Economic Collapse

Jim Rogers: It’s Going To Get Really “Bad After The Next Election”

August 18, 2012

Jim Rogers: It’s Going To Get Really “Bad After The Next Election”

Terry Weiss
moneymorning

In a riveting interview on CNBC, legendary investor Jim Rogers warned Americans to prepare for “Financial Armageddon,” saying he fully expects the economy to implode after the U.S. election.

Rogers, who for years has been an outspoken critic of the Feds policies of “Quantitative Easing,” says the world is “drowning in too much debt.” He put the blame squarely on U.S. and European governments for abusing their “license to print money.” In the U.S. alone, the national debt has surged to nearly $16 trillion, that’s more than $50,000 for every American man, woman and child.

“[They] need to stop spending money they don’t have,” Rogers said. “The solution to too much debt is not more debt… What would make me very excited is if a few people [in the government] went bankrupt…” Rogers added.

Rogers also charged Obama and German Chancellor Angela Merkel with promoting dangerous policies that create the illusion the economy is stable… but are really only intended to buy time before their upcoming elections.

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Federal Deficit Highest Since 1940s

August 1, 2012

Federal Deficit Highest Since 1940s

Elizabeth Flock
USNEWS
The federal deficit is higher than it has been since the 1940s, in the years immediately after World War II.

A new visual from the “Face the Facts USA,” a non-partisan election project from George Washington University, shows the federal deficithas risen significantly under President Barack Obama, and that the government is increasingly spending money it doesn’t have.

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The Collapsing US Economy and the end of the world

July 29, 2012

The Collapsing US Economy and the end of the world

paulcraigroberts
In a recent column, “Can The World Survive Washington’s Hubris,” I promised to examine whether the US economy will collapse before Washington in its pursuit of world hegemony brings us into military confrontation with Russia and China. This is likely to be an ongoing subject on this site, so this column will not be the final word.

Washington has been at war since October, 2001, when President George W. Bush concocted an excuse to order the US invasion of Afghanistan. This war took a back seat when Bush concocted another excuse to order the invasion of Iraq in 2003, a war that went on without significant success for 8 years and has left Iraq in chaos with dozens more killed and wounded every day, a new strong man in place of the illegally executed former strongman, and the likelihood of the ongoing violence becoming civil war.

Upon his election, President Obama foolishly sent more troops to Afghanistan and renewed the intensity of that war, now in its eleventh year, to no successful effect.

These two wars have been expensive. According to estimates by Joseph Stiglitz and Linda Bilmes, when all costs are counted the Iraq invasion cost US taxpayers $3 trillion dollars. Ditto for the Afghan war. In other words, the two gratuitous wars doubled the US public debt. This is the reason there is no money for Social Security, Medicare, Medicaid, food stamps, the environment, and the social safety net.

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UK economy contracts by a shock 0.7pc Economic Collapse

July 25, 2012

UK economy contracts by a shock 0.7pc
Angela Monaghan
telegraph
25 Jul 2012

The figures from the Office for National Statistics are much worse than forecasts for a 0.2pc contraction.

It marks the third successive quarter of contraction, leaving Britain in its longest double-dip recession in more than 50 years. The economy shrank by 0.3pc in the first quarter of the year, following a 0.4pc contraction in the final quarter of 2011

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Cash-strapped Argentine town pays employees by raffle

July 24, 2012

Cash-strapped Argentine town pays employees by raffle
ca.news.yahoo.com

Migrant Mother With Color
Don Hankins / Foter

A raffle will determine which civil servants in a small Argentine town will receive their pay first, due to insufficient funds, its mayor announced Monday.

“We will draw lots to decide the (order) of payment,” said mayor of Bialet Masse, Gustavo Pueyo, in a broadcast from Buenos Aires private radio station Radio Mitre.

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US Economy Going from Bad to Worse: Roubini

July 23, 2012

US Economy Going from Bad to Worse: Roubini
Patrick Allen
CNBC
A robust and self-sustaining U.S. recovery is not on the cards, and we should now expect below trend growth for many years to come, according to Nouriel Roubini, the economist famed for his bearish views.

Nouriel Roubini - World Economic Forum Annual Meeting 2012
World Economic Forum / Foter

Roubini, best-known for calling the 2008 economic crisis, outlined five reasons the bulls have been wrong and argued that an American economic cold will lead the rest of the world to catch pneumonia

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US 10-Year Yields Sink to Record Low on Spain

July 23, 2012

US 10-Year Yields Sink to Record Low on Spain
Reuters
CNBC
U.S. 10-year Treasuries rallied in Asian trading on Monday, sending yields to historic lows, as heightened fears about Spain’s ability to stave off a sovereign bailout prompted investors to seek out safe-haven fixed income assets.

Over the weekend, the Spanish region of Murcia said it would seek government financial assistance, and media reported half a dozen governments were ready to follow in the footsteps of Valencia, which said on Friday it would seek help.

