What is truth?

Posts tagged ‘Great Depression’

Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds

f you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer.  As I write this, the price of U.S. oil is sitting at $45.76 a barrel.  It has fallen by more than 60 dollars a barrel since June.  There is only one other time in history when we have seen anything like this happen before.  That was in 2008, just prior to the worst financial crisis since the Great Depression.  But following the financial crisis of 2008, the price of oil rebounded fairly rapidly.  As you will see below, there are very strong reasons to believe that it will not happen this time.  And the longer the price of oil stays this low, the worse our problems are going to get.  At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before.  So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead.  Because if not, the price of oil is going to absolutely rip the global economy to shreds.

What amazes me is that there are still many economic “experts” in the mainstream media that are proclaiming that the collapse in the price of oil is going to be a good thing for the U.S. economy.

The only precedent that we can compare the current crash to is the oil price collapse of 2008.  You can see both crashes on the chart below…

Boom Goes The Dynamite: The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds.

Kondratieff_Waves_and_the_Greater_Depression_of_2013

By Christopher M. Quigley

There are very few heroes in economics but for me one of the patron saints of that profession should be Nikolai Kondratiev who was shot by firing squad on the orders of Stalin in 1938. He died for what he believed was the truth. His execution was ordered because his academic work propounded that the capitalist system would not collapse as a result of the great depression of 1929. This truth Stalin did not want to hear, thus Nikolai was exterminated and his work suppressed for over two decades.

full article here in PDF : Kondratieff_Waves_and_the_Greater_Depression_of_2013

Social Credit

By Christopher M. Quigley B.Sc., M.M.I.I. Grad., M.A.
“Banking and credit are too important a business for citizens and politicians to be ignorant of. Upon its fair and equitable administration rests the very existence and future of our society”.
Every society has its orthodoxy. But there comes a time when the “accepted  view” no longer functions. When this occurs it is time for change. The  movement of stars told Galileo that the earth centred Universe was  wrong. The relative inner stability of two moving trains told Einstein  that Newton and Euclid were wrong. The current Sub-Prime credit crisis  is an indication that the orthodox concept of banking and credit is  wrong.
This is not the first time that the failings of the  accepted “credit concept” were identified as being erroneous in an  increasingly technologically efficient world. The great depression of  1929 also gave the same signal. However instead of dealing with the  cause only the symptoms were addressed. Accordingly, another world war  ensued and through “sticking plaster” policy modifications we bungled on for another 80 years. Now, once again, the dormant “error” has become  virulent and threatens the whole.

The disease within the economic body  was diagnosed successfully in the early 1900’s and a solution was  prescribed but ignored. The same remedy will work today but its  successful application requires a “Copernican” change in economic  conceptional modalities. The world was not ready then. Is it ready now?  The cure is called: “Social Credit”.
Due to developments in  technology and technique the age old problems of production and scarcity have been all but solved, the issue now is one of distribution. Money  creates effective demand and orthodox banking and accounting rules makes money scarce. This state of affairs if allowed to continue will result  in:
1. Surplus production due to efficiencies
2. Consequent unemployment and under-employment resulting in effective demand destruction
3. Poverty due to lack of purchasing power
4. Redundant industrial machinery
5. Consequent cut-throat competition
6. Disappearance of industrial profits
7. Consequent business bankruptcy and depression
8. Aggressive competition for foreign markets
9. Consequent international friction and war
In order to prevent the above constantly recurring, as in 1929 and now  with the sub-prime crisis, it is necessary to change our orthodox view  of economics. WE MUST MOVE FROM AN OUT-DATED MINDSET. This does not  require a revolution in society it simply requires a revolution in our  consciousness. However the elite who control the ownership of the  “orthodox” credit myth will not allow acceptance of this alternative  knowledge because to do so will weaken their system of management and  domination. However truth is an amazing thing. Slowly but surely, like a seed whose hibernation is over, the practicality and human goodness of  the concept of Social Credit is germinating. But it needs aware and  dedicated followers to nurture this growth.

