Economic Recovery?

Economic Recovery?

If this is supposed to be an “economic recovery” it sure is pathetic.  In fact, as you will read below, the numbers tell us that this is the worst economic recovery that the American economy has ever seen.  If what we had experienced was a “normal” recession and a “normal” recovery, then jobs, economic growth and home values would have come roaring back by now.  But they haven’t.  The Federal Reserve injected unprecedented amounts of new money into the system and the federal government went into unprecedented amounts of new debt, but all of that effort has not accomplished much.  It did buy us a little bit of time and a period of relative economic stability, but now there are all kinds of signs that we are about to go into another recession (or something even worse).  So is it really honest for Ben Bernanke and Barack Obama to be using the term “economic recovery” to describe what is happening?

The truth is that what is really taking place is that the long-term economic decline of the United States is beginning to accelerate.

But most Americans simply don’t understand what is going on.

The mainstream media teaches us to blame our politicians for the economy.  One recent survey found that 44 percent of the American people believe that the U.S. economy is “worse than when Obama was inaugurated”.

Yes, Barack Obama is a horrible president.  But the economic downfall of this nation is not all his fault.  George W. Bush was a horrible president too.  So was Bill Clinton.  Congress has been corrupt and incompetent for decades.

Of course the institution that is most responsible for our economic problems is the Federal Reserve.  Thankfully, more Americans than ever are starting to realize this.

But if you listen to Ben Bernanke and Barack Obama, you would think that a great “economic recovery” has begun.  They would have us believe that they know exactly what our problems are and that they know exactly how to get us out of this mess.

Unfortunately, what we have experienced is not much of an “economic recovery” at all.  According to the Wall Street Journal, this is the worst “recovery” from a recession that the U.S. economy has ever seen….

On economic growth, real GDP has risen 0.8% over the 13 quarters since the recession began, compared to an average increase of 9.9% in past recoveries. From the beginning of the recession to April 2011, real personal income has grown just .9% compared to 9.4% for the same period in previous post 1960 recessions.

So what is really going on?

Sadly, what we are experiencing right now is a brief period of stability in the middle of a downward spiral toward economic oblivion.

The CEO of Pimco, Mohamed El-Erian, says that it should now be obvious to everyone that all of the efforts of the U.S. government and the Federal Reserve to stimulate the economy simply have not been enough to solve the structural economic challenges that we are facing….

“It’s clear that the stimulus-induced recovery hasn’t overcome the structural challenges to large-scale job creation.”

The U.S. economy is not producing enough jobs.  Today, there are 25 million Americans that are either unemployed or underemployed.

But the inability to create jobs is not a new phenomenon for the U.S. economy.  The truth is that between 2000 and 2007, the U.S. economy had its poorest stretch of job creation since the Great Depression.

However, since 2007 the employment situation in this country has gotten a lot worse.  Take a minute and watch the stunning video posted below.  It shows how rampant unemployment swept across this country between 2007 and 2011….

Our politicians promised us that globalization would be great for the U.S. economy.

Well, it was great for the big corporations to be able to pay slave labor wages to workers on the other side of the globe, but things have not worked out so well for workers in this country.

Millions of our jobs have been lost.  Millions more jobs are being lost.  Yet our politicians do nothing to stop the bleeding.

Things have gotten so bad that even the top of the food chain is shipping jobs overseas.

Just consider this recent headline which appeared in Business Insider: “Goldman Sachs Is Firing Employees In The US So It Can Hire 1,000 In Singapore

If even jobs at Goldman Sachs are being sent out of the country, are any of our jobs safe?

Many Americans would love to start a business instead of having to work for someone else, but the economic environment has become incredibly toxic for small businesses in the United States.

The rate of new business creation in the United States has been declining steadily since the 1980s.  Our politicians are literally choking the entrepreneurial spirit to death in this country.

Today, more Americans than ever are dependent on the government.  In fact, it has gotten to the point where the U.S. economy itself is highly dependent on the government.

So what is going to happen when the government is not handing out so many goodies?

The era of rampant spending in Washington D.C. seems to be coming to an end, at least for now.  The U.S. national debt has become so outrageous that many members of Congress are finally determined to start making some cuts.

While it is true that cutting government spending is long overdue, most Americans don’t realize that cutting government spending will also mean that “the economic sugar high” that we have been experiencing will start to wear off.

If we try to live within our means, that is going to cause a lot of economic pain, and the American people are not too good about making sacrifices these days.

Look, whoever is elected in 2012 is going to be in for a rough ride.  Some very difficult economic times are ahead, and whoever is elected in 2012 is going to get blamed.  By 2016, the president is probably going to be the most hated person in America.

But the truth is that these economic problems have been building for decades.

We didn’t get here by accident, and our economic problems are not going to be solved overnight.

In fact, many financial analysts are warning that they are about to get a lot worse.

For example, David Rosenberg of Gluskin Sheff says that there is a 99 percent chance that the U.S. will fall into another recession by the end of 2012.

As the economy continues to crumble, U.S. cities will become increasingly hostile places in which to live.

According to a recent Rasmussen Reports national telephone survey, 41 percent of Americans say that crime has increased where they live over the past year and only 6 percent of Americans say that crime has decreased where they live over the past year.

But just wait until the economy really collapses – that is when all hell will break loose.

In a recent article entitled “Is The Economy Improving?“, I quoted statistic after statistic that showed that the U.S. economy is actually continuing to decline.

The American people are starting to lose patience.  In fact, people all over the country are starting to get more than a little crazy.  For example, there is a now a national “epidemic” of people robbing pharmacies in order to get a hold of painkillers.

Pharmacists all over the country are being robbed at gunpoint.  Some prescription painkillers will reportedly sell for as much as 80 dollars a pill on the street.  As a recent article in the Washington Post noted, things are getting really dangerous out there for pharmacists….

“It’s an epidemic,” said Michael Fox, a pharmacist on New York’s Staten Island who has been stuck up twice in the last year. “These people are depraved. They’ll kill you.”

Armed robberies at pharmacies rose 81 percent between 2006 and 2010, from 380 to 686, the U.S. Drug Enforcement Administration says. The number of pills stolen went from 706,000 to 1.3 million. Thieves are overwhelmingly taking oxycodone painkillers like OxyContin or Roxicodone, or hydrocodone-based painkillers like Vicodin and Norco. Both narcotics are highly addictive.

But this is what our country is turning into.

We are a nation of addicts.

Our national addiction to debt and our national addiction to greed have brought us to the brink of economic disaster.

If you are waiting for an “economic recovery”, you should stop waiting.

This is about as good as things are going to get.

From here on out, things are just going to keep going downhill.

Most Americans are going to be absolutely blindsided by the economic collapse that is coming.

But that doesn’t have to be you.

You still have some time to get prepared.

Five Primary Tribes

Five Primary Tribes
Hellesponte & Kerodin

June 26, 2011

Census 2010 race/ethnic %’s
for the United States

Race 2000 2010
White (NH)
Black (NH)
Asian (HN)
All Other (NH)
Total Minority

No matter how good you are, how well-prepared, there comes a point in any conflict in which sheer numbers will overwhelm a smaller force.  In Aiki we train against as many as eleven enemies at once.  But the reality is that if 5 grown men bum-rush you, you are usually toast.  If you have one rifle and 10 mags standing alone against 1,000 bum-rushers, you will lose before you run empty.

