This is not as far fetched as you would think! At some point in the near future no one will lend the Federal government any more money. In 8 full years Bush added 4.9 Trillion to the debt. In 5 years and 8 months Obama added 7.2 Trillion to the national debt. On January 2001 the national debt was only 54.3% of the GDP today it is over 100% and climbing — we have been living on borrowed money since 9/11 and at some point those that have lent the money will want to be paid back!
Tag Archives: financial ponzi schemes
Obama’s Unemployment Rate Is 5.9% ~ But 5.9% Of What?: 29% Of U.S. Labor Population Out Of Work And Out Of Labor Force!
The following re-post shows the facts and figures of what is happening in our counter as Obama and his appointed minions “Fundamentally Transform” the country into their vision of what it should be. The next result of 6 years of this has been to shift large percentages of the middle class out of the work force and its worse than what is presented here as the BLS reports do not count self employed or military jobs both of which tend to the higher side in the middle class.
The bottom line is that there are fewer and fewer jobs in the middle class which as this post suggests those people have either gone on welfare or taken early retirement. That means that few and fewer “workers” that pay taxes are going to be forced to take care of more and more people that are not working.Using BLS figures, as of last month, only 46.0% of the population of the united states was holding a job. 6 years ago that was 48.5% of the population which means that we are short at least 8.0 million jobs right now.
Fast food protesters to be hit with massive job losses when Obama grants amnesty in November
As most any competent economist will tell you minimum wages do nothing for the beginning or low end workers. If yo raise the $8 worker to $15 then all those between $8 and $15 will demand increases and those from $15 to where every (especially with union contracts) will also what a raise. The bottom line is within a few years the purchasing power of $15 will be the same as it was before at $8 so there is no gain. Also with cheaper and cheaper tech the cost benefit from automation gets better and better The current order takers only push buttons and make change. Flip the terminals around and let the customers enter there own orders. How many stores today have self checkout lanes so the concept is not new and at some pay level that is what will happen.
De-Dollarization Continues: China-Argentina Agree Currency Swap, Will Trade In Yuan
Re-Posted from ZEROHEDGE
Submitted by Tyler Durden on 09/07/2014 17:58 -0400
It appears there is another nation on planet Earth that is becoming isolated. One by one, Russia and China appear to be finding allies willing to ‘de-dollarize’; and the latest to join this trend is serial-defaulter Argentina. As Reuters reports, China and Argentina’s central banks have agreed a multi-billion dollar currency swap operation “to bolster Argentina’s foreign reserves” or “pay for Chinese imports with Yuan,” as Argentina’s USD reserves dwindle. In addition, Argentina claims China supports the nation’s plans in the defaulted bondholder dispute.
Having met ‘on the sidelines’ in Basel, Switzerland in July, Argentine and Chinese central banks agreed to a currency swap equivalent to $11b that Cabinet Chief Jorge Capitanich said could be used to stabilize reserves.. (as Reuters reports)
Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China’s central bank before the end of this year, the South American country’s La Nacion newspaper reported on Sunday.The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation’s foreign reserves under intense pressure.
La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina’s President Cristina Fernandez and her Chinese counterpart in July.
In addition, Bloomberg reports
People’s Bank of China Governor Zhou Xiaochuan expressed his support for Argentina in its legal fight against holdout bondholders
Labor Participation Rate Drops To Lowest Since 1978; People Not In Labor Force Rise To Record 92.3 Million
Re-Post from ZEROHEDGE
Submitted by Tyler Durden on 09/05/2014 09:03 -0400
It is almost as if the Fed warned us this would happen. In a note released yesterday, a Fed working paper titled “Labor Force Participation: Recent Developments and Future Prospects“, looked at the US labor force and concluded that “while we see some of the current low level of the participation rate as indicative of labor market slack, we do not expect the participation rate to show a substantial increase from current levels as labor market conditions continue to improve.” But don’t blame it on the greatest recession/depression since 1929: “our overall assessment is that much – but not all – of the decline in the labor force participation rate since 2007 is structural in nature.”
Well that’s very odd, because it was only two months ago that the Census wrote the following: “Many older workers managed to stay employed during the recession; in fact, the population in age groups 65 and over were the only ones not to see a decline in the employment share from 2005 to 2010 (Figure 3-25)… Remaining employed and delaying retirement was one way of lessening the impact of the stock market decline and subsequent loss in retirement savings.”
So yeah… sounds like most of the decline in the participation rate is not structural in nature and is merely a response to what everyone but the 1% sees as the biggest – and ongoing – economic devastation perhaps in history, papered over conveniently for the 1% with trillions in liquidity injections.
In any event, no matter how you spin it, today’s data was bad: because not only did the headline data disappoint, the labor force participation rate dropped once again to 62.8% from 62.9%, matching the lowest since 1978, as a result of the people not in labor force rising once again, and hitting a new all time high record of 92,269,000, up 268,000 from the prior month. In fact, in August the number of people not in the labor force increased by nearly double the number of people who found jobs, which as we reported previously, was only 142K.
Putting it another way, since the start of the depression in December 2007, the number of people not in the labor force has increased by 13.0 million. The number of jobs added: 768,000.
Average:
LEADING KEYNESIAN ECONOMIST USES THE ‘D’ WORD
These numbers are real I track them every month and the “D” word is coming and soon.
This Unprecedented Monetary Experiment Will End Very Badly
As both a trained economist and engineer I can see that This is 100% true. the difference between most engineering is time frames engineering issue work in very short time frames like a car is good for between 100,000 and 150,000 miles before repairs start become an issue. In economics these things can take several generations to work out so the politicians can fool you for a relatively long time before it all falls apart.
ANALYST: GERMANY SECRETLY PLANNING TO JOIN BRICS
More unintended (maybe) consequences of having a fool in the White House!
The Rot Within, Part II: Inflation Is Not “Growth”
As a degreed economist I 100% agree with this; and I will add that Milton Friedman a Noble laureate economist proved definitely that is was the Federal Reserve that created the Great Depression (not the market crass of ’29) and by extension it was the same ineptness of the FED that created the housing bubble and crash of ’08 not the banks. The FED is now in the process of creating a sovereign debt bubble that is close to bursting and it will be worse than ’08. Keynesian economics is nothing more than a Ponzi scheme!
The Rot Within, Part I: Our Ponzi Economy
I can tell you with 100% certainty that this is 100% correct, I’m a degreed economist and engineer. I have studied this problem in detail since the late ’90s and I would say its even more dire than implied here — but we’ll see what the next part shows!
Centinel2012 