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Economic Collapse

July 23, 2012

US poverty on track to rise to highest since 1960s
By HOPE YEN
news.yahoo.com
WASHINGTON (AP) — The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

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Food Stamps Stimulate Economy

July 19, 2012

Hoyer: Food Stamps, Unemployment Insurance 2 ‘Most Stimulative’ Things for Economy
By Elizabeth Harrington
cnsnews.com

House Majority Leader Steny Hoyer
Center for American Progress Action Fund / Foter

(CNSNews.com) – House Minority Whip Steny Hoyer (D-Md.) said Tuesday that food stamps and unemployment insurance are the two “most stimulative” t things you can do for the economy.

During a pen and pad briefing with reporters on Capitol Hill, Hoyer was asked if any Democrats are “reconsidering the wisdom” of letting the Bush tax cuts expire at year’s end for the top income earners given the still struggling U.S. economy.

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Post Office Nears First Default in Its History

July 19, 2012

Post Office Nears First Default in Its History

By JENNIFER LEVITZ
online.wsj.com
While lawmakers continue to fight over how to fix the ailing U.S. Postal Service, the agency’s money problems are only growing worse.

The Postal Service repeated on Wednesday that without congressional action, it will default—a first in its long history, a spokesman said—on a legally required annual $5.5 billion payment, due Aug. 1, into a health-benefits fund for future retirees. Action in Congress isn’t likely, as the House prepares to leave for its August recess.

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Nouriel Roubini sticks to ‘perfect storm’ in 2013 prediction

July 18, 2012

Nouriel Roubini, the economist who famously predicted the financial crisis, said he is sticking to his view that the global economy is on course for a “perfect storm” next year.

Nouriel Roubini said the equity markets could face a sharp correction next year, with little the Federal Reserve can do to stop it.

By Angela Monaghan, Economics Correspondent
www.telegraph.co.uk

Eye of Emotion
Alex E. Proimos / Foter

Mr Roubini, the New York University professor dubbed “Dr Doom”, said a number of unpleasant factors would combine to derail the global economy in 2013, including an escalation of the eurozone crisis.

Other factors included further tax increases and spending cuts in the US that may drive the world’s largest economy into recession; a hard landing for China’s economy; a further slowdown in emerging markets; and war with Iran.

“Next year is the time when the can becomes too big to kick it down [the road]…then we have a global perfect storm,” he told Reuters.

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Great Depression Again CNBC Asks

July 17, 2012

How Close Are We to New Great Depression?

By: Catherine Boyle
CNBC

The risk of a new depression — a sustained, severe recession — has struck fear into the heart of markets and driven monetary policy in developed economies since the current financial crisis began.

“We’re in a very unfortunate position to be here,” Richard Duncan, author of The New Depression, warned on CNBC’s “Squawk Box Europe” Monday.

“When we broke the link between money and gold, this removed all constraints on credit creation. This explosion of credit created the world we live in, but it now seems that credit cannot expand any further because the private sector is incapable of repaying the debt it has already, and if credit begins to contract, there’s a very real danger that we will collapse into a new Great Depression,” he argued.

If this credit bubble pops, the depression could be so severe that I don’t think our civilization could survive it

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European Banks Bankrupt

July 15, 2012

They will make a world central bank where all people will pay a tax to them and austerity will become much worse.

We Now Work For The Central Banks

July 15, 2012

On CNBC the question was asked do we all work for the central banks. The answer was yes. We are slaves to the central banks. They went on to say the central banks are the world governance.

Obama Waives Welfare Persons Requirement To Find Job

July 14, 2012

Waive the work requirement at the heart of welfare reform

Food Stamps
NCReedplayer / Foter

While the Obama campaign goes all out attacking Mitt Romney’s business history, the Romney campaign is looking carefully at a new Obama administration policy that could become a significant part of Romney’s case against the president. In a quiet move Thursday — barely noted beyond the conservative press — the Obama administration “released an official policy directive rewriting the welfare reform law of 1996,” according to Robert Rector, a welfare policy expert at the Heritage Foundation.

washingtonexaminer

The directive — which some Romney aides found stunning — allows the Department of Health and Human Services to waive the work requirement at the heart of welfare reform. That reform, originally vetoed but later signed into law by President Bill Clinton, is widely viewed as the most successful policy initiative in a generation. Under it, the growth in welfare rolls was reversed and millions of people moved from welfare to work.

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The Real Unemployment Rate

July 14, 2012

Abbott & Costello Take on the Real Unemployment Rate
Director Barry Levinson imagines how the famous comedic duo might tackle unemployment statistics

By Barry Levinson
usnews

Unemployment as reported is at 8.3 percent. But it’s actually over 16 percent. Some smart statistician came up with a distinction, a slight of hand to make the unemployment number tolerable rather than frightening. The concept was simple: 8.3 percent are unemployed and are actively looking for work. The 16 percent includes those who gave up and are no longer actively looking for work. So those casualties are no longer counted. They cease to exist.

Unemployed men queued outside a depression soup kitchen opened in Chicago by Al Capone, 02-1931 - NARA - 541927
Unknown or not provided / Foter

The 8.3 percent is a fake, a sham, and worthy of an Abbott and Costello routine. If that great comedy team were still alive, the routine on our unemployment woes might go something like this:

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