# Paul Craig Roberts Warns U.S. Now Close To Total Collapse



## BillS (May 30, 2011)

http://kingworldnews.com/kingworldn...s_Warns_U.S._Now_Close_To_Total_Collapse.html

Today former US Treasury official, Dr. Paul Craig Roberts, warned King World News that the United States is now close to total collapse. Dr. Roberts also accused Goldman Sachs and the Fed of being totally corrupt as they desperately maneuver to try to prevent the collapse of the SWIFT payment system, and he also blasted Goldman Sachs for reiterating its call for $1,050 gold. Below is what Dr. Roberts had to say in this powerful interview.

Eric King: "Dr. Roberts, we've seen Goldman Sachs reiterate their call for $1,050 gold, which has facilitated the smash on gold today. This comes on the anniversary of last year's $200 two-day smash in gold. But Goldman is claiming gold will decline because the U.S. economy will accelerate in the second half of this year."

Dr. Roberts: "The American economy is not going to boom because real consumer incomes have been falling, not rising. If there is no income growth then there is no credit growth either. So the U.S. economy is definitely not going to accelerate....

"I think this is just all part of keeping pressure off the dollar. This quantitative easing has done nothing for the U.S. economy except hurt it because it's deprived everyone of interest income. This lack of interest income has caused a consumption of savings from the elderly. This is very detrimental for these people and detrimental for their heirs as well.

Also, the other day it came out that the massive amount of soybeans we ship to China have been refused. The corn we sent to China has also been refused because it was GMO tainted. So this is creating a hit to U.S. exports.

Second, there are no good paying jobs being offered in the United States -- they are just not there. The job statistics are always the same -- it's always low-paying minimum wage stuff. These are also part time jobs, so this is not an income that supports consumer demand. The bottom line is people are really struggling.

You also have to remember that Goldman Sachs is one of the bullion banks. They are totally corrupt, and they are in league with the Fed to keep pressure off the U.S. dollar. The problem for the Fed and Goldman Sachs is that these dollar pressures could be on the verge of exploding.

*The reason the dollar pressures may be on the verge of exploding is because the sanctions that we threatened the Russians with are forcing them to leave the dollar-based payment system. Meaning, they are going to start selling their energy in rubles, or for gold. They are also making barter deals with Iran.*

But given the size of the Russian energy industry, if they remove that from the petrodollar it will mean a huge drop in the demand for dollars. It may well be that the Fed has caught on, and if it can't get the American sanctions against Russia cancelled it will have to take even more offsetting actions in order to protect the dollar.

I've read the reports that say Russia has given us the 'finger' and is saying, 'We are not going to play with dollars anymore. We are simply leaving the dollar system.' If the Russians are able to do this, if China, India, and Brazil go along with it, then you will have removed a lot of the international payment system from dependancy on the dollar. This will also severely undermine the American SWIFT international payment system. So this could produce a run on the U.S. dollar.

I've told you many times, the Fed can print all the money it wants to buy bonds and keep interest rates low, but it cannot print money to buy dollars. And there is some limit as to how much it can prevail on its puppet states (in Europe) to supply money to buy dollars. At some point these puppet states will realize that the consequences for them may mean a very high domestic inflation.

*The West may not be in a position to prevent an explosion in the gold price if Russia and other countries drop out of the SWIFT system. The Russian energy transactions are a trillion dollars or more (each year)*. Well, that's equal to the amount of QE that was injected into the system annually. So the elimination of that demand for dollars in international transactions would offset a year of QE.

All of this means that I think the time for a reckoning for the U.S. dollar may finally be coming. So Goldman Sachs, the Fed, and the other bullion banks, are doing whatever they can to stave this off. But if there is a run on the dollar, the gold price will explode, particularly if there is not any gold to speak of in the West."


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## LincTex (Apr 1, 2011)

BillS said:


> "I've read the reports that say Russia has given us the 'finger' and is saying, 'We are not going to play with dollars anymore. We are simply leaving the dollar system.' If the Russians are able to do this, if China, India, and Brazil go along with it, then you will have removed a lot of the international payment system from dependency on the dollar. This will also severely undermine the American SWIFT international payment system. So this could produce a run on the U.S. dollar."


