corporate acquisition. Goldman had advised one energy company, El Paso Corp., as it sold itself to another energy company, Kinder Morgan, in which Goldman actually owned a $4-billion stake. Segarrra asked questions and was told by a Goldman executive that the bank did not have a conflict of interest policy. The Fed found some divisions of the bank did have a policy, though not a comprehensive one. The Fed pressured Segarra not to mention the inadequate conflict of interest policy at Goldman in her reports and, she alleges, fired her after she refused to recant.

If Segarra had not made the recordings that she did, we would have probably never heard much from her ever again.

After all, who is going to believe her over Goldman Sachs and the New York Fed?  A minority would, of course, but the general public would have probably dismissed her accusations as the bitter ramblings of an ex-employee.

But she did make those recordings, and they are causing chaos on Wall Street right now.

The following is how Michael Lewis summarized the importance of this audio…

But once you have listened to it — as when you were faced with the newly unignorable truth of what actually happened to that NFL running back’s fiancee in that elevator — consider the following:

1. You sort of knew that the regulators were more or less controlled by the banks. Now you know.

2. The only reason you know is that one woman, Carmen Segarra, has been brave enough to fight the system. She has paid a great price to inform us all of the obvious. She has lost her job, undermined her career, and will no doubt also endure a lifetime of lawsuits and slander.

The New York Fed says that it “categorically rejects” all of the allegations made by Carmen Segarra.

Of course they do.

But what is there to deny?  The evidence is right there in the audio recordings.

The New York Fed has been caught red-handed serving the interests of Goldman Sachs, and no number of strongly-worded denials is going to change that.

Sadly, this is not likely to change any time soon.  Employees of the New York Fed are going to continue to want to get hired by the big banks, and the big banks are going to continue to hire them.  So the incestuous relationship between the New York Fed and Goldman Sachs is probably not going to change in any meaningful way despite this bad publicity.

What this means is that Goldman Sachs is going to continue to do pretty much whatever it wants to do, and nobody is going to stop them.

But someone should be doing something.

As I wrote about the other day, Goldman Sachs has less than a trillion dollars in total assets, but it has more than 54 trillion dollars in exposure to derivatives.

When the derivatives crisis strikes, some of these “too big to fail” banks are going to go down very hard.

Goldman might be one of them.

And when Wall Street starts collapsing, it is going to plunge the entire U.S. economy into a complete and utter nightmare.

Much of this could have been avoided if we had good rules in place and we had regulators that were honestly trying to enforce those good rules.

But instead, the wolves are guarding the hen house and the big banks are going absolutely wild.

Ultimately, this is all going to end very, very badly.

The Economic Collapse

Obama’s Former Chief Economist Calls For An End To US Dollar Reserve Status

Zero Hedge
by Jared Bernstein at The NY Times

There are few truisms about the world economy, but for decades, one has been the role of the United States dollar as the world’s reserve currency. It’s a core principle of American economic policy. After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?

But new research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status.

The reasons are best articulated by Kenneth Austin, a Treasury Department economist, in the latest issue of The Journal of Post Keynesian Economics (needless to say, it’s his opinion, not necessarily the department’s). On the assumption that you don’t have the journal on your coffee table, allow me to summarize.

It is widely recognized that various countries, including China, Singapore and South Korea, suppress the value of their currency relative to the dollar to boost their exports to the United States and reduce its exports to them. They buy lots of dollars, which increases the dollar’s value relative to their own currencies, thus making their exports to us cheaper and our exports to them more expensive.

In 2013, America’s trade deficit was about $475 billion. Its deficit with China alone was $318 billion.

Though Mr. Austin doesn’t say it explicitly, his work shows that, far from being a victim of managed trade, the United States is a willing participant through its efforts to keep the dollar as the world’s most prominent reserve currency.

When a country wants to boost its exports by making them cheaper using the aforementioned process, its central bank accumulates currency from countries that issue reserves. To support this process, these countries suppress their consumption and boost their national savings. Since global accounts must balance, when “currency accumulators” save more and consume less than they produce, other countries — “currency issuers,” like the United States — must save less and consume more than they produce (i.e., run trade deficits).

