Jul 29

Abandoned-House

Bye Bye Middle Class: The Rate Of Homeownership In The United States Has Hit The Lowest Level Ever:

The percentage of Americans that own a home has fallen to the lowest level ever recorded.  During the second quarter of 2016, the non-seasonally adjusted homeownership rate fell to just 62.9 percent, which was exactly where it was at when the U.S. Census began publishing this measurement back in 1965.  This is not what a “recovery” looks like.  All throughout the Obama years, the percentage of Americans that own a home has gotten smaller and smaller and smaller.  The reason for this, of course, is that the middle class in America is dying.  Last year, we learned that middle class Americans now make up a minority of the population for the first time ever.  In order to have a high rate of homeownership, you need a thriving middle class, and you can’t have a thriving middle class without good paying middle class jobs.  This is why I write about the evisceration of the middle class so extensively, because the U.S. economy is systematically being hollowed out and most Americans don’t understand what is happening. Continue reading »

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May 17

Middle Class Destitution

Middle Class Destitution – A Devastating Tale From America’s Heartland:

He had made the drive enough times to already suspect what he might find. Stride Rite had left Huntington for Mexico at the tail end of the recession; Breyers Ice Cream had closed its doors after 100 years. In the weeks after each factory closing in his part of Indiana, Lewandowski had listened to politicians make promises about jobs — high-tech jobs, right-to-work jobs, clean-energy jobs — but instead Indiana had lost 60,000 middle-class jobs in the past decade and replaced them with a surge of low-paying work in health care, hospitality and fast food. Wages of male high school graduates had dropped 19 percent in the past two decades, and the wealth divide between the middle class and the upper class had quadrupled. Continue reading »

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May 13

Redistribution

Related info:

Oops! The Federal Reserve Admits QE Widens Inequality

“When a country embarks on deficit financing (Bush-Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
– Ron Paul

Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!!!

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
– Ron Paul

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan


hunger-games

Pew Research Study – The American Middle Class Declined in 90% of Metro Areas From 2000-2014:

When you bail out financial criminals and predators, you get a criminal and predatory economy. If there’s one clear lesson from the 2008 crisis and its aftermath, that should be it.

– From last year’s post: Another Tale from the Oligarch Recovery – How a $1,500 Sofa Costs $4,150 When You’re Poor

The Pew Research Center recently released a fascinating study which showed what many of us already suspected, that the U.S. middle class has declined in 90% of metropolitan areas from 2000-2014, or in 203 of 229 areas studied.

The details are just as interesting as the headline, some of which will provide ammunition for those looking to spin the historic 21st century status quo plunder into something an resembling economic recovery. Specifically, Pew notes that: Continue reading »

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Dec 09

America Crosses The Tipping Point: The Middle Class Is Now A Minority:

Americans have long lived in a nation made up primarily of middle-class families, neither rich nor poor, but comfortable enough, notes NPR’s Marilyn Geewax, but this year – for the first time in US history, that changed. A new analysis of government data shows that as of 2015, middle-income households have become the minority, extending a multi-decade decline that confirms the hollowing out of society as 49% of all Americans now live in a home that receives money from the government each month. Sadly, the trends that are destroying the middle class in America just continue to accelerate.

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Nov 03

H/t reader squodgy:

“Caterpillar, the Auto Loan default crisis & the BDI are the canaries in the mine, not bloody chocolate!”


consumer
(Feeding your kids such crap is killing them, literally.)

The disappearing middle class is threatening American mega brands:

The disappearing middle class is challenging many major American brands.

The Hershey Company on Wednesday reported flat sales for the most recent quarter and cut its profit outlook for the year.

Company executives blamed the disappointing results in part on the changing income landscape in the US.

“We think that consumer bifurcation has been an important driver,” Hershey CEO John Bilbrey said on an earnings call, referring to the growing gap between upper-income and lower-income consumers. Continue reading »

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Jun 03

bolognese sauce

–  A Member Of The Middle Class Responds To Jon Hilsenrath (ZeroHedge, June 3, 2015):

Reader Joe responds to Jon Hilsenrath’s “ironic and tongue in cheek” letter:

Dear Mr Hilsenrath and your Central Bank Team,

This is Joe from the disappearing Middle Class in America.  You asked me the other day to drop you a note if I felt that something was wrong.  What I’m having trouble with is “why” you’re asking me if anything is wrong!  ?

So let me explain. Continue reading »

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Apr 08

“When a country embarks on deficit financing and inflationism (=quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

Quantitative easing = printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!!!

“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
– John Maynard Keynes

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. … This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan

Aaaaand Japan has a debt-to-GDP of over 400%!!!