The table above is valuable, particularly if you believe in a SHTF scenario that people under duress will fall-back along racial and ethnic lines into Tribes.  I think History is decisive on the matter, and we know what to expect.

If you have a bowl half-filled with water and you begin adding oil at a faster rate than water, one day, oil will be the most prevalent substance in the bowl.  Even if you add varieties of oil.  If you add motor oil, vegetable oil and sunflower oil, the water still loses.

What you end up with is a water minority and one day the oils will fight for dominance.

Welcome to America, 2011.

The Hispanic population has surged far beyond the Black population in the last decade alone.  Many of us see the evidence in our communities.  I now live in the same demographic in which I went to elementary school & junior high school in the late 70′s & early 80′s.  Today our “Old Town” is lined with businesses that have all chosen to post all of their primary signage in Spanish.  This was not even conceivable when I was a kid going to school down the street.

Look at a map of the country.  Most inner-cities are dominated by Black residents.  This changes when you start looking at Texas, New Mexico, Arizona, California, Nevada.  Those states are nearly owned today by Hispanic residents.

Consider a SHTF disruption.  I think the average Patriot can understand that with a gentle push from the Armies of the Cartels and perhaps even a supporting role for official Mexican military, our entire southwest becomes lost.  Keeping it, and subsequently beating back any unleashed wave of new immigrants, especially if they are armed, becomes a task that would require significant US Military commitment.

Consider the states of the southwest as foreign territory in a Ruckus.  White Flight from the southwest will be the only way to survive.  Those who stay will discover just how much they are loathed by their Hispanic neighbors, and will learn the value of 2A as they succumb to the mobs wielding machetes.

South of the Border Armies have a significant Fifth Column already well entrenched in major pockets across the country.  Believe me, the Hispanic folks living in my AO do not consider themselves to be Americans.  They have no desire to be Americans.  In an Us versus Them world, they are Them.  I will be seen as a Target of Opportunity…and I think if we were to map the 5 neighborhoods surrounding mine, Hispanics may just be the majority…

So the Southwest will fall with little more than a gentle push.

And every major inner city not under Hispanic control is already under Black control.  Every major inner city, in the early stages of a genuine Ruckus, from Atlanta to New York to Chicago to St. Louis and Kansas City and beyond, will immediately become a No-Go zone without real armor.

A quick study of the blackouts in American history will reveal that the time limit is about 72 hours…after the 72 hour mark has been reached, the riots begin.  And they will consume what is on their shelves, then they will begin Ops into the suburbs…from every major metro in America.  They want stuff and they need stuff.

What is LEO’s plan?  What is FedGov’s plan?

These are variables that are hard to pin down.

So if we are to break into major Tribes they will be: Black, Hispanic, White, LEO, and the Master Class.  Asians may coagulate, but their numbers in America are low and they are spread widely.  Religious Tribes?  Muslims still make up a small number in America, even if you add the N.O.I.  Jews in America will never be a significant armed force.

I have already bet my life that the bonds of skin color will bind more tightly than the bonds of Christianity.  Black Christians will line up shoulder to shoulder with Black Muslims.  Hispanics will side with those who look like themselves, regardless of religion.

There will be many, many subsets, forced by geography but driven by common motivations.  Only after the main enemy is done will subsets of Blacks & Hispanics fuss among themselves.

This is where the true value of Black & Hispanic Tribes exists for Constitutionalists.

The common enemy of Hispanics and Blacks will be represented in the uniforms of LEO.  LEO, of course, is nothing more than the tool of the Master Class, as much a threat to Constitutionalists as every other Tribe.

Anything that stresses LEO and erodes his capability is an advantage for Constitutionalists.

The southwest and inner cities will stress LEO, and will probably break LEO’s back.

Good for us.

Are you in a danger-zone for being surrounded or over-run by other Tribes?

Remember: White, Black, Hispanic, LEO & Those who would be Masters.  Five primary Tribal threats.

Foreign intervention?  Possible, but not without widespread Treason of the highest order and a serious crippling of CONUS.

One more: All of those Whites who have not prepped, have no means of feeding or medicating their own without taking it from you.  They are a threat to you.

Patriots are a very small group, indeed.


The benefits of free trade

The benefits of free trade

Do let’s hear more about how wonderful free trade is and what an intrinsic benefit it must be to everyone:

Last year, the U.S. Navy bought 59,000 microchips for use in everything from missiles to transponders and all of them turned out to be counterfeits from China. Wired reports the chips weren’t only low-quality fakes, they had been made with a “back-door” and could have been remotely shut down at any time. If left undiscovered the result could have rendered useless U.S. missiles and killed the signal from aircraft that tells everyone whether it’s friend or foe.

Apparently foreign chip makers are often better at making cheap microchips and U.S. defense contractors are loathe to pass up the better deal.

The important lesson here is that economics are not and cannot be the sole factor taken into consideration when one is contemplating the pros and cons of free trade. The fact that there is no blanket economic justification for free trade is an entirely separate matter.

For La Raza todo

For La Raza todo

Flash Mobs may be the catalyst needed to awaken a few folks to common sense.


Hellesponte & Kerodin

Demographics and Tribe don’t lie.

Population growth rates for the United States: 2000-2010:

White (NH) 1.2 %
Black (NH) 11.0 %
Asian (HN) 42.9 %
All Other (NH) 24.1 %
Hispanic 43.0 %
Total Minority 28.8 %

(NH) – data are for single race, non-Hispanic.
Minority = all groups except white, non-Hispanic.

For La Raza todo. Fuera de La Raza nada. – For The Race everything. Outside The Race, nothing.

Don’t think for a moment that they will be rooting for the home team.

La Voz de Aztlan
National Council of La Raza
Black Panther Party

There are several other “minority” organizations. Many of which are taxpayer subsidized.

I don’t speak for anyone other than myself. But when you have millions of “minorities” clenching their fists and yelling (insert race here) Power, you better know that those clenched fists are directed at no one but the white people.

I knew a American man several years ago who was of Hispanic (Mexican) decent. He was in a bar with a few of his white friends. Over in the corner, was a group of … Mexicans. One of those Mexicans yelled out to him, “Hey man, why don’t come over here and start acting like your race?!” He walked over to the table of Mexicans and said, “My grandfather came to America legally. My father was born here. I was born here. My grandfather left everything behind him to become an American. My father is an American. I am an American. That is my race. If you want to be a race of Mexicans, then go back to Mexico. I have no room for your race.” By this time, all his white friends were standing behind him.

“Hey man, we don’t want no trouble.” And they slowly slinked out of the bar.

Personally, for myself … I have no room for your race. If you are here, you are an American, or you are not. If you are not … please go back to that shit-hole that you came from. Because you are ****ing up my country.

And while I am at it … for you white multiculturalists … please follow and try your multiculturalism in their country. Hell, go native for all I care.

And uh … what’s up with that 1.2%? Viagra need?


Kill whitey?

If it looks like trouble, it probably is. The gang is not there to debate the effects of american corporate expansion on the development of the urban neighborhoods with you.

The Flash Mob Attack – How To Defend?

Don’t wake up in the middle of your beating and think, “I better be brutal!” The time to be brutal is … right now.

