Tag Archive: Debt


The Death Rattle Of Europe’s Statist Dream

 

 

 

 

 

 

” Europe’s all-too-predictable relapse into recession is gathering force, threatening not only the pipe dream of economic and political unity, but eroding grandiose illusions that have helped prop up the world’s financial house of cards. The unwillingness of France in particular to play by the EU’s — i.e.,  Germany’s — rules appears to have doomed the EU dream. The idea of a borderless Europe bound by a common currency and a shared desire to forever banish war from the Continent was a lofty one, but it was mired from the start in deeply rooted political animosities, grass-roots skepticism and bureaucratic overreach. Now these problems, along with a great many others, have turned the EU project into a Tower of Babel. A million pages of meticulously codified EU rules might as well have been written in cuneiform, so inscrutable and arcane have they become.

  And useless as well. France’s prolonged economic death rattle has been made possible by running annual deficits larger by half than the 3% “allowed” by Brussels. And now, channeling  de Gaulle for what could turn out to be France’s last hurrah, the French have flouted Merckel’s authority, and common sense itself, by proposing to remedy the problem by hiring more government workers and expanding tax breaks.  Portugal, Greece, Spain and the other deadbeat rabble have been cheering them on, and why not? They think they have nothing to lose — that Germany is the only country with any skin in the game. Their folly is about to be laid bare, however, unless Germany gives in and allows Europe’s Central Bank to monetize the collective debts of Europe Fed-style. “

 

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One Handy Animated Infographic Shows What The U.S. Spends Our Taxpayer Money On Every Second

 

 

 

 

 

 

” PolicyMic came up with a handy infographic that shows how the U.S. spends of American taxpayer’s money: $15,700 every second.

  As you can see, there’s a lot of blinking going on, but not much ado about the U.S.’ burgeoning welfare state – and the over $17 trillion in national debt that comes with it (not to mention the roughly $100 trillion in debt liabilities). “

 

 

Read more from Kyle Becker at IJR

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Published on Sep 11, 2014

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Why You Feel Poorer

 

 

costoflivingxpenses-7-1-14

 

 

 

 

” You feel poorer because you are poorer.

  In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

  If you are a retiree, living on fixed income, a pension or bonds, you certainly have become poorer. If you had bought the Dow-Jones on 12/31/1999 you would have entered at about 11,500. It closed last week at less than 17,100. That would have been an appreciation of 6,600, better than 50%. But, of course, that was before taxes.

  As a retiree, you have seen your purchasing power stolen by Fed policies. Whether you invested in fixed income or equities, you lost ground. Anyone in that position has seen their lives become poorer despite a lifetime of successful work and careful financial planning.”

 

 

    As it stands now , no matter how hard you work and save , you’ll never get ahead , not with the present monetary policies put in place at the behest of the Fed and the government . The authorities are systematically destroying all that the American public has worked so hard to attain . The American dream is not being killed by China … It is a victim of filicide

 

 

” For those still working, most are losing purchasing power each year. Wages are not keeping up with inflation, even the understated numbers reported by government. In short, the decline of a once-great economic power is well underway. The country is no longer growing enough to raise everyone’s standard of living.

  Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.”

 

 

Read the rest

 

 

 

 

 

 

A Third Of America’s 18- To 34-Years-Olds Live With Their Parents

 

cotd adults living with parents

 

 

 

” Increasing numbers of young Americans are heading to college, where they’re racking up debt to pay for rapidly increasing tuition costs.

  Those graduating are being confronted by a challenging job market, which eventually leads many to just drop out of the labor force altogether.

  This in turn has led to an increasing delinquency rate for student-loan borrowers.

  So it’s no surprise that young people are increasingly opting, perhaps out of necessity, to live at home with their parents.

  In his latest monthly chart book, Deutsche Bank’s Torsten Slok tracks the rise of 18- to 34-years-olds currently in this position.

  And there are a lot.

  Slok sees this as a bullish force to come in the housing market characterized by a homeownership rate at a 19-year low.”

 

Business Insider

 

 

 

 

 

 

 

 

 

 

What A Bank Run In China Looks Like: Hundreds Rush To Banks Following Solvency Rumors

 

People gather in front of a branch of Jiangsu Sheyang Rural Commercial Bank, in Yancheng

 

 

” Curious what the real, and not pre-spun for public consumption, sentiment on the ground is in a China (where the housing bubble has already popped and the severe contraction in credit is forcing the ultra wealthy to luxury real estate in places like Hong Kong) from the perspective of the common man? The photo below, which shows hundreds of people rushing today to withdraw money from branches of two small Chinese banks after rumors spread about solvency at one of them, are sufficiently informative about just how jittery ordinary Chinese have become in recent days, and reflect the growing anxiety among investors as regulators signal greater tolerance for credit defaults.