MONEY MUST NOT BE REGARDED  AS A COMMODITY.  IT IS IN ESSENCE A MEANS OF DISTRIBUTION OF SOCIAL  PRODUCTIVE CAPACITY. AS A RAILWAY TICKET IS TO A TRAIN NETWORK THE  DOLLAR BILL IS TO THE ECONOMIC SYSTEM. THE OBJECTIVE IS NOT TO OWN ALL  THE TICKETS BUT TO HAVE A RAILWAY SYSTEM THAT SERVES THE FUNCTION OF  MOVING PEOPLE AND GOODS. Through our ignorance of banking and credit,  politicians have allowed an elite professional group corner the market  for “railway tickets” and thus control the “transport network”.
For the current economic crisis to be finally resolved the realisation must sink in that BANKING IS NOT SIMPLY AN AVERAGE BUSINESS LIKE ANY OTHER.  On the contrary, upon its fair and equitable administration rests the  very existence and future of our society. Banking and credit are too  important a “business”  for citizens and politicians to be ignorant of.  To deal with this matter we must, to use the words of President Obama:  “up our game” or perish.
The word credit comes from the Latin  word “CREDERE”, meaning “TO BELIEVE”. The essential quality of money,  therefore, is the belief that one can get what one wants when one  possesses it; THUS MONEY IS A SOCIAL CONTRACT BASED ON TRUST AND MUTUAL  BENEFIT. Since credit is a function of money it follows, axiomatically,  that CREDIT IS A SOCIAL CONTRACT ALSO. A society cannot allow a  particular grouping to have a monopoly on the functioning of this social contract because ultimately this group could end up monopolising all  contracts. If you own the contracts you will end up owning society.

The central problem which Social Credit addresses is the negative  consequences resulting from the increasing use of capital in manufacture and distribution. This drive towards capital intensification brings  efficiency but it decreases the requirement for labour. With the loss,  or through the down-grading, of “jobs”, the trend is for higher  unemployment and/or under-employment. With under-employment there is  less purchasing power in the economy thus the true potential capacity of modernity cannot be attained because there is no effective demand,  since desire without money is meaningless in our system.
Social  Credit strives to solve this spiral of lower employment, lower wages,  recession and depression by increasing effective demand in the system by generating societal purchasing power. Purchasing capability is  increased through a social dividend and the adjustment of prices. It  also proposes that the ownership of credit reside with the society  rather than with a monopoly group.

Thus excess reserves owned by credit  institutions, over a certain minimum to allow their sustained and stable operation, are systematically issued to society. Social Credit believes in banking but does not accept monopoly ownership of credit and legal  tender. The objective of such policies are as follows:
1. Money is no longer a commodity controlled by banks
2. Credit is no longer a social contract controlled by banks
3. Boom and bust credit cycles are negated
4. Increased stable purchasing power allows for effective distribution of goods and services. This stability allows better long term decisions to be made by entrepreneurs about the  economy.
5. Increased demand for goods and services boosts an economy centred on smaller community  based businesses.
6. Corporatism diminishes
7. Unemployment and under-employment are seen as opportunities for freedom to develop since  citizens are able to function in the economic system  through receipt of social dividends. Due to a  change in the “zeitgeist” time is no longer equated to work in order to obtain legal tender.
8. Speculation diminishes due to the non availability of “commodity”  credit and a real  economy, rather than a gambling economy, flourishes.
9. Government down-sizes due to the diminished availability of monetised debt.
Many folk have attacked these objectives as idealist or socialist. They are  wrong. In fairness these objectives are based more on community than the commune. But that is the point. Social Credit strives to reaffirm the  supremacy of human association rather than abstract institutionalism.   Capitalism, under our current banking arrangements, and communism  /socialism are all “Cesarist” theories of society; they end in monopoly  ownership of everything. This monopoly results in the “state” or “core  political group” being master of the individual. As a result community  dies and corporatism thrives. The philosophy of Social Credit is the  exact opposite. It believes in the individual and it aspires to provide  the individual with as much freedom as possible. It acknowledges that  the STATE SHOULD EXIST TO SERVE THE INDIVIDUAL ; NOT THE OTHER WAY  ROUND.  Social Credit therefore rejects the dialectic materialism of  capitalism/communism/socialism; and accepts grace.