Yeah. It happened to me once. And yeah, being brutal worked for me. Ya know, eyes, throat, pulling on the ear with a vengeance, biting, etc. But by the time the “brutal” thunk up in me, I already looked like a train wreck.

Don’t make that mistake.

And let me give you some more advice. When that punk is asking you for money while reaching into his jacket … Brutal. Now. Or when you see the guy pulling out a pocket knife from his coat pocket … Brutal. Now. There is no time to make decisions. The time is now. And brutally.

This all happened in San Francisco Several years ago.. My Sifu was really pissed on that first little gem.

In my hometown, I worked as a bar-back at one of the now closed watering holes. A customer was touching and being rude to one of the waitresses. We asked him to leave. He reached into his jacket pocket and you can see the hammer coming out, it is a gun. The time to be brutal is now. Not when the gun is pointing at you.

When you are accosted at the entrance of the store and a stranger suddenly starts making conversation with you, be aware of your surroundings … he probably has a buddy close by. Leave if you can. Make an excuse. If that doesn’t shake him off, don’t stay stationary while jabbering. Move while talking and be deliberately animated with your hands. They will size you up.

Be aware of your surroundings. And no. They were not all black.

Close your eyes and imagine that you’re with someone who you really love and care about more than anything. It can be your children, your spouse, significant other, family member (sibling, parent) or whomever else that holds the most importance in your life. Imagine that you’re walking down the street, without a care in the world, just enjoying the time you have with your loved one. Out of nowhere appears an attacker, who is ready to rob you and most likely hurt you and your loved one. Here you are, the only thing that stands between the thug and your loved one, the only thing that can protect your loved one. Failure is not an option for you here. You don’t have time to plan or strategize or even think! You simply explode and do whatever it takes to protect your loved one. You pound away until the threat is out of commission. And then you get the hell out of there!

Close your eyes and imagine what would happen if you didn’t protect your loved one. What would happen if you didn’t do everything in your power to keep this person from harm? Can you imagine it? With all the intensity and all the emotion?

Mentally practice that. Learn to turn it on and off. Just don’t stay there.


The State Of The Economy

The State Of The Economy

The Economic Collapse

Are You Prepared For The Coming Economic Collapse And The Next Great Depression?

The U.S. economy is like a rubber band that is being pulled in several different directions at the same time.  Everyone knows that at some point it is going to snap, but nobody is quite sure exactly when it is going to happen.  Right now, the state of the economy is not good, and it is going to get a whole lot worse.  Sadly, most Americans don’t even understand the economic fundamentals well enough to be able to ask the right questions to our politicians.  Today, the United States consumes far more wealth than it produces every single month.  That means we are continually getting poorer.  U.S. debt is also rising at a far greater rate than U.S. GDP is.  On an individual level, if your assets were going down every single month and if you were going into more debt every single single month it would be easy to understand what was happening.  However, most Americans can’t really seem to grasp what is taking place on a national level.  Our politicians and the mainstream media just keep telling them that everything is going to be okay and they just keep believing it.

These days our leaders are resorting to increasingly desperate measures in order to help revive the economy.  On Thursday, Barack Obama decided to release 30 million barrels of oil from the U.S. strategic oil reserve.

Yes, that will drive down oil prices for a few days, but what is going to happen someday if we actually need to use that strategic oil reserve?

But in many ways you can’t blame Obama for trying.  He desperately wants to get reelected and he knows that his campaign will be highly dependent on the state of the economy.  Look for Obama to pull out all the stops as we get closer to the fall of 2012.

Sadly, the truth is that it almost does not matter what the Democrats or the Republicans do at this point.  The long-term trends are so powerful now that it would take a miracle to reverse them. We are facing an “economic tsunami” that is just going to keep on destroying middle class America.

If you went to a store today, and there were two somewhat similar products sitting on the shelf and one cost ten times more than the other one, which one would you buy?

Well, that is the situation facing American workers today.  They have been pushed into one giant globalized labor pool, but big corporations are allowed to pay workers on the other side of the globe slave labor wages.  It costs ten times more (at least) to hire a blue collar American worker than it does to hire a blue collar worker in most areas of Asia.

As a result of the globalization of labor, we have seen a mass exodus of jobs out of the United States, and wages for many of the jobs that remain have been significantly depressed.

There simply are not nearly enough jobs for all Americans at this point.

Recent college grads are finding this out.  A new study that was conducted by Rutgers University discovered that over 30 percent of all those that graduated from college between 2006 and 2010 were not able to get a job within six months of graduation.

But unemployment is only part of the story.  There are millions upon millions of Americans that are “underemployed” today.

There are hordes of highly educated, hard working Americans that are working temporary or part-time jobs at close to minimum wage because that is all they can get.

With good jobs being so scarce, American families are finding it more difficult than ever to make ends meet.

One recent survey found that 9 out of 10 U.S. workers do not expect their wages to keep up with the rising cost of basics such as food and gasoline over the next year.

I talked about the rising cost of food in my recent article entitled “Why Are Food Prices Rising So Fast?”  Today, one out of every seven Americans is already on food stamps, and if the cost of living keeps rising this quickly we are going to see millions more of our fellow citizens clamoring for government assistance.

The decline of the American consumer is having other effects as well.

For example, pre-orders for Christmas toys from China are way down.

It looks like this holiday season is not going to be as “merry” as usual.

It would be nice if we could say that the economy is improving, but that simply is not the case.

American households are in a far different place than they were prior to the recent recession.

For example, did you know that home values in the United States have plummeted $6.6 trillion since the peak back in 2007?

U.S. homeowners have taken the brunt of that decline.  According to the Federal Reserve, average home equity has fallen from 61 percent in 2001 to 38 percent in the first quarter of 2011.

That is a colossal shift.

If U.S. homeowners only own 38 percent of their homes, then who owns the rest?

The banks do.

Doesn’t that just make you feel all warm and fuzzy inside?

Health care is another area where American families are getting squeezed.

Today, the United States spends more on health care per person than any other country in the world.

Sadly, we are also one of the sickest populations on the planet.

What is up with that?

Once upon a time the United States had a middle class that was the envy of the entire globe.

Now it is being ripped to shreds at every turn.

Today, approximately half of all Americans say that they could not come up with $2,000 within 30 days without selling away some possessions.

The vast majority of us are basically flat broke and surviving from month to month.

Meanwhile, our vaunted financial system just may be on the verge of another meltdown.

There has been all sorts of volatility in the marketplace recently and there are all kinds of signs that Wall Street is about to go into panic mode.

For example, Moody’s recently warned that it may downgrade the debt ratings of Bank of America, Citigroup and Wells Fargo.

Barclays Capital, Goldman Sachs, Bank of America, JPMorgan Chase and Morgan Stanley are all either already laying workers off or are rumored to be considering it.

Frank Davis, director of sales and trading with LEK Securities, says that there is a lot of pessimism on Wall Street right now….

“There’s a lot of emotion in this market at the moment, and the conversations among traders are nearly all leaning toward the bear side”

As the financial system spins out of control, the Federal Reserve is increasing the number of workers that it is “embedding” at the big Wall Street banks.

I guess the Fed wants to keep a closer eye on things as they come crashing down.

Sadly, so much of this would be much easier to fix if our nation was not drowning in debt.