This means that Americans alone do not determine their rates of savings and consumption. Think of an open, global economy as having one huge, aggregated amount of income that must all be consumed, saved or invested. That means individual countries must adjust to one another. If trade-surplus countries suppress their own consumption and use their excess savings to accumulate dollars, trade-deficit countries must absorb those excess savings to finance their excess consumption or investment.

Note that as long as the dollar is the reserve currency, America’s trade deficit can worsen even when we’re not directly in on the trade. Suppose South Korea runs a surplus with Brazil. By storing its surplus export revenues in Treasury bonds, South Korea nudges up the relative value of the dollar against our competitors’ currencies, and our trade deficit increases, even though the original transaction had nothing to do with the United States.

This isn’t just a matter of one academic writing one article. Mr. Austin’s analysis builds off work by the economist Michael Pettis and, notably, by the former Federal Reserve chairman Ben S. Bernanke.

A result of this dance, as seen throughout the tepid recovery from the Great Recession, is insufficient domestic demand in America’s own labor market. Mr. Austin argues convincingly that the correct metric for estimating the cost in jobs is the dollar value of reserve sales to foreign buyers. By his estimation, that amounted to six million jobs in 2008, and these would tend to be the sort of high-wage manufacturing jobs that are most vulnerable to changes in exports.

Dethroning “king dollar” would be easier than people think. America could, for example, enforce rules to prevent other countries from accumulating too much of our currency. In fact, others do just that precisely to avoid exporting jobs. The most recent example is Japan’s intervention to hold down the value of the yen when central banks in Asia and Latin America started buying Japanese debt.

Of course, if fewer people demanded dollars, interest rates – i.e., what America would pay people to hold its debt – might rise, especially if stronger domestic manufacturers demanded more investment. But there’s no clear empirical, negative relationship between interest rates and trade deficits, and in the long run, as Mr. Pettis observes, “Countries with balanced trade or trade surpluses tend to enjoy lower interest rates on average than countries with large current account deficits, which are handicapped by slower growth and higher debt.”

Others worry that higher import prices would increase inflation. But consider the results when we “pay” to keep price growth so low through artificially cheap exports and large trade deficits: weakened manufacturing, wage stagnation (even with low inflation) and deficits and bubbles to offset the imbalanced trade.

But while more balanced trade might raise prices, there’s no reason it should persistently increase the inflation rate. We might settle into a norm of 2 to 3 percent inflation, versus the current 1 to 2 percent. But that’s a price worth paying for more and higher-quality jobs, more stable recoveries and a revitalized manufacturing sector. The privilege of having the world’s reserve currency is one America can no longer afford.

*  *  *

Strawman? De-Dollarization goes Domestic…

*  *  *

Jared Bernstein joined the Center on Budget and Policy Priorities in May 2011 as a Senior Fellow.  From 2009 to 2011, Bernstein was the Chief Economist and Economic Adviser to Vice President Joe Biden, executive director of the White House Task Force on the Middle Class, and a member of President Obama’s economic team.

Zero Hedge

The Death of the Dollar: “I Can’t Emphasize Just How Serious Of An Issue That’s Going To Be”

SHTFplan
by Mac Slavo

death-of-the-dollar-smallGeo-political tensions around the world are indicative of a fast approaching breaking point. There is not a single populated region on earth right now that is not experiencing sweeping changes. Europe, the middle east, Asia, the Americas – it’s happening everywhere and all at once. Trying to make sense of it all can be a daunting task. But make no mistake. All of these events are interrelated and their outcomes will have a direct impact on the future of America and the world in the 21st century. To understand what’s happening on the grand chessboard one must avoid the narratives being touted by media propaganda networks in their respective countries and focus instead on the motivating factors behind the moves.

We must understand, as global resource strategist Marin Katusa notes in a recent highly informative interview, that this is “the dirty secret of all of the governments.” There is a silent war happening behind the scenes and as has been the case throughout history, it is a war for control over the world’s resources.

Katusa, who is a top strategist at Casey Research and has worked closely with political and business leaders in over 100 countries, knows a thing or two about resource control. Like many government run sovereign investment funds, Katusa and his partners are actively engaged in resource acquisitions all over the world, so he has a unique perspective on the driving force behind all of the surface level conflicts being presented to the majority of the public.

