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To understand the intractable, if not impossible, financial problems in the U.S., see "Spiraling to Bankruptcy." Conditions in Europe are similar to the U.S.'s. As pointed out in "Welfare States R.I.P.," all democratic welfare states are on the verge of default. It is necessary to provide only a short list of economic problems to see the critical condition we are in:
- Virtually everything you look at is broken and unfixable, from both a mathematical and political standpoint.
- All democratic welfare states are insolvent and incapable of meeting their obligations.
- Sovereign defaults are likely and will likely occur in domino fashion.
- Insane economic policies and regulations are making matters worse.
- Businesses are not hiring or investing because of the uncertainty that has been imposed on the country.
- Wealth, intellect, and corporations will flee this country.
- More than half of the states are likely to default on their obligations.
- Most major municipalities have pension obligations that will be unable to be met.
- Individuals are still over their heads in debt with no hope in sight.
- The housing market has farther to go on the downside. Foreclosures will accelerate.
- Commercial real estate is a disaster that has not yet hit full force.
- Joblessness is not improving and will get worse.
- Infrastructure has deteriorated. There are no funds available upgrade it to proper standards.
- Private pensions and union pensions are grossly underfunded and likely to become worse when financial markets tank.
- The welfare system is unsustainable and has to be dismantled.
- Generations have grown accustomed to entitlements and will not take kindly to the necessary reductions and eliminations.
- Education has deteriorated to levels such that many graduates are literally unemployable at a minimum wage, or at any wage.
- The banking system is insolvent, with many banks unlikely to survive.
- Social Security and Medicare are unsustainable programs that will collapse or have benefits so reduced as to make them virtually unrecognizable.
- Government guarantees of Fannie, Freddie, FHA, and a host of other programs will likely require $2 trillion-plus to honor at taxpayer expense.
- Anything the government touches, it destroys, be it social programs, the post office, Amtrak, education, or (soon to be) the entire credit system, General Motors, student loans, etc. -- and finally, the entire economy.
- The FDIC is in a deep hole from which there is no escape other than additional taxpayer bailouts.
This economic list is off the cuff and not comprehensive. Geopolitical risks, if considered, would produce another frightening list.
The world is headed for a Depression much greater than the 1930s. That is unavoidable at this point. An Economic Dark Age is about to descend on the civilized world. Every welfare state, to avoid failure, will have to cut entitlements and benefits. These solutions will be met with resistance and probably violence. The government model known as democratic socialism is dead. It will be dismantled one way or another. The power elite will not give up their roles willingly.
by all accounts many are already living it. Meanwhile our Vacationer in Chief is building bullet trains? While the family uses the Presidential assets like the brother-in-law of a billionaire. I submit he will vacaton more and spend more (in 4 years) on his family and personal vacations than any prior Presidency regardless of term. The clown is completely disconnected. "Let them eat cake"
ReplyDeleteOne must clearly define 'welfare system'. The popular myth that the poor have been bilking and milking the system of gazillions pales in comparison to what corporations, the military and banks have looted from our nation. Now the same people who have bilked the gov't (Read: we the people) of trillions (Wall St., the big banks, insurance giants) are calling for an end to SS and Medicare. Hmmmm, it's perfectly acceptable for the millionaires to milk the people of the United States for their wealth, but it's not acceptable for the people to have a relatively modest safety net program in place for their own well being. Compared to what Wall St and Banksters have siphoned from the American people, I'll continue to support SS and Medicare. Our financial situation did NOT originate from the greed and larceny of the average Joe, but with those who have perpetrated the largest financial swindle in the history of humanity's time on earth. Oh, yeah, another $8,000,000,000 just 'disappeared' from Iraq - get it yet?
ReplyDeleteI hate how it's okay to screw over human individuals in the name of avoiding socialism, but when banks and corporations screw over the country it's noble.
ReplyDeleteFuck that, I have never taken an entitlement in my life but if my tax money has to go somewhere, I'd rather it help out people in need. From my understanding of people, the vast majority want to work and want to be productive. The jobs just aren't out there right now.
There is no reason why taxes should even be this high. It doesn't take much money for someone to survive in this world, just some housing and some food. If you can't even let people have these "entitlements" you are not a human being. This stuff doesn't take much money either. I bet taxes could be reduced to $5 a week and the government if it ONLY provided relief to those in need could easily cover everyone and then some.