This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300%


helicopter-shinzo-abeShinzo Abekuroda_0

Japan Shocked To Find Abenomics Is Destroying Its Middle Class (ZeroHedge, April 8, 2015):

In central planner “mission accomplished” news, the wealth divide in Japan is growing under Abenomics and middle class citizens are at risk of falling into poverty, The Japan Times says. Despite nightly sound bites from Kuroda, Aso, and Abe himself designed to assuage fears that the country’s gargantuan monetary experiment may yet fail to pull Japan out the deflationary doldrums, some people are getting impatient as the number of households on welfare continues to rise as does the number of nonregular workers. This comes on the heels of the rather amusing news that the country’s Labor Ministry had fabricated a year’s worth of data on wage growth (it turns out there was none) and after countless warnings from us that the PM’s policies would end in spactacularly bad fashion (see here, here, and here for instance).

Here’s more: Continue reading »

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Mar 23

Obama-Middle-Class

Source: Townhall

Flashback:

Obama: “I’m a warrior for the middle class” (CBS News, Sep 22, 2011):

President Obama took his jobs plan to the people of Ohio on Thursday, urging a rowdy audience in House Speaker John Boehner’s home state to help him “pass this bill!” – and proclaiming to the crowd that “I’m a warrior for the middle class.”

Mr. Obama, speaking in front of Cincinnati’s Brent Spence Bridge, specifically called on Boehner and Senate Minority Leader Mitch McConnell to help pass his jobs plan and “help rebuild America.”

Reality:

27 Facts That Show How The Middle Class Has Fared Under 6 Years Of Barack Obama

The Death Of The American Dream In 22 Numbers

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Feb 10

H/t reader M.G.:

 “Probably underwritten by the US thugs for hire.

In the meantime, here at home……………….”



14.08.2013

via Brascheck TV:

Senator Bernie Sanders is one of the few politicians in Washington who speaks the truth unapologetically. In this powerful short speech, Sanders speaks what the conscience of the American people is certainly thinking… This nation is an oligarchy, and our income distribution is worsening every day. At least we can take pride in knowing that one elected representative in Washington may actually be representing the American people.

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Feb 01

Abandoned-Home

The Death Of The American Dream In 22 Numbers (End of The American Dream, Jan 29, 2015):

We are the generation that gets to witness the end of the American Dream.  The numbers that you are about to see tell a story.  They tell a story of a once mighty economy that is dying.  For decades, the rest of the planet has regarded the United States as “the land of opportunity” where almost anyone can be successful if they are willing to work hard.  And when I was growing up, it seemed like almost everyone was living the American Dream.  I lived on a “middle class” street and I went to a school where it seemed like almost everyone was middle class.  When I was in high school, it was very rare to ever hear of a parent that was unemployed, and virtually every family that I knew had a comfortable home and more than one nice vehicle.

But now that has all changed.  The “American Dream” has been transformed into a very twisted game of musical chairs.  With each passing year, more people are falling out of the middle class, and most of the rest of us are scrambling really hard to keep our own places.

Something has gone horribly wrong, and yet Americans are very deeply divided when it comes to finding answers to our problems.  We love to point fingers and argue with one another, and meanwhile things just continue to get even worse.

The following are 22 numbers that are very strong evidence of the death of the American Dream… Continue reading »

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Jan 27

As a side note:

Obama is NOT ‘blurting out’ any ‘meaningless phrases’ in his speeches. They all serve a purpose:

President Obama’s Commencement Speech Exposed For What It Is: Latest State Of The Art MASS HYPNOSIS, Using The Techniques Of Dr. Milton Erickson, M.D.

PDF: Obama’s_Use_of_Hidden_Hypnosis_techniques_in_His_Speeches

Not meaningless, just evil.

Related info:

Manchurian Candidate: Elite Puppet Mind-Control ‘Presidential Model’ Barack Obama


As the Middle Class Evaporates, Global Oligarchs Plan Their Escape from the Impoverished Pleb Masses (Liberty Blitzkrieg, Jan 26, 2015):

The middle class has shrunk consistently over the past half-century. Until 2000, the reason was primarily because more Americans moved up the income ladder. But since then, the reason has shifted: There is a greater share of households on the lower rungs of the economic ladder.

– From yesterday’s New York Times article: Middle Class Shrinks Further as More Fall Out Instead of Climbing Up

At a packed session in Davos, former hedge fund director Robert Johnson revealed that worried hedge fund managers were already planning their escapes. “I know hedge fund managers all over the world who are buying airstrips and farms in places like New Zealand because they think they need a getaway,” he said.

