More This & That & Whatever.... The Best Of Intellectual Froglegs

[Warph]

27 Huge Red Flags For The U.S. Economy

By Michael Snyder, on May 20th, 2014

If you believe that the U.S. economy is heading in the right direction, you really need to read this article.  As we look toward the second half of 2014, there are economic red flags all over the place.  Industrial production is down.  Home sales are way down.  Retail stores are closing at the fastest pace since the collapse of Lehman Brothers.  U.S. household debt is up substantially, and in 20 percent of all U.S. families everyone is unemployed.  In so many ways, what we are witnessing right now is so similar to what we experienced during the build up to the last great financial crisis.  We are making so many of the very same mistakes that we made the last time, and yet our "leaders" seem completely oblivious to what is happening.  But the warning signs are very clear.  All you have to do is open your eyes and look at them. 

The following are 27 huge red flags for the U.S. economy...

#1 Despite endless assurances from the Obama administration that we are in an "economic recovery", the number one concern for U.S. voters is "Unemployment/Jobs" according to a recent Gallup survey.

#2 Historically, sales for construction equipment manufacturer Caterpillar have been a pretty good indicator of where the global economy is heading next.  Unfortunately, sales were down 13 percent last month and have now experienced year over year declines for 17 months in a row.

#3 During the first quarter of 2014, profits at office supply giant Staples fell by 43.5 percent.

#4 Foot traffic at Wal-Mart stores fell by 1.4 percent during the first quarter of 2014.  Analysts seem puzzled as to why Wal-Mart is "underperforming".  Perhaps it is because the U.S. middle class is being steadily destroyed and U.S. consumers are tapped out at this point.

#5 It is being projected that Sears will soon close hundreds more stores and will eventually go out of business altogether...

The company said this week that it may sell its 51% stake in Sears Canada, which operates nearly 20% of the company's stores worldwide. It has quietly closed nearly 100 U.S. stores in the last year. Next week, it's expected to announce dismal fiscal first quarter results and possibly yet more store closings.

"They have too many stores and they're losing a lot of money, burning cash," said John Kernan, an analyst with Cowen.
Kernan expects the company to close 500 of its 1,980 U.S. stores in a few years and, ultimately, to go out of business.

"The lights are going off at Sears and Kmart," he said. "There are tumbleweeds blowing through the parking lots at Kmart. They're basically completely irrelevant."
The "retail apocalypse" just continues to roll on, but the mainstream media is treating this like it is not really a big deal.

#6 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low.

#7 According to official government numbers, everyone is unemployed in 20 percent of all American families.

#8 As families struggle to pay their bills, many of them are increasingly turning to debt in order to make ends meet.  Earlier this month we learned that total U.S. household debt has increased for three quarters in a row.  And as I noted in one recent article, total consumer credit in the United States has increased by 22 percent over the past three years, and 56 percent of all Americans have "subprime credit" at this point.

#9 Interest rates on student loans are scheduled to increase substantially on July 1st...

As of July 1, federal student loan rates will edge up. Rates overall will be up 0.8% compared to current rates.

Federal Stafford Loans for undergraduate students will be 4.66% — up from 3.86%. Federal Stafford Loans for graduate students will be 6.21% — up from 5.41%.

Federal Grad PLUS and Federal Parent PLUS Loans will be at 7.21% — up from 6.41%.
This is going to put even more pressure on the growing student loan debt bubble.

#10 U.S. industrial production fell by 0.6 percent in April.  This should not be happening if the economy truly was "recovering".

#11 Manufacturing job openings in the United States have declined for four months in a row.

#12 Existing home sales have fallen for seven of the last eight months and seem to be repeating a pattern that we witnessed back in 2007 prior to the last financial crash.

#13 In the real estate bubble market of Phoenix, sales in April were down 12 percent year over year, and active inventory was up 49 percent year over year.  In other words, there are tons of homes on the market, but sales are going down.

#14 The homeownership rate in the United States has dropped to the lowest level in 19 years.

#15 Trading revenue at big banks all over the western world is way down...

Late Friday, it was JPMorgan who said trading revenues will be down 20 percent this quarter. Now Barclays says trading revenues in the first three months were down 41 percent. The company cited "challenging trading conditions resulting in subdued client activity." Like JPMorgan, Barclays also warned they were seeing no improvement in trading in the second quarter.

#16 Jan Loeys, JPMorgan's head of global asset allocation, is warning that the Federal Reserve is creating a huge financial bubble which could "push us into a credit crisis"...

Where do we go from here? To this analyst, still very subdued economic growth, both at the US and global level, implies continued easy monetary policy. The risk is that bond yields rise no faster than the forwards. Financial overheating (asset inflation) proceeds much faster than economic overheating (CPI inflation). Before CPI inflation has a chance to emerge, and before monetary policy is truly above neutral, a financial bubble will have popped up somewhere and will have corrected, pushing the economy down. That is what has happened in the past 25 years. The behavior of central banks gives us no confidence that this time will be different: Central banks talk about financial instability, but appear to define this mostly in term of bank leverage. Each successive boom and bust is always in another place. A bubble can emerge without leverage. It is not possible to project exactly where this boom and bust cycle will take place as knowing where it will be would induce evasive actions that should prevent it from occurring. One possible ending, among many, is that ultra-easy rates having induced credit markets to grow much faster than equity markets, combines with reduced market making by banks (many of whom have become like brokers) to create a liquidity crisis when the Fed starts the first set of rate hikes. This could then be bad enough to close primary markets, and thus push us into a credit crisis.

#17 Peter Boockvar, the chief market analyst at the Lindsey Group, is warning that the U.S. stock market could experience a 20 percent decline once quantitative easing completely ends.

#18 A lot of other big names are telling CNBC that they expect a significant stock market "correction" very soon as well...

A bevy of high-profile names have warned lately that the market is on the doorstep of a major move lower. From long-term market bulls such as Piper Jaffray to short-term traders such as Dennis Gartman, expectations are high that the major averages are poised for a big dip, with calls varying from 10 percent or so all the way up to 25 percent.

#19 The number of Americans enrolled in the Social Security disability program exceeds the entire population of the nation of Greece and has just hit another brand new record high.

#20 Poverty continues to grow all over the country, and right now there are 49 million Americans that are dealing with food insecurity.

#21 According to Pew Charitable Trusts, tax revenue in 26 U.S. states is still lower than it was back in 2008 even though tax rates have gone up in many areas since then.

#22 Barack Obama is doing his best to keep his promise to destroy the U.S. coal industry...

The EPA is about to impose a new regulation that will reduce carbon emissions from existing power plants starting June 2 and will become permanent in 2015. The new regulation, according to Politico, is the "most dramatic anti-pollution regulation in a generation." Because the new regulation will further cripple the coal industry, as coal-burning plants will be severely affected, American power will become more dependent on natural gas, solar and wind.