Maybe not a run at first, but it would sure sting


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## Viking (Mar 16, 2009)

In the 12 years that my wife and I have been studying economics we have come to the conclusion that a nation that prints fiat money, physically by presses or electronically, to the tune of trillions of dollars that have no intrinsic value such as gold, silver, steel, oil, machinery, timber, farm goods, ranch animals or whatever will fail.  I fully suspect it will be sooner than a lot of people think as there are just too many things adding up to this collapse, HR 2847 is to kick in fully July 1, 2014, this could be the "Straw that breaks the camels back." I've read a lot of articles mentioning the BRIC nations plus others working on alternative currencies over the US petro-dollars for doing commerce. Other nations are really getting nervous of having what could become useless US dollars on hand.


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## hiwall (Jun 15, 2012)

I have to admit that I am feeling the collapse of the Dollar (and then the whole US economy) is not as likely as I once thought. When I look at the facts (as many as I can find anyway) then it seems to point to a total collapse but I am beginning to feel it will never happen. The government will pull a rabbit out of its hat to keep the USA afloat maybe. They can always take 401's, IRA's, and savings accounts as a last ditch effort or maybe something else that someone smarter than I knows about.


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## Viking (Mar 16, 2009)

We may not totally loose the dollar, I've heard many economists that seem to know what they are talking about say as much, however, they also say in the next breath that the dollars we have will not buy much of anything, it'll be a 1920's Germany hyperinflation situation. $300 for a jar of strawberry jam as in "Soylent Green"


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## northstarprepper (Mar 19, 2013)

It seems like there is a new warning weekly, if not daily, about the dollar crashing. I have read the Legislation that takes effect July 1, and I cannot find any one thing that points to the average guy losing their savings as so many say. I have read the rider that makes it harder for foreign banks to hide money for wealthy Americans. Since I have no foreign bank accounts I am not affected.

What does concern me however is the frightening level of inflation that is starting to show up in everyday items. The government already excludes food and energy from their formula (the first things to show inflation in most instances), but I am seeing it in nearly all other consumer goods. Clothing, batteries, cleaning supplies, gardening supplies, and much more. The Fed said they would start raising rates if inflation appeared, but they are doing nothing. I fear we are starting another Jimmy Carter spiral down of stagnant growth with high inflation. For those of you that don't remember, we had inflation of 18%, wage and supposed price controls, and high unemployment. It took a President named Reagan to fix that mess and he only did it with massive government debt that we cannot tolerate more of.

I read an article just yesterday that said that our middle class is rapidly disappearing under Obama (and under the previous president as well). Fully 62% of Americans make less than $20.00/hr. That is just $40,000 a year. Corporations are conducting massive lay-offs and replacing those positions with part-time and temporary positions only. The CEO's receive double digit wage and bonus increases yearly when the only way they are increasing their company's bottom line is to lay off workers or in Wall St. speak "become more efficient." I live in the suburbs of a large metro area. The number of vacant storefronts is surprising. One of the dollar store chains is closing 300 stores. When the dollar stores struggle, our economy is in dire straits.

I have no idea if there will be a sudden and sharp collapse around some set date or a slow and steady decline such as we face now, but I urge you all to keep putting away what you can. Those rainy days may not be far away. I don't look at all of this as doom and gloom. I am more sad at what has been done to the greatest country ever invented by man and blessed by God. I see it now destroyed by selfishness, greed, and sin...just as Israel was long ago when it, too, turned away from God. We will do the best we can and take care of as many as we can. Perhaps that is why we were born for such a time as this.