– From the Guardian’s article: As Inequality Soars, the Nervous Super Rich are Already Planning Their Escapes

So the other day, President Barack Obama once again demonstrated his contempt for the American public by using his State of the Union address to pejoratively blurt out meaningless phrases such as “but tonight, we turn the page” and: “The verdict is clear. Middle-class economics works. Expanding opportunity works. And these policies will continue to work, as long as politics don’t get in the way.”

Sorry, but why are “we turning the page” tonight? Weren’t you elected over six years ago? Why didn’t you turn the page in 2009? Continue reading »

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Jan 20

Looters At The Fed
Source

Spot The Trend: The Richest 1% Are About To Own Over Half Of Global Wealth (ZeroHedge, Jan 19, 2015):

Still not clear? The following two charts should help:

Wealth-Pyramid

Wealth-Pyramid-2

In short: the rich get richer; the poor get poorer, and the middle class is going extinct.

What happens next?  The NYT explains in “Oxfam Study Finds Richest 1% Is Likely to Control Half of Global Wealth by 2016

Continue reading »

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Jan 19

27-Facts-That-Show-How-The-Middle-Class-Has-Fared-Under-Barack-Obama

27 Facts That Show How The Middle Class Has Fared Under 6 Years Of Barack Obama (Economic Collapse, Jan 18, 2015):

During his State of the Union speech on Tuesday evening, Barack Obama is going to promise to make life better for middle class families.  Of course he has also promised to do this during all of his other State of the Union addresses, but apparently he still believes that there are people out there that are buying what he is selling.  Each January, he gets up there and tells us how the economy is “turning around” and to believe that much brighter days are right around the corner.  And yet things just continue to get even worse for the middle class.  The numbers that you are about to see will not be included in Obama’s State of the Union speech.  They don’t fit the “narrative” that Obama is trying to sell to the American people.  But all of these statistics are accurate.  They paint a picture of a middle class that is dying.  Yes, the decline of the U.S. middle class is a phenomenon that has been playing out for decades.  But without a doubt, our troubles have accelerated during the Obama years.  When it comes to economics, he is completely and utterly clueless, and the policies that he has implemented are eating away at the foundations of our economy like a cancer.

The following are 27 facts that show how the middle class has fared under 6 years of Barack Obama: Continue reading »

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Dec 23

From the article:

“There are three lessons that many people will learn in the coming months. If you do not have it already you may not be able to get it. If you do not have it physically in your hands you do not own it. If you cannot protect it you will not have it for long.”


R.I.P.-Middle-Class

The Destruction Of The Middle Class Is Nearing The Final Stages (Project Chesapeake, Dec 17, 2014):

The events of the past few months seem astounding when taken in all at once. The plan to destroy the U.S. dollar and the American middle class is moving at an ever increasing speed.

At the recent G20 meeting the nations agreed that bank deposits would no longer be considered money. These bank deposits become the property of the banking institution and as such can be used any way the bank wants. This means that any money you deposit in a bank now is no longer yours but makes you an investor in the bank and subject to lose that money if a banking crisis takes down the bank.

Continue reading »

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Nov 08

middle-class

–  American Middle Class “Wealth” Worse Than Every Nation But Russia & Indonesia (ZeroHedge, Nov 7, 2014):

One of Liberty Blitzkrieg’s most popular posts in 2013 was titled: How Does America’s Middle Class Rank Globally? #27. Here’s an excerpt:

We are number 1 right? USA! USA! No one can beat our wealth creation machine, our economic dynamism, our level playing field and our bastions of higher education. We have a middle class that is the envy of the world, right?

Well, like so much of the “American dream” we have been force fed for a generation or more, this perception is not based in reality whatsoever. Sure it may have been the case for a couple of decades immediately after World War 2. Before the military-industrial-Wall Street complex fully took over the political process, but it certainly isn’t true any longer. Myths die hard and this one is particularly pernicious because it prevents people from changing things.

The data in that article was based on a comprehensive study published by Credit Suisse titled Global Wealth Data Book. Well, the 2014 version is now out, and the results are not pretty.

Paul Buchheit has crunched the numbers, and highlighted some of his conclusions here. Here is some of what he found: Continue reading »

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Sep 22

Quantitative Proof The Illuminati Banksters Are Deliberately Destroying The Middle Class


Federal-Reserve-Bernanke1

Quantitative Proof The Fed Is Destroying The Middle Class (Voices of Liberty, Sep 19, 2014):

Listening to pundits on television, one would think we’ve found a magical species of leprechauns that piss gold rainbows amongst the masses and so we need never again worry about the economy, the markets and whether or not things are improving. And looking at the market’s six-year run to all-time highs, perhaps such euphoria is warranted.