#23 Climatologists are now saying that the state of Texas is going through the worst period of drought that it has experienced in 500 years.

#24 It is being reported that "dozens of Texas communities" are less than 90 days away from being completely out of water.

#25 It is being projected that the drought in California will cost the agricultural industry 1.7 billion dollars and that approximately 14,500 agricultural workers will lose their jobs.

#26 Due in part to the drought, the price of meat rose at the fastest pace in more than 10 years last month.

#27 According to recent surveys, only about a quarter of all Americans believe that the country is heading in the right direction.

[Warph]

Robots Replacing Fast Food Workers and Warehouse Employees

By Michael Synder

http://freedomoutpost.com/2014/05/robots-replacing-fast-food-workers-warehouse-employees/

There are already more than 101 million working age Americans that are not employed and 20 percent of the families in the entire country do not have a single member that has a job. So what in the world are we going to do when robots start taking millions upon millions more of our jobs? Thanks to technology, the balance of power between employers and workers in this country is shifting dramatically in favor of the employers. These days, many employers are wondering why they are dealing with so many human worker "headaches" when they can just use technology to get the same tasks done instead. When you replace a human worker with a robot, you solve a whole bunch of problems. Robots never take a day off, they never get tired, they never get sick, they never complain, they never show up late, they never waste time on the Internet and they always do what you tell them to do. In addition, robotic technology has advanced to the point where it is actually cheaper to buy robots than it is to hire humans for a vast variety of different tasks. From the standpoint of societal efficiency, this is a good thing. But what happens when robots are able to do just about everything less expensively and more efficiently than humans can? Where will our jobs come from?

And this is not something that is coming at some point in "the future."

This is already happening.

According to CNN, there will be 10,000 robots working to fulfill customer orders in Amazon.com warehouses by the end of 2014...

Amazon will be using 10,000 robots in its warehouses by the end of the year.

CEO Jeff Bezos told investors at a shareholder meeting Wednesday that he expects to significantly increase the number of robots used to fulfill customer orders.

Don't get me wrong - I absolutely love Amazon. And if robots can get me my stuff faster and less expensively that sounds great.

But what if everyone starts using these kinds of robots?

What will that do to warehouse jobs?

PC World has just done a report on a new warehouse robot known as "UBR-1". This robot is intended to perform tasks "normally done by human workers"...

The UBR-1 is a 4-foot tall, one-armed robot that could make warehouses and factories more efficient by performing tasks normally done by human workers.

Unlike the industrial robots widely used in manufacturing today—usually large machines isolated from people for safety reasons—this robot can work alongside humans or autonomously in a workspace filled with people.

This little robot costs $50,000, and it can work all day and all night. It just needs a battery change every once in a while. The creators of this robot envision it performing a vast array of different tasks...

"We see the robot as doing tasks, they could be dull, they could be dirty, they could be dangerous and doing them repetitively all day in a light manufacturing environment," said Melonee Wise, Unbounded Robotics CEO and co-founder. Those tasks include stocking shelves, picking up objects and assembling parts.

The UBR-1 isn't designed for small component assembly, but it can manipulate objects as small as dice or a Lego piece, Wise said. Unbounded Robotics is targeting companies that want some automation to speed up their manufacturing process, but can't afford to fully automate their businesses.To many people this may sound very exciting.

But what if a robot like that took your job?

Would it be exciting then?

Of course you can't outlaw robots. And you can't force companies to hire human workers.

But we could potentially have major problems in our society as jobs at the low end of the wage scale quickly disappear.

According to CNN, restaurants all over the nation are going to automated service, and a recent University of Oxford study concluded that there is a 92 percent chance that most fast food jobs will be automated in the coming years...

Panera Bread is the latest chain to introduce automated service, announcing last month that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili's and Applebee's to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.

Panera, which spent $42 million developing its new system, claims it isn't planning any job cuts as a result of the technology, but some analysts see this kind of shift as unavoidable for the industry.

In a widely cited paper released last year, University of Oxford researchers estimated that there is a 92% chance that fast-food preparation and serving will be automated in the coming decades.
It is being projected that other types of jobs will soon be automated as well...

Delivery drivers could be replaced en masse by self-driving cars, which are likely to hit the market within a decade or two, or even drones. In food preparation, there are start-ups offering robots for bartending and gourmet hamburger preparation. A food processing company in Spain now uses robots to inspect heads of lettuce on a conveyor belt, throwing out those that don't meet company standards, the Oxford researchers report.

Could you imagine such a world?

When self-driving vehicles take over, what will happen to the 3.1 million Americans that drive trucks for a living?

Our planet is changing at a pace that is almost inconceivable.

Over the past decade, the big threat to our jobs has been workers on the other side of the globe that live in countries where it is legal to pay slave labor wages.

But now even those workers are having their jobs taken away by robots. For example, just check out what is happening in China...

Foxconn has been planning to buy 1 million robots to replace human workers and it looks like that change, albeit gradual, is about to start.

The company is allegedly paying $25,000 per robot – about three times a worker's average salary – and they will replace humans in assembly tasks. The plans have been in place for a while – I spoke to Foxconn reps about this a year ago – and it makes perfect sense. Humans are messy, they want more money, and having a half-a-million of them in one factory is a recipe for unrest. But what happens after the halls are clear of careful young men and women and instead full of whirring robots?

Perhaps you think that your job could never be affected because you do something that requires a "human touch" like caring for the elderly.

Well, according to Reuters, robots are moving into that arena as well...

Imagine you're 85, and living alone. Your children are halfway across the country, and you're widowed. You have a live-in aide - but it's not human. Your personal robot reminds you to take your medicine, monitors your diet and exercise, plays games with you, and even helps you connect with family members on the Internet.

And robots are even threatening extremely skilled professions such as doctors. For instance, just check out this excerpt from a Bloomberg article entitled "Doctor Robot Will See You Shortly"...
http://www.bloombergview.com/articles/2013-09-26/doctor-robot-will-see-you-shortly

Johnson & Johnson proposes to replace anesthesiologists during simple procedures such as colonoscopies -- not with nurse practitioners, but with machines. Sedasys, which dispenses propofol and monitors a patient automatically, was recently approved for use in healthy adult patients who have no particular risk of complications. Johnson & Johnson will lease the machines to doctor's offices for $150 per procedure -- cleverly set well below the $600 to $2,000 that anesthesiologists usually charge.
And this is just the beginning. In a previous article, I discussed the groundbreaking study by Dr. Carl Frey and Dr. Michael Osborne of Oxford University which came to the conclusion that 47 percent of all U.S. jobs could be automated within the next 20 years.

47 percent?

That is crazy.

What will the middle class do as their jobs are taken away?

The world that we live in is becoming a radically different place than the one that we grew up in.

The robots are coming, and they are going to take millions of our jobs.