Watch this must-see interview as Marin Katusa discusses global resource control, America’s future, the death of the dollar and how to prepare yourself for a massive paradigm shift:


(Watch at Youtube)

Katusa explains that America’s partners all over the world are coming under pressure from Russian and Chinese influence. This includes Europe and our mid-east oil partners, and the goal is to weaken America’s hold over economic, financial and monetary affairs. Thus far, according to Katusa, Russia and China are winning.

The death of the dollar is upon us, the global power shift has already begun.

I call it the dirty secret of all of the governments.

… The reality is, it’s been the Russians, the Chinese, the Indians, they’re trying to look at diversifying out of the dollar. If you look at what Saudi Arabia is doing, they’ve had long discussions with the Russians on major military contracts, is something where they’re true anchors to the petro-dollar of Saudi Arabia flips on America.

And it will happen, it’s just a question of when. You’ll see the death of the petro-dollar. And I can’t emphasize just how serious of an issue that’s going to be.

But if you really see what’s going on in Europe, in Asia, the dominance of America is being challenged, not just by Russia, but Asia. And the strength of NATO is not what it was thirty or forty years ago.

For the last decade, America has gone from global leader to laughing stock, and Katusa lays the blame right at the feet of the source:

They’re chasing their tail. Obama is chasing his tail. He’s going to go down in history as the wizard of Oz, just a voice. And Putin has opened that curtain to expose the wizard as nothing but a confused man. That’s what Obama is.

A shift is certainly afoot. It cannot be ignored. Militarily, the United States may have the most weapons of warfare, but our might is being challenged on all fronts.

The battle for resources is on:

Putin is a man to watch, and you can make a lot of money in these resources if you’re patient and you invest in the right management teams. Because during the last twenty years Russia’s doubled their oil production. They have almost half of the world’s upgrading processing facilities for Uranium. You look at Kazakhstan, they’ve essentially doubled their uranium production in the last ten years. This new alliance, the new Eurasian union, is a force to be reckoned with.

And you have two choices – you can be aware of it and try to profit from it, or you can pretend that America is the sole leader in the world and you don’t have to worry about the petro-dollar. But I think that’s a very unwise choice.

One of Katusa’s favorite investment sectors is one that has been ignored by the big investment firms on Wall Street and it’s the one that will protect your assets when the inevitable death of the petro-dollar finally happens. Precious metals have stood the test of time and throughout history have been used as an asset of last resort, especially during massive shifts like the one facing the world today. Katusa relates an interesting anecdote and one whose implications will resonate with savvy individuals:

I took a photo at the top of the elevator at the 2011 [gold] Cambridge conference in Vancouver. The floor was packed, it was a two hour waiting list to get in, and the lineup was so packed that people coming into the elevator were smashing in to people waiting. And people were falling, hurting themselves, that they actually shut down the elevator.

And I got such a kick out of it that I took a photo of it… And I took a photo, and I sent it out to all my subscribers, and I wrote “A top?”

That is what a top feels like. When people are literally falling over themselves, and everybody’s talking about $2,000 gold and whatever. When you can’t get in to a free conference, with a two hour wait list, that’s when you should be selling.

Today there’s no one on the escalator, there’s no one even checking your badges to come to a free show, never mind a paid show.

That’s why I think right now is the optimal time to invest, because it’s the most hated sector. All the big New York hedge funds that I talk to, they all think, “ah, resources are dead.” 

While top-tier investment firms are piling into stock markets and driving them to new highs, Katusa notes that they are completely ignoring the investments that will skyrocket during this time of global upheaval.

It’s simple really. In the end it boils down to power and resources. In a world dependent on food, energy, and raw materials it only makes sense that conflicts will rage. We can either ignore the trends or accept them and prepare for the inevitable.

death-of-the-dollar-th

SHTFplan

On The Brink Of A Major Crisis: “This Will Be A Literal Collapse of the Entire Global Monetary System”

SHTFplan
by Mac Slavo

Discussions of the possible collapse of the U.S. dollar often center around how such an event will affect the domestic economy. But the dollar doesn’t just operate inside of a bubble. It is the world’s reserve currency for a reason. Some sixty-six countries world-wide either utilize it as their primary currency or peg their own currencies to its exchange rate. What this means, as noted by Future Money Trends in the micro documentary below, is that if and when the dollar does come under attack the fallout will be everywhere. The collapse will happen simultaneously and affect billions of people worldwide.