I mean, isn’t the market supposed to be a highly efficient gauge of the underlying economy? The market is a function of expected future cash flows based on demand, supply and productivity. If true, and if the market is at all-time highs, then things must be good, correct? Continue reading »

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Jul 03


Added: Jun 29, 2014

Description:

Chris Martenson, who holds a PhD in pathology and an MBA, contends 2008 was just a warm up to a much bigger calamity. Martenson says, “2008 was the shot across the bow, and that’s when our credit experiment broke, and we have been doing everything possible to paper over it since. . . . When you take real stuff out of the ground, you grow food, you take oil out of the ground, you process ore into steel, and you manufacture real things–that’s real wealth. The claims (such as stocks, bonds and currencies) have to be in proportion to the real wealth, and the claims have been growing and growing and growing for so long that they are way out of balance to the real stuff, and the real stuff isn’t growing like it used to. You can see that in the GDP numbers for the U.S. or the world at large. Growth is slowing, slowing, slowing, and the claims are getting larger and larger. This represents a huge and gigantic source of potential energy. There is a gap there and it’s going to get closed. Only one of two things are going to happen: (1) real stuff starts expanding like crazy, or (2) the claims get destroyed. That’s what we are talking about when we talk about a market crash. The claims get destroyed. People get wiped out. The people who don’t get ruined are people safely over in the real wealth already. If you own an unencumbered farm, if you own a productive asset, if you own gold or silver, or if you own your house outright, you are going to be vastly safer than . . . someone who is leveraged and hinged into this other system.”

Join Greg Hunter as he goes One-on-One with Chris Martenson co-founder of PeakProsperity.com.

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Jun 06

Depressed-Photo-by-Sander-van-der-Wel-300x300

Half The Country Makes Less Than $27,520 A Year And 15 Other Signs The Middle Class Is Dying (ZeroHedge, June 4, 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. Continue reading »

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May 29

‘The next recession’???

This is the ‘GREATEST DEPRESSION’.

And it will get much, much worse.

Related info:

US Unemployment Rate Hits 37.2%

RECOVERY: The Number Of Working Age Americans Without A Job Has Risen By 27 MILLION Since 2000

Another Million People Drop Out Of Labor Force – Now An All Time High 92 Million People Are Out Of The Labor Force

Wall Street Adviser: Actual Unemployment Is 37.2%, ‘Misery Index’ Worst In 40 Years


Has The Next Recession Already Begun For America’s Middle Class? (Economic Collapse, May 28, 2014):

Has the next major economic downturn already started?  The way that you would answer that question would probably depend on where you live.  If you live in New York City, or the suburbs of Washington D.C., or you work for one of the big tech firms in the San Francisco area, you would probably respond to such a question by saying of course not.  In those areas, the economy is doing great and prices for high end homes are still booming.  But in most of the rest of the nation, evidence continues to mount that the next recession has already begun for the poor and the middle class.  As you will read about below, major retailers had an absolutely dreadful start to 2014 and home sales are declining just as they did back in 2007 before the last financial crisis.  Meanwhile, the U.S. economy continues to lose more good jobs and 20 percent of all U.S. families do not have a single member that is employed at this point.  2014 is turning out to be eerily similar to 2007 in so many ways, but most people are not paying attention. Continue reading »

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May 29

30 years??????????


The Middle Class Will Die Within 30 Years Leaving “A Wealthy Elite & Sprawling Proletariat” (ZeroHedge, May 28, 2014):

If we continue down this path of ignorance, we will be left with a “tiny elite and a huge sprawling proletariat” who have no chance of “clawing their way out of a hand-to-mouth existence,” is the loud and clear message from UK government advisor David Boyle. As The Telegraph reports, Boyle cautions, “we won’t own our own homes, we won’t be able to afford it,” adding that “we cheerled the rise of property prices not realising that it would destroy, if not our own lives, but the lives of our children.” His conclusion, “the middle classes have to wake up to prevent it happening and to create a political movement that will do it.”

Authored by Sarah Knapton via The Telegraph,

The middle classes will die out within 30 years because of rising property prices, which will rob today’s children of their dreams, an economist has warned. Continue reading »

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May 06

… as intended …

“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
– Ron Paul

bush-mission-accomplished-iraqMission-Accomplished-Obama
Mission accomplished!

… but it will get much, much worse … soon.

Prepare for the greatest financial collapse in world history.