[Warph]

The Fall of Mainstream Media:
When Propaganda Fails, Humanity Awakens

by Jeff Berwick/Activist Post/Friday, May 23, 2014

http://www.activistpost.com/2014/05/the-fall-of-mainstream-media-when.html

It doesn't happen often, but The New York Times (NYT) has truthfully reported on something recently.

On what did it report? Well, on itself, and how alarmed it is due to its own increasing irrelevance in the face of new sources of information.

NYT is well-aware of the "New Media," as a 96-page internal report, sent to top executives last month, makes clear. Obtained by Buzzfeed, the report "paints a dark picture of a newsroom struggling more dramatically than is immediately visible to adjust to the digital world, a newsroom that is hampered primarily by its own storied culture."

The report ignores its traditional mainstream (MSM) competitors and takes a closer look at new digital companies like First Look Media, Vox, Huffington Post, Business Insider and Buzzfeed.

"They are ahead of us in building impressive support systems for digital journalists, and that gap will grow unless we quickly improve our capabilities," the report states. "Meanwhile, our journalism advantage is shrinking as more of these upstarts expand their newsrooms."

"We are not moving with enough urgency," it says.

A central issue for NYT is "a cadre of editors who remain unfamiliar with the web."

"Many desks lack editors who even know how to evaluate digital work," the report continues.
A few suggestions NYT is looking into is a TED talks-style event series and an expanded op-ed platform, including location-based local news and information.

But it is too late...

STATING THE OBVIOUS
At the very least, thank you, NYT, for stating the truth even though it was an internal document not meant for the public. And, even if it was already painfully obvious. Still it took bravery for such a dinosaur to admit its own obsolescence.

The paper's model is obsolete, but even worse than the model has been the paper's lack of interest in the truth. As the US empire has grown more out of control, more dangerous, and more insane, the NYT has functioned as a fourth branch of government, a gatekeeper for a totalitarian world a la 1984 or Brave New World.

But the gig is up. The world knows NYT's complicity in erecting a sick and deranged world, and unless the paper breaks major news stories and outs itself as an undeniable friend of freedom, it will continue to lose revenue. No more can NYT expect to serve the elite and its bottom line at the same time.  In the age of the Internet, what David Rockefeller was once grateful for is no longer possible:

We are grateful to the Washington Post, the New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years...It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetermination practiced in past centuries.

Mainstream media is definitely dying, and this is a VERY good thing. The root of the word government combine as "to control minds."  The root of the word "govern" is control and the root of "ment" is mind.  Without control over minds via the media, the government will lose all control. More young people now get their news from the Internet than television. In mere years most everybody will get their news from the Internet because nobody will trust the mainstream:

This data shows that it is really only those over 65 years old who are still completely brainwashed. Not all, of course.  But many or most. 

Newsweek (which I call Newspeak) has released its last print issue. You'll remember one of Newsweek's last attempts to be relevant again was uncovering the wrong Satoshi Nakamoto as the creator of bitcoin. They found some guy with the right name in the phone book...You know, "quality journalism"...

Clearly the only valuable part of MSM media sites is in the comments section which debunks 90% of the articles published. Popular Science was so overwhelmed by people bringing facts into many of their articles that the site shut off its comments section.

CNN's viewership is at a record-low (the network recently laid off 40 journalists), while CNBC has suffered a viewership collapse as well.

But once Larry King said that CNN would be better off showing re-runs of Spongebob Squarepants 24 hours a day, you knew it was over...

Larry King left CNN because he knew it would collapse. He left CNN for the Russian government propaganda channel, RT, because it is more respected and features more truth about the West. Twenty years ago, this would be have been unheard of for Larry King! A career-ender! Not today...Nope. Today it is a respect-earner. Oh, how things have changed...

THE NEW MEDIA TAKEOVER
The New Media has taken over. Alex Jones is almost a household name and groups like Luke Rudkowski's We Are Change have revolutionized how people get information. (Editor's Note: We Are Change offers "Change Media University" to learn how to become a real investigative journalist that we highly recommend.  Forget traditional school). For years now the most popular MSM personalities, like Glenn Beck, have followed the playbook of new media personalities in a bid to remain relevant. Now, in order to remain relevant people like Glenn Beck need to quote or interview people in the "alternative media".

It was not all that long ago that John Kerry and Zbigniew Brzezinski said that the Internet, simply put, is making it hard for them to govern. Secretary of Statism, John Kerry, before a group of State Department workers told the audience that the world has been "complicated" by "... this little thing called the Internet and the ability of people everywhere to communicate instantaneously and to have more information coming at them in one day than most people can process in months or a year."
According to Kerry, the Internet "makes it much harder to govern, makes it much harder to organize people, much harder to find the common interest."

Z-Big echoed his sentiment, saying that public access to information stopped war with Syria.

Bill Clinton, laughingly even suggested the need for a "Ministry of Truth" over the Internet, run by the US federal government, that would censor anything it did not deem to be "truth".

In 5-10 years people will look at you funny if you tell them you watch mainstream media. Why? Because there is no real information nor substance on mainstream media. If you want to know what's happening in your world, and what's important, then stay tuned to The Dollar Vigilante Blog and The Dollar Vigilante Newsletter where we break down The End Of The Monetary System As We Know It (TEOTMSAWKI) in a manner upon which you can act. More than editorials, the TDV team is determined to augment our reader's lives beyond the capacity of the dinosaur mainstream media.

[Warph]

Dust In The Wind: Dust Bowl Conditions Have Returned To Kansas, Oklahoma And North Texas

By Michael Snyder, on May 27th, 2014

In early 1978, a song entitled "Dust in the Wind" by a rock band known as Kansas shot up the Billboard charts.  When Kerry Livgren penned those now famous lyrics, he probably never imagined that Dust Bowl conditions would return to his home state just a few short decades later.  Sadly, that is precisely what is happening.  When American explorers first traveled through north Texas, Oklahoma and Kansas, they referred to it as "the Great American Desert" and they doubted that anyone would ever be able to farm it.  But as history has shown, when that area gets plenty of precipitation the farming is actually quite good.  Unfortunately, the region is now in the midst of a devastating multi-year drought which never seems to end.  Right now, 56 percent of Texas, 64 percent of Oklahoma and 80 percent of Kansas are experiencing "severe drought", and the long range forecast for this upcoming summer is not good.  In fact, some areas in the region are already drier than they were during the worst times of the 1930s.  And the relentless high winds that are plaguing that area of the country are kicking up some hellacious dust storms.  For example, some parts of Kansas experienced a two day dust storm last month.  And Lubbock, Texas was hit be a three day dust storm last month.  We are witnessing things that we have not seen since the depths of the Dust Bowl days, and unless the region starts getting a serious amount of rain, things are going to get a whole lot worse before they get any better.

Over the past two months, very high winds and bone dry conditions have made the lives of ordinary farmers in the state of Kansas extraordinarily difficult.  Just check out the following excerpt from a recent article posted on Agriculture.com...