Since Barack Obama was elected, the national debt has increased by nearly 4 trillion dollars. If you and I went out today and started repaying that 4 trillion dollars at a rate of one dollar per second, it would take over 120,000 years to do it.

Most Americans have a hard time comprehending these kinds of numbers. Janet Tavakoli tried to put our debt situation into perspective in her latest column….

David Walker, the former U.S. comptroller general, says it’s even worse than that. When he takes into account future obligations for Medicare, Social Security, Federal debt, Military retirement, Civil servant retirement, and more, we owe $546,663 per household. That doesn’t even include your local debt — it may not be as bad as if you lived in Illinois, but it’s substantial nonetheless — and personal debt including mortgages and consumer debt that average more than $120,000 per household.

But you don’t have to toss wild numbers around to get an idea of how much trouble we are in.

As I have written about recently, there is increasing evidence all around us that the collapse of society is accelerating.  We are seeing disturbing reports of civil unrest pop up all over the U.S. at an alarming rate.

According to a CBS affiliate in Chicago, earlier this week approximately 50 young people conducted a shocking mob robbery of a drug store located on the Magnificent Mile in Chicago….

Some 50 young people barged into a Walgreens at Michigan and Chicago on the Magnificent Mile on Tuesday afternoon. They took bottled drinks and sandwiches off the shelves, then ran off, CBS 2′s Suzanne Le Mignot reports.

When large groups of young people get together and agree to commit crimes that should be a huge red flag for all of us.

We are a nation that is deeply, deeply divided.  Hatred is growing and the love of most Americans is growing cold.

As I have written about previously on “The American Dream“, the American people are actually encouraged to hate one another these days….

The truth is that the “establishment” is constantly trying to divide us and get us fighting with one another.  They pit the Republicans against the Democrats (even as though control both sides).  They pit one race against another.  They pit one gender against another.  We are told that the rich are against the poor, the north is against the south, urban is against rural and that there are even “generational battles” going on.  Frustration and hate are rapidly growing in the United States today, and a lot of that frustration and hate is unfortunately aimed at the targets that the mainstream media has programmed all of us to hate.  Meanwhile, those at the top of the pyramid who are controlling the whole game love it when we are divided because we can never become united and challenge their control.

We need to come together as a nation.  If we don’t, we are going to face an unprecedented nightmare when the economy collapses.





Why Are Food Prices Rising So Fast?

Why Are Food Prices Rising So Fast?

If you do much grocery shopping, you have probably noticed that the cost of food has been rising at a very brisk pace over the past year.  So why are food prices rising so fast?  According to Federal Reserve Chairman Ben Bernanke, inflation is still very low and the economy is improving.  So what is going on here?  When I go to the grocery store these days, there are very few things that I will buy unless they are on sale.  In fact, I have noticed that many of the new “sale prices” are the old regular prices.  Other items have had their packages reduced in size in order to hide the price increases.  But with millions of American families just barely scraping by as it is, what is going to happen if food prices keep rising this rapidly?

The food prices are especially painful if you are trying to eat healthy.  Most of the low price stuff in the grocery stores is garbage.  Eating the “typical American diet” is a highway to cancer, heart disease and diabetes.

But if you try to stick to food that is “healthy” or “organic” you can blow through hundreds of dollars in a heartbeat.  In fact, the reality is that tens of millions of American families have now essentially been priced out of a healthy diet.

Soon there will be millions more American families that will not even be able to afford an unhealthy diet.

Some recent statistics compiled by the Bureau of Labor Statistics are absolutely staggering.  According to a recent CNBC article, over the past year many of the most popular foods in America have absolutely soared in price….

Coffee, for instance, is up 40 percent. Celery is 28 percent higher while butter prices rose 26.4 percent. Rounding out the top five are bacon, at 23.5 percent, and cabbage, at 23.3 percent.

Unfortunately, it looks like the trend of rising food prices is accelerating.  Just look at what the CNBC article says happened in the month of April alone….

Just in April—the most recent month for which data is available—grapes went up nearly 30 percent, cabbage jumped about 17 percent and orange juice surged more than 5 percent.

Meat is becoming more expensive as well.  Since March 2009, livestock prices have risen by 138%.

So when Ben Bernanke tells us that inflation is very low, that really is a lie.  On the stuff that people spend money on every day (like food and gas), prices have gone up dramatically.

Sadly, this is not just a phenomenon that is happening in the United States.  The truth is that the entire planet is rapidly approaching a horrific global food crisis.

Over the past year, the global price of food has risen by 37 percent and this has pushed approximately 44 million more people around the world into poverty.

When food prices rise in the U.S. it may be painful for millions of American families, but around the world a rise in food prices can mean the difference between surviving and not surviving.

That is why it has been so alarming that the global price of wheat has approximately doubled over the past year.

But it is not just wheat that has been soaring.  Check out what a recent Bloomberg article had to say about what has been happening to many key agricultural commodities over the past year….

Corn futures advanced 77 percent in the past 12 months in Chicago trading, a global benchmark, rice gained 39 percent and sugar jumped 64 percent. There will be shortages in corn, wheat, soybeans, coffee and cocoa this year or next, according to Utrecht, Netherlands-based Rabobank Groep. Prices also rose after droughts and floods from Australia to Canada ruined crops last year. European farmers are now contending with their driest growing season in more than three decades.

Even before this recent spike in food prices the world was struggling to get enough food to everybody.  It has been estimated that somewhere in the world someone starves to death every 3.6 seconds, and 75 percent of those are children under the age of five.

So what is going to happen if food prices keep on rising at the current pace?

That is a very good question.

We really are starting to move into unprecedented territory.  Nobody is quite sure what is going to happen next.

So why is all of this happening?

Well, a lot of people are blaming the Federal Reserve.  All of the “quantitative easing” that the Fed has done has flooded the financial markets with money.  All of that money had to go somewhere.  Much of it has pumped up the prices of hard assets such as oil, gold and agricultural commodities.

But it is not just the Fed that is to blame.  The truth is that central banks all over the world have been recklessly printing money.

When the amount of money in an economy goes up, the purchasing value of all existing money goes down.  In the United States, that means that your dollars will not go as far as they did before.

But it is not just monetary policy that is affecting food prices.  In 2010 and 2011 we have seen an unprecedented wave of natural disasters and crazy weather.  This has caused problems with crops all over the globe.

In addition, U.S. economic policies are also playing a role.  At this point, almost a third of all corn grown in the United States is used for fuel.  This is putting a lot of stress on the price of corn.

Also, there are some long-term trends that are not in our favor.  For example, the systematic depletion of the Ogallala Aquifer could eventually turn “America’s Breadbasket” back into the “Dust Bowl”.  If you have not heard of this problem I would encourage you to do some research on it.

Things are going to get a lot worse, but already America is having a really hard time feeding itself.  According to Feeding America’s 2010 hunger study, more than 37 million Americans are now being served by food pantries and soup kitchens.

So is that number unusual?

Yes, it sure is.

The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.

That is not a good trend.

Another stat that I talk a lot about in this column is the number of Americans on food stamps.

Right now, there are 44 million Americans on food stamps.  Nearly half of them are children.

How did we ever get to the point as a nation where more than 20 million children end up on food stamps?