The Destabilizing Truth: Only The Wealthy Can Afford A Middle Class Lifestyle (OfTwoMinds, May 6, 2014):

By Charles Hugh Smith

The “middle class” has atrophied into the 10% of households just below the top 10%.

The truth is painfully obvious: a middle class lifestyle is unaffordable to all but the top 20%. This reality is destabilizing to the current arrangement, i.e. debt-based consumerism a.k.a. neofeudal state-cartel capitalism, so it is actively suppressed by the officially sanctioned narrative: that middle class status is attainable by almost every household with two earners (a mere $50,000 annual household income makes one middle class) and middle class wealth is increasing.

It’s not that difficult to define a middle class lifestyle: just list what was taken for granted in the postwar era of widespread prosperity circa the 1960s, four decades ago. Continue reading »

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May 01

17 Facts To Show To Anyone That Believes That The U.S. Economy Is Just Fine (Economic Collapse, April 29, 2014):

No, the economy is most definitely not “recovering”.  Despite what you may hear from the politicians and from the mainstream media, the truth is that the U.S. economy is in far worse shape than it was prior to the last recession.  In fact, we are still pretty much where we were at when the last recession finally ended.  When the financial crisis of 2008 struck, it took us down to a much lower level economically.  Thankfully, things have at least stabilized at this much lower level.  For example, the percentage of working age Americans that are employed has stayed remarkably flat for the past four years.  We should be grateful that things have not continued to get even worse.  It is almost as if someone has hit the “pause button” on the U.S. economy.  But things are definitely not getting better, and there are a whole host of signs that this bubble of false stability will soon come to an end and that our economic decline will accelerate once again.

The following are 17 facts to show to anyone that believes that the U.S. economy is just fine:
Continue reading »

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Apr 27

Better to be Poor in Europe than in U.S.; Better to be Middle Class in Canada than in U.S. (AllGov, April 27, 2014):

Of the 16 teams that qualified for this year’s Stanley Cup Playoffs, only one, the Montreal Canadiens, is from Canada. The rest are from the United States, which some would say means Americans have beaten their neighbors to the north at their own game.

But Canada has outpaced the United States in a contest of which Americans always proudly declared ourselves the winners: whose middle class is faring best?

Continue reading »

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Apr 24

The Middle Class In Canada Is Now Doing Better Than The Middle Class In America (Economic Collapse, April 22, 2014):

For most of Canada’s existence, it has been regarded as the weak neighbor to the north by most Americans.  Well, that has changed dramatically over the past decade or so.  Back in the year 2000, middle class Canadians were earning much less than middle class Americans, but since then there has been a dramatic shift.  At this point, middle class Canadians are actually earning more than middle class Americans are.  The Canadian economy has been booming thanks to a rapidly growing oil industry, and meanwhile the U.S. middle class has been steadily shrinking.  If current trends continue, a whole bunch of other countries are going to start passing us too.  The era of the “great U.S. middle class” is rapidly coming to a bitter end.

In recent years, I have been up to Canada frequently, and I am always amazed at how much nicer things are up there.  The stores and streets are cleaner, the people are more polite and it seems like almost everyone that wants to work has a job.

But despite knowing all this, I was still surprised when the New York Times reported this week that middle class incomes in Canada have now surpassed middle class incomes in the United States… Continue reading »

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Apr 19

What Happened To The Middle Class? The Infographic (ZeroHedge, April 18, 2014)

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Feb 07

Dilapidated-House-In-Indiana

28 Signs That The Middle Class Is Heading Toward Extinction (Economic Collapse, Feb 5, 2014):

The death of the middle class in America has become so painfully obvious that now even the New York Times is doing stories about it.  Millions of middle class jobs have disappeared, incomes are steadily decreasing, the rate of homeownership has declined for eight years in a row and U.S. consumers have accumulated record-setting levels of debt.  Being independent is at the heart of what it means to be “middle class”, and unfortunately the percentage of Americans that are able to take care of themselves without government assistance continues to decline.  In fact, the percentage of Americans that are receiving government assistance is now at an all-time record high.  This is not a good thing.  Sadly, the number of people on food stamps has increased by nearly 50 percent while Barack Obama has been in the White House, and at this point nearly half the entire country gets money from the government each month.  Anyone that tries to tell you that the middle class is going to be “okay” simply has no idea what they are talking about.