The dust has settled, but for how long no one can be sure. At any moment, the winds may blow, moving the topsoil -- soil that took Mother Nature generations to craft -- even farther from its origin.

One farmer reckons that precious topsoil, native to his farm in Kearny County, Kansas, now sits in a field at least 200 miles away, blown there by the relentless winds of March and April 2014.

Affecting counties in western Texas, Oklahoma, and Kansas, and eastern Colorado, it was reminiscent of what folks in the same region faced 80 years ago.

"There were several days we couldn't see 100 yards in front of us," says Tom Hauser, a farmer near Ulysses, Kansas. "We didn't know where the dust was coming from. It was moving in here from somewhere else, just like it did back in the 1930s."

When heavy winds blow day after day but there is no rain, it creates ideal conditions for dust storms.  According to the same article that I just mentioned, the average wind speed in the little community of Syracuse, Kansas has been over 50 miles an hour so far this year...

Since the beginning of 2014, the average maximum daily wind speed in Syracuse, Kansas, is 50.6 miles per hour, according to the Kansas State University Weather Data Library. In that same time, Syracuse has received just 1 inch of total precipitation.

That is a recipe for disaster.

"I've had to chisel more ground this year than the last 20 years put together," says Gary Millershaski, who farms near Lakin in Kearny County. Chiseling the ground roughs it up, and helps prevent soil from blowing – at least for a little while.
I couldn't imagine living somewhere with such high winds day after day.

But this is what farmers in the High Plains have to deal with on a constant basis.

And needless to say, when things are this dry those kinds of winds can kick up some immense dust storms.  In fact, a dust storm in late April was so large that it covered most of the region...

Monday's dust storm was so large it covered most of Kansas, western Oklahoma, the Texas Panhandle and eastern Colorado, said weather service meteorologist Jeff Hutton in Dodge City. Tuesday's dust cloud was more localized, only found in some parts of Kansas.

"That is what happens when you get drought, a lack of vegetation and you have wind," Hutton said. "I mean, that is just the nature of the High Plains. And then that dirt that was lofted is eventually carried into eastern Kansas."

When one of these dust storms strikes, you want to get indoors and stay there.  It isn't even safe to be driving.  When you can't even see five feet in front of you, the odds of getting into a fatal accident rise exponentially.  Just check out what happened earlier this year near the little town of Liberal, Kansas...

At least 12 vehicles were involved in an pileup accident near Liberal, Kansas.

The accident happened around 1:40 p.m., nine miles southwest of Liberal. It appears that blowing dust limited visibility so severely that it cause vehicles to not see each other until it was too late and they collided. One report states that visibility was less than five feet.

According to Chief Anthony Adams of the Tyrone Fire Department in Oklahoma, six of the vehicles involved were cars and trucks, the other six were tractor trailers.

As bad as things are in Kansas right now, the truth is that things are probably even worse down in Texas.  Amarillo has had 10 dust storms so far this year, and Lubbock has already had 15 days of dust storms in 2014...

The number of dust storms seems to rise with the length of the drought. Amarillo has had 10 this year; it had none in 2010. The city is about 10 percent drier now than the 42 months that ended April 30, 1936, and drier than the state's record drought in the 1950s.

Lubbock already has seen 15 days with dust storms this year, the National Weather Service said.

And remember, we haven't even gotten to the summer months yet.

As conditions get even worse in the heartland of America, it is going to end up deeply affecting all of us.  The farmers and ranchers that live there provide a tremendous amount of food for the rest of the country, and food prices are already starting to rise at an alarming pace.

So what is going to happen if this drought extends for several more years or even longer?

Some experts such as paleoclimatologist Edward Cook have suggested that we could be in the midst of a "megadrought" that could last for decades or even centuries.

Many of those that were convinced that we could never see a return of the Dust Bowl days are now being forced to reevaluate their beliefs.  According to the National Weather Service, parts of Kansas, Colorado, Texas and Oklahoma are already drier than they were in the 1930s.  The following is an excerpt from a recent National Geographic article entitled "Parched: A New Dust Bowl Forms in the Heartland"...

Four years into a mean, hot drought that shows no sign of relenting, a new Dust Bowl is indeed engulfing the same region that was the geographic heart of the original. The undulating frontier where Kansas, Colorado, and the panhandles of Texas and Oklahoma converge is as dry as toast. The National Weather Service, measuring rain over 42 months, reports that parts of all five states have had less rain than what fell during a similar period in the 1930s.

It is hard to put into words how incredibly serious this all is.

A few years ago, when I wrote articles with titles such as "20 Signs That Dust Bowl Conditions Will Soon Return To The Heartland Of America", a lot of people laughed.

Not that many people are laughing now.

The truth is that we are now in the midst of the worst drought crisis since the days of the Great Depression.

Fortunately, over the past week or so there has been some rain in some of the hardest hit areas.  Let us hope that this is a sign of better things to come.

Because if this drought does not come to an end, it is going to become much, much more expensive for Americans to feed their families.

And considering the fact that 49 million Americans are already facing food insecurity, that is a threat that should not be taken lightly.

[...]

The United States is currently engulfed in one of the worst droughts in recent memory. More than 30% of the country experienced at least moderate drought as of last week's data.

In seven states drought conditions were so severe that each had more than half of its land area in severe drought. Severe drought is characterized by crop loss, frequent water shortages, and mandatory water use restrictions. Based on data from the U.S. Drought Monitor, 24/7 Wall St. reviewed the states with the highest levels of severe drought.

In an interview, U.S. Department of Agriculture (USDA) meteorologist Brad Rippey, told 24/7 Wall St. that drought has been a long-running issue in parts of the country. "This drought has dragged on for three and a half years in some areas, particularly (in) North Texas," Rippey said.

While large portions of the seven states suffer from severe drought, in some parts of these states drought conditions are even worse. In six of the seven states with the highest levels of drought, more than 30% of each state was in extreme drought as of last week, a more severe level of drought characterized by major crop and pasture losses, as well as widespread water shortages. Additionally, in California and Oklahoma, 25% and 30% of the states, respectively, suffered from exceptional drought, the highest severity classification. Under exceptional drought, crop and pasture loss is widespread, and shortages of well and reservoir water can lead to water emergencies.

Drought has had a major impact on important crops such as winter wheat. "So much of the winter wheat is grown across the southern half of the Great Plains," Rippey said, an area that includes Texas, Oklahoma, and Kansas, three of the hardest-hit states. Texas alone had nearly a quarter of a million farms in 2012, the most out of any state, while neighboring Oklahoma had more than 80,000 farms, trailing only three other states.

In the Southwest, concerns are less-focused on agriculture and more on reservoir levels, explained Rippey. In Arizona, reservoir levels were just two-thirds of their usual average. Worse still, in New Mexico, reservoir stores were only slightly more than half of their normal levels. "And Nevada is the worst of all. We see storage there at about a third of what you would expect," Rippey said.

