Category Archives: Financial Crisis

News Video Roundup

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1/27  Luke Rudkowski of We Are Change interviews Gerald Celente on a variety of topics including economic turmoil, bitcoin and revolution:

1/28 An informative primer from James Corbett on the use of propaganda, false dichotomies and “divide and conquer” tactics by the ruling elite to keep the public powerless:

1/28 Ben Swann on the Grocery Manufacturers Association’s lobbying efforts to create a Federal Ban on GMO labeling:

1/28 Seattle Councilmember Kshama Sawant’s exceptional response to Obama’s State of the Union address:

1/28 An inspiring scene from the underrated “musical documentary” The American Ruling Class (2005) posted by the filmmakers in memory of Pete Seeger:

85 Richest People as Wealthy as Poorest Half of the World

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As World Economic Forum starts in Davos, development charity claims growing inequality has been driven by ‘power grab’

By Graeme Wearden

Originally posted at theguardian.com

The InterContinental Davos luxury hotel in the Swiss mountain resort of Davos

The InterContinental Davos luxury hotel in the Swiss mountain resort of Davos. Oxfam report found people in countries around the world believe that the rich have too much influence over the direction their country is heading. Photograph: Arnd Wiegmann/REUTERS

The world’s wealthiest people aren’t known for traveling by bus, but if they fancied a change of scene then the richest 85 people on the globe – who between them control as much wealth as the poorest half of the global population put together – could squeeze onto a single double-decker.

The extent to which so much global wealth has become corralled by a virtual handful of the so-called ‘global elite’ is exposed in a new report from Oxfam on Monday. It warned that those richest 85 people across the globe share a combined wealth of £1tn, as much as the poorest 3.5 billion of the world’s population.

Working for the Few - Oxfam report

Source: F. Alvaredo, A. B. Atkinson, T. Piketty and E. Saez, (2013) ‘The World Top Incomes Database’, http://topincomes.g-mond.parisschoolofeconomics.eu/Only includes countries with data in 1980 and later than 2008. Photograph: Oxfam

The wealth of the 1% richest people in the world amounts to $110tn (£60.88tn), or 65 times as much as the poorest half of the world, added the development charity, which fears this concentration of economic resources is threatening political stability and driving up social tensions.

It’s a chilling reminder of the depths of wealth inequality as political leaders and top business people head to the snowy peaks of Davos for this week’s World Economic Forum. Few, if any, will be arriving on anything as common as a bus, with private jets and helicopters pressed into service as many of the world’s most powerful people convene to discuss the state of the global economy over four hectic days of meetings, seminars and parties in the exclusive ski resort.

Winnie Byanyima, the Oxfam executive director who will attend the Davos meetings, said: “It is staggering that in the 21st Century, half of the world’s population – that’s three and a half billion people – own no more than a tiny elite whose numbers could all fit comfortably on a double-decker bus.”

Oxfam also argues that this is no accident either, saying growing inequality has been driven by a “power grab” by wealthy elites, who have co-opted the political process to rig the rules of the economic system in their favour.

In the report, entitled Working For The Few (summary here), Oxfam warned that the fight against poverty cannot be won until wealth inequality has been tackled.

“Widening inequality is creating a vicious circle where wealth and power are increasingly concentrated in the hands of a few, leaving the rest of us to fight over crumbs from the top table,” Byanyima said.

Oxfam called on attendees at this week’s World Economic Forum to take a personal pledge to tackle the problem by refraining from dodging taxes or using their wealth to seek political favours.

As well as being morally dubious, economic inequality can also exacerbate other social problems such as gender inequality, Oxfam warned. Davos itself is also struggling in this area, with the number of female delegates actually dropping from 17% in 2013 to 15% this year.

How richest use their wealth to capture opportunities

Polling for Oxfam’s report found people in countries around the world – including two-thirds of those questioned in Britain – believe that the rich have too much influence over the direction their country is heading.

Byanyima explained:

“In developed and developing countries alike we are increasingly living in a world where the lowest tax rates, the best health and education and the opportunity to influence are being given not just to the rich but also to their children.

“Without a concerted effort to tackle inequality, the cascade of privilege and of disadvantage will continue down the generations. We will soon live in a world where equality of opportunity is just a dream. In too many countries economic growth already amounts to little more than a ‘winner takes all’ windfall for the richest.”

