Showing posts with label US Economy in Crisis. Show all posts
Showing posts with label US Economy in Crisis. Show all posts

Saturday, March 6, 2010

US Congressional estimates show GRIM DEFICIT picture


Congressional estimates show grim deficit picture - Yahoo! News:
"By ANDREW TAYLOR, Associated Press WASHINGTON –

Excerpt, highlight added

A new congressional report released Friday says the United States' long-term fiscal woes are even worse than predicted by President Barack Obama's grim budget submission last month.

The nonpartisan Congressional Budget Office predicts that Obama's budget plans would generate deficits over the upcoming decade that would total $9.8 trillion. That's $1.2 trillion more than predicted by the administration.

The agency says its future-year predictions of tax revenues are more pessimistic than the administration's. That's because CBO projects slightly slower economic growth than the White House.

The deficit picture has turned alarmingly worse since the recession that started at the end of 2007, never dipping below 4 percent of the size of the economy over the next decade. Economists say that deficits of that size are unsustainable and could put upward pressure on interest rates, crowd out private investment in the economy and ultimately erode the nation's standard of living.

Still, the Feb. 1 White House budget plan was a largely stand-pat document that avoided difficult decisions on curbing the unsustainable growth of federal benefit programs like the Medicare health care program for the elderly and Medicaid, which provides health care to the poor and disabled.

Instead, Obama has created an 18-member fiscal reform commission that's charged with coming up with a plan to shrink the deficit to 3 percent of the economy within five years. But the Republicans to be named to the panel by congressional GOP leaders are unlikely to go along with any tax increases that might be proposed, which could ensure election-year gridlock."

While the president is intent on ramming through Congress a new trillion-dollar health-care entitlement, he appears far less concerned with addressing the looming crisis of entitlement spending already on the books,' said Rep. Paul Ryan of Wisconsin, the top Republican on the Budget Committee.

'Instead, he delegates this task to a 'Fiscal Commission'which would not even report until after the next election.

Read more:


COMMENTS

Videos
Barack Obama Video:Obama's Final Push on Health Care:

Barack Obama Video:Obama: Job losses more than we should tolerate:

Jobless Rate Too High

Wednesday, February 24, 2010

Obama's Ides-of-March Moment is Near

By Monty Pelerin
American Thinker

Excerpt:
"By the end of March, Barack Obama's administration will face its destiny, its Brutus a pawn of the fates."...

"Mr. Bernanke, quite unintentionally and through no fault of his own, will be Obama's Brutus, regardless of his decision. To understand why"...

"Bernanke has two options, neither of them good. He can do what he promised and stop QE. Or he can renege on his promise. Either alternative has radically negative consequences for the country, Bernanke's role in history, and Obama's presidency"...

"Under either scenario, the Obama presidency is destroyed. Obama probably prefers the second option, because it might extend the period before sovereign bankruptcy. However, it might not extend it very much. Foreign bankers have chastised our behavior regularly. If the Fed is perceived as 'The Great Enabler' rather than as protector of the currency, a run on the dollar and the dumping of Treasuries could result."...

"Obama loses either way. He inherited a difficult situation, but then, via foolish policies, he turned it into a terminal one. At this point, Jimmy Carter may be the happiest person in the country. His lead position in the Pantheon of Shame is in jeopardy thanks to Obama.

For the country, times equivalent to the Great Depression are likely ahead. My guess is that Bernanke chooses (or is forced into) continuing QE. Courage is a rare and dangerous commodity in Washington. Hard decisions occur only in crisis."...

"When the country is perceived and treated by the world community as the wastrel it has become, then remedial action will take place. Hopefully, something is still salvageable."

Read the entire post: Obama's Ides-of-March Moment is Near:

For biblical insight, read: The United States and Great Britain in Prophecy

Saturday, October 24, 2009

The Debt Death Spiral

October 24, 2009
By Steve McCann
American Thinker

Excerpt:

America's economy faces a miserable future, according to an important government report.

The media collectively have yawned, and official Washington has barely blinked. The Government Accountability Office recently issued its report to the Congress on the long-term fiscal outlook for the United States.

