Outcasts: Tonight Tens Of Thousands Of Formerly Middle Class Americans Will Be Sleeping In Their Cars, In Tent Cities Or On The Streets

Excerpt:

Economic despair is beginning to spread rapidly in America. As you read this, there are millions of American families that are just barely hanging on by their fingernails.

For a growing number of Americans, it has become an all-out battle just to be able to afford to sleep under a roof and put a little bit of food on the table. Sadly, there are more people than ever that are losing that battle.

Tonight, tens of thousands of formerly middle class Americans will be sleeping in their cars, even though that is illegal in many U.S. cities. Tens of thousands of others will be sleeping in tent cities or on the streets.

Meanwhile, communities all over America are passing measures that are meant to push tent cities and homeless people out of their areas. It turns out that once you lose your job and your home in this country you become something of an outcast. Sadly, the number of "outcasts" is going to continue to grow as the U.S. economy continues to collapse.

Most Americans that end up living in their cars on in tent cities never thought that it would happen to them.

An article in Der Spiegel profiled one American couple that is absolutely shocked at what has happened to them...

Chanelle Sabedra is already on that road. She and her husband have been sleeping in their car for almost three weeks now. "We never saw this coming, never ever," says Sabedra. She starts to cry. "I'm an adult, I can take care of myself one way or another, and same with my husband, but (my kids are) too little to go through these things." She has three children; they are nine, five and three years old.

"We had a house further south, in San Bernardino," says Sabedra. Her husband lost his job building prefab houses in July 2009. The utility company turned off the gas. "We were boiling water on the barbeque to bathe our kids," she says. No longer able to pay the rent, the Sabedras were evicted from their house in August.

America is becoming a very cruel place.

Unfortunately, what has happened to that family is not an isolated incident. As rampant unemployment has spread across America, the number of people that have lost their homes has soared.

Today, it is estimated that approximately a third of the homeless population in Seattle live in their cars.

Desperation is rising all over America. Most people had hoped to see an economic recovery by now but it just hasn't happened...

The United States can be a very brutal place to be if you are poor...

We live in very frightening times. ..

Poverty is absolutely exploding in America...

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Biblical Perspective:
The United States and Great Britain in Prophecy
The World Ahead: What Will It Be Like?

Economic And Financial Systems Deliberately Destabilized

Posted: February 11 2009

...devaluation continues, destabilization of the system continues, no-one is trying to save the economy, fear keeps many from seeing and saying the truth,many unemployed already out of benefits, names of those who will benefit from stimulus remain undisclosed, trillions out the back door...

There has been, as we said for the past couple of months, secret issuance of US Treasuries by the Treasury that has ballooned the money supply and that should start to show up in higher inflation in March or April...Our entire economic and financial systems have been deliberately destabilized. No collapse has occurred, but collapse is in motion. The financial and economic collapse is ongoing as witnessed by raging unemployment and massive bailouts...

The powers that be are not trying to save the economy. They are extending the timeline, so that total collapse will come when they want it to come. Do not underestimate what is going on. This could well he the worst financial and economic collapse of all time. This is the creation of synchronized stimulus, deficits and reflationary policy making...

Massive government spending and reflation is not going to work, history tells us that. One thing that we know for sure is that it could take more than 20 years to recover from this crash...

Read the entire articl: Econ & Finan Systems Deliberately Destabilized

Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Posted Feb 06, 2009 08:05am EST by Aaron Task in Investing, Newsmakers, Recession



The fiscal stimulus bill being debated in Congress not only won't help the economy, it will make the recession much worse, says Peter Schiff, president of Euro Pacific Capital.

Schiff scoffs at the notion the economic decline is starting to level off and concedes no government action means a "terrible" recession. But the path of increased government intervention will lead to "unmitigated disaster," says Schiff, who gained notoriety in 2007-08 for his prescient calls on the housing bubble and U.S. stocks.

The problem, he says, is the government is trying to perpetuate a "phony economy" based on borrowing and spending. With the U.S. consumer tapped out, the government is "now taking on the mantle" of consumer of last resort, he continues, predicting the bond bubble will soon burst - if it hasn't already - ultimately leading to a collapse of the dollar and an "inflationary depression worse than anything any of us have ever seen."If nothing else, Schiff is an nonpartisan critic of American policymakers, comparing President Bush to Herbert Hoover and President Obama to FDR, and neither in a favorable way.

Note: Stay tuned for part 2 of my interview with Schiff, where he addresses recent criticism of his investing prowess.

http://finance.yahoo.com/tech-ticker

U.S. Treasury Bond Bubble About to Pop

Shah Gilani writes: Frighteningly, like the rush into tech stocks, then the rush into real estate, and then the rush into commodities, the rush into U.S. government bonds has created a Treasury bubble. In a cruel twist of economic fate, passage of an aggressive Obama administration stimulus plan could further inflate that bubble - before popping it.

The United States of America is an expensive household to run. In order to pay the nation's bills, the U.S. government levies taxes. When expenditures exceed tax revenue, the government has to borrow money. The United States borrows money by ordering the Treasury Department to sell government IOUs to investors in the form of Treasury bills, notes and bonds, known as “Treasuries.”

How much does the government owe? As of Friday, according to TreasuryDirect.gov , total U.S. public debt stood at $10,620,397,126,433.54 ($10.62 trillion) - and counting.

The Case for Treasuries
Investors throughout the world - including those here in the United States - buy Treasuries because they pay interest and, moreover, because they are backed by the full faith and credit of the United States...The extraordinary flow of money into Treasuries caused their prices to rise. When prices rise on fixed-income investments like Treasuries, their yields fall...

Troubled Assets, Troubled Times
Last October, as part of the so-called Troubled Assets Relief Program (TARP), Congress allocated $700 billion to buy “troubled assets” from banks that were losing money. Those institutions were truly troubled...

The initial TARP outlays - about $350 billion - went to suffering banks, in a few cases so they could buy lipstick and pretty themselves up before courting other wallowing institutions ...

None of the TARP bailout money actually went to buying troubled assets from floundering banks...Instead, most of the capital given to banks went onto their balance sheets as a capital asset and most of those institutions bought the highest-yielding government and agency paper they could find...

The other $350 billion that Congress authorized from the original bailout package was released last week , without any clear plan as to where it should go...

Stop the Presses?
As if it isn't frightening enough that the Treasury is selling huge amounts of cheap debt to investors to bail out bloated, insolvent banks and inefficient industries, the Federal Reserve is printing money to buy commercial paper and illiquid assets from just about everybody to facilitate lending in almost every corner of the economy - and is then carrying these “assets” on its balance sheet.

Isn't that how the credit crisis got started, with banks holding illiquid “troubled assets” on their balance sheets?

A Blueprint for a Burst Treasury Bubble

...Boosting debt even as we print more money will have a devastating effect on the U.S. dollar. While a devalued dollar makes U.S. manufactured goods and services cheaper overseas, it also makes the goods and services we import more expensive, as it takes more dollars to buy the same amount of imported products - especially oil..

...There is a much quicker and safer way out of the credit crisis that takes us forward toward an economic recovery. The problem is that no one wants to hear it because no one wants to swallow the politically devastating harsh medicine that's necessary to cure the plague we've infected ourselves with. As usual, there are too many vested interests protecting the same old turf.
Throwing good taxpayer money after badly wasted taxpayer money will not fix anything. But throwing out overly leveraged, overly greedy, overly dependent banks and bankers is a good start...

Read the entire article:
U.S. Treasury Bond Bubble About to Pop - 28th Jan 09
By Shah Gilani Contributing Editor
Money Morning/The Money Map Report

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