Epic Failure: The Supercommittee Was A Super Joke

article from: The Economic Collapse



Does anyone need any additional evidence that our political system is completely broken?  The bipartisan congressional supercommittee that was given two months to come up with at least $1.2 trillion in deficit cuts over the next decade has failed to reach an agreement.  It is an epic failure and a national embarrassment.  The truth is that they never even came close to an agreement.  In fact, as you will read below, the two sides on the panel have been barely even talking to each other.  In the end, the supercommittee was a super joke.  Meanwhile, the U.S. national debt has passed the 15 trillion dollar mark and we are facing trillion dollar deficits as far as the eye can see.  We are heading directly for a national financial disaster, and our "leaders" seem powerless to do anything about it.

Video: MSNBC’s Dylan Ratigan has a meltdown over the meltdown

Finally, someone at MSNBC has the balls to say on air what the root of the problems is in this country. Money and politics!

MSNBC's Dylan Ratigan is mad as hell about the U.S. financial crisis--and he's not gonna take it anymore!
While convening a roundtable discussion on the market meltdown on his eponymous MSNBC show on Tuesday, Ratigan exploded.

"We've got a real problem!" an exasperated Ratigan shouted. "This is a mathematical fact! Tens of trillions of dollars are being extracted from the United States of America. Democrats aren't doing it, Republicans aren't doing it. An entire integrated system, financial system, trading system, taxing system, that was created by both parties over a period of two decades is at work on our entire country right now. And we're sitting here arguing about whether we should do the $4 trillion plan that kicks the can down the road for the president for 2017, or burn the place to the ground, both of which are reckless, irresponsible, and stupid."

Peter Schiff on BBC Newsnight

Here is a great clip featuring Peter Schiff / CEO of EuroPacific Capital. In my opinion Peter Schiff is one of the few out there who fully understands what is going on right now in the financial markets. There is a lot of information to be obtained in this short 10 minute clip.

The $1 Billion Armageddon Trade Placed Against The United States

Someone dropped a bomb on the bond market last Thursday – a $1 billion Armageddon trade betting that the United States will lose its AAA credit rating.

In one moment, an invisible trader placed a single trade that moved the most liquid debt market in the world.

The massive trade wasn’t placed in bonds themselves; it was placed in the futures market.

Swelling Nostalgia For Gold-Backed Money And A Balanced Budget Amendment

article by: Bill Bonner

After such stunning gains over the last few weeks, the stuff that Ben Bernanke does not regard as money, gold, needed a rest. But if gold isn’t real money, what is?  Pieces of paper that a private bank and the U.S. Treasury say is real money?

There’s no magic to money. It works as a medium of exchange and a store of value when its quantity is strictly controlled. That’s what’s nice about gold. Its quantity is controlled by nature herself. People have been trying to get around it for centuries. Alchemists labored long and hard to turn base metal into gold.

None succeeded.

Geithner: Taxes on ‘Small Business’ Must Rise So Government Doesn’t ‘Shrink’

article by: Terence P. Jeffrey


(CNSNews.com) - Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”
The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

Why Are Food Prices Rising So Fast?

article from: The Economic Collapse Blog

If you do much grocery shopping, you have probably noticed that the cost of food has been rising at a very brisk pace over the past year.  So why are food prices rising so fast?  According to Federal Reserve Chairman Ben Bernanke, inflation is still very low and the economy is improving.  So what is going on here?  When I go to the grocery store these days, there are very few things that I will buy unless they are on sale.  In fact, I have noticed that many of the new "sale prices" are the old regular prices.  Other items have had their packages reduced in size in order to hide the price increases.  But with millions of American families just barely scraping by as it is, what is going to happen if food prices keep rising this rapidly?
The food prices are especially painful if you are trying to eat healthy.  Most of the low price stuff in the grocery stores is garbage.  Eating the "typical American diet" is a highway to cancer, heart disease and diabetes.

The Financial Collapse Of Greece: The Canary In The Coal Mine For The Global Economy?

article from: The Economic Collapse Blog

The rest of the world needs to sit up and take notice of what is going on in Greece right now.  This is what can happen when you allow government debt to spiral out of control.  Once it becomes clear that you can't pay your debts, a financial collapse can happen very suddenly and you start losing your sovereignty to those that you must turn to for financial help.  So is the financial collapse of Greece the "canary in the coal mine" for the global economy?  EU finance ministers have given the Greek government two weeks from Monday to approve another round of brutal austerity measures.  If the austerity measures are not approved, Greece will not receive the next bailout installment of 12 billion euros.  If that happens, the whole globe better buckle up because it is going to get crazy.

The Global Dollar Dump Is Already in Progress

The following quotes signal the beginning of the End Game for the US Dollar:

“We hope the U.S. government will take responsible policies and measures to safeguard investors’ interests,” [China’s ministry] said in a statement.

“Foreign-exchange reserves have exceeded the reasonable levels that we actually need,” [China’s central bank governor] said. “The rapid increase in reserves may have led to excessive liquidity and has exerted significant sterilization pressure. If the government doesn’t strike the right balance with its policies, the build-up could cause big risks,” he said, without elaborating.

These two statements, in plain terms, are China saying it’s sick of the US Dollar.

Americans Gone Wild

Gerald Celente is known to love to make the following statement: "When people lose everything and have nothing left to lose - they lose it."  Sadly, Celente is exactly right about this. 