It is a bleak picture. The report opens:

  • Weakness in the economy and financial markets -- and the government's response to them -- have contributed to near-term increases in federal deficits, which reached record level in fiscal year 2009. While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth.

and:


  • ...the federal government is on an unsustainable fiscal path.

Unfortunately few in Congress will ever read this memorandum, as their interest lies in a) getting their ideology and agenda passed; and b) letting others worry about tomorrow...

Nothing lays out the future better than this GAO report. The alarm has been sounded. Those in the Congress who will not pay heed must be replaced. Do not leave a shell of a once magnificent country to your children and grandchildren.

Read entire article: The Debt Death Sprial

Thursday, September 17, 2009

Major International document announces :US Treasuries to DEFAULT

By DefendUSx
From Blogger Intel:
Posted on September 17th, 2009 by David-Crockett
The Betrayal

Excerpt:

The emergency crests to a new height: US Treasuries (the so called “safety haven” for retirees and investors) will be defaulting!!

This is because we tried to fix our debt problems by CREATING MORE DEBT (or better yet, selling out to the New World Order Globalist Bankers).

...The US is hiding financial insolvency (...) and we are going to get wash after wash of crisis, until we cannot even honor the treasury bills (this has already happened .. China just vacated)!!

This is serious, many people will lose every last cent, well, the idea is being floated to pay 10 cents on the dollar!! Please read the article and circulate it far and wide.

...God help and bless America.

If you believe in drinking- have a couple hard shots before you read the article- we are in serious and deep trouble…..we need to defend our borders and tell the debtors to get screwed while we rebuild WITHOUT DEBT.

Complete article (Alerte Crise Systémique Globale - Eté 2009 : Cessation de paiement du gouvernement américain )

Entire post: Major International document announces :US Treasuries to DEFAULT

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Thursday, March 12, 2009

Crime, Corruption And Collapse On Wall Street

International Forecaster Weekly
Latest Issue: March 11th, 2009:

Stock market out of control, as losses mount, the stock market is seen as a big scam, horrendous damage has been done, the perils of the unregulated marketplace now outweigh the benefits, the fraud you will never hear about, Greenspan was bought and paid for, US dollar dying a slow death, Defense billions madness,

Read more: Crime, Corruption And Collapse On Wall Street

Tuesday, March 10, 2009

Can You Survive Economic Crisis? Are Americans stockpiling?

Booming preparedness industry says Americans are stockpiling

Posted: March 08, 2009
8:15 pm Eastern
By Drew Zahn
© 2009 WorldNetDaily

To some, the term "survivalist" conjures images of camouflage-clad men stockpiling freeze-dried food in a mountain cabin, but in the current economic crisis, the people quietly preparing to survive catastrophe may just be your next-door neighbors.

In his column in last month's Financial Times, business and technology expert Ade McCormack writes, "The world is in crisis and with it the world of business. Many of us have two plans. Plan A involves President Barack Obama performing some economic magic. Plan B involves a revolver, a vegetable patch and a subscription to Survivalist Monthly."

And while McCormack was writing with a hint of jest, dissent over the president's trillion-dollar spending approach to the economy has left many average, everyday Americans considering something looking suspiciously like plan B.

Bill Heid of Survival Seeds, a company that sells "banks" of high-yielding vegetable seeds sealed for long-term storage and awaiting a family's need to grow its own food, says business is skyrocketing.

"It's been dramatic, nothing short of dramatic," Heid told WND. "The survivalist mentality used to be considered a fringe element, but now that economic times are such as they are, many more average, regular folks are adopting the same set of preparations."

Heid told WND what's most notable is that his boom in sales isn't coming from just the usual survivalists stocking up for a Y2K-like event.

"Ninety percent of our increase in business is new business," Heid said, "people who have never thought about surviving in case of emergency before."

The Christian Science Monitor reports that Lehman's, an Ohio retailer of home self-sufficiency equipment, has recorded huge sales increases from across the preparedness spectrum, from curious buyers to the stereotypical die-hards, according to ...