As this  sub-prime crises festers and invades the social, economic and political  body I hope that more and more like minded people will become focused,  educated and aware. There is no more important goal in life than  actively participating in the growth and development of one’s spirit,  one’s family, one’s community and one’s nation.  “Banking and credit are too important a business for citizens and politicians to be ignorant  of. To deal with this matter we must, to repeat, up our game or perish”.
References:
“Economic Democracy” Major C. H. Douglas Bloomfield books
“Aladdin’s Lamp: The Wealth of the American People” Gorham Munson Creative Age Press: New York
New Zealand Government’s Monetary Committee Notes of Evidence and Correspondence Wellington,  24th. February 1934

Going for Gold

By David Mc Williams

Last Friday’s Financial Times contained an article which suggested that the Republican Party is seriously thinking of returning the US to the gold standard, and that it will discuss this idea at the annual party convention in Tampa this week.
Many people will react to this radical idea by asking if the Republicans have learned anything at all from history. But do they actually have a point?
Surely anyone with a grasp of economic history knows that strict adherence to the gold standard, with the balanced budget mantra, at a time of asset price deflation in the early 1930s exacerbated the recession, which morphed into the Great Depression. But is the case as open and shut as that?
While the lessons of that era are reasonably well accepted, there are also those who will rightly point out that, whatever about the 1930s, anyone with a grasp of recent economic history can see that the massive quantitative easing of the past five years has had little or no effect, other than facilitating a massive increase in the US’s national debt.

full article at source: http://www.davidmcwilliams.ie/2012/08/27/going-for-gold

Now IMF Seeks Collective, World Bail-Out of Europe

IMF wants the world to save Europe … Christine Lagarde, the managing director of the IMF, said the escalating crisis now needed to be addressed as “collectively as possible” … The European financial crisis is “escalating” and is so serious that it is unlikely to be solved by eurozone countries alone, the head of the International Monetary Fund warned Thursday night. British taxpayers are now likely to be involved in an internationally co-ordinated bail-out led by the International Monetary Fund [IMF] for countries in the single currency. Christine Lagarde, the managing director of the IMF, said the escalating crisis now needed to be addressed as “collectively as possible”. Without action, the world faces the spectre of a 1930s-style depression, she said. – Montreal Gazette/UK Telegraph

full article at source:http://www.thedailybell.com/3356/Out-of-Chaos-Order-Now-IMF-Seeks-Collective-World-Bail-Out-of-Europe

BIS Calls for Hyperinflationary Depression?

By the Daily Bell

The Bank for International Settlements Sunday issued an oblique endorsement of coordinated action by the world’s largest central banks to ease funding conditions for banks. “A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner,” the BIS wrote in its regular quarterly report.” – MarketWatch

Dominant Social Theme: Inflate! And everything will work out.

Free-Market Analysis: We’ve already indicated that we believe the Anglosphere power elite is attempting to create a kind of Great Depression in order to ease the path of world government. This squib of an article in MarketWatch (excerpted above) – unnoticed by most of the mainstream press – only reconfirms our impression.

It endorses recent “coordinated” central banking loosening. But it does more: “A freezing of interbank markets in major funding currencies, as during the recent crisis, may require the ability to supply official liquidity in major currencies in an elastic manner.”

Think about that. The BIS, whatever it is, is all for printing lots of money. And the BIS is no small-time trade group. It is perhaps the most powerful (and least known) global business body in the world. Its mysteries are manifold. its workings are well-hidden.

Of course, somebody actually set up the Bank for International Settlements in the late 1930s. And since then someone has set up or helped set up about 200 central banks around the world, many of them reporting directly to the BIS.

full article at source :http://www.thedailybell.com/3339/BIS-Calls-for-Hyperinflationary-Depression

The Lesser Depression

By

Fred R. Conrad/The New York Times

These are interesting times — and I mean that in the worst way. Right now we’re looking at not one but two looming crises, either of which could produce a global disaster. In the United States, right-wing fanatics in Congress may block a necessary rise in the debt ceiling, potentially wreaking havoc in world financial markets. Meanwhile, if the plan just agreed to by European heads of state fails to calm markets, we could see falling dominoes all across southern Europe — which would also wreak havoc in world financial markets

We can only hope that the politicians huddled in Washington and Brussels succeed in averting these threats. But here’s the thing: Even if we manage to avoid immediate catastrophe, the deals being struck on both sides of the Atlantic are almost guaranteed to make the broader economic slump worse.