 

Reuters explains:

 

  Domestic media reported, and a local official confirmed, that ordinary depositors swarmed a branch of Jiangsu Sheyang Rural Commercial Bank in Yancheng in economically troubled Jiangsu province on Monday. The semi-official China News Service quoted the bank’s chairman, Zang Zhengzhi, as saying it would ensure payments to all the depositors. The report did not say how the rumour originated.

 

  Chen Dequn, a resident in Yandong, just outside Yancheng, said she saw a crowd of about 70 to 80 people gathering in a branch of Sheyang Rural Commercial Bank in her town on Tuesday.”

 

ZeroHedge has more

 

 

 

 

 

 

 

 

The Strange Revival Of Republican America

 

 

 

” For years people have predicted the Republican party’s demise. The decline of whites as a share of the US population and the spread of tolerant values, such as support for gay marriage, would gradually snuff out its appeal. Yet the Grand Old Party has a stubborn way of bouncing back. The coming midterm elections in November are unlikely to be an exception, while the Republican field for the next presidential election looks stronger than at any time since 2000. Tomorrow may indeed arrive at some point. But for the time being, today is going pretty well for the Republicans.

  Take the fast-approaching congressional elections. President Barack Obama is giving everything he has in terms of fundraising to retain Democratic control of the Senate. The remainder of his presidency depends on it. Even diehard optimists doubt Democrats could regain control of the House. Yet the more Mr Obama throws at the Senate, the lower his poll numbers fall. Last week he hit a new low of 41 per cent approval versus 54 per cent disapproval. History says an unpopular president’s party loses ground in midterm elections. This year is unlikely to buck the trend.”

 

     Financial Times has a lengthy piece on GOP chances for the upcoming 2014 midterms and while the article is every bit as condescending as it’s title would suggest there remains much truth that even their writer’s bias cannot hide .

 

 

 

 

 

 

China’s Li Keqiang Warns Investors To Prepare For Wave Of Bankruptcies

 

 

 

 

” China is braced for a wave of industrial bankruptcies as its slowing economy forces companies with sky-high debts to the wall, the country’s premier has said.

  Premier Li Keqiang told lenders to China’s private sector factories they should expect debt defaults as the world’s second largest economy encounters “serious challenges” in the year ahead.

  Speaking after the annual session of the national people’s congress, Li Keqiang said: “We are going to confront serious challenges this year and some challenges may be even more complex.” He told lenders to China’s private sector factories they should expect debt defaults.

  Li said China must “ensure steady growth, ensure employment, avert inflation and defuse risks” while also fighting pollution, among other tasks.

” So we need to strike a proper balance amidst all these goals and objectives,” he added. “This is not going to be easy,” he said.

  Li’s warning followed the failure of Shanghai Chaori Solar Energy to make a payment on a 1bn yuan (£118m) bond last week. The default was the first of its kind for China and widely seen as pointing to the end of 11th-hour government bailouts for troubled enterprises.” “

 

The Guardian has the details

 

 

 

 

 

 

 

Government Workers Cost 45% More Than Private Sector Workers

 

 

 

 

” The United States Bureau of Labor Statistics (BLS) announced on March 12th that the total cost of employing a state or local government worker is 45% more than an equivalent worker in the private sector. 

  For the month of December 2013, employers in private industry spent an average of $29.63 per employee hour worked, but the equivalent cost for a government worker averaged $42.89 per hour. Not only do government employees average 33% higher pay than those in the private sector, their pension and retirement benefit costs are now an incredible 254% higher also. Given that compensation formulas for federal, state, and local government are comparable, it should come as no surprise that this year spending by the U.S. government will exceed revenue by an all-time high of $744.2 billion, and our gross national debt is a stunning $18.5 trillion. “

 

Read it and weep … or better yet get mad 

 

 

 

 

 

 

 

Levin To Tea Party Patriots: ‘We Live Under A Lawless President’

 

 

 

 

The title speaks for itself – Listen to the “Great One”s address …

 

 

 

 

 

 

 

 

 

China Sold Second-Largest Amount Ever Of US Treasurys In December: And Guess Who Comes To The Rescue

 

 

 

 

” While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December – the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper – one thing stands out. The chart below(above) shows holdings of Chinese Treasuries (pending revision of course, as the Treasury department is quite fond of adjusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! “

 

    Not exactly confidence inspiring Barack , especially when you consider that the Japanese shed billions in US treasuries in December as well . Read more at Zero Hedge .