Vic Rantala, founder of Minnesota-based Safecastle, which markets home shelters for protection against disasters such as hurricanes and chemical attacks, told the Monitor his company's revenues have more than doubled since 2007.

"If most people think of a survivalist as an armed loner with extreme views – there are folks like that out there, but there are many more in America who are simply involved in preparing for down times, lean times or disaster," Rantala, a former U.S. intelligence analyst, told the Monitor. "It's logical. It's common sense."

Seattle Times Columnist Danny Westneat interviewed Claire Anderson, a 68-year-old woman who was prompted by Obama's call for community organization to host a meeting of neighbors in her apartment. Their discussion of the slumping economy and fears of what lies ahead harkened back to the leaner days of her World War II childhood.

"I think we're headed back to the days of the victory gardens," Anderson said. "We have to figure out how to help ourselves. We can't be isolated. We can't sit around and wait for the government."

A New York Times article from last summer suggests last year's elevated fuel and food prices sparked a surge of interest in gardening that hasn't slowed since.

"Seed companies and garden shops say that not since the rampant inflation of the 1970s has there been such an uptick in interest in growing food at home," writes Times reporter ...

George C. Ball Jr., owner of the major seed and plant supplier W. Atlee Burpee Company, told the Times sales shot up by 40 percent last year, double the annual growth for the last five years.
Ball said of the surge in business, "You don't see this kind of thing but once in a career."

Anxiety over the economy has generated a spike in other areas of the survival and emergency preparedness industry, too.

Harry Weyandt is president of Nitro-Pak, a company that sells freeze-dried food, survival kits, fuel, camping gear and a variety of emergency preparedness products.

"Since the middle of last September, the demand for our long-storing foods and supplies has been very high," Weyandt writes in a column on his company's website. "We are shipping orders as fast as possible, but the demand for preparedness supplies and long storing foods is gaining steam again."

Last summer, an ABC News report said "there are worrying signs appearing in the United States where some … locals are beginning to hoard supplies." The report said some suppliers were concerned the U.S. government may be competing with consumers for stocks of storable food.

Spokesman Bruce Hopkins of Best Prices Storable Foods told WND his company was having trouble obtaining No. 10 cans and other storable foodstuffs, in part, because the federal government was purchasing such large amounts.

"We don't know why," Hopkins said. "The feds then went to freeze dried companies and bought most of their canned stock."

A statement from one of the world's larger suppliers of food stores, Oregon Freeze Dry, also confirmed that sales of No. 10 cans had increased so significantly, the company couldn't keep up and had to remove the products from their online catalog...

Newspapers from around the world reported last month on people facing the economic crisis with increased preparations for catastrophe...

Simon Beer, who operates a survivalist website in Australia, told the newspaper he has seen a surge in interest lately.

"Climate change, peak oil, the economic situation," Beer told the Herald, "people are seeing we're headed for catastrophic changes."

The Toronto Star reports the story of Paul, a man in his mid-50s who only three years ago became alarmed over the possibility of fuel shortage and began a plan to prepare for survival should the worst happen.

"When cars stop running? And grocery stores go bare? What do you think is going to happen?" Paul asked the Star. "It's mind boggling once you grasp it." ...


Read more: Forget stocks ... Fretting Americans turn to stockpiling


Friday, March 6, 2009

What's Dead (Short Answer: All Of It)

Posted by Karl Denninger in Editorial at 09:57
The Market Ticker
Thursday, March 5. 2009

What's Dead (Short Answer: All Of It)

Just so you have a short list of what's at stake if Washington DC doesn't change policy here and now (which means before the collapse in equities comes, which could start as soon as today, if the indicators I watch have any validity at all. For what its worth, those indicators are painting a picture of the Apocalypse that I simply can't believe, and they're showing it as an imminent event - like perhaps today imminent.)

All pension funds, private and public, are done.
If you are receiving one, you won't be. If you think you will in the future, you won't be. PBGC will fail as well. Pension funds will be forced to start eating their "seed corn" within the next 12 months and once that begins there is no way to recover.