But the government takes tax money and siphons it off to themselves ($800k salaries, high pensions, corporate incentives, contracting jobs, police/fire, etc.). Cops make about $150k in parts of the country, and those are just the regular officers. That job should be a low paying public service job, like most government jobs should be, not highly lucrative money careers.
The government is unsustainable because Wall Street, insurance companies, corporations and the like are corrupt. Not because of some benefits paid out to those that truly need it.
Some homeless guy asked me for money yesterday, I told him to go to social services. He claimed he couldn't get there, I told him to just walk into court (he was right next to it) and ask someone to help.
9:44 and 9:58 You got it right!!!
ReplyDeleteThe Elite, Corporations, Federal Reserve all are leeches upon people.
NOT ONE PENNY of the money Americans pay in Federal Income tax goes towards helping the people. It ALL goes to pay interest on DEBT.
IT IS A FRAUD
The very name FEDERAL RESERVE is a FRAUD
it is not Federal or part of the Government
but a private corporation. It has no Reserves but prints money out of thin air then taxes us at compound interest.
So why do we not just keep the money that we would give to the Federal Reserve and use that money to hep rebuild America without the Federal Reserve.
Meanwhile, Wall street continues to act like they are in their own little world. Over the past few weeks they continue to ignore the bad news/reality and drive the market higher.
ReplyDeleteWhen reality hits in their deluded minds, the market will crash and crash hard!
Sometimes I really believe that writers of stories such as these want it all to collapse because their own lives are miserable and worthless. Most of the readers here did not live in the 70's when things were terrible.
ReplyDelete10:39 the faster the economy collapses the faster we can get back up again. Would you prefer a death by 1000 cuts? Nobody wishes anything bad to happen, but facts are facts.. they're painful. People tend NOT to believe them, it makes life EASIER.
ReplyDeleteWhy can't any of you accept that this is all planned. It's a strategy to concentrate wealth before the Singularity hits. Transhumanism is expensive. If you're poor, you're prohibited from evolving. You're not invited to the Singularity Banquet except, maybe, in the form of roadkill as a novelty dish for those with exotic tastes.
ReplyDelete10:39 the faster the economy collapses the faster we can get back up again.
ReplyDeleteGet back up again? There will be no getting back up again. It's over for you.....and me. But hey, keep believing in that myth if it helps you maintain your insanity.
You are all going to die
ReplyDeleteWhere is that stock market shill? Ride the crashing wave lol lol
ReplyDeleteIt's July the 28th !!!!!!!!!!!!!!!!!!!!!!!
ReplyDeleteIt's July the 28th !!!!!!!!!!!!!!!!!!!!!!
Run, Run, Run for your lives
The sky is falling , the sky is falling
Where are you O great soothsayer and seer of the vast and guarded future.
Your nowhere man !
Just like I said you'd be
Nowhere.
You people need to get a freakin' grip. We all know it's coming - be a boyscout.
NOBODY knows the hour or the day or the month - it'll be here when it gets here - simple as that.
Meanwhile - do us all a big ole fat favor & live a little instead of sittin' around waiting for the end of the world.
12:59 we know you are taunting the readers by ridiculous childlike behavior but the dates are between July 30-Aug 2. So get a grip on yourself act human- like instead baby-like.
ReplyDeleteThe jobs and wages are not comming back due to the following:
ReplyDeleteComputers, wiped out middle management,clerical and many other jobs.
Robotics, reduced assembly line and blue collar jobs.
Cell phone technology, facilitated job exports.
Chemical engineering, diminishing need for farm and other labor.
Free trade, exporting manufacturing to low cost labor countries.
Profit motive, relentless cost and wage suppression.
Immigration, reduces wages by increasing supply.
Increasing taxation, reduces demand for goods and services by destroying income.
National Debt, exports capital to foreign debt holders reducing wealth and labor demand.
Inflation, destroys disposable income and the ability to purchase many goods and services.
Bailouts, rewards fraud, failure, and incompetance and will burden workers with higher taxes.
This list could continue ad infinitum!
When the country does collapse, I sure hope the guys and gals in Iraq and Afghanistan can find a way home.
ReplyDeleteI'm an older citizen, me thinks the younger folk have no future at all, so they will take their strength and anger to the streets and then it's, "burn baby burn".
