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Peter Schiff: Higher Spending During Holidays Does Not Fix Screwed Economy
In the following video, Peter Schiff discusses the manufacturing report with the PMI numbers that came out this week. Projections expected them to be 54.5. If the report had read 64.5, it would have been a slight improvement over September’s abysmal number, but instead the report read 52.6. What is sick, and what should have alarm bells going off in the American people’s ears, is the reaction by the same biased media that reports the numbers. They say the drop is nothing to worry about, because manufacturing is such a small part of our economy. Uh, H-E-L-L-O! McFly! THAT, in and of itself is the biggest oxymoronic statement in recent economic history. Admitting that manufacturing is such a small part of the economy IS the problem. America doesn’t produce enough. The ridiculous argument that we are a “service” economy is insane. The “services” that drive our economy are not paid for with revenue generated from goods sold, whether here or overseas, but rather they paid for with borrowed money. THAT is not a healthy no matter how government wants to cook the books.
In other grim economic news this week, existing home sales were below estimates. Now, just imagine if the Fed DOES raise interest rates in December like the bogeyman keeps telling us they will, then imagine what it would do to the housing market! Thankfully, as Jim Willie puts it in, One on One: Americans Ask Jim Willies Their Most Important Economic Questions:
“If those indicating there will be a rate hike are government officials, then the those saying that are no more than the official defenders of the U.S. Dollar, not through facts or reason, but by through the use of propaganda.”
Jim goes on…
“This is so simple, a rate hike would destroy the banks in FIVE days.”
“First of all, let’s just look at the TRILLION or TWO TRILLION, that the Wall Street Banks have on for zero carry trade. Why do you think they have zero percent?
Jim Screams, “SO THEY CAN USE THE FREE MONEY!” Willie continues, “What do they use the free money for? To buy 10 year bonds. Subtract 0% from the 10 year yield, which is 2%, then multiply that times 30, for the bond leverage in futures contracts, and you learn the banks are making SIXTY PERCENT per year on FREE borrowed money?”
Is the Fed going to end that, forcing the banks to sell their bonds, and be the direct cause of the biggest meltdown in history? As the world is already transitioning away from trade in the U.S. Dollar, which you can learn about in 5 Huge Examples Of Mainstream Media Fabricating News to Push for War Including Now, that means more and more countries are already selling off U.S. Treasuries. Do you think the Fed would compound that problem 100 fold? OF COURSE NOT! But the problem hardly ends there. Peter has been talking for months about retail companies taking a nosedive, and this Christmas is going to be a very bad one for retailers. In Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding.” Peter discussed the numbers released by big retailers. As Peter explained, as bad as everyone thought the released numbers were, they also thought that once the revised report was released, the numbers would be revised in a positive manner. Instead, the revised reports showed retailers were doing WORSE than the already abysmal reports showed them to be before the revisions. Right now, retailers have HUGE amounts of inventory sitting on shelves that they cannot unload. Adding insult to injury, part of the reason the retail numbers were what they were, as AWFUL as that may have been, is BECAUSE retailers spent so much on inventory. Those numbers are factored into GDP.
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TRANSLATION: The economic numbers that were were worse once revised, are actually even worse than the revised numbers, and adding to that, retailers will likely have sell much of that inventory at a LOSS just to get rid of it. Government can hide behind numbers for only so long until the whole house of cards comes down and there is no way to mask the enormity of the problem they’ve been lying about so long.
Peter begins the video by talking about what the head of the European central bank (BAD GUY! Have you gotten that clear yet?) Mario Draghi, wants to do to solve the crisis. More QE, something Peter has been warning about forever, and something he highly expects us to see here in the U.S.: QE4. Why? That’s what these socialist Keynesian loons in government believe in, despite the fact that it’s NEVER worked anywhere! Just like our own Fed here in the United States, Draghi is claiming that higher inflation is the answer to our problems. They believe that if things like the cost of food to go up, along with shelter, energy, healthcare, clothes, education, etc., then a higher cost of living will result in prosperity. Anyone arguing for a $15 minimum wage is EQUALLY as clueless. NOTHING could be further from the truth if the goal is to FIX the problem. Furthermore, how could anyone think that the Negative Interest Rates that Draghi and Janet Yellen say are very possible might work? Imagine if banks no longer paid ANY interest, but instead sent you a BILL to keep your money there?