Working for the Few - Oxfam report

The Oxfam report found that over the past few decades, the rich have successfully wielded political influence to skew policies in their favour on issues ranging from financial deregulation, tax havens, anti-competitive business practices to lower tax rates on high incomes and cuts in public services for the majority. Since the late 1970s, tax rates for the richest have fallen in 29 out of 30 countries for which data are available, said the report.

This “capture of opportunities” by the rich at the expense of the poor and middle classes has led to a situation where 70% of the world’s population live in countries where inequality has increased since the 1980s and 1% of families own 46% of global wealth – almost £70tn.

Opinion polls in Spain, Brazil, India, South Africa, the US, UK and Netherlands found that a majority in each country believe that wealthy people exert too much influence. Concern was strongest in Spain, followed by Brazil and India and least marked in the Netherlands.

In the UK, some 67% agreed that “the rich have too much influence over where this country is headed” – 37% saying that they agreed “strongly” with the statement – against just 10% who disagreed, 2% of them strongly.

The WEF’s own Global Risks report recently identified widening income disparities as one of the biggest threats to the world community.

Oxfam is calling on those gathered at WEF to pledge: to support progressive taxation and not dodge their own taxes; refrain from using their wealth to seek political favours that undermine the democratic will of their fellow citizens; make public all investments in companies and trusts for which they are the ultimate beneficial owners; challenge governments to use tax revenue to provide universal healthcare, education and social protection; demand a living wage in all companies they own or control; and challenge other members of the economic elite to join them in these pledges.

• Research Now questioned 1,166 adults in the UK for Oxfam between October 1 and 14 2013.

The Last Gasp of American Democracy

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Chris Hedges’ regular columns for Truthdig.com are consistently informative and provocative, but his latest piece offers a particularly critical analysis of the current political moment in the United States. In the following excerpt he ruminates on a number of recent actions of our modern corporate totalitarian state:

Via Truthdig:

The object of efficient totalitarian states, as George Orwell understood, is to create a climate in which people do not think of rebelling, a climate in which government killing and torture are used against only a handful of unmanageable renegades. The totalitarian state achieves this control, Arendt wrote, by systematically crushing human spontaneity, and by extension human freedom. It ceaselessly peddles fear to keep a population traumatized and immobilized. It turns the courts, along with legislative bodies, into mechanisms to legalize the crimes of state.

The corporate state, in our case, has used the law to quietly abolish the Fourth and Fifth amendments of the Constitution, which were established to protect us from unwarranted intrusion by the government into our private lives. The loss of judicial and political representation and protection, part of the corporate coup d’état, means that we have no voice and no legal protection from the abuses of power. The recent ruling supporting the National Security Agency’s spying, handed down by U.S. District Judge William H. Pauley III, is part of a very long and shameful list of judicial decisions that have repeatedly sacrificed our most cherished constitutional rights on the altar of national security since the attacks of 9/11. The courts and legislative bodies of the corporate state now routinely invert our most basic rights to justify corporate pillage and repression. They declare that massive and secret campaign donations—a form of legalized bribery—are protected speech under the First Amendment. They define corporate lobbying—under which corporations lavish funds on elected officials and write our legislation—as the people’s right to petition the government. And we can, according to new laws and legislation, be tortured or assassinated or locked up indefinitely by the military, be denied due process and be spied upon without warrants. Obsequious courtiers posing as journalists dutifully sanctify state power and amplify its falsehoods—MSNBC does this as slavishly as Fox News—while also filling our heads with the inanity of celebrity gossip and trivia. Our culture wars, which allow politicians and pundits to hyperventilate over nonsubstantive issues, mask a political system that has ceased to function. History, art, philosophy, intellectual inquiry, our past social and individual struggles for justice, the very world of ideas and culture, along with an understanding of what it means to live and participate in a functioning democracy, are thrust into black holes of forgetfulness.