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## Viking (Mar 16, 2009)

You may not see anything that would trigger the average guy loosing his savings in this HR 2847 but from reading the overall results from the IRS going after the foreign bank accounts what is being said is that those countries that had those accounts were doing multiple trillions of dollars of business with the USA and many are no longer doing so which would certainly effect the viability of US banks to insure that the average guys savings are safe. You have to remember that all banking systems, aside perhaps for credit unions that are generally independent, are fractional banking which means that if you want a lump sum withdrawal you may not get it the day you request it. And if you look at other countries that have much the same financial issues as we do, they could just as easily confiscate savings accounts, look what happened in Greece. Don't be too sure that it wouldn't happen here. Take into consideration how many fairly large banks have failed and how many are being bought up by other banks and have their names changed. The real estate debacle of 2008 caused many banks to fail and are doing so in just the past year. By the way, have you made a large withdrawal from your bank and have been asked "What are you using it for?", we have and I've heard others that have been asked the same thing. The truth is that it is none of their business, it's your money.


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## northstarprepper (Mar 19, 2013)

Yes you are right about that. I do have my money in a credit union, but even that is no assurance that I have instant access to it if the government seizes it as happened in Crete. The foreign banks dumping dollars is the big problem from what I am hearing. I watch commodity prices daily and have noticed oil slowly going up. I hear that is because Russia will no longer accept dollars as payment for their oil. Only ruples or however you spell it. 

From what I hear 2847 will cause more gradual trouble rather than an instant shock. But who knows. Maybe this really is why DHS bought all hat ammo.

As for that withdrawal question, I heard that is an actual law now. One of the "anti-terror" bills tacked that onto help the government track possible terrorist and drug transactions. Just another freedom we lost to "security."


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## BillS (May 30, 2011)

hiwall said:


> I have to admit that I am feeling the collapse of the Dollar (and then the whole US economy) is not as likely as I once thought. When I look at the facts (as many as I can find anyway) then it seems to point to a total collapse but I am beginning to feel it will never happen. The government will pull a rabbit out of its hat to keep the USA afloat maybe. They can always take 401's, IRA's, and savings accounts as a last ditch effort or maybe something else that someone smarter than I knows about.


I think it was Paul Craig Roberts who said that the government and the big banks can manipulate the value of pretty much everything except the dollar. You can prop up the real estate market by buying the worst of the toxic mortgages. You can prop up the stock market by lending money at artificially low interest rates. The banks can sell futures contracts in gold and silver. Then pay them off in cash when they can't produce the metals. I expect the dollar to suddenly lose value over night by at least 10% the first time. I think it will go like it is in Venezuela where there's been multiple devaluations and shortages of all kinds of basic necessities.

High inflation will be politically unpopular. Obama will blame the corporations. He might issue executive orders to prevent them from selling their products overseas instead of in America. Then they'll refuse to sell them in America at reduced prices and you'll still have shortages.

Manufacturing will get very difficult in America because so many parts are made elsewhere. Foreign corporations will get nervous about selling in dollars when the dollar might be devalued again between the time the contract is signed and payment is made.


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## musketjim (Dec 7, 2011)

I try to stay diversified, I do have some money as far as 401k and IRA's in the stock market, I also keep my banking with the local credit union. I continue to work for "The Man" to make a buck. I use the bulk of my dollars for prepping. I try to be prepared if it all burns down and I try to be prepared if nothing happens. I live my life and obsess over very little, family, God and physical fitness all of which build on my prepping. Have a beer and live a little, actually have a beer and live a lot.:beercheer:


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## partdeux (Aug 3, 2011)

hiwall said:


> I have to admit that I am feeling the collapse of the Dollar (and then the whole US economy) is not as likely as I once thought. When I look at the facts (as many as I can find anyway) then it seems to point to a total collapse but I am beginning to feel it will never happen. The government will pull a rabbit out of its hat to keep the USA afloat maybe. They can always take 401's, IRA's, and savings accounts as a last ditch effort or maybe something else that someone smarter than I knows about.


Read up on normalcy bias


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## hiwall (Jun 15, 2012)

partdeux said:


> Read up on normalcy bias


That is about the opposite of me!
Think of all the articles we have read in the past that predicted the imminent collapse of the USA. There have been hundreds. I actually agree with them with the exception that I now think it might not happen for years. Always remember anyone can make a prediction because it is only a simple guess. In no way am I saying we should not prepare for there are many possible disasters that could befall us. I am just losing faith in this particular one. I have heard someone cry wolf too many times.