The situation in California may well be the most problematic of any state. The entire state was suffering from severe drought as of last week, and 75% of all land area was under extreme drought. "Reservoirs which are generally fed by the Sierra Nevadas and the southern Cascades [are] where we see the real problems," Rippey said. Restrictions on agricultural water use has forced many California farmers to leave fields fallow, he added. "At [the current] usage rate, California has less than two years of water remaining."

The U.S. Drought Monitor is produced by the U.S. Department of Agriculture, the National Oceanic Atmospheric Administration (NOAA), and the National Drought Mitigation Center at the University of Nebraska-Lincoln. 24/7 Wall St. reviewed the seven states with the highest proportions of total area classified in at least a state of severe drought as of May 13, 2014. We also reviewed figures recently published by the USDA's National Agricultural Statistics Service as part of its 2012 Census of Agriculture.

These are the seven states running out of water.

7. Texas
> Pct. severe drought: 56.1%
> Pct. extreme drought: 39.9% (4th highest)
> Pct. exceptional drought: 20.7% (3rd highest)

Much of north and central Texas, including all of the Texas Panhandle, was covered in exceptional drought as of last week. In all, almost 40% of land area in the state experienced extreme drought conditions. Recently, some have said the heavy use of water in natural gas fracking processes in North Texas is problematic during the area's drought. Additionally, the drought could have a large impact on the state's agriculture industry. Texas had nearly a quarter of a million farms, the most out of any state in the nation, as of 2012.

MORE: The 10 most polluted cities in America

6. Oklahoma
> Pct. severe drought: 64.5%
> Pct. extreme drought: 50.1% (2nd highest)
> Pct. exceptional drought: 30.4% (the highest)

Severe drought covered over 50% of Oklahoma as of last week, up from roughly 33% one year ago. The state's drought worsened from the middle of April, when just 27% of the state experienced severe drought. The state's 80,000-plus farms and nearly 310,000 hired farm workers have been struggling with the drought conditions. The situation is all the more difficult because the state is supposed to be in the midst of its rainy season. An open burn ban is in effect for the western part of the state due to fire hazards resulting from the drought. In March, the Oklahoma Emergency Drought Relief Commission awarded more than $1 million to several drought-ridden communities in the state.

5. Arizona
> Pct. severe drought: 76.3%
> Pct. extreme drought: 7.7% (9th highest)
> Pct. exceptional drought: 0.0%

Unlike other states suffering the most from drought, none of Arizona experienced exceptional drought. Severe drought conditions, however, engulfed more than three-quarters of the state as of last week. While dry conditions are not particularly unusual in Arizona at this time of year, the U.S. Drought Monitor accounts for local seasonal patterns in assessing drought conditions. Moreover, the extreme heat and lighter-than-average snowfall from the winter have reduced the soil moisture to such a degree that fire hazards are significantly higher.

MORE: America's nine most damaged brands

4. Kansas
> Pct. severe drought: 80.8%
> Pct. extreme drought: 48.1% (3rd highest)
> Pct. exceptional drought: 2.8% (6th highest)

Like several states running out of water, 80% of Kansas was engulfed in at least severe drought, an increase from one year ago when roughly 70% was covered by severe drought. Compared to last May, however, when exceptional drought covered nearly one fifth of the state, just 2.8% of Kansas was considered exceptionally dry as of last week. In announcing the severity of the state's drought problem, Kansas Governor Sam Brownback lifted restrictions on taking water from state-owned fishing lakes.

3. New Mexico
> Pct. severe drought: 86.2%
> Pct. extreme drought: 33.3% (6th highest)
> Pct. exceptional drought: 4.5% (5th highest)

More than 86% of New Mexico was covered in severe drought as of last week, more than any state except for Nevada and California. Additionally, one-third of the state was in extreme drought, worse than just a month earlier, when only one-quarter of the state was covered in extreme drought. However, conditions were better than they were one year ago, when virtually the entire state was in at least severe drought, with more than 80% in extreme drought conditions. NOAA forecasts conditions may improve in much of the state this summer.

MORE: The heaviest drinking countries in the world

2. Nevada
> Pct. severe drought: 87.0%
> Pct. extreme drought: 38.7% (5th highest)
> Pct. exceptional drought: 8.2% (4th highest)

Nearly 40% of Nevada was covered in extreme drought last week, among the highest rates in the country. The drought in the state has worsened since the week of April 15, when 33.5% of the state was covered in extreme drought. According to the Las Vegas Valley Water District (LVVWD), the main cause of the drought this year has been below average snowfall in the Rocky Mountains. Melting snow from the Rocky Mountains eventually flows into Lake Mead, which provides most of the Las Vegas Valley with water. John Entsminger, head of both the LVVWD and the Southern Nevada Water Authority, said that the effects of the drought on the state has been "every bit as serious as a Hurricane Katrina or a Superstorm Sandy."

MORE: World's most content (and miserable) countries

1. California
> Pct. severe drought: 100.0%
> Pct. extreme drought: 76.7% (the highest)
> Pct. exceptional drought: 24.8% (2nd highest)

California had the nation's worst drought problem with more than 76% of the state experiencing extreme drought as of last week. Drought in California has worsened considerably in recent years. Severe drought conditions covered the entire state, as of last week. Governor Jerry Brown declared a state of emergency earlier this year as the drought worsened. California had 465,422 hired farm workers in 2012, more than any other state. Farm workers would likely suffer further if conditions persist. The shortage of potable water has been so severe that California is now investing in long-term solutions, such as desalination plants. A facility that is expected to be the largest in the Western hemisphere is currently under construction in Southern California, and another desalination facility is under consideration in Orange County.

[Diane Amberg]

Excellent. More people should be paying attention to the truth in all this. It is real.
Some states like Nevada are mining ancient water that will never recover. Using anything but recycled or reclaimed water for things such as golf courses and decorative fountains is irresponsible.  When mined water is gone, it does not replace its self as there is no no recharge aquifer associated with it. Large water user industries will not expand to water poor areas. That makes for a potentially serious economic domino effect. People better get used to conserving water in a much bigger way and using recycled water for personal use and desalinization water for all uses.

[Warph]

Amen to that, Diane... good comment.

[Warph]

NBC Censors Snowden's Critical 9/11 Comments from Prime Time Audience

by Mikael Thalen/May 29th, 2014/Updated 05/29/2014 at 11:28 pm

http://www.storyleak.com/nbc-censors-snowdens-critical-911-comments-from-prime-time-audience/

Statements made by NSA whistleblower Edward Snowden regarding the 9/11 terror attacks were edited out of his NBC Nightly News interview with Brian Williams Wednesday in what appears to be an attempt to bolster legitimacy for the agency's controversial surveillance programs.