The political philosopher Sheldon Wolin, in his essential book “Democracy Incorporated,” calls our system of corporate governance “inverted totalitarianism,” which represents “the political coming of age of corporate power and the political demobilization of the citizenry.” It differs from classical forms of totalitarianism, which revolve around a demagogue or charismatic leader; it finds its expression in the anonymity of the corporate state. The corporate forces behind inverted totalitarianism do not, as classical totalitarian movements do, replace decaying structures with new structures. They instead purport to honor electoral politics, freedom of expression and the press, the right to privacy and the guarantees of law. But they so corrupt and manipulate electoral politics, the courts, the press and the essential levers of power as to make genuine democratic participation by the masses impossible. The U.S. Constitution has not been rewritten, but steadily emasculated through radical judicial and legislative interpretation. We have been left with a fictitious shell of democracy and a totalitarian core. And the anchor of this corporate totalitarianism is the unchecked power of our systems of internal security.

Our corporate totalitarian rulers deceive themselves as often as they deceive the public. Politics, for them, is little more than public relations. Lies are told not to achieve any discernable goal of public policy, but to protect the image of the state and its rulers. These lies have become a grotesque form of patriotism. The state’s ability through comprehensive surveillance to prevent outside inquiry into the exercise of power engenders a terrifying intellectual and moral sclerosis within the ruling elite. Absurd notions such as implanting “democracy” in Baghdad by force in order to spread it across the region or the idea that we can terrorize radical Islam across the Middle East into submission are no longer checked by reality, experience or factually based debate. Data and facts that do not fit into the whimsical theories of our political elites, generals and intelligence chiefs are ignored and hidden from public view. The ability of the citizenry to take self-corrective measures is effectively stymied. And in the end, as in all totalitarian systems, the citizens become the victims of government folly, monstrous lies, rampant corruption and state terror.

Read the full article here: http://www.truthdig.com/report/page2/the_last_gasp_of_american_democracy_20140105

The Existential Threat of Algorithmic Trading

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Most of us are well aware of the problem of human labor being displaced by technology. The Thought Infection blog recently posted an informative overview of how even jobs we might not immediately think of as being at risk of obsolescence are steadily being encroached upon by technology. In this follow up article, he explains how automation has an especially destabilizing effect on the financial sector and economic system.

Excerpt:

The advent of algorithmic trading extends the game that has always existed in markets, but now the speed is faster, the stakes are higher and we can’t be sure who is in control. 

The manipulation abilities of trading algorithms may already (and if not, soon will) extend beyond this kind of inter-algorithmic effects. Given that trading algorithms can act on human informational sources, such as Twitter, as news is released, it is not outlandish to imagine that these algorithms could also be producing information in an effort to manipulate the market. Given that algorithms are becoming better at turning basic information into natural language, it seems possible that an algorithm could be designed to Tweet out false information about a company to try to depress the stock price.

If we take the ketchup manufacturer again and we imagine they are in a precarious position due to a new bill to remove subsidies for tomato growing. Imagine a bunch of tweet/comment/news bots aimed at pushing the public dialogue to make it seem that the subsidies are going to be removed. If massively parallelized, this kind of attack on public sentiment could have a significant effect on the ketchup manufacturer and provide an opportunity for major profits. I think it’s likely this kind of algorithmic sentiment manipulation is already happening on some level.

Even this kind of sentiment manipulation is only a drop in the bucket compared to what may become possible in the near future. The astounding profits which can be made in this kind of algorithmic trading is driving huge investment in artificial intelligence. In the near future, algorithmic traders will be capable of much more complex manipulations to try to move market prices.

…Perhaps by identifying those congressmen who are on the fence about subsidies, a targeted campaign to manipulate the opinions of those in said congressman’s district could have a real effect on the outcome for ketchup manufacturers. This may seem a bit ridiculous, but even a tiny effect on the perceptions and opinions of one individual can make a big difference if spread across a wide enough group.

Read the full article here: http://thoughtinfection.com/2014/01/05/the-deep-end-of-decoupling-the-existential-threat-of-algorithmic-trading/

What he speculates could be our greatest threat in the future is not Terminator-like cybernetic weapons but “an army of Gordon Gekko-bots capable of manipulating every aspect of our legal and political systems in an aim to maximize market profits.”

Swiss to Vote on Basic Income for All

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Switzerland is one of the world’s wealthiest countries per capita, and also one of the most democratic. It’s the only European country with true direct democracy in which all citizens have to do is gather 100,000 signatures calling for a vote to hold a nationwide referendum with a binding result. Last November, Swiss citizens created the so-called 1:12 referendum, which would limit the wages of top executives so they couldn’t earn more in a month than lower paid employees do in a year. That proposal lost the vote, but early next year they’ll have an opportunity to decide on an equally radical referendum: a $2,800 basic income for every adult, whether employed or unemployed. There is currently no minimum wage in Switzerland, but there will also be a vote on that next year.