All annuities will be defaulted to the state insurance protection (if any) on them.
The state insurance funds will be bankrupted and unable to be replenished. Essentially, all annuities are toast. Expect zero, be ecstatic if you do better. All insurance companies with material exposure to these obligations will go bankrupt, without exception. Some of these firms are dangerously close to this happening right here and now; the rest will die within the next 6-12 months.

If you have other insured interests with these firms, be prepared to pay a LOT more with a new company that can't earn anything off investments,

and if you have a claim in process at the time it happens, it won't get paid. The probability of you getting "boned" on any transaction with an insurance company is extremely high - I rate this risk in excess of 90%.

The FDIC will be unable to cover bank failure obligations.
They will attempt to do more of what they're doing now (raising insurance rates and doing special assessments) but will fail; the current path has no chance of success. Congress will backstop them (because they must lest shotguns come out) with disastrous results. In short, FDIC backstops will take precedence even over Social Security and Medicare.

Government debt costs will ramp
.
This warning has already been issued and is being ignored by President Obama. When (not if) it happens debt-based Federal Funding will disappear. This leads to....

I expect total tax receipts to fall to under $1 trillion within the next 12 months. Combined with the impossibility of continued debt issue (rollover will only remain possible at the short duration Treasury has committed to over the last ten years if they cease new issue) a 66% cut in the Federal Budget will become necessary.

This will require a complete repudiation of Social Security, Medicare and Medicaid, a 50% cut in the military budget and a 50% across-the-board cut in all other federal programs. That will likely get close.

Tax-deferred accounts will be seized to fund rollovers of Treasury debt at essentially zero coupon (interest).
If you have a 401k, or what's left of it, or an IRA, consider it locked up in Treasuries; it's not yours any more. Count on this happening - it is essentially a certainty.

Any firm with debt outstanding is currently presumed dead
as the street presumption is that they have lied in some way. Expect at least 20% of the S&P 500 to fail within 12 months as a consequence of the complete and total lockup of all credit markets which The Fed will be unable to unlock or backstop. This will in turn lead to....

The unemployed will have 5-10 million in direct layoffs added within the next 12 months. Collateral damage (suppliers, customers, etc) will add at least another 5-10 million workers to that, perhaps double that many. U-3 (official unemployment rate) will go beyond 15%, U-6 (broad form) will reach 30%.

Civil unrest will break out before the end of the year.
The Military and Guard will be called up to try to stop it. They won't be able to. Big cities are at risk of becoming a free-fire death zone. If you live in one, figure out how you can get out and live somewhere else if you detect signs that yours is starting to go "feral"; witness New Orleans after Katrina for how fast, and how bad, it can get.

The good news is that this process will clear The Bezzle out of the system.
The bad news is that you won't have a job, pension, annuity, Social Security, Medicare, Medicaid and, quite possibly, your life.

It really is that bleak folks, and it all goes back to Washington DC being unwilling to lock up the crooks, putting the market in the role it has always played - that of truth-finder, no matter how destructive that process is.

Only immediate action from Washington DC, taking the market's place, can stop this, and as I get ready to hit "send" I see the market rolling over again, now down more than 3% and flashing "crash imminent" warnings. You may be reading this too late for it to matter.
In 3 minutes, what's coming.....


Read also:
Fed Refuses To Tell Where $2 Trillion Went
The Greatest Depression
Economic Disaster Continues-- Dow Tanks 4.1%... Jim Cramer Blasts Obama Team
Bank Woes Drain Deposit Insurance Fund
8.3 Million US Mortgages Upside Down
Kiss The Banks Off - Refocus On The People
Russian Scholar Says US Will Collapse Next Year

Thursday, February 26, 2009

We Watch Now As Funds Get Vaporized

International Forecaster Weekly
We Watch Now As Funds Get Vaporized
Latest Issue: February 25th, 2009Posted: February 25 2009


:real inflation has been raging, purchasing power diminishing, pension plan funds being systematically starved, expect a dollar dump by foreign holders, new tax laws and new strings attached, Still not sure why we have to bail out fraudster bankers, bailouts will only help banks to continue to fleece the public.