In fact, policy makers seem determined to perpetuate what I’ve taken to calling the Lesser Depression, the prolonged era of high unemployment that began with the Great Recession of 2007-2009 and continues to this day, more than two years after the recession supposedly ended.

Let’s talk for a moment about why our economies are (still) so depressed.

The great housing bubble of the last decade, which was both an American and a European phenomenon, was accompanied by a huge rise in household debt. When the bubble burst, home construction plunged, and so did consumer spending as debt-burdened families cut back.

Everything might still have been O.K. if other major economic players had stepped up their spending, filling the gap left by the housing plunge and the consumer pullback. But nobody did. In particular, cash-rich corporations see no reason to invest that cash in the face of weak consumer demand.

Nor did governments do much to help. Some governments — those of weaker nations in Europe, and state and local governments here — were actually forced to slash spending in the face of falling revenues. And the modest efforts of stronger governments — including, yes, the Obama stimulus plan — were, at best, barely enough to offset this forced austerity.

So we have depressed economies. What are policy makers proposing to do about it? Less than nothing.

The disappearance of unemployment from elite policy discourse and its replacement by deficit panic has been truly remarkable. It’s not a response to public opinion. In a recent CBS News/New York Times poll, 53 percent of the public named the economy and jobs as the most important problem we face, while only 7 percent named the deficit. Nor is it a response to market pressure. Interest rates on U.S. debt remain near historic lows.

Yet the conversations in Washington and Brussels are all about spending cuts (and maybe tax increases, I mean revisions). That’s obviously true about the various proposals being floated to resolve the debt-ceiling crisis here. But it’s equally true in Europe.

On Thursday, the “heads of state or government of the euro area and the E.U. institutions” — that mouthful tells you, all by itself, how messy European governance has become — issued their big statement. It wasn’t reassuring.

For one thing, it’s hard to believe that the Rube Goldberg financial engineering the statement proposes can really resolve the Greek crisis, let alone the wider European crisis.

But, even if it does, then what? The statement calls for sharp deficit reductions “in all countries except those under a programme” to take place “by 2013 at the latest.” Since those countries “under a programme” are being forced into drastic fiscal austerity, this amounts to a plan to have all of Europe slash spending at the same time. And there is nothing in the European data suggesting that the private sector will be ready to take up the slack in less than two years.

For those who know their 1930s history, this is all too familiar. If either of the current debt negotiations fails, we could be about to replay 1931, the global banking collapse that made the Great Depression great. But, if the negotiations succeed, we will be set to replay the great mistake of 1937: the premature turn to fiscal contraction that derailed economic recovery and ensured that the Depression would last until World War II finally provided the boost the economy needed.

Did I mention that the European Central Bank — although not, thankfully, the Federal Reserve — seems determined to make things even worse by raising interest rates?

There’s an old quotation, attributed to various people, that always comes to mind when I look at public policy: “You do not know, my son, with how little wisdom the world is governed.” Now that lack of wisdom is on full display, as policy elites on both sides of the Atlantic bungle the response to economic trauma, ignoring all the lessons of history. And the Lesser Depression goes on.

The U.S. economy is dying

Economic Collapse blog  writes:

The U.S. economy is dying and we are heading for the next Great Depression. The talking heads in the mainstream media love to spin the economic numbers around and around and they love to make it sound like the economy is improving, but the truth is that it doesn’t take a genius to see what is happening to the U.S. economic system. All over the nation many of our greatest cities are being slowly but surely transformed into post-apocalyptic wastelands. All over the mid-Atlantic, all along the Gulf coast, all throughout the “rust belt” and all over the entire state of California cities that once had incredibly vibrant economies are being turned into rotting, post-industrial hellholes. In many U.S. cities, the “real” rate of unemployment is over 30 percent. There are some communities that will start depressing you almost the moment that you drive into them. It is almost as if all of the hope has been sucked right out of those communities. If you live in one of those American hellholes you know what I am talking about. Sadly, it is not just a few cities that are becoming hellholes. This is happening in the east, in the west, in the north and in the south. America is literally being transformed right in front of our eyes.