Anger about salaries and fairness has surged among Swiss voters because some of their biggest banks including UBS are responsible for speculative investment bubbles and continue to pay top executives huge bonuses while reporting huge losses. According to Bloomberg News, Switzerland is home to at least five of Europe’s top 20 paid executives. The inequality pay ratio in Switzerland is 1:194 (while in the U. S., average CEO to average worker compensation was 1:243 in 2010).

The idea of a Basic Income or Universal Wages are not only supported by Marxists and Communists, but have have been gaining traction among Libertarians as well. A great post at Thought Infection recently made an argument for such proposals from a civil libertarian perspective:

Freedom in the 21st century should mean freedom from having to engage in productive work simply to meet your basic needs for comfort and dignity. 

At one time, the ready availability of jobs amply filled the need for a basic access to a comfortable and dignified life, but precipitous technological and economic changes erode this dynamic further each day. The function of the economy has never been to provide gainful employment to people, but simply to provide material goods. As the economy manages to produce more with less human labor, we must create new mechanisms aimed specifically that maintaining and raising the minimum level of comfort and dignity to everyone in a society…

…Worse than just being immoral, the desperate poverty of the lower classes is both immoral and useless. It is not a lack of money that compels the great successes of the modern age, but rather the availability of opportunities. It is because healthy, well-fed people were able to get a good education that allowed us to realize the great miracles of the modern age (eg, the internet, smart phones, Google, etc…). 

We must rebalance the right of society to compel people into productive work with the obligation of society to support its citizens. It should be noted that basic income is not aimed at the unrealisitic and undesirable goal of unfettered access for all to every luxury of the world. Freedom from work does not mean the right to luxury; it simply sets a baseline below which no person should fall. Basic income seeks to strike a fair balance between allowing the benefit of work to coexist with a system aimed at delivering dignity and opportunity for all in a society.

Beyond just better enabling access to opportunities, basic income will also allow people the freedom to live as they choose; to explore unpaid work in the form of volunteering, participating in creative projects, or starting new business ventures. Some argue that there would be less incentive for people to start businesses and be productive, but it could just as easily be argued that it would remove the disincentive from the high-risk, high-reward ventures that are so valuable to modern society…

…Requiring people to live so much of their life working simply to earn a basic income is a waste of human potential and bad for progress. By eliminating the obligation to work just for simple survival, basic income would allow a new dynamic expansion of human freedom and human potential.

A society compelled to perfect cohesion and homogeneity lacks the dynamism to compete in the modern world. New ideas can only come into being at the chaotic interface between contrasting worldviews and lifestyles. In a world where progress is completely reliant on our ability to innovate and create new ideas, we should be seeking to maximize the spectrum of lifestyles which can be expressed within the society. By removing the need to work just to live, we will let people explore their true potential, and we will realize the untold benefits of a new dynamism.  

And this brings us to the real reason that I think basic income will happen soon, not only because it is morally the right thing to do (which it is), but because it makes good sense economically. Just as slavery ended when factories made the economic model of slavery obsolete, we will move towards basic income because it makes good economic sense for the modern innovation economy.

Dynamic, creative and competitive economies of today must seek to stretch the social fabric to its limits. Basic income will serve to reinforce this fabric and enable the risky ventures that will power us forward in the 21st century.

Read the full article here: http://thoughtinfection.com/2013/12/15/basic-income-means-basic-freedom/

 

83 Numbers From 2013 That Are Almost Too Crazy to Believe

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Michael Snyder of The Economic Collapse blog recently compiled a long list of astounding social-economic statistics from the past year. They paint a bleak picture of the future of our current economic system and unless major changes are made, the numbers will only worsen in 2014. There’s probably many more indicators left off the list, but just a small sampling of what’s on it would be enough to worry even the most die-hard optimists:

#1 Most people that hear this statistic do not believe that it is actually true, but right now an all-time record 102 million working age Americans do not have a job.  That number has risen by about 27 million since the year 2000.

#2 Because of the lack of jobs, poverty is spreading like wildfire in the United States.  According to the most recent numbers from the U.S. Census Bureau, an all-time record 49.2 percent of all Americans are receiving benefits from at least one government program each month.