The following are 28 signs that the middle class is heading toward extinction: Continue reading »

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Nov 22

“This Is Really A Symbol Of What’s Going On In This Whole Country. We’re Losing Middle-Class Jobs” (ZeroHedge, Nov 21,2013):

We wish we could say we didn’t warn Boeing’s machinists about the key trend taking place in the US economy under the Obama “recovery” but unfortunately we did. Three years ago, to be specific, when we wrote: “Charting America’s Transformation To A Part-Time Worker Society” and followed it up with “A “Quality Assessment” Of US Jobs Reveals The Ugliest Picture Yet” in which we explained that while the propaganda machine was fixated on numeric, quantitative, job additions every month, what has subversively going on, was the constant deterioration in the quality of jobs – and specifically the declining wages – available to those Americans who had not rotated outside of the labor force permanently (currently at a record 91.5 million). We say “alas” because it once again took several years before our cautions to be felt by the broader population, in this case the Boeing machinist union struggling to extract a wage increase from its employer: Boeing, whose stock keeps hitting new record highs with every passing day.

Continue reading »

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Nov 11

More CRIMINAL fraud: ‘Obamacare’ transfers $100-$300 billion/year from 99% to 1% (Examiner, Nov 10, 2013):

I wrote in 2010 that so-called “Obamacare” is economic fascism because it dictatorially transfers $100 billion to $300 billion every year from the 99% to 1% so-called “health care” oligarchs, according to every cost-benefit analysis compared to single-payer universal health care that I could find. “Obamacare” is also criminal fraud by US government so-called “leaders” because they have legal fiduciary responsibility to fully communicate options in trust of public money.

OBVIOUSLY, failure to communicate annual savings of $100 billion to $300 billion while transferring this to 1% oligarchs points to massive crime.

Moreover, stories that point to tragic-comic cost increases and cancellations strengthen the case for criminal investigation of financial gains from government insiders at the expense of the public they’re sworn to serve.

Continue reading »

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Oct 10

How Brazil’s Middle Class Dream Became A Debt-Fuelled Nightmare (ZeroHedge, Oct 9, 2013):

Quick: which BRIC nation has the highest consumer loan default rate?

If you said China, India or Russia, you are wrong. Actually, if you said China you are probably right, but since absolutely all economic “data” in China is worthless, manipulated propaganda, only a retrospective post-mortem after the Chinese credit, housing, commodity, consumption bubbles have all burst will we know the answer. So excluding China, which country’s consumers after a multi-year shopping spree funded entirely on credit, are suddenly suffering the epic hangover of soaring non-performing loans as they suddenly find themselves unable to even pay the interest on the debt? Just ask former billionaire Eike Batista whose OGX oil corporation is days away from filing bankruptcy. The answer, with 5.6% of all loans in default, above Russia, South Africa, Mexico, Turkey and India, is Brazil.

It is this same Brazil, where years of credit-driven expansion have resulted in rampant, 6% inflation, which moments ago forced the central bank to once again hike its key policy rate by another 50 bps to 9.50% in an attempt to halt surging prices and contain the flood of liquidity, both foreign and domestic. Continue reading »

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Oct 08

Carter: Middle class today resembles past’s poor (USA Today, Oct 7, 2013):

OAKLAND, California (AP) — Former President Jimmy Carter said Monday that the income gap in the United States has increased to the point where members of the middle class resemble the Americans who lived in poverty when he occupied the White House.

Continue reading »

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Sep 23

Quantitative Easing Worked For The Weimar Republic For A Little While Too (Economic Collapse, Sep 22, 2013):

There is a reason why every fiat currency in the history of the world has eventually failed.  At some point, those issuing fiat currencies always find themselves giving in to the temptation to wildly print more money.  Sometimes, the motivation for doing this is good.  When an economy is really struggling, those that have been entrusted with the management of that economy can easily fall for the lie that things would be better if people just had “more money”.  Today, the Federal Reserve finds itself faced with a scenario that is very similar to what the Weimar Republic was facing nearly 100 years ago.  Like the Weimar Republic, the U.S. economy is also struggling and like the Weimar Republic, the U.S. government is absolutely drowning in debt.  Unfortunately, the Federal Reserve has decided to adopt the same solution that the Weimar Republic chose.  The Federal Reserve is recklessly printing money out of thin air, and in the short-term some positive things have come out of it.  But quantitative easing worked for the Weimar Republic for a little while too.  At first, more money caused economic activity to increase and unemployment was low.  But all of that money printing destroyed faith in German currency and in the German financial system and ultimately Germany experienced an economic meltdown that the world is still talking about today.  This is the path that the Federal Reserve is taking America down, but most Americans have absolutely no idea what is happening.

It is really easy to start printing money, but it is incredibly hard to stop.  Like any addict, the Fed is promising that they can quit at any time, but this month they refused to even start tapering their money printing a little bit.  The behavior of the Fed is so shameful that even CNBC is comparing it to a drug addict at this point: Continue reading »

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Aug 18

FYI.