Snowden's comments surrounding the failure of dragnet surveillance in stopping the 9/11 attacks were censored from the prime time broadcast and instead buried in an hour long clip on NBC's website.

"You know this is a key question that the 9/11 commission considered, and what they found in the postmortem when they looked at all the classified intelligence from all the different intelligence agencies, they found that we had all of the information we needed as an intelligence community, as a classified sector, as the national defense of the United States, to detect this plot," Snowden said.

"We actually had records of the phone calls from the United States and out. The CIA knew who these guys were. The problem was not that we weren't collecting information, it wasn't that we didn't have enough dots, it wasn't that we didn't have a haystack, it was that we did not understand the haystack that we had."

NBC's decision to bury Snowden's comments are unsurprising given the fact that the 9/11 attacks are exhaustively used by the federal government as the prime justification for surveilling millions of innocent Americans. Snowden remarked on the government's prior knowledge of the accused Boston bombers as well, also cut from the prime time interview.

'If we're missing things like the Boston Marathon bombings where all of these mass-surveillance systems, every domestic dragnet in the world, didn't reveal guys that the Russian intelligence service told us about by name, is that really the best way to protect our country or are we trying to throw money at a magic solution that's actually not just costing us our safety, but our rights and our way of life," Snowden said.

Despite countless government officials pointing to 9/11 foreknowledge, whether missed or ignored, establishment media outlets have continually worked to keep such voices out of relevant reporting.

Former NSA senior executive turned whistleblower Thomas Drake, who revealed unconstitutional surveillance programs targeting Americans in 2005, has repeatedly commented on NSA intelligence that would have "undoubtedly" stopped the 9/11 attacks.

"The NSA had critical intelligence about Al Qaeda and associated movements in particular that had never been properly shared outside of NSA," Drake said in a recent interview. "They simply did not share critical intelligence although they had it."

In a January letter to President Obama, Drake and fellow whistleblowers William Binney, Edward Loomis, and Kirk Wiebe not only detailed the agency's foreknowledge, but the ensuing cover-up as well.

"The sadder reality, Mr. President, is that NSA itself had enough information to prevent 9/11, but chose to sit on it rather than share it with the FBI or CIA. We know; we were there," the letter reads. "We were witness to the many bureaucratic indignities that made NSA at least as culpable for pre-9/11 failures as are other U.S. intelligence agencies."

Outside of the NSA, countless intelligence officials have also commented on 9/11 foreknowledge and the federal government's attempts to stifle any investigation into negligence and wrongdoing.

Former senior intelligence officer Lt. Col Anthony Shaffer, who attempted to inform the government after identifying the two terrorist cells later charged for the 9/11 attacks in 2000 during Operation Able Danger, was attacked and demonized by the Defense Intelligence Agency after informing Congress of the agency's refusal to act.

"I had no intention of joining the ranks of 'whistle blowers,'" Shaffer said in 2009. "When I made my disclosure to the 9/11 commission regarding the existence of a pre 9/11 offensive counter-terrorism operation that had discovered several of the 9/11 terrorists a full year before the 9/11 attacks my intention was to simply tell the truth, and fulfill my oath of office."

Former FBI wiretap translator Sibel Edmonds, who had access to top-secret communications, told reporters in 2004 that the FBI had detailed 9/11 foreknowledge that specifically mentioned a terrorist attack involving airplanes.

"We should have had orange or red-type of alert in June or July of 2001. There was that much information available," Edmonds told Salon. "There was specific information about use of airplanes, that an attack was on the way two or three months beforehand and that several people were already in the country by May of 2001. They should've alerted the people to the threat we're facing."

According to Edmonds, after the 9/11 attacks, FBI supervisors ordered translators to "work slowly" in order to ensure that the agency would get larger funding the next year.

The vast number of whistleblowers in the intelligence community not only gives credence to Snowden's comments, but also exemplifies the NSA's illegitimate growth since 9/11.

In a desperate attempt to gain the moral high ground, Secretary of State John Kerry claimed Snowden had aided terrorists during an interview on "Good Morning America" Wednesday despite having absolutely no evidence to support his accusation.

Despite the fact that the NSA leaks have proven the agency to be involved in issues unrelated to national security, such as economic espionage, the claim of using mass surveillance to stop terrorism deteriorates even further in light of recent decisions by the Obama Administration.

In 2013, President Obama waived a federal law designed to prevent the US from arming terrorists in order to provide military support to the "Syrian rebels." Even with Syrian Revolutionary Front leader Jamal Maarouf admitting that his fighters work alongside the Al-Qaeda aligned Jabhat al-Nusra, the Obama Administration has continued its unflinching support.

The president's support of Al-Qaeda was so transparent during the Libyan overthrow that former Democratic Congressman Dennis Kucinich publicly questioned why the US-backed "Libyan rebels" had placed an Al Qaeda flag over the top of the courthouse in Benghazi.

Whether it be issuing fake terror alerts, creating domestic terror plots or allowing them to take place, the national security state will undoubtedly do whatever it can to continue its unabated growth towards total information awareness.

[Warph]

Half The Country Makes Less Than $27,520 A Year And 15 Other Signs The Middle Class Is Dying

By Michael Snyder, on June 4th, 2014

If you make more than $27,520 a year at your job, you are doing better than half the country is.  But you don't have to take my word for it, you can check out the latest wage statistics from the Social Security administration right here.  But of course $27,520 a year will not allow you to live "the American Dream" in this day and age.  After taxes, that breaks down to a good bit less than $2,000 a month.  You can't realistically pay a mortgage, make a car payment, afford health insurance and provide food, clothing and everything else your family needs for that much money.  That is one of the reasons why both parents are working in most families today.  In fact, sometimes both parents are working multiple jobs in a desperate attempt to make ends meet.  Over the years, the cost of living has risen steadily but our paychecks have not.  This has resulted in a steady erosion of the middle class.  Once upon a time, most American families could afford a nice home, a couple of cars and a nice vacation every year.  When I was growing up, it seemed like almost everyone was middle class.  But now "the American Dream" is out of reach for more Americans than ever, and the middle class is dying right in front of our eyes.

One of the things that was great about America in the post-World War II era was that we developed a large, thriving middle class.  Until recent times, it always seemed like there were plenty of good jobs for people that were willing to be responsible and work hard.  That was one of the big reasons why people wanted to come here from all over the world.  They wanted to have a chance to live "the American Dream" too.

But now the American Dream is becoming a mirage for most people.  No matter how hard they try, they just can't seem to achieve it.

And here are some hard numbers to back that assertion up.  The following are 15 more signs that the middle class is dying...

#1 According to a brand new CNN poll, 59 percent of Americans believe that it has become impossible for most people to achieve the American Dream...

The American Dream is impossible to achieve in this country.

So say nearly 6 in 10 people who responded to CNNMoney's American Dream Poll, conducted by ORC International. They feel the dream -- however they define it -- is out of reach.