As the U.S. economy continues to collapse, Americans are going to becoming increasingly frustrated, and this frustration will inevitably boil over into rioting and violence.  Could we be starting to see the start of this already?  The number of Americans that have "gone wild" seems to be escalating.  Years ago, losing a job was not that big of a deal.  Now a job loss is enough to cause some Americans to snap and go over the edge.  We are seeing restaurant brawls and open violence in the streets that would have been unthinkable 50 years ago.  All over the nation people are losing it and are literally going crazy.  The news stories and the videos posted below of "Americans gone wild" are very graphic and very shocking.  There is a reason for this.  These examples are meant to show you that the very fabric of our civilized society is falling apart.  It won't matter who ends up leading us politically if this is the kind of people we become.

Student Loan Debt Hell: 21 Statistics That Will Make You Think Twice About Going To College

Is going to college a worthwhile investment?  Is the education that our young people are receiving at our colleges and universities really worth all of the time, money and effort that is required?  Decades ago, a college education was quite inexpensive and it was almost an automatic ticket to the middle class.  But today all of that has changed.  At this point, college education is a big business.  There are currently more than 18 million students enrolled at the nearly 5,000 colleges and universities currently in operation throughout the United States.  There are quite a few "institutions of higher learning" that now charge $40,000 or even $50,000 a year for tuition.  That does not even count room and board and other living expenses. 
Meanwhile, as you will see from the statistics posted below, the quality of education at our colleges and universities has deteriorated badly.  When graduation finally arrives, many of our college students have actually learned very little, they find themselves unable to get good jobs and yet they end up trapped in student loan debt hell for essentially the rest of their lives.

Debts Just Don't Disappear

I believe we are in the early stages of a major currency and debt crisis we have never seen here before in the United States. Yet, our government continues to paint a rosy picture. Why can’t they fess up and tell us the truth as to what is really happening and how dire the situation really is? I don’t believe anything that comes out of Washington DC these days and it doesn’t seem like I am the only one. I just heard last week, 2 CNBC contributors who we see nearly every morning talking about economic data say they don’t believe anything Washington says either. What people don’t realize is, this crisis, if it plays out, could rock the foundation of the United States, like never before. The US Dollar is the foundation of the world banking system and has been the reserve currency for the last 50 years. If it loses it’s status, all hell will break loose. I know, you don’t think it can happen but did anyone think Freddie Mac, Fannie Mae or General Motors could go bankrupt? Or that the mortgage sector would meltdown? Those who did were a small minority.

Ex-Gov. Johnson: Fed Policy Like a Madoff Ponzi Scheme

America is headed toward “the ultimate financial crisis” with misguided and irresponsible Fed policies all but assuring “the virtual meltdown of the financial markets,” former New Mexico governor and likely GOP presidential contender Gary Johnson says.

“The Federal Reserve right now is buying up our own debt,” Johnson tells Newsmax.TV. “That’s like Bernie Madoff having a printing machine to cover his Ponzi scheme. That’s what we’ve got going. We’re going to have a financial collapse.”

Why Are The Republicans So Silent On The Falling Dollar?

article by: Seth Lipsky

The most astounding feature of the political fray as the 2012 election comes into view is that not a single Republican other than Congressman Ron Paul is stepping forward to brand as his or her own the issue of honest money. The whole party is into the negotiation with the president over the budget, and the underlying issue--the failure of our fiat currency--is up for grabs.

Amid Global Meltdowns, What Is The Half Life Of The U.S. Government's Fiscal Solvency?

article by: Mike Adams  NaturalNews.com
               
Thanks to the recent (and laughable) "largest annual spending cut in history" announced by Obama and Boehner, it is now abundantly evident that the U.S. government is headed toward a complete economic meltdown that will make Fukushima look chilly by comparison. While cesium-137 may have a half-life of 30 years, and iodine-131 a half-life of 8 days, if the U.S. government continues on its current path of spending trillions of dollars it doesn't have, the half-life of the value of a dollar may soon be measured in hours.

Why is the Federal Reserve Forking Over $220 Million In Bailout Money To The Wives Of Two Morgan Stanley Bigwigs?

by: Matt Taibbi

America has two national budgets, one official, one unofficial. The official budget is public record and hotly debated: Money comes in as taxes and goes out as jet fighters, DEA agents, wheat subsidies and Medicare, plus pensions and bennies for that great untamed socialist menace called a unionized public-sector workforce that Republicans are always complaining about. According to popular legend, we're broke and in so much debt that 40 years from now our granddaughters will still be hooking on weekends to pay the medical bills of this year's retirees from the IRS, the SEC and the Department of Energy.

$5 Gas By Summer? Prices Near $4 a Gallon As Frugal Americans Cut Back At The Pump (and some even start stockpiling food)!

Wall Street may be back to awarding $20million pay packages - but rising prices are shaking the confidence of many American consumers.

Average U.S. pump prices have jumped more than 19 cents since mid-March, to $3.765, which is less than 10 per cent below the all-time high.

Average station prices have already passed $4 in Chicago and several Western cities.

No Love for US Cash or Debt

The US Dollar has broken down in the overnight futures session to test its 2009 low.

We’ve now definitively taken out the 2010 low. If we break the 2009 low (75) there’s only one line of support left at the 2008 low. After that, the US Dollar is in uncharted territory and all best are off.

Peter Schiff's Weekly Economic Video Update

Government shutdown averted, fiscal crisis assured!

Mike Lee: Obama Plans Shutdown With 'Malicious' Intent

One the leading tea party voices in Congress is suggesting that President Obama might have begun planning a government shutdown last year with “malicious” intent.

“Why was it that a few months ago . . . when the president had both Houses under the control of his party — why did he opt not to pass a budget for fiscal year 2011?” asked Sen. Mike Lee, who helped found the Senate’s Tea Party Caucus earlier this year, according to The Hill.