#3 As society breaks down, the government feels a greater need than ever before to watch, monitor and track the population.  For example, every single day the NSA intercepts and permanently stores close to 2 billion emails and phone calls in addition to a whole host of other data.

#4 The Bank for International Settlements says that total public and private debt levels around the globe are now 30 percent higher than they were back during the financial crisis of 2008.

#5 According to a recent World Bank report, private domestic debt in China has grown from 9 trillion dollars in 2008 to 23 trillion dollars today.

#6 In 1985, there were more than 18,000 banks in the United States.  Today, there are only 6,891 left.

#7 The six largest banks in the United States (JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley) have collectively gotten 37 percent larger over the past five years.

#8 The U.S. banking system has 14.4 trillion dollars in total assets.  The six largest banks now account for 67 percent of those assets and all of the other banks account for only 33 percent of those assets.

#9 JPMorgan Chase is roughly the size of the entire British economy.

#10 The five largest banks now account for 42 percent of all loans in the United States.

#11 Right now, four of the “too big to fail” banks each have total exposure to derivatives that is well in excess of 40 trillion dollars.

#12 The total exposure that Goldman Sachs has to derivatives contracts is more than 381 times greater than their total assets.

#13 According to the Bank for International Settlements, the global financial system has a total of 441 trillion dollars worth of exposure to interest rate derivatives.

#14 Through the end of November, approximately 365,000 Americans had signed up for Obamacare but approximately 4 million Americans had already lost their current health insurance policies because of Obamacare.

#15 It is being projected that up to 100 million more Americans could have their health insurance policies canceled by the time Obamacare is fully rolled out.

#16 At this point, 82.4 million Americans live in a home where at least one person is enrolled in the Medicaid program.

#17 It is has been estimated that Obamacare will add 21 million more Americans to the Medicaid rolls.

#18 It is being projected that health insurance premiums for healthy 30-year-old men will rise by an average of 260 percent under Obamacare.

#19 One couple down in Texas received a letter from their health insurance company that informed them that they were being hit with a 539 percent rate increase because of Obamacare.

#20 Back in 1999, 64.1 percent of all Americans were covered by employment-based health insurance.  Today, only 54.9 percent of all Americans are covered by employment-based health insurance.

#21 The U.S. government has spent an astounding 3.7 trillion dollars on welfare programs over the past five years.

#22 Incredibly, 74 percent of all the wealth in the United States is owned by the wealthiest 10 percent of all Americans.

#23 According to Consumer Reports, the number of children in the United States taking antipsychotic drugs has nearly tripled over the past 15 years.

#24 The marriage rate in the United States has fallen to an all-time low.  Right now it is sitting at a yearly rate of just 6.8 marriages per 1000 people.

#25 According to a shocking new study, the average American that turned 65 this year will receive $327,500 more in federal benefits than they paid in taxes over the course of their lifetimes.

#26 In just one week in December, a combined total of more than 2000 new cold temperature and snowfall records were set in the United States.

#27 According to the U.S. Census Bureau, median household income in the United States has fallen for five years in a row.

#28 The rate of homeownership in the United States has fallen for eight years in a row.

#29 Only 47 percent of all adults in America have a full-time job at this point.

#30 The unemployment rate in the eurozone recently hit a new all-time high of 12.2 percent.

#31 If you assume that the labor force participation rate in the U.S. is at the long-term average, the unemployment rate in the United States would actually be 11.5 percent instead of 7 percent.

#32 In November 2000, 64.3 percent of all working age Americans had a job.  When Barack Obama first entered the White House, 60.6 percent of all working age Americans had a job.  Today, only 58.6 percent of all working age Americans have a job.

#33 There are 1,148,000 fewer Americans working today than there was in November 2006.  Meanwhile, our population has grown by more than 16 million people during that time frame.

#34 Only 19 percent of all Americans believe that the job market is better than it was a year ago.

#35 Just 14 percent of all Americans believe that the stock market will rise next year.

#36 According to CNBC, Pinterest is currently valued at more than 3 billion dollars even though it has never earned a profit.

#37 Twitter is a seven-year-old company that has never made a profit.  It actually lost 64.6 million dollars last quarter.  But according to the financial markets it is currently worth about 22 billion dollars.