I would guess banks will be the first to burn, followed by state and federal buildings. Much like the LA Riots, there will be so many fires ablaze that the Fire Department will be spread too thin and some fires will just have to burn themselves out.
Since most of the National Guard is in Iraq and Afghanistan, they won't be here to patrol the streets and most of the cops will be at home defending their families.
In costal states, all those ocean front homes of the rich and famous will also burn. They will die, trying to salvage their expensive art and jewelry and other things not worth dying over.
Now that Congress has stalled or stopped help to the unemployed, it's only a matter of weeks before the unemployed run out of money and food, once this happens, the fireworks will start.
This can't be avoided.
9:44 and 9:58 and 1:13 have it right. Congress just managed to borrow more money (a lot from China) to fund the wars in Iraq and Afghanistan, but they can't find any money to fix our infrastructure or help people in need. Why7 Because war is profitable! That's why the Cat Food Commission is focused on screwing old folks instead of cutting defense spending.
ReplyDeleteA lot of things on the list aren't true. Social Security is okay for another 8 years and would be perfectly fine if Congress would stop stealing the money and leaving us I.O.U.s instead. But our money is going to maintain the American empire: 1000 bases and soldiers in countries around the world, and tons of money for war contractors like Haliburton and Blackwater (or whatever weird name it has now). The Pentagon "misplaced" $2 trillion. And that $8.7 billion that's missing--apparently that is money belonging to the Iraq government and they're going to sue us to get it back! Us, of course, is the American taxpayer. I wonder how they're going to get that money when 20% of us are unemployed?
My parents that went thru the 1930s Depression, had talked to me growing up in the 50s and 60s, about that period of time. I learned from them, and when I retired from the fire service at age 50 as a Capt Fire Investigator, I was reading about what was coming. Being at the beginning of the baby boomer generation, I was lucky to get a job in the fire service (it was expanding rapidly during the 1970s) and retire after 25 years of service. Believe me you dont want an older police or fire guy coming to your rescue, but that is the system. Depressions come about every 70 to 90 years and it is arriving with a vengence. Dont be a doofus and vote any incumbent back into office, on either side of the asile. Vote them all out, oh and get ready for the largest tax increase in history, due to all Obama loving people.
ReplyDeleteHopefully nasa will go belly up, that fake ass program has cost the us taxpayers billions of dollars for what? Not a damn thing, just to make a bunch of billionaires, trillionaires and rob the public.
ReplyDeleteAt some point the apocalypse-induced rage and hysteria emanating from the comments on this site cease have any relation to the current reality,for instance the guy that says he's old and that the young have no future. That is a deeply cynical thing to say, or stupid, or both.
ReplyDeletePeople, life will continue. The course of human history is full of examples of much worse things. The Civil War devastated the South. Hundreds of thousands were dead. All methods of production were wrecked or worn out. Four years of war had wearied their souls. But the people pulled up their socks and went to work. We did not perish. Today Northerners flock down here, Boeing and BMW among others build plants here.
So chill out. Evaluate the down side, make a plan, get ready for a bumpy ride and stop being afraid. Hysteria and anger are symptoms of fear, he-men, so suck it up. Angry? Vote! Hysterical? Prepare! Fear-monger? STFU!
When I walk around the city and talk to people i am shocked at the level of ignorance about our economy, immigration, war, how the fedgov should work and to a large extent about anything that matters. I think they are in willful denial because the truth is just too much to handle. I have been trying to make people aware for 10 years and it is frustrating. I hate to see so many that will suffer so much in the near future. Get ready, stock up at least a little so you are able to stay out of the streets at least a few days or weeks. It will be ugly. It was planned that way.
ReplyDeletewhen the indians an mexicans had this land there were no illegal federal reserve corporation,. if we are gonna keep a money oriented society then the future would give every man and woman 10,000 dollars annually and 10000 to
ReplyDeleteeach woman who has an operation to prevent more kids ,and if someone wants more money then they would be able to open an
enterprising business ----more later
what do you want
ReplyDeleteThe REAL unemployment rate is close to 22% now.
ReplyDeleteThe SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated “discouraged workers” defined away during the Clinton Administration added to the existing BLS estimates of level U-6 unemployment.
Many posting here have shown WHY this won't get fixed. Everyone seemes to believe we can continue to pay 50 million welfare recipients and 15 million government workers and life will be fine. And of course punish those corporations that actually employ people. And THAT in a nutshell is why we will have a long and severe depression.