Are these people are THAT out of touch with reality? Yes and no. They are, but not totally for that reason. As usual, liberals cannot tell you what they REALLY plan to do, because NO ONE would vote for it. The REAL plan behind QE (quantitative easing, AKA printing money out of thin air), is because it devalues the existing currency, and then the debts a country owes can get paid back with currency worth less than what was borrowed. In the end, it’s nothing more than a DISHONEST scheme to avoid default, and still be able to keep prosing voter free stuff. BUT, as the saying goes, sooner or later, you always run out of other peoples’ money. Like all Ponzi schemes, this will go bust. They always do. Who gets hurt when they do? They people at the top? Never. It’s always the little people who were promised the world.
What Keynesian economists fail to grasp, or chose not to admit because it would be harder to get votes, is that prosperity comes from REDUCING costs, not raising them. It comes when the things you need and want become LESS expensive, and more affordable, not vice versa. What helps your standard of living grow? It’s when your cost of living goes down, not when you get paid more, and the resulting prices of everything go up. Does anyone sit around saying, “Hmmm, I sure hope my eclectic bill and my groceries cost more next month, because then I’ll know I’m getting ahead in life?” OF COURSE NOT!
GUESS WHAT, THAT’S JUST THE BEGINNING…
LISTEN TO WHAT ELSE PETER HAS TO SAY…
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Has there ever been a major holiday more focused on materialism than the modern American Christmas? This year, Americans are planning to spend an average of 830 dollars on Christmas gifts, which represents a jump of 110 dollars over the average of 720 dollars last year. But have our incomes gone up accordingly? Of course not. In fact, real median household income in the United States has been experiencing a steady long-term decline. So in order to fund all of our Christmas spending, we have got to go into even more debt. We love to pull out our credit cards and spend money that we do not have on lots of cheap, useless stuff made on the other side of the world by workers making slave labor wages. We do the same thing year after year, and most of us have grown accustomed to the endless cycle of growing debt. In fact, one Pew survey found that approximately 70 percent of all Americans believe that “debt is a necessity in their lives”. But then we have to work our fingers to the bone to try to make the payments on all of that debt, not realizing that debt systematically impoverishes us. It may be hard to believe, but if you have a single dollar in your pocket and no debt, you have a greater net worth than 25 percent of all Americans. I know that sounds crazy, but it is true.
Overall, when you add up all forms of debt (consumer, business, local government, state government and federal government), Americans are more than 60 trillion dollars in debt.
Let that sink in for a bit.
40 years ago, that number was sitting at about 3 trillion dollars.
We have been on the greatest debt binge in the history of the world. Even though we were “the wealthiest, most prosperous nation on the entire planet”, we always had to have more. We just kept on borrowing and borrowing and borrowing from the future until we completely destroyed it.
And we still haven’t learned anything. Instead, this Christmas season we will be partying like it’s 2007…
Americans are planning on celebrating Christmas like it’s 2007.
A November survey by Gallup found that US adults are planning on spending about $830 on average on Christmas gifts this year.
That’s a huge jump from last year’s $720 average.
Notably, American consumers haven’t suggested a number that high since November 2007, when they were planning on spending $866 on average.
Sadly, our incomes simply do not justify this kind of extravagance. As Zero Hedge has pointed out, household incomes “actually peaked at least 15 years ago in 81% of U.S. counties.”
So why can’t we adjust our lifestyles to match?
Why must we always have more?
Here are more details on our declining incomes from the Visual Capitalist…
Income peaked one year ago for many of the counties that are a part of the shale boom. This includes much of North and South Dakota, as well as parts of Texas, Nebraska, and Oklahoma. Income in Washington, D.C. and neighboring Arlington County also peaked then.
In 1999, a total of 1,623 counties had their households reach peak income. The majority of these counties are in the Midwest and Southeast.
The most southern part of California and parts of New England both peaked around 25 years ago.
Many states along the Rocky Mountains such as Wyoming and Montana had counties that peaked roughly 35 years ago.
Household income peaked in upstate New York, the northern tip of California, and southern Nevada at the same time that humans were first landing on the moon in 1969.
But you won’t hear this reported on the mainstream news, will you?
They want us to think that happy days are here again.
The following chart comes from the Federal Reserve, and it shows that real median household income in the United States has been trending down since 1999…
Americans should be having smaller Christmases instead of bigger ones, but that doesn’t fit the image of who we still think that we are.