If you still live in an area of the United States that is prosperous, do not mock the cities that you are about to read about. The cold, hard reality of the matter is that economic decline and economic despair are spreading rapidly and they will come to your area soon enough. Right now we are still talking about “American hellholes”, but if the long-term economic trends that are destroying this nation are not turned around eventually we will just be talking about one gigantic “American hellhole”. In the end, no area of the country will completely escape the economic hell that is coming.

Let’s take a closer look at what is currently happening in some of the worst areas of the country….

Detroit, Michigan

In the city of Detroit today, there are over 33,000 abandoned houses, 70 schools are being permanently closed down, the mayor wants to bulldoze one-fourth of the city and you can literally buy a house for one dollar in the worst areas.

During the boom days of the 1950s, Detroit was a teeming metropolis of approximately 2 million people, but today the current population is less than half that. The city of Detroit, once a shining example of middle class America, is now a rotting cesspool of economic decline and it actually saw its population decline by 25 percent during the decade that recently ended. According to the U.S. Census Bureau, Detroit lost a resident every 22 minutes between the years of 2000 and 2010.

So why are people leaving Detroit so rapidly?

There simply are no jobs.

At the height of the economic downturn, the mayor of Detroit admitted that while the “official” unemployment rate in Detroit was about 27 percent, the “real” unemployment rate in his city was actually somewhere around 50 percent.

Since there are not enough jobs, that also means that not enough tax money is coming in. Detroit is essentially insolvent at this point.

Detroit officials are trying to implement some austerity measures in a desperate attempt to get city finances under control.

For example, the state of Michigan recently granted approval to a plan that would shut down nearly half of the public schools in Detroit. Under the plan, 70 schools will be closed and 72 will continue operating.

It has been estimated that the remaining public schools will have class sizes of up to 60 students.

Detroit Mayor Dave Bing also wants to cut off 20 percent of the entire city from police and trash services in order to save money.

Essentially that would mean abandoning 20 percent of the city of Detroit to the gangs and to the homeless.

The mayor of Detroit has also discussed a plan in which authorities would bulldoze one-fourth of the city in order to save money on services.

So with all of this going on, is Detroit a pleasant place to live at this point?

No way.

Today, Detroit is considered to be the third most violent city in the United States.

In fact, crime has gotten so bad and the citizens are so frustrated by the lack of police assistance that they have resorted to forming their own organizations to fight back. One group, known as “Detroit 300”, was formed after a 90-year-old woman on Detroit’s northwest side was brutally raped in August.

If you want to see what the future of America looks like, just take a few hours and go driving through Detroit some time. But please only do this during the day. Do not do this at night. Detroit is not a safe place anymore, and you cannot count on the police to help you in a timely manner.

Detroit was once one of the greatest cities in the world.

But today it is an absolute hellhole.

Camden, New Jersey

So is there any place in America that is worse than Detroit?

Well, many would nominate Camden, New Jersey.

Many years ago, Camden was actually thriving and prosperous. But today the city of Camden is known as “the second most dangerous city in America”.

In a recent article entitled “City of Ruins”, Chris Hedges did an amazing job of documenting the horrific decline of Camden. Hedges estimates that the real rate of unemployment in Camden is somewhere around 30 to 40 percent, and he makes it sound like nobody in their right mind would want to live there now….

Camden is where those discarded as human refuse are dumped, along with the physical refuse of postindustrial America. A sprawling sewage treatment plant on forty acres of riverfront land processes 58 million gallons of wastewater a day for Camden County. The stench of sewage lingers in the streets. There is a huge trash-burning plant that releases noxious clouds, a prison, a massive cement plant and mountains of scrap metal feeding into a giant shredder. The city is scarred with several thousand decaying abandoned row houses; the skeletal remains of windowless brick factories and gutted gas stations; overgrown vacant lots filled with garbage and old tires; neglected, weed-filled cemeteries; and boarded-up store fronts.