#38 Right now, Facebook is trading at a valuation that is equivalent to approximately 100 years of earnings, and it is currently supposedly worth about 115 billion dollars.

#39 Total consumer credit has risen by a whopping 22 percent over the past three years.

#40 Student loans are up by an astounding 61 percent over the past three years.

#41 At this moment, there are 6 million Americans in the 16 to 24-year-old age group that are neither in school or working.

#42 The “inactivity rate” for men in their prime working years (25 to 54) has just hit a brand new all-time record high.

#43 It is hard to believe, but in America today one out of every ten jobs is now filled by a temp agency.

#44 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then.

#45 According to the Social Security Administration, 40 percent of all U.S. workers make less than $20,000 a year.

#46 Approximately one out of every four part-time workers in America is living below the poverty line.

#47 After accounting for inflation, 40 percent of all U.S. workers are making less than what a full-time minimum wage worker made back in 1968.

#48 When Barack Obama took office, the average duration of unemployment in this country was 19.8 weeks.  Today, it is 37.2 weeks.

#49 Investors pulled an astounding 72 billion dollars out of bond mutual funds in 2013.  It was the worst year for bond funds ever.

#50 Small business is rapidly dying in America.  At this point, only about 7 percent of all non-farm workers in the United States are self-employed.  That is an all-time record low.

#51 The six heirs of Wal-Mart founder Sam Walton have as much wealth as the bottom one-third of all Americans combined.

#52 Once January 1st hits, it will officially be illegal to manufacture or import traditional incandescent light bulbs in the United States.  It is being projected that millions of Americans will attempt to stock up on the old light bulbs before they are totally gone from store shelves.

#53 The Japanese government has estimated that approximately 300 tons of highly radioactive water is being released into the Pacific Ocean from the destroyed Fukushima nuclear facility every single day.

#54 Back in 1967, the U.S. military had more than 31,000 strategic nuclear warheads.  That number is already being cut down to 1,550, and now Barack Obama wants to reduce it to only about 1,000.

#55 As you read this, 60 percent of all children in Detroit are living in poverty and there are approximately 78,000 abandoned homes in the city.

#56 Wal-Mart recently opened up two new stores in Washington D.C., and more than 23,000 people applied for just 600 positions.  That means that only about 2.6 percent of the applicants were ultimately hired.  In comparison, Harvard offers admission to 6.1 percent of their applicants.

#57 At this point, almost half of all public school students in America come from low income homes.

#58 Tragically, there are 1.2 million students that attend public schools in the United States that are homeless.  That number has risen by 72 percent since the start of the last recession.

#59 According to a Gallup poll that was recently released, 20.0 percent of all Americans did not have enough money to buy food that they or their families needed at some point over the past year.  That is just under the all-time record of 20.4 percent that was set back in November 2008.

#60 The number of Americans on food stamps has grown from 17 million in the year 2000 to more than 47 million today.

#61 Right now, one out of every five households in the United States is on food stamps.

#62 The U.S. economy loses approximately 9,000 jobs for every 1 billion dollars of goods that are imported from overseas.

#63 Back in 1950, more than 80 percent of all men in the United States had jobs.  Today, less than 65 percent of all men in the United States have jobs.

#64 According to one survey, approximately 75 percent of all American women do not have any interest in dating unemployed men.

#65 China exports 4 billion pounds of food to the United States every year.

#66 Overall, the United States has run a trade deficit of more than 8 trillion dollars with the rest of the world since 1975.

#67 The number of Americans on Social Security Disability now exceeds the entire population of Greece, and the number of Americans on food stamps now exceeds the entire population of Spain.

#68 It is being projected that the number of Americans on Social Security will rise from 57 million today to more than 100 million in 25 years.

#69 Back in 1970, the total amount of debt in the United States (government debt + business debt + consumer debt, etc.) was less than 2 trillion dollars.  Today it is over 56 trillion dollars.

#70 Back on September 30th, 2012 our national debt was sitting at a total of 16.1 trillion dollars.  Today, it is up to 17.2 trillion dollars.

#71 The U.S. government “rolled over” more than 7.5 trillion dollars of existing debt in fiscal 2013.

#72 If the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.

#73 When Barack Obama was first elected, the U.S. debt to GDP ratio was under 70 percent.  Today, it is up to 101 percent.