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## Dakine (Sep 4, 2012)

hiwall said:


> That is about the opposite of me!
> Think of all the articles we have read in the past that predicted the imminent collapse of the USA. There have been hundreds. I actually agree with them with the exception that I now think it might not happen for years. Always remember anyone can make a prediction because it is only a simple guess. In no way am I saying we should not prepare for there are many possible disasters that could befall us. I am just losing faith in this particular one. I have heard someone cry wolf too many times.


OK cool!

but preparing for economic collapse helps me prep for EarthQuakes (EQ) and tornadoes! (we really did get a tornado alert a couple years back. it also covers all kinds of random BS!! if my city gets nuked because some other country thinks we suck, I cant do anything about that, but I'm probably good on everything else!


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## machinist (Jul 4, 2012)

Rome did not fall in a day, nor did many other empires of the past. Economic collapses take a long time and the bigger ones the longest. This die is cast, but nobody can time it perfectly except by dumb luck.

For my money, Paul Craig Roberts is one of the best, along with Marc Faber, Jim Rickards, and Jim Willie. Faber gives the very long term picture. Jim Rickards gives the details of the present day picture and what it can mean. Paul Craig Roberts explains what is happening in simple detail that anyone can grasp. Jim Willie gives us the blow-by-blow of the event as the crumbling takes place, and has the courage to make some predictions.

Those men make a great team, overall. It would behoove us to pay attention.

One of Jim Willie's latest messages indicates that he sees an 80% devaluation of the dollar coming, meaning that Wal Mart prices (imported goods) would rise in price by 5 to one. Yes that math is correct--today's prices at 100% + 400% increase = 500%. 
http://usawatchdog.com/whole-eastern-world-rebelling-against-the-dollar-jim-willie/

We will see how close he gets to the truth as time goes by. Meanwhile, there is no better time to stock up. To quote Greg Hunter, "everything is on sale now".


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## rugster (Mar 2, 2014)

I think we all agree the fundamentals don't look good for this country who knows when SHTF ? 
I've been amused that over the last 15 years how many have predicted a collapse in the next...2, 6 12 months ?

I believe it will happen but likely not as predictable as we would like


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## Foreverautumn (Oct 25, 2010)

northstarprepper said:


> As for that withdrawal question, I heard that is an actual law now. One of the "anti-terror" bills tacked that onto help the government track possible terrorist and drug transactions. Just another freedom we lost to "security."


I've gotta wonder, what do they think a drug lord or terrorist is going to say when they're withdrawing? "Yeah, I'm gonna make a bomb with this!" or "I'm gonna use this to expand my meth lab"?


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## Viking (Mar 16, 2009)

machinist said:


> Rome did not fall in a day, nor did many other empires of the past. Economic collapses take a long time and the bigger ones the longest. This die is cast, but nobody can time it perfectly except by dumb luck.
> 
> For my money, Paul Craig Roberts is one of the best, along with Marc Faber, Jim Rickards, and Jim Willie. Faber gives the very long term picture. Jim Rickards gives the details of the present day picture and what it can mean. Paul Craig Roberts explains what is happening in simple detail that anyone can grasp. Jim Willie gives us the blow-by-blow of the event as the crumbling takes place, and has the courage to make some predictions.
> 
> ...


Jim Willie is one of the contributors for Kitco that we've read a lot of articles from in their Commentaries section, he's definitely one of many that has their finger on the pulse of what's really going on in the world. And then there is Paul Krugman who is the antithesis of economic truth, he's right up there with Obama in getting a Nobel Prize as we scratch our heads and say WTF, the world must be really screwed up when these guys get that prize.


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## machinist (Jul 4, 2012)

Jim Rickards is the author of a book "Currency Wars", and now a new book called The Death of Money". In an interview with Chris Martenson (author of the Crash Course), Rickards is prediting that the present monetary system will last maybe 5 years at the most, and could fail any time if the wrong things happen.

QUOTE from that interview:

*"Chris Martenson: As you look forward the next three years what do you see coming? Are you predicting or seeing that this game changes to a new phase, The Death of Money? Is that coming in the next three year window? Or do you use this playing out over a longer timeframe?