ReplyDeleteThe correct answer is for each level of government to get rid of unnecessary departments and people. I mean in a big way, perhaps even half the employees. Imagine how much money your state or city can save if it eliminates half their employees. But we won't, we will continue to borrow money, raise taxes, print money until the mountain of debt destroys us. Then we will get someone like Obama or FDR in office who will continue to do all the wrong things making the depression last a decade or more. Imagine the next decade with no jobs, no money, no unemployment, no welfare, no nuthin!!! Good luck! Keep voting those socialist into office...
francismarion is it fun living in a make believe dream world your entire life? You honestly think that everything lasts forever and never ever dies, collapses, disintegrates? When the economy slowly collapses as it is doing, will you be the last dummy standing, blowing out those fairy land statements?
ReplyDelete7:47,
ReplyDeleteit is funny how people like 10:39 and Francismarion have the world keeps turning mentality.
Civilizations have died like this constantly throughout history - this country is crashing fast. The only people who can't see it are those too afraid of the dark to look or those on some kind of stupor (drugs, T.V).
They laugh at the idea of a collapse or say those who believe it are pessimistic or depressed. Ironically it is their ONLY hope for a future with life in it!
I guess people would prefer living on myspace than help build the structure of a new nation, This one is gasping for its last breath regardless of what airheads-in-denial like them will tell you.
Like the Jews that stood around laughing at the other Jews who were warning them to flee Europe -their fate is sealed at this point.
Dealing with this slow decline into oblivion while being a job casualty in this economy has been hell. 700+ resumes and job searches in 5 states have proved fruitless. If things are gonna crash anyway, I wish it would just happen already.
ReplyDeleteWe need to invest in the space program so my Great, Great Grandchildren children do not get annihilated by the coming asteroid.
ReplyDeleteThey are dismantling the sleeping middle class. More and more people are becoming poor. We are their cattle. We are being bred for slavery.
ReplyDeleteWhat's wrong with having it good for a change? Now they're gonna let us have it good if we just help 'em. They're gonna leave us alone, let us make some money. You can have a little taste of that good life too. Now, I know you want it. Hell, everybody does.
ReplyDeleteJust an update on how broke we are: I went to the weekly flea market in a rural NE PA area. The dealers told me that people aren't spending money, not even on second-hand stuff. Previously buyers would part with several dollars--now they are reluctant to spend even 50 cents!
ReplyDeleteBecause business was so bad, I found a number of buyers very willing to negotiate prices. It seems that people are getting more desperate, so it's the same old story: if you have money then you can take advantage of the situation. Kind of like the U.S. selling its resources and property to the highest bidder. I just know the next governor of PA will try to privatize the roads and sell our buildings for a quick buck--but it's the taxpayers who will still get stuck with the bill. I've been furious with Congress for years, and a lot of people feel the same way. That's why we see so much talk about revolution.
I don't know why you nuts think we will have an economic crash. It's not like we have ever experienced one before? I am confident that the anointed one will tax and spend us back to prosperity. After all it is not as though keynesian economics was a fraud invented to create the conditions necessary to force the citizens to vote for Marxist socialism. Don't worry, Obama knows what he is doing. Heh! heh! heh!!!
ReplyDeleteI dont know why you nuts think we will have a crash, all homes are filled, there are millions of jobs everywhere I look, everyone is rich and happy, everything is going so great, what is wrong with you nuts?
ReplyDeleteThere is only one rule.It has nothing to do with
ReplyDeletepolitics,religion,ethics,morals,economics,etc.It is:BE CAREFUL WHO YOU PISS OFF.Especially if there are many of them.
Wall Street is either simply insane or inextricably deceptive, the latter I believe the case. The stark and very real economic data on the housing, debt, and employment fronts (and one could go on and on in this regard: it’s not TALK of doom and gloom, IT IS doom and gloom!) is frightening, but even when you turn on the Nightly Business Report on PBS, it’s valium for the dumbed-down investor. This idea the stock market is a leading indicator is so far gone as to be a joke. The markets aren’t even realizing the tip of the iceberg of the macro economic reality, and I fear really hard times are on the way, as if they weren’t hard enough. This idea that talking heads can talk-up an economy, by propaganda meant to instill confidence, to put it simply, does not pay the mortgage or put food on the table. If you’re long the stock market, you better look out for reality!
ReplyDelete