#74 The U.S. national debt is on pace to more than double during the eight years of the Obama administration.  In other words, under Barack Obama the U.S. government will accumulate more debt than it did under all of the other presidents in U.S. history combined.

#75 The federal government is borrowing (stealing) roughly 100 million dollars from our children and our grandchildren every single hour of every single day.

#76 At this point, the U.S. already has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.

#77 Japan now has a debt to GDP ratio of more than 211 percent.

#78 As of December 5th, 83 volcanic eruptions had been recorded around the planet so far this year.  That is a new all-time record high.

#79 53 percent of all Americans do not have a 3 day supply of nonperishable food and water in their homes.

#80 Violent crime in the United States was up 15 percent last year.

#81 According to a very surprising survey that was recently conducted, 68 percent of all Americans believe that the country is currently on the wrong track.

#82 Back in 1972, 46 percent of all Americans believed that “most people can be trusted”.  Today, only 32 percent of all Americans believe that “most people can be trusted”.

#83 According to a recent Pew Research survey, only 19 percent of all Americans trust the government.   Back in 1958, 73 percent of all Americans trusted the government. [While it’s unfortunate we can’t trust government, it’s a good thing that more are now aware of reasons why we shouldn’t trust it.]

“Economic Recovery” is Just Deceptive Statistics

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Whenever there’s a cheerful jobs report propagated by corporate news, many of us know they’re lying (because it just doesn’t correspond to reality) though we might not know exactly how the numbers they use decieve us. At Counterpunch.org, Paul Craig Roberts dissects some of the figures cited by the Bureau of Labor Statistics as support for claims of an economic recovery. For example, their payroll jobs report says that the US economy created 203,000 jobs in November. Since it takes about 130,000 new jobs each month to keep up with population growth, the remaining 70,000 of the jobs would have only slightly reduced the unemployment rate yet it supposedly fell from 7.3 to 7.0 which is too much. It turns out the payroll survey counts a person holding two jobs as if it were two employed persons, while the unemployment rate is calculated from the household survey, which counts a person holding two or more jobs as one job. Though the two figures are often reported together, they actually have no connection.

Payroll numbers can be skewed by seasonal hiring and because the birth-death model used to estimate the numbers of unreported business shutdowns and startups often underestimate the former and overestimate the latter. The unemployment rate figures are innacurate because it leaves out people who have given up on looking for work. The greater the number of discouraged workers there are, the lower the rate of unemployment, according to the BLS.

So exactly where and what are the 203,000 new payroll jobs created in November? Paul Craig Roberts breaks down the figures as reported by the BLS and discovered that the majority are lowly-paid, part-time, nontradable (non exportable) domestic service jobs including:

…retail trade with 22,300 jobs, transportation and warehousing with 30,500 jobs, temporary help services with 16,400 jobs, ambulatory health care services with 26,300 jobs, home health care services with 11,800 jobs, and the old reliable waitresses and bartenders with 17,900 jobs.

This is the jobs profile of the American super economy. It is the profile of India 30 or 40 years ago.

PCR continues his analysis by citing the work of statistician John Williams (shadowstats.com), who found more misstated jobs that could be attributed to the government shutdown and reopening, the birth-death model, and concurrent-seasonal-adjustment errors. According to Williams, whose figures include long-term discouraged workers who cannot find a job, the US unemployment rate is actually 23.2%.

Of course there’s no recovery with a 23.2% unemployment rate, but to keep stocks and bonds at all-time record high levels, the Federal Reserve is printing $1,000 billion new dollars annually, potentially creating an economic bubble. Despite these issues, the BLS estimated a third quarter GDP growth of 3.6%. Paul Craig Roberts challenges this claim with the following figures:

US real median household income has declined from $56,189 in 2007 to $51,371 in 2012, a decline of $4,818 or 8.6%. http://www.deptofnumbers.com/income/us/

US real per capita income has declined from $29,554 in 2007 to $27,319 in 2012, a drop of $2,235 or 7.5%.

According to the Bureau of Labor Statistics, there are 1,277,000 fewer seasonally adjusted payroll jobs in November 2013 than in December 2007.

He concludes by asking:

How it is possible for the economy to have been in recovery since June 2009 (according to the National Bureau of Economic Research) and there are 1,277,000 fewer jobs today than existed six years ago prior to the recession?

How has real Gross Domestic Product recovered when jobs and real consumer incomes have not?