It is estimated that one out of every four American children is currently on food stamps, and it is being projected that approximately 50 percent of all U.S. children will be on food stamps at some point in their lives before they reach the age of 18.

So what is going to happen if the economy gets even worse?

What is going to happen if there really is a major food crisis in this country someday?

Food prices have been going up for decades and they are going to continue to go up.  But the frightening thing is how fast they are increasing now.

As the U.S. middle class continues to be destroyed, the number of Americans that can’t afford to buy enough food is going to continue to rise.  Food prices are rising much faster than wages are, and that is not likely to change any time soon.

Food is rapidly becoming one of the most important global economic issues of this decade.  The farther one looks down the road, the bleaker things look for the global food situation.

I hope you are prepared for that.

Robert Kiyosaki Is Warning That An Economic Collapse Is Coming

Rich Dad, Poor Dad, Prepper Dad? Even Robert Kiyosaki Is Warning That An Economic Collapse Is Coming

Are you familiar with Robert Kiyosaki? He is best known for the “Rich Dad, Poor Dad” series of books.  Over 26 million books authored by Kiyosaki have been sold and he is recognized as a financial expert by millions of people across the globe.  Well, guess what?  Even Robert Kiyosaki is warning that an economic collapse is coming.  In fact, Kiyosaki and his team of financial experts are encouraging Americans to stock up on food, guns and precious metals.  This is yet another sign of just how close we are to the total collapse of the U.S. Economy.  Kiyosaki, who once co-authored a book with Donald Trump entitled “Why We Want You To Be Rich” is now a full-fledged prepper.  As even more prominent Americans start warning that an “economic collapse” is coming do you think that the American people will finally wake up and start paying attention?

The statements that Robert Kiyosaki makes in the video posted below are absolutely jaw-dropping.  Once upon a time he was all about teaching people how they could get rich, but now he is talking about storing food, buying guns, investing in precious metals and preparing for the coming crash.

The following are 11 of the best Kiyosaki “sound bites” from the video below….

#1 “when the economy crashes as we predict”

#2 “the crowds come rushing in to buy gold and silver”

#3 “we could either go into a depression or we go to hyperinflation”

#4 “or we could also go to war”

#5 “buy a gun”

#6 “I’m preparing”

#7 “I’m prepared for the worst”

#8 “so come to my house and I’m armed and dangerous and I’ll welcome you”

#9 “we have food, we have water, we have guns, gold and silver, and cash”

#10 “the credit card system shuts down, the world shuts down”

#11 “the supermarkets have less than 3 days supply”

If you have not seen this video yet, it is definitely worth the 8 minutes that it takes to watch it.  Robert Kiyosaki seems to be extremely alarmed about the future of the U.S. economy….

It certainly seems as though the entire financial culture in America is changing.

Once upon a time everyone wanted to know how to get rich.

Now everyone wants to know how to survive the collapse that is coming.

As I have written about previously, even people like Tony Robbins and Donald Trump are warning that an economic collapse is coming.

Economic pessimism is seemingly everywhere and almost every recent survey indicates that the American people are losing faith in the U.S. economy.

For example, in a recent article I noted that 48 percent of Americans believe that it is likely that another great Depression will begin within the next 12 months.

According to Gallup, the percentage of Americans that lack confidence in U.S. banks is now at an all-time high of 36%.  Back in 2007, just 14% of Americans lacked confidence in U.S. banks.

In order for society to function correctly, people need to be able to trust each other and they need to be able to trust the major institutions that hold society together.

Once confidence in our major societal institutions is gone, it is going to be incredibly difficult to get it back.

Sadly, the reality is that many of our major financial institutions have been untrustworthy for a very long time.  It is just that the American people are only just now starting to wake up to that fact.

For example, the Federal Reserve has been at the heart of our economic problems for decades but most Americans have not realized it.

But now that is starting to change.  According to one recent poll, only 30% of Americans currently view Federal Reserve Chairman Ben Bernanke favorably.

The American people are becoming increasingly dissatisfied with an economic system where the vast majority of the rewards flow to Wall Street, the big banks, the biggest corporations and the ultra-wealthy.

According to the Washington Post, the top 0.1% of all income earners in the United States took home 2.6% of the nation’s earnings in 1975.  By 2008, the top 0.1% were taking home 10.4% of the nation’s earnings.

The Washington Post also says that after adjusting for inflation, the average income of the top 0.1% of all Americans jumped by 385 percent between 1970 and 2008 while the average income for the bottom 90 percent of all Americans actually fell by one percent.

The sad truth is that income inequality in the United States has become a major problem.  A very small sliver of the population is reaping almost all of the rewards and the middle class is being ripped to shreds.  Conservatives, liberals, Democrats, Republicans and libertarians should all be alarmed by this.

Meanwhile, the national debt continues to explode.  Right now, U.S. government debt is expanding at a rate of $40,000 per second.

Every single minute we steal another 2 million dollars away from our children and our grandchildren.

But if we stop this theft it would throw the U.S. economy into a horrible economic crisis that would be far worse than what we are experiencing right now.

That is why the vast majority of our politicians do not have the guts to do it.

We truly are caught between a rock and a hard place.

But people like Robert Kiyosaki can see what is coming, and they are getting prepared.

Are you prepared?

Many of our young people have come up with their own versions of an “economic stimulus plan”.  In past articles I have documented many of the signs that society is collapsing, including the disturbing rise of the “mob robbery” phenomenon.

Well, just the other day there was another very shocking mob robbery in the city of Philadelphia.

On Thursday, a mob of 40 teens and young adults invaded a Sears department store on 69th Street, grabbed all of the merchandise that they could carry, and stormed right back out again.

We are starting to see these kinds of large scale crimes happen from coast to coast.

So what is going to happen to America if the economy experiences the kind of full out collapse that Robert Kiyosaki is talking about?

We live in very interesting times.

I hope that you are getting prepared.

MCDP 1: Warfighting

MCDP 1: Warfighting



Take more notes.

Think about your situation and your AO.

Think more.



Do more PT.

Harden your heart.

Alea iacta est.

Locust says: Now I’m not a member of the conservative constitutional supporters of the right, but I do support Freedom for ALL peoples, freedom to even be separate from one another. But the coming collapse of America will demand each man stand and be counted, or die like cowards.

Ponzi’s Dream Scheme

Social Security and Medicare: Ponzi’s Dream Scheme

June 25, 2011

By Russell D. Longcore

Charles Ponzi, the con man of the early-1920s, was the man who perfected the financial “pyramid scheme” that now bears his name. And Washington, the theft and fraud capital of the planet, took the “rob Peter to pay Paul” blueprint and perfected it in the Social Security and Medicare systems.

Ann Barnhardt released two short videos this week about Social Security and Medicare. Her analysis is spot on, but her solution is completely wrong. She correctly states that ALL the politicians who support and want to save or fix the Twin Pillars of Ponzi are criminals.

But then Ann suggests that we all continue to pay into the systems, knowing full well that most of us will never get a dime. She says this is the only chance to “save the Republic.”

Bovine Merde.

First, we here at DumpDC don’t want the Republic saved. We want it to meltdown ASAP. We want secession and states to become nations.

Second, we cannot abide the notion that any of us should continue to fund the greatest system of fraud ever developed by the human mind. Not for one moment.