This is 33% of the nations of the world all submitting their currency sovereignty to the US Federal Reserve.

If and when the U.S. loses its currency status this will be a literal collapse of the entire global monetary system… A system that is built on lies, fraud and theft.


(Watch at Youtube)

As you might have guessed, when the game is finally up it will wreak havoc across global economies, financial markets and monetary systems. Should that ever happen, those who have failed to exchange their fiat currencies for physical goods of some sort are going to have a rude awakening.

As preparation for a currency collapse of unprecedented magnitude, contrarian economists and analysts recommend acquiring physical assets ahead of time. Because after the ‘event,’ it will be too late for the majority, as their dollars become nearly worthless and the cost of essential goods like food and energy skyrocket to nearly unnatainable levels as priced in dollars.

We have seen it time and again throughout recent history. Germany’s Weimar Republic, Hungary, Zimbabwe and most recently Argentina, have all experienced currency collapses. And in all instances one asset has stood the test of time and become the currency of choice when traditional systems of commerce collapsed.

Living in the heart of the Fiat bubble, Americans especially have forgotten about the one true currency. With the nation approaching nearly $20 trillion in national debt our entire system is built on a lie. But this lie affects the entire world because the US dollar is the world’s currency.

The gold market has been so distorted by governments and central banks around the world that today in an environment of quantitative easing, trillion dollar annual deficits, and negative interest rates, you can exchange your Fiat currency for an ounce of gold for less than the cost a mining company takes to produce it.

In 2013 all-in costs were $1620 per ounce, with an average price of $1411 per ounce. Recently gold has sold for less than $1300 an ounce.

Physical demand is currently setting records, with most of the demand coming from the east. Soon, North America and the world will begin to accumulate gold. 

The world is on the brink of a major fiat currency crisis.

The evidence for a continued downturn in the U.S. economy and further deterioration of the U.S. dollar is clear. The likely end result is a total collapse of Americans’ way of life.

Ask yourself these three questions to help you determine your best course of action:

  1. What is the dollar’s most likely future?
  2. Are you overly exposed to dollar denominated assets like your income, savings and the country you reside in?
  3. Can you envision a scenario where the world turns against the U.S. dollar?

When it happens only those who own physical assets not dependent on the U.S. dollar will maintain any semblance of wealth. Everyone else will be, almost instantaneously, relegated to third world status.

This micro documentary has been contributed by FutureMoneyTrends.com

Read their free Gold Protection and Strategy Guide today. 

global-collapse-2

SHTFplan

53 Million Temps: All You Need To Know About The “Jobs Recovery”

Zero Hedge

After years of ignoring the obvious, the Federal Reserve has been finally forced to admit that the labor force participation rate matters, and in fact has started to point it out as a clear negative when it comes to Yellen’s “dashboard” of thresholds which will allow the Fed to raise rates (for the obvious reason that the Fed is desperate to delay ZIRP as long as possible and is now highlighting all that is wrong with the economy, contrary to Obama who is still focusing on all the rigged greatness of the US recovery) and to do so is going through Zero Hedge archives to note all those things which everyone had ignored for years and which we have pointed out as structural failures of the so-called recovery. 

So while we are happy to oblige the Fed with our tens of thousands of articles summarizing what is broken with the US economy thanks to, well, the Fed, here is another one: one which the Fed can use next year when the time to hike rates has come and gone, and when the Fed is once again scratching its head what to blame it on.

The chart below shows the civilian employment to population ratio: a convenient indicator of the real state of the US labor market which does away with the labor force entirely, and the associated rhetoric of why it may or may not be plunging, and merely focuses on two simple things: total population and the total civilian population of the US. One thing is clear: the ratio crashed when the depression started and has flatlined since. Which, incidentally, may be all you, and the Fed, needs to know about the recovery.

 

But wait, it gets worse, because according to the WSJ, roughly one in three U.S. workers is now a freelancer.

Wait, how many?

Fifty-three million Americans, or 34% of the nation’s workforce, qualify as freelancers, according to a new report from the Freelancers Union, a nonprofit organization, and Elance-oDesk Inc., a company that provides platforms for freelancers to find work. These individuals include independent contractors, temps, and moonlighters, among others.

So 53 million, let’s call them, temps? That is probably the most stunning number we have seen in years, and flips the entire premise of a “job recovery” on its head.