Jim Rickards: No, I think three years is about right. I mean, it's not necessarily going to be tomorrow. It could be tomorrow, by the way, the system is unstable enough. But it doesn't mean we are going to get that catalyst tomorrow. But this is not a ten year forecast. I mean, I do not think we are going to make it ten years. I think three to five years is about the right timeframe, maybe shorter.

But the reason for that, again, it is scientifically based in terms of the scale of the system. And by the way, go back and look at these crises. They come particularly fast. Memories are very short. I think we are all fighting with what I call the 2-second attention span.

On October 19, 1987 the stock market lost 22% of its value in one day. Today, that would be a 3,200 point drop in one day. In 1994 we had the Mexican Peso crisis. In 1998, the Long Term Capital Management crisis. And I was involved in that, by the way. I was the general council of Long Term Capital Management. I negotiated that bailout and I know how close the world came to complete economic collapse. In other words, every stock and bond market in the world would have been closed on September 29, 1998 if we had not finished that bailout the day before. That is how close we came. Just because it did not happen, people kind of forgot about it and think it was a small event. But trust me, I was there. That was a very near catastrophe. In 2000 we had the dot-com collapse, NASDAQ dropped eighty percent. 2007 the housing market collapsed. 2008 the Lehman Brothers panic.

So these things keep happening; but here is the problem, Chris: the Fed has printed almost four trillion dollars to put out the fire from 2008. What is going to happen if we have a liquidity crisis next month or next year? They are at the limit of their balance sheet. They are already insolvent on a mark-to-market basis. And again, that is not guesswork. I actually was told that by a member of the Federal Open Market Committee. They are leveraged 80-to-1. They cannot do more. They cannot print another four or eight trillion. They are at the limit of confidence. They are not at the legal limit, by the way. Legally they can do it but they are at the limit of what people will really trust, or before the Congress would intervene.

So the next crisis is going to be bigger than the Fed. It is like they build a five foot sea wall and here comes a forty foot tsunami. There is only one clean balance sheet left in the world and that is the IMF. So the only way you are only going to reliquify the world in the next liquidity crisis is by the IMF printing their world money, these Special Drawing Rights or SDRs, and that is going to be the end of the dollar as a global reserve currency. Because if the IMF is going to print SDRs to reliquify the world they are going to need permission from China and Russia and other members of the IMF. The US has a big voice at the IMF but we do not control it. And so that really is going to be the end of the dollar right there. We may still have dollars -- in fact we will -- but it will be a local currency like the Mexican peso or Turkish lira. It will just be walking around money. But it will not be used for the important things in the international monetary system. This you can actually see coming. You can see these developments coming."*
Read it all here: 
http://www.peakprosperity.com/podca...email_newsletter&utm_content=node_title_85207

For those with doubts, I recommend reading both of his books.
- - - - - - - - -

Another noted economic analyst is Jim Willie, quoted here in a recent interview.

*"The US Federal Reserve has been printing money since 2011 to cover USGovt debt securities in a frenetic manner. They have lost control. They call it stimulus, when it is actually the opposite. It does assist the speculators with nearly zero cost money to borrow, but one must be a club member to win loan grants. The Quantitative Easing programs are deceptive. When the program was initially announced, the ******* claimed it would be part of an endless sequence. With QE1 and QE2 and Operation Twist and QE3, following the failed trial balloon called Taper Talk, it is quite clear to anyone with an active brain stem and absent rose colored glasses that the USFed is caught in a trap called QE to Infinity. It is not stimulative. Instead, the uncontrollable bond monetization causes capital destruction. It causes economic degradation. It causes lost jobs and vanished income. It is a gigantic wet blanket to smother and destroy the USEconomy slowly, amidst unending propaganda. QE is the device that will result in Systemic Failure, which is already flashing signals of its arrival."*

http://www.silverdoctors.com/jim-wi...ystemic-failure-flashing-warning-signals-now/


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## helicopter5472 (Feb 25, 2013)

Foreverautumn said:


> I've gotta wonder, what do they think a drug lord or terrorist is going to say when they're withdrawing? "Yeah, I'm gonna make a bomb with this!" or "I'm gonna use this to expand my meth lab"?