Ann offers two choices. The first is to “sunset” the two programs by continuing to fund them for a while. The second is to allow the United States economy to implode, thereby destroying ALL Federal spending.

The latter is what is going to happen. There is not enough time…or money…or political will in Congress or America itself to save the Republic.

Still, I want you to watch Ann Barnhardt make her case. Here goes. Enjoy.


DumpDC. Six Letters That Can Change History.

The USA: Too Big NOT To Fail

The USA: Too Big NOT To Fail

June 26, 2011

By Russell D. Longcore

Washington DC doesn’t have the “Midas touch,” where everything they touch turns to gold. Washington has the “Merde touch,” where everything they do turns to shit.

Since 2008, we Americans have heard a new meme enter our lexicon. That new phrase is “too big to fail.”

The George W. Bush administration trotted out this phrase with its first stimulus plan and the bailouts of insurance, Wall Street and the car companies. We were all told that these companies were too big to fail, or too big to be allowed to fail.

In economies where the government doesn’t interfere, corporations that mismanage their assets and liabilities declare bankruptcy. The bankruptcy process either liquidates the business and pays off creditors, or allows the corporation to reorganize the company, renegotiate their debt and move forward with a new business plan. But the corporation is allowed to bear the weight of the choices they made and live with the consequences of their failure.

All the companies/entities who got bailout money should have been allowed to experience free-market consequences. All of them. Instead, Washington placed the market risk squarely on the backs of the American taxpayer.

Let’s not forget the $3 Billion “Cash for Clunkers” program, in which over 690,000 new cars were purchased, and about the same number of perfectly serviceable vehicles were destroyed. Once again, America….YOU got stuck with the bill to help your neighbors buy a new car. The destruction of used cars distorted the used car market, driving up used car prices while creating used parts shortages. Thanks, Congress.

All we’ve heard for months…years…even today…is that some business entities and government programs are too big to be allowed to fail. The licitness¹ of an activity is being determined by its scale. But no entity is too big to fail. However I can think of one entity that is too big NOT to fail.

That entity is The United States of America.

All of Washington, regardless of party affiliation, only makes decisions that perpetuate Federal power. If an action doesn’t directly benefit Washington, it does not occur. Washington doesn’t care if it destroys the purchasing power of the Dollar by printing paper money and causing hyperinflation. They just don’t want to have unemployment spike over the bankruptcy and reorganization of big employers.

When the US Constitution was written and enacted, it planted the seeds for massive Federal power. The nation/states of North America were actually better served by the Articles of Confederation. For most of the time between 1777 (A of C drafted and used to govern) and 1789 (new constitution), the New Federal Government was ineffectual and got little accomplished. That is because the nation/states were sovereign and acted based upon their sovereignty.

But even under the inferior US Constitution, the nation/states of North America which comprised the United States of America, could have controlled the new Federal government by nullifying and interposing on behalf of the individual states and The People. But the states and The People allowed themselves to be enslaved by Washington.

At this time in our history, most Americans consider themselves to be Americans, not Virginians or Floridians or Oregonians or the like. Washington has exhibited genius in convincing Americans that they are ruled by Washington, and that their state capitols are inferior and subordinate legislative bodies.

But the US Constitution was never meant to be the organizing document for a nation of 306 million people. Apportionment for Congressional representation, done correctly for our population, would result in thousands of Congressmen in the House of Representatives. Yet we’d still only have 100 Senators. And that would be even more ineffectual than the DC mess we have at present.

A fifty-state confederation, adhering to the strictures of the original Constitution, would be capable of governance on a local level. However, we do not have such a confederation today. The USA is a kingdom with 50 county-like jurisdictions.

So the United States of America exists in a condition that is unsustainable. The founding documents have been…and are presently…merely iconic parchments kept under glass that have no bearing or influence whatsoever upon the machinations of the US Federal Government.

The United States of America is too big NOT to fail. Small government is manageable government.

Secession is the hope for humanity. Who will be first?

DumpDC. Six Letters That Can Change History.

¹“Licit” means authorized, sanctioned or morally permitted, as opposed to “illicit.”

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

The Criminal Congress Of The USA

The Criminal Congress Of The USA

June 27, 2011

by Russell D. Longcore

(Editor’s Note: In light of the Congressional impasse on budget, coupled with the impending Presidential election season, I have updated this April 2010 article and am reposting it.)

Today I want to offer a very provocative proposition. Many of you are going to bristle at this article, and I’m pretty confident that the knives are going to be sharpened and pointed in my direction. But, before anyone begins slicing and dicing, I want you to refrain from ad hominem attacks and prove to me exactly where I’m wrong.

Here it is: I submit to you that all persons in Congress are criminals.

Let’s follow the trail of evidence to determine if any individual member of Congress may be exempted from this indictment.

Question 1: Who do you work for?

Answer: If you are a Congress-person, you are a Federal employee. Even though you are elected to Congress from your state to represent your state, your state does not pay your salary. The current salary (2010) for rank-and-file members of the House and Senate is $174,000 per year plus expenses. The paychecks come from the US Treasury and are administered by the US Office of Personnel Management. You get a killer benefits package and a Federal pension, and are fully vested after only five years of participation.

Question 2: What constitutes an unlawful and/or illegal act for a Congress-person?

Answer: If you still believe that the US Constitution is the highest law of the land, then any law passed by Congress that violates the Constitution is a criminal act. It could also be argued that any vote made by any member of Congress that violates the US Constitution is an unlawful act and therefore a crime, regardless if the law passes or not. Compare this to an attempted burglary or attempted murder, which by definition are not successful but are still crimes.

If you believe that the US Constitution is a dead document with no authority, then you will likely believe that Congressionally-legalized plunder and the authorization of murder (deadly force) are crimes against natural law, the rights of individuals and State Constitutions. It could also be argued that any vote made by any member of Congress that violates natural law or the laws of a State Constitution is an unlawful act and therefore a crime, regardless if the law passes or not. Compare this to an attempted burglary or attempted murder, which by definition are not successful but are still crimes.

Either way, ALL members of Congress are guilty, either as an accessory, or as an accomplice, or as both accessory and accomplice.

Question 3: What is the definition of an accessory in criminal activity?

Answer: At law, an accessory is a person who assists in the commission of a crime, but who does not actually participate in the commission of the crime as a joint principal. All Congress-persons may be accessories to the crimes committed in and by Congress as they are all participants in the commission of the crimes as they pass laws. Wouldn’t the members who vote in the majority on any given bill be considered joint principals, and the rest mere accessories?

So, even if your Congress-person abstains from voting on any given bill, or votes ‘No’, he or she is still an accessory, since he or she is a member of a criminal entity engaged in criminal activity.

Question 4: What is the definition of an accomplice in criminal activity?

Answer: At law, an accomplice is a person who actively participates in the commission of a crime, even though they take no part in the actual criminal offense. Unlike an accessory, an accomplice is usually present when the crime is committed. So, the members of Congress who are not present in the chamber during a vote are still an accessory to the crime, since they participate in the process. An accomplice is guilty of the same offense and usually receives the same sentence as the principal.

And now for the compromise part…

To be a politician is to embrace compromise. And compromise can be an acceptable method of societal interaction. However, in Congress, compromise regularly requires forsaking ethics, morals and principles of both law and honor. I have no problem with a member of Congress compromising on procedural issues. But when Congress-persons ignore the law and do what they want, only arguing over the broad details, compromise become a despicable act of cowardice. Is there ever a line that a member of Congress will not cross?