The experience of work has fractured in recent years, said Fabio Rosati, chief executive of Elance-oDesk. Layoffs that accompanied the recession forced many individuals to forge a living from short-term gigs, while online marketplaces such as Elance, TaskRabbit and Uber emerged to match independent workers with companies or individuals in need of labor. Plus, the rise of mobile technologies allow more people to work when and where they choose.

Or not work, considering there is no contract tying them to a job.

Independent workers “don’t have the workforce protections that have developed over the last 80 years. They are simply on their own,” said Robert Reich, the Secretary of Labor under President Bill Clinton and now a professor at the University of California, Berkeley. An accurate census would help policymakers determine how to fill gaps, he said.

 

Counting the number of contingent workers has not been a high priority in Washington, DC over the last couple of decades. The number “is likely to be large and growing and there is no political advantage in signaling that fact,” Mr. Reich said.

The punchline:

Companies, eager to lower payroll costs and take advantage of a more flexible workforce, are relying more on contingent labor. According to the National Employment Law Project, temp jobs now constitute an all-time high of 2% of all positions in the U.S., or 2.8 million.

So the Fed is trying to boost wages and generate demand-pull inflation at a time when some 53 million US workers, or a third of total, are “freelancers”, which is a polite way of saying part-time workers. and “moonlighers.”

Well…. good luck!

Zero Hedge

Wall Street Declares Victory Against the American People: The Banking Elites are Now Waging War against One Another

Global Research
By Eric Zuesse

wallstreet

On August 31st, the Republican political site Politico bannered “Wall Street Republicans’ Dark Secret: Hillary Clinton 2016,” and Ben White and Maggie Haberman delivered a blockbuster report about the big-money Republican donors they had talked to, who confided (not for specific attribution, though) that they might finance Hillary Clinton to become President, if Jeb Bush announces after November’s mid-terms that he won’t run for the Republican Presidential nomination. Ms. Clinton is so appealing to Republican aristocrats, many of them will back her if Republicans won’t nominate Bush. 

Of course, virtually all Democratic aristocrats are already pouring money into the place-holding fundraising campaign for Clinton’s expected entrance into the Democratic Presidential contest.

This means that virtually the entire aristocracy will be flooding Clinton’s Presidential war-chest, unless Jeb Bush seeks the Republican nomination.

Where, then, does this leave the public? Obviously (barring some unimagined scenario of a progressive running against Hillary for the nomination and beating her), both of the two people who will be the major-Party nominees are going to be running in order to go farther than NAFTA, and farther than deregulating Wall Street, and farther than re-invading Iraq, and farther than financing Ukraine’ s ethnic-cleansing operation ousting the ethnic Russians out of that country’s southeastern region, and farther than threatening to bomb Assad’s forces in Syria, and farther than arm-twisting the EU to weaken their anti-global-warming regulations so that the EU can import the Koch brothers’ dirty oil from Alberta Canada’s tar sands — in other words: farther than Obama has gone, or is yet aiming to go.

Does it make much of a difference, then, which of those two people, Clinton or Bush, will be doing these things for America’s aristocrats? Not enough to make Republican aristocrats back the other Republican contenders instead of Hillary if Bush doesn’t enter the race. They’ll then be joining with the Democratic aristocracy, who have already thrown in their lot behind her. Aristocrats don’t much care whether its name is “Clinton,” or is instead “Bush.” Either one would make an acceptable king (or queen) for them during the following eight years.

Of course, the two candidates will pander to their respective voting-bases: Hillary will pander to women, etc.; and Bush will pander to ‘job-creators’ etc.; but that’s basically just squabbling about how to decorate the aristocratic cake, not about what the cake will consist of, from the aristocrats’ viewpoint. Either way, it’ll be a tasty dessert for them, custom-made for their delectation.