Young adults, age 18 to 34, are most likely to feel the dream is unattainable, with 63% saying it's impossible. This age group has suffered in the wake of the Great Recession, finding it hard to get good jobs.

#2 More Americans than ever believe that homeownership is not a key to long-term wealth and prosperity...

The great American Dream is dying. Even though many Americans still desire to own a home, they are losing faith in homeownership as a key to prosperity.

Nearly two-thirds of Americans, or 64%, believe they are less likely to build wealth by buying a home today than they were 20 or 30 years ago, according to a survey sponsored by non-profit MacArthur Foundation. And nearly 43% said buying a home is no longer a good long-term investment.

#3 Overall, the rate of homeownership in the United States has fallen for eight years in a row, and it has now dropped to the lowest level in 19 years.

#4 52 percent of Americans cannot even afford the house that they are living in right now...

"Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the "How Housing Matters Survey," which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools."


#5 According to the U.S. Census Bureau, only 36 percent of Americans under the age of 35 own a home.  That is the lowest level that has ever been measured.

#6 Right now, approximately one out of every six men in the United States that are in their prime working years (25 to 54) do not have a job.

#7 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low.

#8 The number of working age Americans that are not employed has increased by 27 million since the year 2000.

#9 According to the government's own numbers, about 20 percent of the families in the entire country do not have a single member that is employed at this point.

#10 This may sound crazy, but 25 percent of all American adults do not even have a single penny saved up for retirement.

#11 As I noted in one recent article, total consumer credit in the United States has increased by 22 percent over the past three years, and 56 percent of all Americans have "subprime credit" at this point.

#12 Major retailers are shutting down stores at the fastest pace that we have seen since the collapse of Lehman Brothers.

#13 It is hard to believe, but more than one out of every five children in the United States is living in poverty in 2014.

#14 According to one recent report, there are 49 million Americans that are dealing with food insecurity right now.

#15 Overall, the U.S. poverty rate is up more than 30 percent since 1966.  It looks like LBJ's war on poverty didn't work out too well after all.

Sadly, it does not appear that there is much hope on the horizon for the middle class.  More good jobs are being shipped out of the country and are being lost to technology every single day, and our politicians seem convinced that "business as usual" is the right course of action for our nation.

Unless something dramatic happens, it is going to become increasingly difficult to eke out a middle class existence as a "worker bee" in American society.  The truth is that most big companies these days do not have any loyalty to their workers and really do not care what ends up happening to them.

To thrive in this kind of environment, new and different thinking is required.  The paradigm of "go to college, get a job, stay loyal and retire after 30 years" has been shattered.  The business world is more unstable now than it has been during any point in the post-World War II era, and we are all going to have to adjust.

(My advice to all the young people who are graduating from high school right now and intend to go to college is don't go into debt to finance your college education. I think it's a safe assumption that four years from now the economy will be much worse than it is now. If you choose to continue your education, unless you have a rich uncle who's willing to pay for it, go to a community college and pay as you go. Better yet, don't go at all. Find an entry-level job, even if it starts at minimum wage, and stick with it, and in four years you'll have that many years of experience and you won't have students loans to deal with. Or become an entrepreneur. Think of some service that is needed in your area and how you can meet that need. Don't fall for the college scam. A college degree used to be the ticket to a middle class lifestyle. But now it's the ticket to many years of debt slavery.)

[Warph]

America's Insatiable Demand For More Expensive Cars, Larger Homes And Bigger Debts

By Michael Snyder, on June 2nd, 2014

One of the things that this era of American history will be known for is conspicuous consumption.  Even though many of us won't admit it, the truth is that almost all of us want a nice vehicle and a large home.  They say that "everything is bigger in Texas", but the same could be said for the entire nation as a whole.  As you will see below, the size of the average new home has just hit a brand new record high and so has the size of the average auto loan.  In the endless quest to achieve "the American Dream", Americans are racking up bigger debts than ever before.  Unfortunately, our paychecks are not keeping up and the middle class in the United States is steadily shrinking.  The disparity between the lifestyle that society tells us that we ought to have and the size of our actual financial resources continues to grow.  This is leading to a tremendous amount of frustration among those that can't afford to buy expensive cars and large homes.

I remember the days when paying for a car over four years seemed like a massive commitment.  But now nearly a quarter of all auto loans in the U.S. are extended out for six or seven years, and those loans have gotten larger than ever...

In the latest sign Americans are increasingly comfortable taking on more debt, auto buyers borrowed a record amount in the first quarter with the average monthly payment climbing to an all-time high of $474.

Not only that, buyers also continued to spread payments out over a longer period of time, with 24.8 percent of auto loans now coming with payment terms between six and seven years according to a new report from Experian Automotive.

That's the highest percentage of 6 and 7-year loans Experian has ever recorded in a quarter.

Didn't the last financial crisis teach us about the dangers of being overextended?

During the first quarter 0f 2014, the size of the average auto loan soared to an all-time record $27,612.

But if you go back just five years ago it was just $24,174.

And because we are taking out such large auto loans that are extended out over such a long period of time, we are now holding on to our vehicles much longer.

According to CNBC, Americans now keep their vehicles for an average of six years and one month.

Ten years ago, it was just four years and two months.

My how things have changed.

And consumer credit as a whole has also reached a brand new all-time record high in the United States.

Consumer credit includes auto loans, but it doesn't include things like mortgages.  The following is how Investopedia defines consumer credit...

Consumer credit is basically the amount of credit used by consumers to purchase non-investment goods or services that are consumed and whose value depreciates quickly. This includes automobiles, recreational vehicles (RVs), education, boat and trailer loans but excludes debts taken out to purchase real estate or margin on investment accounts.

As you can see from the chart below, Americans were reducing their exposure to consumer credit for a little while after the last financial crisis struck, but now it is rapidly rising again at essentially the same trajectory as before...

Have we learned nothing?

Meanwhile, America also seems to continue to have an insatiable demand for even larger homes.

According to Zero Hedge, the size of the average new home in the United States has just hit another brand new record high...

There was a small ray of hope just after the Lehman collapse that one of the most deplorable characteristics of US society – the relentless urge to build massive McMansions (funding questions aside) – was fading. Alas, as the Census Bureau today confirmed, that normalization in the innate desire for bigger, bigger, bigger not only did not go away but is now back with a bang.

According to just released data, both the median and average size of a new single-family home built in 2013 hit new all time highs of 2,384 and 2,598 square feet respectively.

And while it is known that in absolute number terms the total number of new home sales is still a fraction of what it was before the crisis, the one strata of new home sales which appears to not only not have been impacted but is openly flourishing once more, are the same McMansions which cater to the New Normal uberwealthy (which incidentally are the same as the Old Normal uberwealthy, only wealthier) and which for many symbolize America's unbridled greed for mega housing no matter the cost.

There is certainly nothing wrong with having a large home.