For example, Congress is presently stewing over this year’s budget, future budgets and raising the Federal debt ceiling. Both Republicans and Democrats are in favor of more borrowing, but Republican leadership says that Congress should find a way to slash Federal spending or Republicans will not vote for the bill. As a matter of practicality, this is what Congress is saying:

“We agree that we would like to steal money from some Americans and give it to other Americans. However, at this time, some of us think it would be OK to borrow the money now and then steal the money from you later. A minority of us don’t want to borrow the money, but just want to steal it directly. At no time in our debate will we consider the morality or legality of stealing from you. Our only concern is the method we use for the theft.”

No consideration of the underlying crime is considered…only how to do it.


Some of you will protest loudly about my position. You will try to tell me how your favorite member of Congress is different, a patriot, a lover of liberty…fighting for the Constitution and fighting against special interests. But I still challenge you to prove me wrong. Tell me how your favorite Congressman would escape prosecution if the acts of Congress were ever prosecuted in a court of law. Remember the Nuremburg trials. Ten men found guilty danced at the end of a rope.

All members of Congress are criminals, in the employ of “The United States of America,” a 234 year-old criminal entity that perpetrates theft, plunder, murder and counterfeiting on a worldwide scale.

Secession is the hope for humanity. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

Walter Williams Exposes BRA; Gannett’s Empire Crumbles

Walter Williams Exposes BRA; Gannett’s Empire Crumbles

Williams tells the truth, but fails to understand what civil rights mean

Walter Williams is to be congratulated for his syndicated column from June 20th, though he is wrong about one important aspect of the civil rights movement. Here is that column and key quotes:

Most racist assaults are committed by blacks. What’s worse is there’re blacks, still alive, who lived through the times of lynching, Jim Crow laws and open racism who remain silent in the face of it.
In many of these brutal attacks, the news media make no mention of the race of the perpetrators. If it were white racist gangs randomly attacking blacks, the mainstream media would have no hesitation reporting the race of the perps. Editors for the Los Angeles Times, the New York Times, and the Chicago Tribune admitted to deliberately censoring information about black crime for political reasons. Chicago Tribune Editor Gerould Kern recently said that the paper’s reason for censorship was to “guard against subjecting an entire group of people to suspicion.”

These racist attacks can, at least in part, be attributed to the black elite, who have a vested interest in racial paranoia. And that includes a president who has spent years aligned with people who have promoted racial grievance and polarization and appointed an attorney general who’s accused us of being “a nation of cowards” on matters of race and has refused to prosecute black thugs who gathered at a Philadelphia voting site in blatant violation of federal voter intimidation laws.

Tragically, black youngsters – who are seething with resentments, refusing to accept educational and other opportunities unknown to blacks yesteryear – will turn out to be the larger victims in the long run.

Black silence in the face of black racism has to be one of the biggest betrayals of the civil rights struggle that included black and white Americans.

Remembering that Eric “My People” Holder’s Department of Justice has re-opened the Civil Rights Division, it becomes increasingly clear that it has nothing to do with Beat Whitey Night in Iowa; Knockout King in St. Louis; Chicago’s Mahogany Mob’s; or Atlanta’s descent into tyrannical police state to keep Black crime to a minimum this summer
Black kids engaging in mob attacks, like the one in Woodbridge, are merely perpetuating the civil rights struggle. The story of 50 Black kids attacking a white family in Akron on Independence Day 2009 and shouting “This is a Black world” were merely taking the civil rights struggle to its next logical step.
Since white privilege is all that keeps Black people down, Black-Run America (BRA) has created extra-equal Black privileges that ensure the toleration of these attacks by Black people on whites (and Asians) will continue unmolested. 
The Mainstream Media is complicit in remaining silent on the facts of Black criminality, accessories to not only mayhem, but many times murder and endangerment to society. Dr. Williams mentioned those three newspapers that refuse to report on the race of the criminal, and for their deceitful censorship of the truth, Disingenuous White Liberals (DWLs) in the media are rewarded. 
Promoted to an editor or managing editor position of a Gannett-owned paper or perhaps awarded a lucrative teaching position in a journalism department at university, this Perfidious White Journalists (PWJ) will ensure that only saccharine stories describing the horrors faced by the Black underclass at the hands of oppressive, racist whitey and the evils of white privilege will be churned out. 

A company that willingly censors the truth of Black crime across BRA


You see the civil rights movement is about one thing, and that is the accumulation of power in one direction and the rollback of power from another. The pendulum is firmly in the direction of Black-Run America right now and its many enablers who profit off of this unsustainable system. 
Nothing is more illustrative of Black-Run America’s ability to control the flow of information then having a company like Gannett (which owns USA Today) control so many local newspapers and dictate editorial policy from its headquarters in Washington D.C.
Owning papers all across the nation, Gannett and the PWJ’s it employees keep inflammatory stories out of the press and refuse to openly discuss the race of criminals. Having editorial decisions mandated by people only financially vested in your city means not offending Black people with negative stories that depict them as criminals (like what happened in Buffalo in 2010 where Black people threatened to burn the paper down and Pittsburgh, where producers and journalists gathered to discuss ways to highlight Black people in positive stories). 
With ad revenue, its stock value and circulation plummeting, Gannett just announced massive layoffs:  
Today, Bob Dickey, President of Gannett’s U.S. Community Publishing Division, announced today in a confidential company memo that the division was cutting its’ workforce by 2%.

The Sun Times has obtained a copy of the memo, which was posted on an unofficial employee blog.

The move is expected to affect 700 workers at the company’s newspaper operations across the nation.

Here’s a list of Gannett assets
Knowing that Disingenuous White Liberals and PWJ’s are in charge of the editorial policy at The Washington Post, The New York Times, The Chicago Tribune, and Gannett assets, and openly admit to censoring stories of Black criminality, it’s easy to understand why many newspapers are losing subscribers and the ability to charge huge rates for national ad campaigns.
What Dr. Williams’ essay stated is exactly what an honest media would report daily. With PWJs running papers with a DWL mindset, no such truth will ever appear in The Baltimore Sun, Atlanta Journal Constitution or the Montgomery Advertiser. No Gannett asset will ever dare report what Dr. William’s syndicated column did.
People are abandoning a media that actively works to suppress news of Black crime, including Mahogany Mob attacks, and seeking their news elsewhere far from the ombudsman of the PWJ dying papers.
Dr. Williams has done admirable work, but he is wrong to say that the new generation of Black people participating in Mahogany Mobs, Polar Bear Hunting and random thuggery are betraying the civil rights movement; they only take it to its logical conclusion.
Nothing else needs to be said then to look at Rhodesia and South Africa for a glimpse of the inevitable in the United States. Eric “My People” Holder’s eternal quest for augmenting civil rights for the lucky few is proof of the legalistic measures those clinging to power in BRA will go to achieve their goal: The complete dispossession of America’s founding majority population.
Abstract ideas like freedom and liberty are illusory at this point. What Dr. William’s wrote in his essay is true, but as you have learned, there is an even more sinister veracity lurking in the details.
By reading this, you are an individual who either already is in the ranks of Those Who Can See, on your way to joining those growing ranks, or are vested in BRA. The only freedom you truly have left is what you do with that knowledge.