The Destruction Of America’s Middle Class (In Under Seven Minutes) (ZeroHedge, Aug 18, 2013):

While hardly news to frequent visitors, especially those who recall the following list, anyone who needs a 7 minute refresher into why the US middle class is on collision course with extinction is urged to watch the following brief video which highlights all the salient facts such as:

  • 76% of Americans live paycheck to paycheck
  • 27% of American have no savings at all
  • 46% of Americans have less than $800 in savings
  • The conversion of America into a part-time working society and the country’s second largest employer – a temp agency.
  • The college trap and the student loan bubble
  • And of course, foodstamps, foodstamps, foodstamps and the nearly 50 million poverty-level Americans who need them to survive

Why seven minutes? Because everyone knows that just like you can’t get “six minute abs“, so it is impossible to recap the doom of America’s middle class in only six minutes (or, gasp, less).


YouTube Added: 16.08.2013

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Aug 16

A Stunning 60% Of All Home Purchases Are “Cash Only” – A 200% Jump In Five Years (ZeroHedge, Aug 15, 2013):

Remember when housing was the primary aspirational asset for a still existent US middle class, to be purchased with some equity down by your average 30 year-old hoping to start a family in his or her brand new home, and, as the name implies, aspire to reach the American dream? Those days are long gone. Back in those days the interest rate on the 10 Year bond mattered as it determined the prevailing marginal affordability of leveraged real estate. That is no longer the case, at least not for about 90% of Americans, because as Goldman shows, while before the great crisis only 20% of home purchases were “all cash”, since then the number has soared threefold, and currently the estimated percentage of cash transactions (by count and amount) has hit a record 60%. In other words, less than half of all home purchases are debt-funded, and thus less than half of all home purchases are actually representative of what middle-class America is doing.

Goldman’s take:

Continue reading »

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Jul 30

44 Facts About The Death Of The Middle Class That Every American Should Know (Economic Collapse, July 30, 2013):

What is America going to look like when the middle class is dead?  Once upon a time, the United States has the largest and most vibrant middle class in the history of the world.  When I was growing up, it seemed like almost everyone was “middle class” and it was very rare to hear of someone that was out of work.  Of course life wasn’t perfect, but most families owned a home, most families had more than one vehicle, and most families could afford nice vacations and save for retirement at the same time.  Sadly, things have dramatically changed in America since that time.  There just aren’t as many “middle class jobs” as there used to be.  In fact, just six years ago there were about six million more full-time jobs in our economy than there are right now.  Those jobs are being replaced by part-time jobs and temp jobs.  The number one employer in America today is Wal-Mart and the number two employer in America today is a temp agency (Kelly Services).  But you can’t support a family on those kinds of jobs.  We live at a time when incomes are going down but the cost of living just keeps going up.  As a result, the middle class in America is being absolutely shredded and the ranks of the poor are steadily growing.

The following are 44 facts about the death of the middle class that every American should know… Continue reading »

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Jul 24

How Does America’s Middle Class Rank Globally? #27 (Liberty Blitzkrieg, July 23, 2013):

We are number 1 right? USA! USA! No one can beat our wealth creation machine, our economic dynamism, our level playing field and our bastions of higher education. We have a middle class that is the envy of the world, right?

Well, like so much of the “American dream” we have been force fed for a generation or more, this perception is not based in reality whatsoever. Sure it may have been the case for a couple of decades immediately after World War 2. Before the military-industrial-Wall Street complex fully took over the political process, but it certainly isn’t true any longer. Myths die hard and this one is particularly pernicious because it prevents people from changing things. As James Baldwin said:

Not everything that is faced can be changed, but nothing can be changed until it is faced.

From the Huffington Post:

America is the richest country on Earth. We have the most millionaires, the most billionaires and our wealthiest citizens have garnered more of the planet’s riches than any other group in the world. We even have hedge fund managers who make in one hour as much as the average family makes in 21 years!

This opulence is supposed to trickle down to the rest of us, improving the lives of everyday Americans. At least that’s what free-market cheerleaders repeatedly promise us.

Unfortunately, it’s a lie, one of the biggest ever perpetrated on the American people.