Gangs have stepped into the gaping void left by industry. In Camden today, drugs and prostitution are two of the only viable businesses left – especially for those who cannot find employment anywhere else. The following is how Hedges describes the current state of affairs….

There are perhaps a hundred open-air drug markets, most run by gangs like the Bloods, the Latin Kings, Los Nietos and MS-13. Knots of young men in black leather jackets and baggy sweatshirts sell weed and crack to clients, many of whom drive in from the suburbs. The drug trade is one of the city’s few thriving businesses. A weapon, police say, is never more than a few feet away, usually stashed behind a trash can, in the grass or on a porch.

But before we all start judging Camden for being such a horrible place to live, it is important to realize that this is happening in communities from coast to coast. All over the United States industries are leaving and deep social decay is setting in.

Even the criminals in Camden are struggling. Things have gotten so bad in Camden, New Jersey that not even the drug dealers are spending their money anymore.

So where are the police?

Unfortunately, there is very little money for police. Authorities in Camden recently decided to lay off half of the city police force.

So now the gangs and the drug dealers have more room to operate.

Sadly, this is not just happening in Camden. It is happening all over New Jersey.

Of 315 municipalities the New Jersey State Police union recently surveyed, more than half indicated that they were planning to lay off police officers.

So why doesn’t the state government step in and help out?

Well, the state of New Jersey is in such bad shape that they still are facing a $10 billion budget deficit for this year even after cutting a billion dollars from the education budget and laying off thousands of teachers.

New Jersey also has $46 billion in unfunded pension liabilities and $65 billion in unfunded health care liabilities. Nobody is quite sure how New Jersey is even going to come close to meeting those obligations.

Meanwhile, cities like Camden are rotting a little bit more every single day.

New Orleans, Louisiana

New Orleans had a struggling economy even before Hurricane Katrina struck back in 2005. But that event changed everything. It is now almost 6 years later and virtually the entire region is still a disaster zone.

New Orleans permanently lost 29% of its population after Hurricane Katrina. There are many areas of New Orleans that still look as if they have just been bombed.

21.5 percent of all houses in New Orleans, Louisiana are currently standing vacant. Many of those homes will never be inhabited again.

What made things even worse for New Orleans (and for residents all along the Gulf coast) was the horrific BP oil spill last year. The mainstream news does not talk about the oil spill much anymore, but those living in the area have to deal with the effects every single day.

Some of the industries in the Gulf region were really starting to recover from Hurricane Katrina but the BP oil spill put a stop to that.

Before the oil spill, Louisiana produced more fish and seafood than anywhere in the United States except for Alaska. But now the seafood industry has been absolutely devastated. It has been estimated that the cost of the BP oil spill to the fishing industry in Louisiana alone could top 3 billion dollars.

Some local shrimpers in the region are projecting that it will be about seven years before they can set to sea again.

New Orleans keeps trying to bounce back from all of these disasters, but times are tough down there.

Today, New Orleans is the 13th most violent city in America. That is actually an improvement. Before Katrina New Orleans had even more violent crime.

The truth is that other areas along the Gulf coast are doing a lot worse than New Orleans is doing. A ton of big corporate money has flowed into New Orleans. Officials are trying to clean up the city and make it a huge tourist destination once again.

But in the surrounding areas things are not looking so bright. There are areas along the coasts of Louisiana, Mississippi, Alabama and the panhandle of Florida that are some of the most depressing places in the nation.

It is almost as if there are hundreds of thousands of people that time forgot. In some rural areas along the Gulf coast the poverty is absolutely mind blowing. There are very few jobs and there is very little hope. Meanwhile, large numbers of people in the region continue to get sick from the toxic dispersants used to clean up the oil spill.

Let us hope that we don’t see another major disaster in the Gulf of Mexico any time soon. As it is, it is going to take decades for that region to fully recover. There are a lot of really good people that live down there, and they deserve our prayers.