...you have lost a minimum of two thirds of your 1997 purchasing power... In other words, that $10,000 you invested in 1997 will today only buy what $3,000 would have bought in 1997.

Effectively, anyone playing the general stock markets has been wiped out by this combination of lost capital gains and reduced purchasing power.


Pension plans, often heavily invested in stocks and real estate, asset classes which have seen tens of trillions of dollars disappear in a matter of months, are now so far behind in funding... , and these losses do not even take into account loss of purchasing power due to inflation, which is understated officially to screw retirees out of their social security benefits... Wait until the interest rates skyrocket as hyperinflation takes hold and risk reaches new heights. This will collapse the treasury market, and the value of all your pension plan assets, which the government will have forced you to invest in treasuries, will go down in flames with it.

Also, many pension-sponsoring companies are going to go under ... When these victims of the financial holocaust go under, the pension funds they sponsor will go under with them and there will be precious little in the way of bailouts to make up for these losses. ..

Note that all the new tax laws concerning pensions encourage you to put more money in, and to keep it there longer. The scum in our government and on Wall Street want to encourage you to place your money into accounts to which they have strings attached with onerous tax law penalties. They want to make sure you put as much of your hard-earned savings in such accounts as possible, and to keep it there as long as possible, so they have sufficient time and opportunity to steal it from you via inflation, dollar devaluation, insider trading, investment fraud, depreciation of asset values through deflation, direct taxation, foreclosure sales, bankruptcy auctions and outright confiscation.


There is no end in sight for the real estate market, which will not bottom for several years... We keep hearing Barack "Nero Fiddled While Rome Burned" Obama and Sheila "We Just Can't Let This Happen" Bair, the head of the FDIC, tell us that we have to bail out bankster gangsters and borrower felons, and that we just can't allow these banksters and borrowers to go under, nor can we allow the overall financial situation to deteriorate further... The situation is going to deteriorate further no matter what they do, and they are in fact exacerbating the ongoing debacles by creating money out of nothing and then throwing it at people and institutions that are already dead, financially speaking...These institutions have self-destructed on orders from the Puppet Masters to collapse the world financial system to make way for a new one-world system in place of the nation-state system.

People who acted wisely and stayed on the sidelines while everyone else want on a felonious spending and lending binge in the real estate markets, .. still cannot get into the real estate market because the prices are being kept artificially high by all the bailouts. They watch in silent anger and consternation as those who committed felonies by taking out "liar loans" get their mortgage principal reduced and payments lowered to avoid generating foreclosures which would take real estate prices down to a more realistic level that honest, qualified buyers could afford. They watch in stupefied horror and frustration as those banks which engaged in derivative and loan fraud and over-leveraged speculation get hundreds of billions of taxpayer largesse doled out to them so they can continue to defraud the public and make nonsensical loans to keep the daisy chain of fraud going while they collect their commissions and spreads on new issuance of toxic waste using money that has been borrowed interest-free, while charging usurious rates, relative to their borrowing costs, to anyone else who needs to borrow money.


These bankster gangsters then have the gall to say they are not accountable to taxpayers as to how the money is used,... Obama's bogus promises that these horrendous and fiendish practices will not be allowed to occur with respect to future bailout funds is just window-dressing and inane platitudes for the ignorant masses. Business will go on as usual in Washington and on Wall Street -- as corrupt as ever.


Right has become wrong, and wrong has become right, just as the Bible warned. Surely, we are in the End Times.

Read the entire sobering article: We Watch Now As Funds Get Vaporized

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Tuesday, February 17, 2009

Gerald Celente, trend forecaster: Super-Great Depression

by Roy C February 14, 2009 at 08:21 pm

Gerald Celente, U.S. trend forecaster, in an interview with Russia Today foresees a depression of mammoth proportions, dwarfing the 1930s.

From a Russia Today interview:
Videos

Gerald Celente says this will be Worse than Great Depression Part 1 (feb 10 2009)

see more
http://www.youtube.com/watch?v=7PeMetxuy90





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