LOL, Have you ever watched Worlds dumbest criminals, Could happen, just sayin :laugh:


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## BlueShoe (Aug 7, 2010)

People, the US Dollar collapsed in 2007. It has never recovered to support itself as shown by the QEs buying trillions in bad debt for years now. The 'collapse' could happen as soon as they turn off the printing press. Funny how we've been lulled back to sleep by them inflating the bubble we're operating under.


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## Viking (Mar 16, 2009)

BlueShoe said:


> People, the US Dollar collapsed in 2007. It has never recovered to support itself as shown by the QEs buying trillions in bad debt for years now. The 'collapse' could happen as soon as they turn off the printing press. Funny how we've been lulled back to sleep by them inflating the bubble we're operating under.


The truth is the collapse of the dollar was set in motion before the Federal Reserve was formed in 1913, Andrew Jackson was reviled for trying to stop a centralized banking system that Thomas Jefferson warned about. The FED just makes things look like we have a monetary system, but the reality is they are just a printing press that throws money at problems to look like they are solving problems. What happened starting in 2007 was the result of removal of the Glass-Steagall Act that separated the commercial and investment banking, after that everything became a free for all with toxic loans and derivatives that some economists such as Paul Craig Roberts claim may be $1.5 quadrillion. The economy won't show the full collapse until we get to the Weimar Republic situation of hyperinflation. The normalcy bias of a lot of people is that just because their money still buys things there really isn't a problem. The thing is that we are fast approaching the "Soylent Green" scenario, where we can't afford to buy a jar of strawberry jam. Just don't have the attitude of "Putting off today what you can do tomorrow." My wife and I now have the attitude of do it today because tomorrow we might not be able to afford to do it.


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## RevWC (Mar 28, 2011)

17 Facts To Show To Anyone That Believes That The U.S. Economy Is Just Fine
By Michael Snyder, on April 29th, 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...

#1 The homeownership rate in the United States has dropped to the lowest level in 19 years.

#2 Consumer spending for durable goods has dropped by 3.23 percent since November. This is a clear sign that an economic slowdown is ahead.

#3 Major retailers are closing stores at the fastest pace that we have seen since the collapse of Lehman Brothers.

#4 According to the Bureau of Labor Statistics, 20 percent of all families in the United States do not have a single member that is employed. That means that one out of every five families in the entire country is completely unemployed.

#5 There are 1.3 million fewer jobs in the U.S. economy than when the last recession began in December 2007. Meanwhile, our population has continued to grow steadily since that time.

#6 According to a new report from the National Employment Law Project, the quality of the jobs that have been "created" since the end of the last recession does not match the quality of the jobs lost during the last recession...

Lower-wage industries constituted 22 percent of recession losses, but 44 percent of recovery growth.
Mid-wage industries constituted 37 percent of recession losses, but only 26 percent of recovery growth.
Higher-wage industries constituted 41 percent of recession losses, and 30 percent of recovery growth.

#7 After adjusting for inflation, men who work full-time in America today make less money than men who worked full-time in America 40 years ago.

#8 It is hard to believe, but 62 percent of all Americans make $20 or less an hour at this point.

#9 Nine of the top ten occupations in the U.S. pay an average wage of less than $35,000 a year.

#10 The middle class in Canada now makes more money than the middle class in the United States does.

#11 According to one recent study, 40 percent of all Americans could not come up with $2000 right now even if there was a major emergency.

#12 Less than one out of every four Americans has enough money put away to cover six months of expenses if there was a job loss or major emergency.

#13 An astounding 56 percent of all Americans have subprime credit in 2014.

#14 As I wrote about the other day, there are now 49 million Americans that are dealing with food insecurity.

#15 Ten years ago, the number of women in the U.S. that had jobs outnumbered the number of women in the U.S. on food stamps by more than a 2 to 1 margin. But now the number of women in the U.S. on food stamps actually exceeds the number of women that have jobs.

#16 69 percent of the federal budget is spent either on entitlements or on welfare programs.

