Federal Reserve openly aiming for inflation – The Fed looks for a sequel in punishing the U.S. dollar and hopes to inflate debt and the middle class away.
The Federal Reserve has painted itself into a very narrow and troubling corner for most of working and middle class America. The massive debt problems on hand have no realistic way of being paid off and the best path in the eyes of the Federal Reserve is to slowly inflate away the currency and debt. [...]
The downsizing of America – Oil production off 1980s peak and manufactures learn creative methods of repackaging inflation.
There is a slow burn going on and it is happening in your wallet and also in the gas tank of your car. The US Treasury and Federal Reserve have made it their mission to slowly cut the value of each one of those green dollars you have. Since many Americans are struggling to make [...]
The infection of massive global debt and the era of permanent bailouts – Global bankers on a mission to dilute currencies around the world. Ireland GDP equal to Louisiana GDP.
The problems plaguing Ireland are common and something very familiar with Americans. Irish banks got drunk on housing bubble beer and loans were made without any actual thoughtful analysis of whether the loans would be paid back. Now the European Union is stepping in with the IMF to bailout Ireland not because it has a [...]
40 years of housing data – U.S. homes still too expensive for typical families. In 1970 the median home could be purchased with 657 ounces of gold. Today, it only requires 155 ounces. The erosion of the U.S. dollar
The last 40 years have seen the U.S. housing market transform into a market largely driven by incredible amounts of debt. The credit card companies understood the basic notion that the monthly payment drove most financial decisions. Even though people purchase a home with a 30 year mortgage, the implicit understanding was that in a [...]
Solving the massive debt problem with more debt. American consumers carry as much debt as annual U.S. GDP. Credit card debt declines but auto loans and student loans go up?
The Federal Reserve has come to the aid of bailing out Greece. I wonder how many Americans even know that billions of U.S. dollars are going to prop up a failing European country in Greece that got into the mess they are in because of too much debt. In the end, the Euro is still [...]
American Financial Dream Deferred: How the U.S. is Mirroring the Japanese Lost Decade after the Heisei Boom.
This weekend I decided to take a trip to a couple of local stores to pick up some food that didn’t involve turkey so I wouldn’t be fatigued of eating the same thing for the entire week. A chain grocery store had about five people on a Sunday when it typically would have many more. [...]
FDIC Broke and Selling Real Estate: How $13 Trillion in Assets is Protected by no Deposit Insurance Fund. FDIC Selling Properties to Replenish Fund and Collecting Early Fees.
The FDIC, that enigmatic seal of security on your bank entrance, is virtually bankrupt. The FDIC provides deposit insurance to over 8,000 banks that collectively hold $13 trillion in assets. We can question what those assets are really worth since many of these institutions hold $3 trillion in commercial real estate loans and defaulting residential [...]
10 States with Underemployment Rates of 20+ Percent. Manufacturing Sector Employs Same Number of Workers that we did in 1940.
The average American family must look at the current stock market rally as some kind of cruel joke. We have people anxiously waiting for government funds or paychecks to clear at the end of the month so they can wait outside of a Wal-Mart shopping center at midnight to buy food once their funds clear. [...]
Federal Government Budget Deficit in October is Three Times the Annual Budget Deficits of the Banana Republic of California.
California has been the poster child of ineffective state government. Bickering politicians, constant spending, and budget deficits that baffle the economic bottom line. But California isn’t alone in this spend more than you earn reality. Last year, California had to patch up $60 billion in budget deficits. A large and historical sum no doubt. Yet [...]
If Incomes are Down, Where is the Economic Spending coming from? Industrial Production Still Lower, Credit Contraction, and Average Work Week at Record Low. Wells Fargo Considering Converting Option ARMs to Interest Only Loans.
With 8 million jobs lost in this great recession, it is rather surprising to see so many people enter into a deep capture mode of believing in a quick and efficient recovery. If we look at data in the misery index, the average American has a hard time swallowing the jagged economic recovery pill. They [...]