 

 

 

 

 

 

If Only A Snow Shovel Could Dig Us Out Of This

 

Presidential Debt

 

 

” Thanks to Congress, the U.S. now doesn’t have a debt limit for the next year. Let two Heritage experts put this into perspective.

“ President Obama, after less than five years in office, has already increased the debt limit by more than any other president in U.S. history, including President George W. Bush over eight years in office,” report Romina Boccia and Michael Sargent, authors of the newly updated Federal Budget in Pictures.”

 

Read more at Heritage.org ,view these charts and embed them on your site :

 

 

Where Your Money Goes

 

 

  Our “leadership” has surely made a hash of things . As they say a picture is worth a thousand words , or in this case , $17.3 Trillion and climbing …

 

 

 

 

 

 

 

 

22 ‘Fun Facts’ On The Obama Economy People Should Know Before

(Or After) The State Of The Union

 

 

 

” Here are a few facts to bear in mind when we’re all regaled about Obama’s ‘historic’ presidency at his State of the Union address:

  1. The Number Of Americans That Have Joined The Food Stamp Program Since
    Obama Took Office: 19.4 Million.
  2. The Number Of People Unemployed At The End Of Obama’s Fifth Year As
    President: 10.4 Million.
  3. The Number Of People Working Part-Time That Would Like To Work Full-Time: 7.8 Million.
  4. The Number Of People That Have Entered Poverty Since 2008: 6.7 Million.
  5. Americans Who Received Cancellation Notices For Their Health Plans
    Due To ObamaCare After Obama Promised They Could Keep Their Plans In His 2010 State Of The Union Address: 5 Million.
  6. The Number Of Americans Struggling With Long-Term Unemployment Of 27 Weeks Or Over: 3.9 Million.
  7. The Increase In Americans Struggling With Long-Term Unemployment Since Obama Became President: 1.2 Million.
  8. Construction Jobs (aka “Shovel-Ready Jobs”) Lost Since Obama Took Office: 721,000.
  9. Manufacturing Jobs Lost Since Obama Took Office: 528,000.”

 

For the real State Of The Union read the rest at IJR 

 

 

 

 

 

 

 

 

From Rare

 

 

 

 

 

 

 

 

 

 

EXography: Unfunded Public Employee Pensions Drive State Debts Skyward

 

 

 

State Debt

 

Click Image To Go To Interactive Graphic And See How Much Your State Is In The Red





State governments are piling up debt almost as fast as the federal government, with a total of $5.1 trillion now on their books.

  Calculated on a per capita basis, the $5.1 trillion represents an obligation of $16,178 for every state resident in the country, according to State Budget Solutions’ fourth annual State Debt Report.

  State Budget Solutions is a 501(c)(3) educational foundation that focuses on state spending and budget issues.

  The $5.1 trillion has accumulated despite various forms of balanced-budget requirements and spending limitations on the books in most states.”

 

 

This should be no surprise to any thinking individual …

 

” Viewed in terms of total debt, big states dominate the top 10, with California being in the worst shape at $778 billion. Most of the Golden State’s total is accounted for by public pension liabilities at $584 billion.

  Given the prominence of unfunded public employee pension liabilities in state debt, the role of unions representing government workers is an important factor.

  Nearly 36 percent of all government employees in America are members of unions, according to the Bureau of Labor Statistics, but the situation varies greatly from one state to another.

  According to federal Current Population Survey data compiled by unionstats.com, 59 percent of all state and local public employees are members of unions in California.

  But New York, which ranks second on total debt, has a far higher portion of its public employees in unions, at 71 percent.”

 

 

 

 

 

 

 

Justice Dept To Spend $544,000 On A…WHAT!? You Won’t Believe This.

 

 

 

 

” According to the government website FedBizOpps.gov, the U.S. Department of Justice’s Criminal Division is spending $544,000 on a new LinkedIn profile:

The U.S. Department of Justice’s Criminal Division is paying $544,000 for a shiny new LinkedIn profile, in the wake of a partial government shutdown that followed a top Democrat’s assurance that ‘the cupboard is bare, there’s no more cuts to make.’ “

 

 

 

 

 

 

 

 

How Many Will Crash By November 2014?

