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All Da King's Men

Can You Guess What's Coming ?

By David King Published: July 26, 2012

Here's a hint. The following information comes from a website called The Economic Collapse.

40 years ago the total amount of debt in America (government, business and consumer) was less than 2 trillion dollars. Today it is nearly 55 trillion dollars.

Here are 20 warning signs:

#1 The unemployment rate in the U.S. has been above 8 percent for 40 months in a row, and 42 percent of all unemployed Americans have been out of work for at least half a year.  As I wrote about recently, there are never going to be enough jobs in America ever again.  As bad as things are right now, they are about to get even worse.  So what is our country going to look like once the unemployment rate starts shooting up rapidly once again?

#2 35 percent of all unemployed workers have had to dip into retirement savings in order to make ends meet over the past year.

#3 Since 2008, the U.S. economy has lost 1.3 million jobs while at the same time 3.6 million more Americans have been added to Social Security's disability insurance program.

#4 A recent survey conducted by the National Association for Business Economics found that only 23 percent of all U.S. companies plan to hire more workers over the next 6 months.  When the same question was asked a few months ago that number was at 39 percent.

#5 An important measure of U.S. manufacturing activity has fallen to its lowest level since June 2009.

#6 Hundreds of thousands of federal jobs at civilian agencies will likely be lost if Congress allows the automatic federal budget cuts to go into effect next year.  The following is from a recent article posted on federalnewsradio.com....

A report released Tuesday suggests that several hundred thousand federal jobs at civilian agencies would be on the chopping block within the next year if Congress lets the automatic budget cutting process known as sequestration go into effect.

The study, authored by George Mason University professor Stephen Fuller, adds a new dimension to a budget debate that's so far been centered on sequestration's effects on the military.

#7 The teen unemployment rate in Washington D.C. right now is 51.7 percent.

#8 Gallup's U.S. Economic Confidence Index is now the lowest that it has been since January.

#9 The median net worth of U.S. households in 2007 was $126,400.  By 2010, it had fallen to just $77,300.

#10 Pensions at S&P 500 companies are more under-funded than they have ever been before.

#11 According to the New York Times, state and local governments across America "shortchanged their pension plans by more than $50 billion" between 2007 and 2011.

#12 The city of Compton, California is evaluating whether or not it should declare bankruptcy.  If it did, it would become the fourth California city to declare bankruptcy this year.

#13 The percentage of U.S. households that are spending more than half their incomes on housing is at an all-time high.

#14 For the first time in modern history, Canadian households are wealthier than American households are.

#15 One recent poll found that 42 percent of all Americans believe that China is the leading economic power in the world while only 36 percent believe that the U.S. is still the leading economic power in the world.

#16 According to the federal government, the price of food rose much faster than the general rate of inflation did during 2011.  Just check out these rates of food inflation for 2011....

  • Beef: +10.2%
  • Pork: +8.5%
  • Fish: +7.1%
  • Eggs: +9.2%
  • Dairy: +6.8%
  • Oils and Fats: +9.3%

If that happened during a somewhat "normal year", what will food prices look like after we are done with the drought of 2012?

#17 The price of a bushel of corn has risen by 54 percent since mid-June.

#18 According to one survey, 42 percent of all American workers are living paycheck to paycheck.

#19 A different survey found that 28 percent of all Americans have absolutely no emergency savings at all right now.

#20 Federal Reserve Chairman Ben Bernanke made the following statement to Congress on Tuesday: "At this point we don't see a double dip recession. We see continued moderate growth."

Note regarding #20 - Bernanke's prediction is supposed to be an "opposite day" type of thing, like all Bernanke's incorrect pre-2008 financial crisis predictions, when he said things weren't so bad. He was spectacularly wrong then, so naturally, he was disgraced and became...um...head of the Federal Reserve ?

Some of the above information is a bit alarmist, and you can quibble with or explain away some of the statistics presented (like the huge rise in the price of corn, whicn is drought-related and therefore temporary), but the general push of the data all points in the same direction, to a grimmer economic future for America. Personally, I believe that when it comes to recessions, we ain't seen nuthin' yet. What's around the corner is going to make the Great Recession look like a walk in the park. Our sitting President has done nothing except make things far worse via his debt-fueled policies, which seem to be designed only to fool people into voting for him rather than addressing the economic woes facing this country. This is a common malady among politicians, unfortunately. They think about the next election instead of the next decade or decades. They don't worry about tomorrow, when the next generation will have to pay for all the fiscal recklessness being foisted on us by vote-seeking politicians today. We can also blame ourselves for these short-sighted policies, because we are the ones putting these kinds of politicians into office. Some of us also tend to focus on "what's in it for me ?", as opposed to what the long-term effects on the country will be. We will reap what we sow, and what we've been sowing is debt and entitlement, which, as the website states, will lead inexorably to economic collapse. 

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