Recently, I published an article entitled “Goodbye Middle Class: 51 Percent Of All American Workers Make Less Than 30,000 Dollars A Year” that was shared more than 44,000 times on Facebook. In that article, I included brand new figures that were just released by the Social Security Administration. As you can see, the quality of our jobs is not great…
-38 percent of all American workers made less than $20,000 last year.
-51 percent of all American workers made less than $30,000 last year.
-62 percent of all American workers made less than $40,000 last year.
-71 percent of all American workers made less than $50,000 last year.
Without a doubt, most American families should not be spending hundreds of dollars a year on Christmas gifts.
At these income levels, most American families are just barely surviving.
But once again this year, millions upon millions of Americans will flock to the malls and big box stores in a desperate attempt to make themselves happy.
Sadly, those efforts will be in vain. In fact, in a previous article I highlighted the fact that Christmas is the unhappiest season of the year. The suicide rate spikes to the highest level of the year during “the holidays”, and 45 percent of all Americans report that they dread the Christmas season. The following is an excerpt from a Psychology Today article…
We are told that Christmas, for Christians, should be the happiest time of year, an opportunity to be joyful and grateful with family, friends and colleagues. Yet, according to the National Institute of Health, Christmas is the time of year that people experience the highest incidence of depression. Hospitals and police forces report the highest incidences of suicide and attempted suicide. Psychiatrists, psychologists and other mental health professionals report a significant increase in patients complaining about depression. One North American survey reported that 45% of respondents dreaded the festive season.
In recent years, an increasing number of Americans have given up the tradition of Christmas gifts entirely, and many of them that I know seem quite happy to have done so.
Of course most people are still quite satisfied with the status quo, and there are many that will get very angry with you if you dare to suggest that the way that Americans celebrate Christmas has gotten way out of hand.
But shouldn’t it alarm us that for most Americans the biggest holiday of the year is all about the “stuff” they are going to buy, the “stuff” they are going to give and the “stuff” they are going to get?
As a society, we are obsessed with things, but those things are never going to make us happy.
Perhaps we should all take some time to reflect on the traditions that we choose to participate in and what they really mean to us during this “holiday season”…
Read the article at the Economic Collapse Blog here:
FOR LINKS TO UNDERSTAND THE ECONOMY & THE COMING ECONOMIC COLLAPSE:
One on One: Americans Ask Most Important Economic Questions for Jim Willie
The Orchestrated Financial Fall of America and the World
Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?”
Jim Willie: The Fed, Yellen, US Dollar, and Negative Interest Are a Joke!
With the Economy in Shambles, More Americans Turn to Squatting
Peter Schiff: Did the Fed’s Luck Run Out On Friday the 13th?
Peter Schiff: Take a Good Look at the “New” American Dream!
Jim Willie Explains U.S. Nuclear War Threats to China and Russia Over Challenging Dollar Supremacy
Peter Schiff and “The 4 Harbingers Of Stock Market Doom”
Peter Schiff: Warning! Economic Storm Clouds Ready to Rain
Peter Schiff: It’s All About the Benjamins, And US Currency is Creeping on Broke
Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead
Jim Willie: What Will It Mean If the Yuan Gets Reserve-Currency Status?
Jim Willie and 20 Reasons Why Quitting Prepping After September Was Wrong
Disaster: Will EU Become a New Enemy to the U.S. After Refugees Collapse EU?
Peter Schiff: “The Fed Admits Rates Could Stay at Zero Forever”
Peter Schiff with Mr. “I Have No Fear Of an Economic or Stock Market Collapse”
Peter Schiff Explains Why Financial Bubbles Are Ready to Pop
Peter Schiff: Everybody Is Preparing for Wrong Outcome in US Economy
The Elite Have Prepared For the Coming Economic Collapse – Have You?
China Warns Washington It’s Been Liquidating U.S. Treasuries
2 Day Crash That Was Larger Than Any 1 Day Market Crash In U.S. History
10 Horrifying Realities Americans Find Too Awful To Face
Gerald Celente: Massive Market and Trade Instability Will Cause WW III
China Knocking on the Door of Reserve-Currency; World Teeters on Collapse
Peter Schiff: Greece Was a Sideshow. Americans Need to Worry About Starving
Gerald Celente Predicts Economic Collapse Means World War III (Video)
Can You Imagine Empty Grocery Stores?
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The mantra provided to investors by the Wall St. experts for years has been to contribute every month like clock-work to the 401-k or Ira and don’t panic when the market takes a dip…(Co-operation)
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Plunge Protect ~ Plug ‘n’ To Percent
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Sincerely yours Bazooka.