 

 

2013JobGrowthVs1983to1988

 

 

” As 2014 begins, President Barack Obama’s approval rating is at its lowest point in his five-year tenure. Imagine where it would be if the establishment press treated him the way it did George W. Bush.

The president’s media apparatchiks are propping up what remains of the president’s popularity with five myths.

1. The economy has become strong, and is getting stronger.

  Media reports have been calling recent job gains “robust.” Hardly. 2013′s estimated job growth of almost 2.4 million is still only 60 percent of what was achieved annually on a population-adjusted basis for a full six years during the 1980s. (See chart below.)

  Job growth should be far greater, because there is still so much ground to make up from the disastrous POR (Pelosi-Obama-Reid) economy-driven recession of 2008-2009.

  It’s bad enough that payroll employment is still 1.3 million below its January 2008 peak. It’s worse that employment in the Household Survey is 2 million shy of where it was in that same month. If we’re lucky and this plodding progress continues, it will have taken almost seven years for that more comprehensive measure of employment to return to where it was before the recession began — and several more years, if ever, before a recovery in employment catches up to eligible adult population growth.”

 

 

PJMedia has more

Your Money In Pictures: The Top 5 Charts Of 2013

 

” As part of our countdown to the new year, here are Heritage’s top five must-see charts of 2013.”

 

 

ShareofDebt600649

 

 

Each American’s Share of Publicly Held Debt

” As Washington lawmakers continue to spend more and pile on debt, each American’s share of public debt has risen to $36,000—about six times more than in 1970—and is set to rise astronomically in coming years. Without reform, the government will have borrowed $135,547 in public debt for each American, or almost three times the current median income, by 2036. This chart shows that serious consequences lie ahead if the government continues on its current path of reckless spending with no reform in sight.”

 

 

 

 

 

 

 

 

 

 

 

 

The Heritage Foundation

 

    Total US Government unfunded liabilities are estimated to be between $195 Trillion as stated above and $238 Trillion , not including another unfunded liability of $4 Trillion that belongs to the individual states .

 

 

 

 

 

 

 

 

A Budget Of Wimps

 

 

” If you weighed 1,000 pounds, would people notice you lost weight if you went down to 999 pounds?

  In Congress, the Republicans feared there would be another shutdown they would be blamed for.  They compromised with Democrats and presented a budget of wimps.  During the next ten years, they will cut spending by $23 billion.  The sequester, which would have cut the budget by much more than that, was done away with for fear it would keep politicians from wasting more money.  What about the debt ceiling that we will have to raise?  The Democrats complain about trickle-down economics in which the rich invest in the economy, create jobs, and purchase expensive things that again require people to service them.  They practice it all the time when they privately invest their money to produce a return that is much larger than what retired people receive from Social Security.”

 

 

 

 

 

 

 

 

Nine Senate Republicans Join Democrats To Pass Budget Deal

 

 

 

 

 

” Nine Senate Republicans crossed over to vote with all Senate Democrats to support the budget deal that House Budget Committee chairman Rep. Paul Ryan (R-WI) cut with Senate Budget Committee chairwoman Sen. Patty Murray (D-WA).

  The deal passed Wednesday by a final vote of 64-36. The nine Senate Republicans who crossed over are as follows: “

 

     Here are the RINO’s that have stabbed veterans and all taxpayers in the back , yet again , along with their complete contact information , email , snail mail and phone numbers … Light ‘em up .

 

John McCain (R-AZ)

241 Russell Senate Office Building Washington DC 20510
(202) 224-2235
Contact: www.mccain.Senate.gov/public/index.cfm/contact-form

Orrin Hatch (R-UT)

104 Hart Senate Office Building Washington DC 20510
(202) 224-5251
Contact: www.hatch.Senate.gov/public/index.cfm/contact?p=Email-Orrin

Saxby Chambliss (R-GA)

416 Russell Senate Office Building Washington DC 20510
(202) 224-3521
Contact: www.chambliss.Senate.gov/public/index.cfm?p=Email

Johnny Isakson (R-GA)

131 Russell Senate Office Building Washington DC 20510
(202) 224-3643
Contact: www.isakson.Senate.gov/public/index.cfm/email-me