Vallejo, California (And Virtually The Rest Of The State Of California)

Almost the entire state of California is an economic disaster zone. Austerity measures are being implemented in city after city as tax revenues have nosedived.

The following is an excerpt from a recent New York Times article that describes the brutal austerity that has been implemented in Vallejo, California….

Vallejo is still in bankruptcy. The police force has shrunk from 153 officers to 92. Calls for any but the most serious crimes go unanswered. Residents who complain about prostitutes or vandals are told to fill out a form. Three of the city’s firehouses were closed. Last summer, a fire ravaged a house in one of the city’s better neighborhoods; one of the firetrucks came from another town, 15 miles away. Is this America’s future?

Sadly, that is what the future of America is going to look like. Public services are being slashed all over the nation due to budget crunches.

Unless there is a major jobs recovery, the situation in California is going to continue to degenerate. The truth is that the state of California needs millions and millions of new jobs just to get back to “normal”. For example, near the end of last year it was reported that 24.3 percent of the residents of El Centro, California were unemployed. Not only that, as of the end of last year the number of people unemployed in the state of California was approximately equivalent to the entire populations of Nevada, New Hampshire and Vermont combined.

Businesses are closing in California at an astounding pace. At one point last year it was reported that in the area around Sacramento, California there was one closed business for every six that were still open.

As a result of all of this, home prices in many areas of California have completely fallen off a cliff. For example, the average home in Merced, California has declined in value by 63 percent over the past four years.

California also had more foreclosure filings that any other U.S. state in 2010. The 546,669 total foreclosure filings during the year means that over 4 percent of all the housing units in the state of California received a foreclosure filing at some point during 2010.

Sadly, things don’t look like they are going to turn around in California any time soon. Forbes recently compiled a list entitled “Cities Where The Economy May Get Worse”.

Six of the top seven spots were held by cities in California.

California is becoming a very frightening place. When you combine high unemployment with unchecked illegal immigration what you get is rampant poverty.

20 percent of the residents of Los Angeles County are now receiving public aid of one form or another.

In particular, the number of children that are considered to be in need of public assistance is truly scary.

Incredibly, 60 percent of all the students attending California public schools now qualify for free or reduced-price school lunches.

Poverty and illegal immigration have also caused a tremendous health care crisis in the state. The hordes of illegal aliens taking advantage of “free” medical care at hospital emergency rooms have caused dozens of hospitals across the state of California to completely shut down. As a result, the state of California now ranks dead last out of all 50 states in the number of emergency rooms per million people.

The bozos in Sacramento keep passing hundreds of new laws in an attempt to “fix” the state, but the truth is that for the poorest residents of the state all of those new laws don’t make a shred of difference.

The following is how Victor Davis Hansen describes what he saw during his recent tour of the “forgotten areas of central California”….

Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World . There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business – rigid zoning laws, strict building codes, constant inspections – but apparently none of that applies out here.

Hansen also says that he observed that people in these areas are doing whatever they can to get by….

At crossroads, peddlers in a counter-California economy sell almost anything. Here is what I noticed at an intersection on the west side last week: shovels, rakes, hoes, gas pumps, lawnmowers, edgers, blowers, jackets, gloves, and caps. The merchandise was all new. I doubt whether in high-tax California sales taxes or income taxes were paid on any of these stop-and-go transactions.

In two supermarkets 50 miles apart, I was the only one in line who did not pay with a social-service plastic card (gone are the days when “food stamps” were embarrassing bulky coupons).

Are you frightened yet?

You know what they say – “as goes California, so goes the nation”.

What is happening in California now is eventually going to come to your area.

Right now California is also having a huge problem with gangs. Gang violence in America is getting totally out of control. According to authorities, there are now over 1 million members of criminal gangs operating inside the country, and those gangs are responsible for up to 80% of the violent crimes committed in the U.S. each year.

But instead of ramping up to fight crime and fight illegal immigration, police forces all over California are being cut back.

For example, because of extreme budget cuts and police layoffs, Oakland, California Police Chief Anthony Batts has announced that there are a number of crimes that his department simply will no longer respond to due to a lack of resources. The following is a partial list of the crimes that police officers in Oakland will no longer be responding to….

