American Middle Class “Wealth” Worse Than Every Nation But Russia & Indonesia

Submitted by Mike Krieger via Liberty Blitzkrieg blog, One of Liberty Blitzkrieg’s most popular posts in 2013 was titled: How Does America’s Middle Class Rank Globally? #27. Here’s an excerpt: We are number 1 right? USA! USA! No one can beat our wealth creation machine, our economic dynamism, our level playing field and our bastions of higher education. We have a middle class that is the envy of the world, right? Well, like so much of the “American dream” we have been force fed for a generation or more, this perception is not based in reality whatsoever. Sure it may have been the case for a couple of decades immediately after World War 2. Before the military-industrial-Wall Street complex fully took over the political process, but it certainly isn’t true any longer. Myths die hard and this one is particularly pernicious because it prevents people from changing things. The data in that […] Read More

Keynesian Shangri-La From Myth To Reality

Authored by Mark St.Cyr, In less than the time it takes for a chrysalis to release one of life’s remarkable transformations, many once called “capitalists” woke to find the world they once new changed into something only dreamed or told in folklore. Where business models resembling unicorns abounded along with rainbows in their resembling equivalent of over-arching ETF’s. All available in a multitude of hues and proportions so plentiful: It was hard for one not to well up when contemplating. For in this new fairytale land there must certainly be a pot of gold at the end of every “rainbow.” However, one would be mistaken. For one must remember this is a “Keynesian Shangri-la” and gold here is useless. (insert choir music here) Today, at the end of these self propagated rainbows lies a Central Bank ready and willing to print as much money as one needs to see […] Read More

19 Surprising Facts About The Messed Up State Of The US Economy

Submitted by Michael Snyder of The Economic Collapse blog, Barack Obama and the Federal Reserve are lying to you.  The “economic recovery” that we all keep hearing about is mostly just a mirage.  The percentage of Americans that are employed has barely budged since the depths of the last recession, the labor force participation rate is at a 36 year low, the overall rate of homeownership is the lowest that it has been in nearly 20 years and approximately 49 percent of all Americans are financially dependent on the government at this point.  In a recent article, I shared 12 charts that clearly demonstrate the permanent damage that has been done to our economy over the last decade.  The response to that article was very strong.  Many people were quite upset to learn that they were not being told the truth by our politicians and by the mainstream media.  […] Read More

Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Plunge

“The stock market is at an all-time, but economic activity is not at an all-time,” explains billionaire investor Sam Zell to CNBC this morning, adding that, “every company that’s missed has missed on the revenue side, which is a reflection that there’s a demand issue; and when you got a demand issue it’s hard to imagine the stock market at an all-time high.” Zell said he is being very cautious adding to stocks and cutting some positions because “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking.” Zell also discussed his view on Obama’s Fed encouraging disparity and on tax inversions, but concludes, rather ominously, “this is the first time I ever remember where having cash isn’t such a terrible thing.” Zell’s calls should not be shocking following […] Read More

Why Housing Will Crash Again – But For Different Reasons Than Last Time

Submitted by Chalres Hugh-Smith of OfTwoMinds blog, Institutionalizing the speculative excesses that inflated the previous housing bubble has fed magical thinking and fostered illusions of phantom wealth and security. The global housing market has been dominated by magical thinking for the past 15 years. The magical thinking can be boiled down to this: A person who buys a house for $50,000 will be able to sell the same house for $150,000 a few years later without adding any real-world value. The buyer will be able to sell the house for $300,000 a few years later without adding any real-world value. The buyer will be able to sell the house for $600,000 a few years later without adding any real-world value. And so on, decade after decade and generation after generation: a house should magically accumulate enormous capital (home equity) without the owner having to do anything but pay the mortgage for […] Read More

“Feeding The Homeless” Is A Crime In Increasingly More US Cities

Submitted by Michael Snyder of The Economic Collapse blog, Have you ever given food to a homeless person?  Well, if you do it again in the future it might be a criminal act depending on where you live.  Right now, there are dozens of major U.S. cities that have already passed laws against feeding the homeless.  As you will read about below, in some areas of the country you can actually be fined hundreds of dollars for just trying to give food to a hungry person.  I know that sounds absolutely insane, but this is what America is turning into.  Communities all over the country are attempting to “clean up the streets” by making it virtually illegal to either be homeless or to help those that are homeless.  Instead of spending more money on programs to assist the homeless, local governments are bulldozing tent cities and giving homeless people […] Read More

When The Real Cost is Hidden, Making Good Decisions Is Impossible

Submitted by Charles Hugh-Smith of OfTwoMinds blog, When good decisions are no longer possible, bad decisions are inevitable. If we had to summarize the response of the Federal government and the Federal Reserve to the structural financial crisis of 2008-2009, we could say that both institutions went all-in to obscure the real price of credit and capital. The real cost of credit and capital is discovered by open, transparent markets. When a central bank sets the price of credit, it destroys the market’s price-discovery process. When the government subsidizes certain types of credit, for example, home mortgages and “cash for clunkers” auto loans, it destroys the market’s price-discovery process. This distorts not just the price of credit, but the price of everything purchased with credit. This is the origin of bubbles, and of the resulting busts. The state and central bank manipulate the price of money (credit and capital) […] Read More

A Red-Flashing JOLT: Manufacturing Job Openings Signal Recession Dead Ahead

Contrary to the April nonfarm payroll data, today’s JOLTS report was simply ugly. First, the total number of Job openings of 4014K, missed significantly the expected number of 4125K, dropping 111K last month, and the worst since December’s 212K tumble when as everyone recalls, the weather was extensively scapegoated as the reason why the economy is not performing as the priced to perfection central planning expects it to. And now that weather excuses no longer can be abused, the experts finally repeated what we first said in November when we reported that “The Time To Hike Rates Is Now According To The Beveridge Curve” starting with Stone McCarthy: … Typically openings precede payroll gains. Over the past 6 months openings increased by only 116,000. This isn’t consistent with the payroll growth of late … … the relationship between openings and the unemployment rate, the co-called Beveridge Curve, suggests that […] Read More

17 Facts To Show To Anyone That Believes That The U.S. Economy Is Just Fine

No, the economy is most definitely not “recovering”.  Despite what you may hear from the politicians and from the mainstream media, the truth is that the U.S. economy is in far worse shape than it was prior to the last recession.  In fact, we are still pretty much where we were at when the last recession finally ended.  When the financial crisis of 2008 struck, it took us down to a much lower level economically.  Thankfully, things have at least stabilized at this much lower level.  For example, the percentage of working age Americans that are employed has stayed remarkably flat for the past four years.  We should be grateful that things have not continued to get even worse.  It is almost as if someone has hit the “pause button” on the U.S. economy.  But things are definitely not getting better, and there are a whole host of signs […] Read More