Susan Collins (R-ME)

413 Dirksen Senate Office Building Washington DC 20510
(202) 224-2523
Contact: www.collins.Senate.gov/public/index.cfm/email

Lisa Murkowski (R-AK)

709 Hart Senate Office Building Washington DC 20510
(202) 224-6665
Contact: www.murkowski.Senate.gov/public/index.cfm?p=Contact

Ron Johnson (R-WI)

328 Hart Senate Office Building Washington DC 20510
(202) 224-5323
Contact: www.ronjohnson.Senate.gov/public/index.cfm/contact

John Hoeven (R-ND)

338 Russell Senate Office Building Washington DC 20510
(202) 224-2551
Contact: www.hoeven.Senate.gov/public/index.cfm/email-the-senator

Rob Portman (R-OH)

448 Russell Senate Office Building Washington DC 20510
(202) 224-3353
Contact: www.portman.Senate.gov/public/index.cfm/contact?p=contact…

 

 

” Ryan used a series of misleading styles of accounting and talking points to promote the bill, especially when it came to veterans’ pensions. He claimed the bill overall reduced the deficit by $23 billion. In reality, the bill increases the deficit by at least $15.5 billion. “

 

 

 

 

 

 

 

 

 

… The Average City Employee Makes $144,329 Per Year

 

 

 

 

 

” While today’s municipal bankruptcy news focuses on Detroit, where a judge has just ruled the city can proceed with its bankruptcy filing, tonight a small California city holds a council meeting to try to avoid the same fate.

  Desert Hot Springs isn’t on the national radar, but its situation is hardly unique. With only 27,000 residents and only 55 full-time city employees, Desert Hot Springs lacks the financial heft that allows larger cities – think Los Angeles – to put off their day of reckoning.”

 

As wiser men have said ” that which can’t continue , won’t “

 

” The average full-time employee working for the city of Desert Hot Springs earned direct pay plus employer paid benefits during 2011 of $144,329. The average public safety employee working for Desert Hot Springs earned direct pay plus employer paid benefits during 2011 of $164,621.

  This is in a city where the median household income is $31,356 and the median home selling price is $133,500.

  Public sector union spokespersons often complain that “politicians are trying to balance the budget on the backs of working people.” Set aside for a moment the fact that “working people” means “unionized government employees” who, in the case of Desert Hot Springs, are making more per year than the average home costs in that city. Can Desert Hot Springs balance their budget if their “councilmen also eye pay, benefits,” and could actually do anything about it?”

 

 

 

    Justify for us please , why the average public employee should make over five times as much as does the average citizen footing the bill . Insanity .

    Here’s an update on Desert Hot Springs’ financial mess .  Desert Hot Springs council OKs cuts totaling $400K . Hardly enough to solve their short-comings but if you read on you will see that the city has been ordered to make $2.6 million in cuts by June 2014 . Where will that money come from ?

 

 

 

 

 

 

 

Daily Comedy 11.14.13

Tim Clue On Debt

 

 

Uploaded on Jul 24, 2007

http://www.TimClue.com

” Hilarious motivational speaker and Chicago clean comedian Tim Clue talks Debt – as heard on Sirius and XM Satellite Radio! He’s opened for Steven Wright and Jerry Seinfeld and is a highly sought-after corporate speaker and entertainer.

Want to book Tim for your next event? Find out how below:
http://www.timclue.com/contact.html “

 

 

 

 

 

 

 

Boring, But Bad — The Problem Of The Federal Reserve

 

 

 

 

” I’ve always avoided reporting on the Federal Reserve. I know it’s more important than much of the stuff I cover, but it’s so boring. How can I succeed on TV reporting on the Fed? Fed chairs even work at being dull.

Alan Greenspan said he tried to be obscure because he didn’t want to spook markets. He called his obfuscation “Fedspeak.” It’s a far cry from the clarity of his language — and principles — when he was young and a disciple of libertarian Ayn Rand.

Outgoing Fed Chairman Ben Bernanke and his likely successor, Janet Yellen, are almost as boring.

But we should watch what they do. The Fed can destroy your savings and your future. The current crew of Fed bureaucrats has raised the Fed’s balance sheet to a stunning 4 trillion dollars.

As Sen. Rand Paul‘s father, retired congressman Ron Paul, put it, “No secret cabal of government officials should have the authority to create money out of thin air.” “

 

 

 

 

 

 

 

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