•burglary
•theft
•embezzlement
•grand theft
•grand theft: dog
•identity theft
•false information to peace officer
•required to register as sex or arson offender
•dump waste or offensive matter
•loud music
•possess forged notes
•pass fictitious check
•obtain money by false voucher
•fraudulent use of access cards
•stolen license plate
•embezzlement by an employee
•extortion
•attempted extortion
•false personification of other
•injure telephone/power line
•interfere with power line
•unauthorized cable tv connection
•vandalism
Not that Oakland wasn’t already a mess before all this, but now how long do you think it will be before total chaos and anarchy reigns on the streets of Oakland?

Today, Oakland is considered the 5th most violent city in the United States.

Will it soon become the most violent?

But Oakland is not the only major California city that is facing these kinds of issues.

Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”

Already the police force in Stockton has been stripped down to almost nothing.

A while back, the Stockton Police Department dropped this bombshell….

“We absolutely do not have any narcotics officers, narcotics sergeants working any kind of investigative narcotics type cases at this point in time.”

Do you think drug dealers will be flocking to Stockton after they hear that?

California was once the envy of the world.

Now it is becoming one gigantic hellhole.

During one recent 23 year period, the state of California built 23 prisons but just one university.

So is there any hope for California?

No, unfortunately there is not.

In another article, I wrote about some of the reasons why millions of people have been leaving California for good….

Meanwhile, the standard of living in California is going right into the toilet. Housing values are plummeting. Unemployment has risen above 20 percent in many areas of the state. Crime and gang activity is on the rise even as police budgets are being hacked to the bone. The health care system is an absolute disaster. At this point California has the fewest emergency rooms per million people out of all 50 states. While all of this has been going on, the state legislature in Sacramento has been very busy passing hundreds of new laws that are mostly about promoting one radical agenda or another. The state government has become so radically anti-business that it is a wonder that any businesses have remained in the state. It seems like the moving vans never stop as an endless parade of businesses and families leave California as quickly as they can.

But this is not just a “California thing”. The truth is that what is happening in California, in Detroit, in Camden and in hundreds of other communities is also going to happen where you live.

The U.S. economy is slowly dying. Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in U.S. history.

People are getting desperate. There are ten percent fewer middle class jobs than there were a decade ago and the competition for good jobs has become insane. More than 44 million Americans are now on food stamps and that number grows every single month. Millions more American families fall into poverty every single year.

It is time to face the truth about what is happening to America. Our economy is not growing and becoming stronger. Rather, the cold, hard reality of the matter is that our economy is very sick and it is dying. The seemingly boundless prosperity that we have enjoyed for decade after decade is coming to an end. Our communities are being transformed into absolute hellholes.

Those that are telling you that the U.S. economy will soon be better than ever are lying to you. The U.S. economy is going to go down and it is going to go down hard.

You better get ready.

Read more at  The Economic Collapse Blog

By Chris Kitze

Yes, tax the Super Rich. Tax them now.

SAN LUIS OBISPO, Calif. (MarketWatch) — Yes, tax the Super Rich. Tax them now. Before the other 99% rise up, trigger a new American Revolution, a meltdown and the Great Depression 2. Revolutions build over long periods — to critical mass, a flash point. Then they ignite suddenly, unpredictably. Like Egypt, started on a young Google executive’s Facebook page. Then it goes viral, raging uncontrollably. Can’t be stopped. Here in America the set-up is our nation’s pervasive “Super-Rich Delusion.” U.K. workers protest turns violentA splinter group is blamed for smashing windows and attacking police vans as tens of thousands march against government cuts. We know the Super Rich don’t care. Not about you. Nor the American public. They can’t see. Can’t hear. Stay trapped in their Forbes-400 bubble.

read the rest of this article at source :http://www.marketwatch.com/story/tax-the-super-rich-now-or-face-a-revolution-2011-03-29

This call would never be considered here in Ireland .But we will get to this stage a lot sooner if the government continue to pour the rest of our national wealth down the toxic toilets that are our banks .

Tag Cloud