I get tired of preaching economic disaster and I am sure readers are just as tired of reading about it. Yet, it is coming regardless. The disaster will be of such importance that one cannot overemphasize it or warn too often about it. It will be a disaster of unprecedented scale.
So says Monty Pelerin (economicnoise.com) in edited excerpts from his original article* entitled Economic Disaster Coming Our Way.
[The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Pelerin goes on to say in further edited excerpts:
My approach in discussing the on-coming economic disaster is usually from an abstract economic view. Economics has its own internal logic subject to the rules of mathematics. Knowledge about what exists and how economies operate make it easy for me to conclude that there is no recovery is under way nor will there be one until economic disaster strikes. Government inspired distortions and imbalances clog the commercial arteries. A form of economic catharsis (enema, if you prefer) known as a depression is necessary to remove the debt and other roadblocks that prevent recovery. The Great Depression is likely to appear like a picnic in comparison to the disaster that is coming.
Michael Snyder regularly puts the best internet lists together on economic decline. For those who don’t like abstract approaches and prefer lots of details, his approach is a great antidote or substitute for mine. He has put together a list of 83 factoids. Some of these may shock you. Be assured, the totality of them will scare the hell out of you.
Here are a few items extracted from his piece**. All emboldening in mine:
- an all-time record 102 million working age Americans do not have a job. That number has risen by about 27 million since the year 2000.
- public and private debt levels around the globe are now 30 percent higher than they were back during the financial crisis of 2008.
- (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.
- The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.
- median household income in the United States has fallen for five years in a row.
- health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent under Obamacare
- government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.
- home ownership in the United States has fallen for eight years in a row.
- 47 percent of all adults in America have a full-time job
- There are 1,148,000 fewer Americans working today than there was in November 2006. Meanwhile, our population has grown by more than 16 million people during that time frame.
- only about 7 percent of all non-farm workers in the United States are self-employed. That is an all-time record low.
- one out of every five households in the United States is on food stamps
- consumer credit has risen by a whopping 22 percent over the past three years.
- Student loans are up by an astounding 61 percent over the past three years.
- in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.
- Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.
- If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.
- The federal government is borrowing (stealing) roughly 100 million dollars from our children and our grandchildren every single hour of every single day.
- 68 percent of all Americans believe that the country is currently on the wrong track.
- only 19 percent of all Americans trust the government. Back in 1958, 73 percent of all Americans trusted the government.
Do any of these facts suggest that the economy is recovering or has a bright future? Does the extent of them shock you?
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://www.economicnoise.com/2014/01/22/economic-disaster-coming-way/ (© 2014 Monty Pelerin’s World. All rights reserved.) Register for Regular (free) or Preferred Membership (fee). **http://theeconomiccollapseblog.com/archives/83-numbers-from-2013-that-are-almost-too-crazy-to-believe (Copyright © 2014 The Economic Collapse)
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