CBO- Public debt picture has worsened considerably

CBO Releases Daunting Long-Term Outlook

Updated: June 22, 2011 | 1:28 p.m.
June 22, 2011 | 10:39 a.m.

Increasing federal debt will be a growing burden on government action, crowding out lawmakers’ ability to adopt tax and spending priorities in good times and reducing flexibility during recessions, all while making a fiscal crisis more likely and hindering long-term growth, the nonpartisan Congressional Budget Office said Wednesday.

In the annual Long-Term Budget Outlook, the legislature’s budget scorekeepers said that the ratio of debt to GDP this year will be 69 percent, 7 percentage points higher than last year. In 2021, the CBO predicts debt will reach 76 percent of GDP, but under a more dire—and more likely—scenario, the public debt will be 101 percent of GDP 10 years from now, well into the economic danger zone of 90 percent or more.

Last year, that worst-case scenario predicted a debt-to-GDP ratio of 87 percent in 2020, demonstrating that the public debt picture has worsened considerably, in part due to a bipartisan tax deal last year that reduced expected revenue.

While much of the debt is driven by the recession’s drop in tax revenues and government actions taken in response to the economic calamity, CBO highlighted the structural deficit that existed before 2007 and cites growing health care costs and the aging population as a major driver of government spending; federal health spending is set to grow from less than 6 percent of GDP today to more than 9 percent in 2035.

The CBO says that allowing the 2010 tax deal that extended Bush administration tax policies to expire as planned would be helpful in keeping government sustainable, noting  “that significant increase in revenues and decrease in the relative magnitude of other spending would offset much—though not all—of the rise in spending on health care programs and Social Security.”

However, the CBO’s more likely scenario assumes that the tax deal is extended, that the alternative minimum tax would continue to be restricted, and that the “doc fix,” Congress’s annual decision to ease limits on Medicare physician pay, will occur as expected. Under this scenario, debt would rise to 187 percent of the economy in 2035.

While CBO does not provide policy recommendations, it urged policymakers to take significant action to reduce the deficit and debt by reducing spending, increasing taxes, or some combination of the two. While those changes will slow economic recovery, the agency warns, the sooner they are made, the more gradual they can be, easing the transition into new policies but likely requiring sacrifices from older Americans.

“CBO’s new long-term budget outlook again highlights the urgency of reaching agreement on a bipartisan and comprehensive long-term deficit and debt reduction plan,” Senate Budget Chairman Kent Conrad, D-N.D., said in a statement. “We must address the projected explosion in federal debt. If we fail to act, it will have devastating consequences for our economy and for the future well-being of the American people.”

On Thursday, CBO Director Doug Elmendorf will testify at a House Budget Committee hearing on the long-term outlook.

Post office suspends retirement contributions

Post office suspends retirement contributions

WASHINGTON – The financially troubled Postal Service is suspending its contributions to its employees’ pension fund.

The agency said Wednesday it is acting to conserve cash as it continues to lose money. The post office was $8 billion in the red last year because of the combined effects of the recession and the switch of much mail business to the Internet. It faces the possibility of running short of money by the end of this fiscal year in September.

Sen. Tom Carper, D-Del., called the announcement “the canary in the coal mine moment for the Postal Service.”

“If we don’t heed this warning and act quickly, the Postal Service as we know it will cease to exist in the very near future,” said Carper, chairman of the Senate subcommittee with jurisdiction over the agency.

The post office needs reforms “to cut costs and protect taxpayers from an expensive bailout,” said Rep. Darrell Issa, R-Calif., chairman of the House Committee on Oversight and Government Reform.

The mailing industry echoed their comments.

“This move underscores the need for Congress to make bold, quick and substantive reforms to the Postal Service. The USPS is hanging by a thread, along with 8 million private sector jobs that depend on the mail,” said Art Sackler, coordinator for the Coalition for a 21st Century Postal Service, a group representing the private sector mailing industry.

Democratic Reps. Elijah E. Cummings of Maryland and Stephen F. Lynch of Massachusetts called on the Justice Department to look into the move by the Postal Service.

The post office said it has informed the Office of Personnel Management that the $115 million retirement payment made every two weeks will be suspended effective Friday. The action is expected to free about $800 million in the current fiscal year. The post office’s Federal Employee Retirement System account currently has a surplus of $6.9 billion, the agency said.

Because of that surplus the suspension should not have any effect on current retirees, postal spokesman Dave Partenheimer said.

He said no decision has been made about how long the contributions will be suspended but “it is not a long-term solution. The long-term solution is getting legislation passed.”

Anthony Vegliante, chief human resources officer, said the post office will continue to send employees’ contributions to the retirement system, as well as employer and employee contributions to the workers’ savings plans, which are similar to a 401(k).

Over the last four years the Postal Service has cut its staff by 110,000 and reduced costs by $12 billion. The agency has also proposed eliminating delivery on Saturdays to save money and is working on closing small post offices and consolidating sorting and other operations.

The post office, unlike other federal agencies, is also required to make an annual payment of more than $5 billion as an advance contribution to future retiree medical costs.

$1400 Tax Hike Needed to Fund US Pensions


Study: $1400 Tax Hike Needed to Fund US Pensions

U.S. state and local governments will need to raise taxes by $1,398 per household every year for the next 30 years if they are to fully fund their pension systems

a study released on Wednesday said.


JGI | Getty Images

The study, co-authored by Joshua Rauh of Northwestern University and Robert Novy-Marx of the University of Rochester, both of whom are finance professors, argues that states will have to cut services or raise taxes to make up funding gaps if promises made to municipal employees are to be honored.

Pension funding in U.S. cities and states has deteriorated in the wake of the 2007-2009 economic recession as investment earnings dropped, and some states, such as New Jersey and Illinois, skipped or reduced required payments.

The issue has sparked heated debates, from the streets of Wisconsin’s capital, Madison, where thousands demonstrated over public employees’ rights to bargain, to New Jersey, where lawmakers are expected to give final approval this week to a plan that will scale back benefits for public sector workers.

Wall Street rating agencies and investors in the $2.9 trillion U.S. municipal bond market are increasingly focusing on unfunded pension liabilities as they weigh the credit-worthiness of state and local government debt.

Rauh and Novy-Marx have previously stirred up the debate over state pension obligations, including the dire prediction that existing pension liabilities total around $3 trillion, if expected returns on investments are not counted.

Other studies have estimated the shortfall as far less. The Pew Center on the States, for example, found the pension shortfall for states could be $1.8 trillion, or as much as $2.4 trillion based on a 30-year Treasury bond.

The study issued on Wednesday said contributions will far outstrip gains in revenue.

“To achieve fully funded pension systems within 30 years, contributions would have to rise today to the levels we calculate and then continue to grow along with the economy,” Rauh said.

New Jersey will need to increase its revenue by the largest margin, requiring $2,475 more from each household per year, according to the study.

The contribution requirements may be higher for states that already have a significant amount of debt on their books and “cannot tap municipal bond markets as easily for large contributions,” the report said.

Illinois, for example, which has the lowest funded ratio of any state pension system, sold billions of dollars of pension bonds over the last two years to make its pension payments.

Copyright 2011 Thomson Reuters. Click for restrictions.