#17 The number of Americans receiving benefits from the federal government each month exceeds the number of full-time workers in the private sector by more than 60 million.

Taken individually, those numbers are quite remarkable.

Taken collectively, they are absolutely breathtaking.

Yes, things have been improving for the wealthy for the last several years. The stock market has soared to new record highs and real estate prices in the Hamptons have skyrocketed to unprecedented heights.

But that is not the real economy. In the real economy, the middle class is being squeezed out of existence. The quality of our jobs is declining and prices just keep rising. This reality was reflected quite well in a comment that one of my readers left on one of my recent articles...

It is getting worse each passing month. The food bank I help out, has barely squeaked by the last 3 months. Donors are having to pull back, to take care of their own families. Wages down, prices up, simple math tells you we can not hold out much longer. Things are going up so fast, you have to adopt a new way of thinking. Example I just had to put new tires on my truck. Normally I would have tried to get by to next winter. But with the way prices are moving, I decide to get them while I could still afford them. It is the same way with food. I see nothing that will stop the upward trend for quite a while. So if you have a little money, and the space, buy it while you can afford it. And never forget, there will be some people worse off than you. Help them if you can.

And the false stock bubble that the wealthy are enjoying right now will not last that much longer. It is an artificial bubble that has been pumped up by unprecedented money printing by the Federal Reserve, and like all bubbles that the Fed creates, it will eventually burst.

None of the long-term trends that are systematically destroying our economy have been addressed, and none of our major economic problems have been fixed. In fact, as I showed in this recent article, we are actually in far worse shape than we were just prior to the last major financial crisis.

Let us hope that this current bubble of false stability lasts for as long as possible.

That is what I am hoping for.

But let us not be deceived into thinking that it is permanent.

It will soon burst, and then the real pain will begin.

http://theeconomiccollapseblog.com/...at-believes-that-the-u-s-economy-is-just-fine


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## BlueShoe (Aug 7, 2010)

Viking said:


> The truth is the collapse of the dollar was set in motion before the Federal Reserve was formed in 1913, Andrew Jackson was reviled for trying to stop a centralized banking system that Thomas Jefferson warned about. The FED just makes things look like we have a monetary system, but the reality is they are just a printing press that throws money at problems to look like they are solving problems. What happened starting in 2007 was the result of removal of the Glass-Steagall Act that separated the commercial and investment banking, after that everything became a free for all with toxic loans and derivatives that some economists such as Paul Craig Roberts claim may be $1.5 quadrillion. The economy won't show the full collapse until we get to the Weimar Republic situation of hyperinflation. The normalcy bias of a lot of people is that just because their money still buys things there really isn't a problem. The thing is that we are fast approaching the "Soylent Green" scenario, where we can't afford to buy a jar of strawberry jam. Just don't have the attitude of "Putting off today what you can do tomorrow." My wife and I now have the attitude of do it today because tomorrow we might not be able to afford to do it.


Yeah, I know. We have a currency, not a "money". Glass-Steagall was written to prevent another episode of TOO BIG TO FAIL banks causing collapse. The repeal of it was written by 3 Republicans and offered in Graham-Leach-Bliley Act, and passed by both parties to be signed by Clinton...which opened those gates to a much earlier failure of the system than the unavoidable failure that was to come.

The message is, the US Dollar already failed. We're just on borrowed time. We (we, as a people) are somewhat complacent because of the relative comfort, but we know there is more damage to come.


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## bkt (Oct 10, 2008)

History shows fiat currencies never last indefinitely and the dollar will be no exception. The agreement Kissinger established with OPEC - to establish the dollar as the reserve currency - is falling apart as more countries elect to do business in other currencies. Without global demand for the dollar, the dollar can't last.

No doubt, there are a few more tricks up the sleeves of those at the Fed and other central banks. But that they are doing remarkable and alarming things right now, today, is proof that all is not well at all. It seems pretty clear that collapse is coming. How soon it comes and how quickly it happens can't be accurately predicted.

What can we do? Pay off debt, learn as many skills as possible to become as self-reliant and self-sufficient as possible, and have a store of wealth in something not based in any currency.


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