But if people are overextending themselves financially, that is when it becomes a major problem.

Just remember what happened back in 2007.

And just like prior to the last financial crisis, Americans are treating their homes like piggy banks once again.  Home equity lines of credit are up 8 percent over the past 12 months, and homeowners are increasingly being encouraged to put their homes at risk to fund their excessive lifestyles.

But there has been one big change that we have seen since the last financial crisis.

Lending standards have gotten a lot tougher, and many younger adults find that they are not able to buy homes even though they would really like to.  Stifled by absolutely suffocating levels of student loan debt, many of these young adults are putting off purchasing a home indefinitely.  The following is an excerpt from a recent CNN article about this phenomenon...

The Millennial generation is great at many things: texting, social media, selfies. But buying a home? Not so much.

Just 36% of Americans under the age of 35 own a home, according to the Census Bureau. That's down from 42% in 2007 and the lowest level since 1982, when the agency began tracking homeownership by age.

It's not all their fault. Millennials want to buy homes — 90% prefer owning over renting, according to a recent survey from Fannie Mae.

But student loan debt, tight lending standards and stiff competition have made it next to impossible for many of these younger Americans to make the leap.

This is one of the primary reasons why homeownership in America is declining.

A lot of young adults would love to buy a home, but they are already financially crippled from the very start of their adult lives by student loan debt.  In fact, the total amount of student loan debt is now up to approximately 1.1 trillion dollars.  That is even more than the total amount of credit card debt in this country.

We live in a debt-based system which is incredibly fragile.

We experienced this firsthand during the last financial crisis.

But we just can't help ourselves.

We have always got to have more, and society teaches us that if we don't have enough money to pay for it that we should just go into even more debt.

Unfortunately, just as so many individuals and families have found out in recent years, eventually a day of reckoning arrives.

And a day of reckoning is coming for the nation as a whole at some point as well.

You can count on that.

[Warph]

George Washington At The Constitutional Convention 1787 – Public Domain

By Michael Snyder, on June 9th, 2014

Why have we turned our backs on the principles that this nation was founded upon?  Many of those that founded this nation bled and died so that we could experience "life, liberty and the pursuit of happiness".  And yet we have tossed their ideals aside as if they were so much rubbish.  Our founders had experienced the tyranny of big government (the monarchy) and the tyranny of the big banks and feudal lords, and they wanted something very different for the citizens of the new republic that they were forming.  They wanted a country where private property was respected and hard work was rewarded.  They wanted a country where the individual was empowered, and where everyone could own land and start businesses.  They wanted a country where there were severe restrictions on all large collections of power (government, banks and corporations all included).  They wanted a country where freedom and liberty were maximized and where ordinary people had the power to pursue their dreams and build better lives for their families.  And you know what?  While no system is ever perfect, the experiment that our founders originally set up worked beyond their wildest dreams.  But now we are killing it.  Why in the world would we want to do that?

Most people are under the illusion that the United States has a "capitalist economy" today, but that simply is not accurate.  At best, we have a "mixed economy" that is becoming a little bit more socialist with each passing day.  We pay dozens of different types of taxes each year, and some Americans actually end up giving more of their earnings to the government than they keep themselves.  But that is still not enough, and so our state governments have accumulated astounding amounts of debt, and our federal government has amassed the largest single debt that the world has ever seen.  If future generations of Americans get the chance, they will curse us for the chains of debt that we have placed upon their shoulders.

So what do our government officials do with all of this money?

Well, today approximately 70 percent of all federal government activity involves taking money from some Americans and giving it to other Americans.

Despite this unprecedented wealth-redistribution program, poverty is absolutely exploding in this country and 49 million Americans are dealing with food insecurity.

Meanwhile, the bankers have been getting fabulously wealthy from all of this debt.  The Federal Reserve system was designed to trap the U.S. government in an endless spiral of debt from which it could never possibly escape, and that mission has been accomplished.  In fact, the U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created a little more than 100 years ago.

Most people like to think of big banks as "capitalist" institutions, but that is not really accurate.  In the end, giant corporate banks like we have in the United States are actually collectivist institutions.  They tend to greatly concentrate wealth and power, and socialists find those kinds of banks very useful.

In fact, Vladimir Lenin once said that "without big banks, socialism would be impossible."

While there may be a bit of animosity between big government and big banks once in a while, the truth is that they are usually very closely tied to one another.  We saw this close relationship very clearly during the financial crisis of 2008, and it is no secret that there is a revolving door between the boardrooms of Wall Street and the halls of power in Washington.  The elite dominate both spheres, and it is not for the benefit of the rest of us.

In America today, government just keeps getting bigger and the banks just keep getting bigger.  Meanwhile, the percentage of self-employed Americans is at an all-time low and the middle class is steadily dying.

What we are doing right now is clearly not working.

So why don't we go back and do the things that we were doing when we were extremely successful as a nation?

In case you don't know what those things were, here are some clues...


#1 "A wise and frugal government... shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government." — Thomas Jefferson, First Inaugural Address, March 4, 1801

#2 "A people... who are possessed of the spirit of commerce, who see and who will pursue their advantages may achieve almost anything." - George Washington

#3 "Government is instituted to protect property of every sort; as well that which lies in the various rights of individuals, as that which the term particularly expresses. This being the end of government, that alone is a just government which impartially secures to every man whatever is his own." – James Madison, Essay on Property, 1792

#4 "Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good." - John Adams

#5 "To take from one, because it is thought his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, the guarantee to everyone the free exercise of his industry and the fruits acquired by it." — Thomas Jefferson, letter to Joseph Milligan, April 6, 1816

#6 "The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If 'Thou shalt not covet' and 'Thou shalt not steal' were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free." — John Adams, A Defense of the Constitutions of Government of the United States of America, 1787

#7 "I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements." - Thomas Jefferson

#8 "Beware the greedy hand of government thrusting itself into every corner and crevice of industry." - Thomas Paine

#9 "If we can but prevent the government from wasting the labours of the people, under the pretence of taking care of them, they must become happy." - Thomas Jefferson to Thomas Cooper, November 29, 1802

#10 "All the perplexities, confusion and distress in America arise not from defects in the Constitution or Confederation, not from a want of honor or virtue so much as from downright ignorance of the nature of coin, credit and circulation." - John Adams, at the Constitutional Convention (1787)

#11 "The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." - Thomas Jefferson

#12 "Liberty must at all hazards be supported. We have a right to it, derived from our Maker. But if we had not, our fathers have earned and bought it for us, at the expense of their ease, their estates, their pleasure, and their blood." – John Adams, 1765

#13 "If ever again our nation stumbles upon unfunded paper, it shall surely be like death to our body politic. This country will crash." - George Washington

#14 "I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing." - Thomas Jefferson

#15 "When the people find that they can vote themselves money, that will herald the end of the republic." — Benjamin Franklin