Continue reading »

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Jul 15

Goodbye Full-Time Jobs, Hello Part-Time Jobs, R.I.P. Middle Class (Economic Collapse, July 15, 2013):

A fundamental shift is taking place in the U.S. economy.  In fact, this transition is rapidly picking up momentum and is in danger of becoming an avalanche.  The percentage of full-time jobs in our economy is steadily declining and the percentage of part-time jobs is steadily increasing.  This is not a recent phenomenon, but now there are several factors which are accelerating this trend.  One of them is Obamacare.  The truth is that Obamacare actually gives business owners incentive to cut hours and turn full-time workers into part-time workers, and according to the Wall Street Journal and other prominent publications this is already happening all over the United States.  Perhaps this is part of the reasons why the U.S. economy actually lost 240,000 full-time jobs last month.

In a recent article entitled “Restaurant Shift: Sorry, Just Part-Time“, the Wall Street Journal explained the choices that employers are faced with thanks to Obamacare…

The Affordable Care Act requires employers with 50 or more full-time equivalent workers to offer affordable insurance to employees working 30 or more hours a week or face fines. Some companies have said the requirement could increase their costs significantly, although others have played down the potential hit.

The cost for small firms to comply with the health law will depend largely on the number of additional full-time employees that sign up for employer-sponsored coverage. Average annual premiums for employer-sponsored health insurance in 2012 were $5,615 for single coverage and $15,745 for family coverage, according to the Kaiser Family Foundation. That is up from $3,083 and $8,003, respectively, in 2002.

Thankfully the implementation of this aspect of Obamacare was recently delayed, but a lot of employers are saying that it won’t make a difference.  They know that it is coming at some point, and so they are already making the changes that they feel they will need to make in order to comply with the law… Continue reading »

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Jun 21

Every Asset That Depends on Cheap, Abundant Credit (Housing, Bonds, Stocks) Is Doomed (OfTwoMinds, June 20, 2013):

Four words: financialization, debtocracy, diminishing returns.

About a month ago I asked What If Stocks, Bonds and Housing All Go Down Together? (May 24, 2013). Why would such an outrageous thought even occur to me?

Four words: financialization, debtocracy, diminishing returns. The entire global economy, developed and developing nations alike, is now dependent on cheap, abundant credit for everything: for “growth,” for asset inflation, and ultimately for central state deficit spending, which props up all the cartels, rentier arrangements, fiefdoms and armies of toadies, lackeys, apparatchiks and embezzlers that suck off the Status Quo. Continue reading »

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Jun 08

American Households On Foodstamps Climb To New Record (ZeroHedge, June 8, 2013):

Yesterday, briefly, we were confused by the eruption in the stock market following a not too bad sub-200K nonfarm payrolls number. Because we know that in the New Normal bad is always good, no matter what the well-coifed TV pundit du jour tells you. Then we remembered that yesterday is when the USDA releases its monthly Supplemental Nutrition Assistance Program data, i.e. Americans on Foodstamps.It was here that the ramp was perfectly explained, because while the bad (for stocks of course) data was that individual foodstamps recipients rose by 170K in March – if just a whisker below all time highs – it was the number of American households on foodstamps, which rose to a new all time high of 23,116,441 (each collecting an average of $274.30 per month) that perfectly explained the Dow Jones’ 200 point surge higher: the transfer of wealth from the poor and middle-classes to the 1% continues without a hiccup.

Source: SNAP

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Mar 10

FYI.


Jim Rogers: We’re Wiping Out The Savings Class Globally, To Terrible Consequence (Peak Prosperity, March 9, 2013):

Jim Rogers decries the growing uncertainty and recklessness of global central planners as the world enters unchartered financial markets:

For the first time in recorded history, we have nearly every central bank printing money and trying to debase their currency. This has never happened before. How it’s going to work out, I don’t know. It just depends on which one goes down the most and first, and they take turns. When one says a currency is going down, the question is against what? because they are all trying to debase themselves. It’s a peculiar time in world history.

Continue reading »

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Mar 01

Consumer Spending Drought: 16 Signs That The Middle Class Is Running Out Of Money (Economic Collapse, Feb 28, 2013):

Is “discretionary income” rapidly becoming a thing of the past for most American families?  Right now, there are a lot of signs that we are on the verge of a nightmarish consumer spending drought.  Incomes are down, taxes are up, many large retail chains are deeply struggling because of the lack of customers, and at this point nearly a quarter of all Americans have more credit card debt than money in the bank.  Considering the fact that consumer spending is such a large percentage of the U.S. economy, that is very bad news.  How will we ever have a sustained economic recovery if consumers don’t have much money to spend?  Well, the truth is that we aren’t ever going to have a sustained economic recovery.  In fact, this debt-fueled bubble of false hope that we are experiencing right now is as good as things are going to get.  Things are going to go downhill from here, and if you think that consumer spending is bad now, just wait until you see what happens over the next several years. Continue reading »

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