On the other hand, White and Haberman are also clear that there is now emerging a war between two main portions of the Republican aristocracy, regarding which of these two Republican factions will control the White House beyond 2016. Haberman and White, perhaps being Republicans themselves, don’t mention this internal conflict explicitly (since doing so would emphasize their Party’s split), and they don’t even mention the word “Koch,” not even once (even though the Kochs are the Party’s biggest fundraiser by far); but these Politico journalists do indicate that the very same Republican moneybags who are demanding that Bush become the nominee are threatening to bolt to Clinton if Ted Cruz wins the Republican nomination. Haberman and White don’t so much as mention, at all, that Cruz is the invention of the Koch brothers’ wing of the aristocracy, and that he had had his political career financed via the Kochs’ agent Jim DeMint, who recruited Cruz into the Senate and who raised the money to get him to knock off the Republican Establishment’s Kaye Bailey Hutchison and become the new Republican U.S. Senator from Texas. (That was a Rove-versus-Koch contest, and the Kochs won it in far-rightwing Texas, whose far-rightwingism was a chief reason why the Kochs chose that state to mount their big assault against their Party’s ‘moderate’ Establishment.) So: this is actually an intra-Republican war over which faction of the Republican aristocracy will own (or else co-own) the next White House. Bush or Cruz would then be leasing it – either (if Bush or else Clinton) from the Rove (that is: the Bush or — if shared with the Democratic aristocracy — Clinton) group; or else (if Cruz) from the Koch group.

During the 2012 “election,” the Kochs and their friends poured at least $400 million into Republican coffers; and, so, even if the majority of the traditional Republican aristocracy end up financing Hillary’s campaign, there will still be plenty of money going into Cruz’s campaign, at least until he gets beaten — if  he gets beaten. (The Kochs are so extreme that even Hillary isn’t acceptable to them. If Cruz looks like he’s going down, then they’ll back a different ‘Tea Party’ favorite. They created the ‘Tea Party.’)

Also, the traditional wing of the Party told Haberman and White that Rand Paul would be unacceptable to them if Hillary gets the Democratic nod. Rand Paul hasn’t yet sold out enough to the Koch brothers, though they are the big financial backers of “libertarianism,” the philosophy to which Paul declares his allegiance. So, if Paul enters the race, then his candidacy is currently expected to be much like that of his father, Ron Paul: purely a “movement” phenomenon, not a part of serious U.S. politics (which has come to be increasingly about transactions, and less than ever about ideology).

However, if Paul does ultimately sell out to the Kochs, and if Cruz fails to do well in the primaries, then again, there might yet be a real battle for the Republican nomination within the Republican Party. Already, Paul is making his pitch to the Koch crowd; so, Cruz will probably have at least one serious competitor for Koch money. (I’m expecting Cruz to fade in the primaries, and Paul to become the Republican nominee, and President — but only after first selling out to the Kochs.)

The general expectation is that Clinton is going to take the Democratic nomination in a walk, so that her gargantuan corporate-backed campaign war-chest — filled with cash from both the Democratic and a large portion of the Republican aristocracies — will be the heavy favorite to win the White House in 2016. The only things that might upset that expectation are:

1) Someone like Alan Grayson enters the Democratic primaries from the progressive side and somehow makes the nomination a real contest without selling out to the aristocracy.

2) Bernie Sanders enters the race as a progressive-movement independent after Hillary wins the Democratic nomination and he draws off enough Democrats for the Republican nominee to win.

3) The $30-billion Mike Bloomberg, former Mayor of Wall Street, spends $3 billion on his own independent Presidential campaign and draws off enough votes in the general election so that for the first time there will be a “third party” (actually no-party) winner of the White House. (He’s like Hillary Clinton on almost all issues — if he was Wall Street’s Mayor, then she was Wall Street’s Senator.)

4) Jeb Bush runs, and turns out to be an even more-skillful politician than he has been cracked up to be, so that he wins the Republican nomination and goes on to beat Hillary Clinton.

5) Rand Paul wins the Republican nomination and unites enough conservatives and libertarians to win the White House (my expectation).

As for the Democratic aristocrats, they already love a candidate, Clinton, who is acceptable to most Republican aristocrats.

So (unless #1 on that list turns out to be the case), the aristocracy, led by some faction of it, will be partying with cake and champaign on Election Night 8 November 2016, no matter which “side” wins: it’ll be themselves. They’ll have beaten us, yet again, in this ‘democracy,’ via these ‘elections.’

Not all that much different from Ukraine, really; and we’re getting closer and closer to that all the time. Let’s hope we’ll avoid the civil war part of it. That could turn out to be even worse than our last one. Next time, it wouldn’t be over slavery versus non-slavery; it would be over nazism versus fascism. Democracy, it seems, is already nearly dead here.

Global Research

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