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Dr. Jim Willie: Death Sentence for Banks, Businesses, Families, and the US Dollar

Friday, June 3, 2016 4:11
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Death Sentence

In this week’s installment of “Happy Talk, with Dr. Jim Willie,” the topic of conversation takes a lighter tone than usual, and Dr. Willie talks about how the U.S. economy is entering it’s final death spiral as it does its level best to vaporize the financial well being of not just individual families and businesses, but also the big banks, and the U.S. Dollar itself. 

As evidence that the U.S. economy is finished, along with the Dollar, and just about everything denominated in U.S. Dollars, Jim points to the non-existent capital formation that would exist if we had anything that even remotely resembled a recovery. Instead of capital formation, we sure are getting lots of pure “fictional formation,” compliments of all Obama’s lies, Rather than banks lending capital to business looking to grow, or assist businesses with cash flow needs, big banks are diving deeper into rescuing (or trying to) their financial engineering commitments. 

Gone are the days when banks invest in capital and equipment, and instead the hollow towers as Jim calls them, they borrow from the fed at or near 0%, and invest the money in U.S. Treasures yielding 2%, all but eliminating the need for their own employees. Rather than capital formation, banks have become well versed in casino formation, because after they invest in the U.S. Treasuries, they buy futures ton top. 

While the hollow towers play the casino games the Fed has opened for business, companies like Intel, Microsoft, and IBM are laying off 15,000 employees a piece on average which has the effect of absolutely devastating families. The country my generation (Gen X) grew up in is DEAD! What’s worse, is we haven’t even hit the rough part yet. Sooner before later, the economic times we’re in right now are going to look like Camelot compared with what’s coming. 

As Michael Snyder points out in the article below, it’s not just small businesses, and it’s not just the Dollar, but what were once middle class Americans families are now getting pulverized financially. There are over 100 million Americans out of work, 1 in 5 families has no one at all earning income, and this is as good as it’s going to get. 

The next MAJOR economic downturn (cough, depression, cough) has already begun, and layoff announcements are continuing to pile up every week. This year already has 24% more layoffs than the same time last year. In what could be the first honest thing he’s said all year, perhaps his whole term, this week at a news conference held at FEMA’s National Response Center of all places, Barack Obama said families need to begin to prepare for potential major catastrophes. 

The emergencies Obama was referring to when he spoke were things like a giant west coast earthquake, a New Madrid earthquake, a tsunami on either the east or west coasts, a meteor impact, Islamic terror, war, an EMP BURST that takes down the power grid, cyberwarfare, ECONOMIC COLLAPSE, or CIVIL UNREST RESULTING IN THE IMPOSITION MARTIAL LAW. If only that were all. We’re also supposed to be on alert for the possibility of a major volcanic eruption, or the possibility of a “natural” OR “ENGINEERED” pandemic.

IT’S NOT TOO LATE TO BEGIN PREPARING!

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Michael Snyder Writes:

It is hard to live the American Dream when the deck is stacked against you.  Our politicians stood idly by as millions of good paying jobs were shipped overseas, our economic infrastructure was absolutely gutted and multitudes of small businesses were choked to death by miles of red tape.  Now, we are reaping the consequences.  In America today, nobody has a job in one out of every five families, and there are more than 100 million working age Americans that are currency not working.  And thanks to our transition to a “service economy”, many of those that are actually working are deeply struggling too.  According to the Social Security Administration, 51 percent of all American workers make less than $30,000 a year.  And the Federal Reserve says that 47 percent of all Americans could not pay an unexpected $400 emergency room bill without borrowing the money from somewhere or selling something.  That means that about half the country is flat broke, and things get even more precarious for working families with each passing day.

Of course the plight of working families is not something that is new.  Back in the 1950s and 1960s, wages and salaries earned by workers accounted for around half of all gross domestic income.  But since 1970 there has been a precipitous decline, and during the Obama administration we hit an all-time low.  In other words, the share of the pie being enjoyed by working families just keeps getting smaller and smaller and smaller.

Chart 1

All over the country, median incomes have been falling for years.  This is putting an incredible amount of financial stress on working families, and we have seen poverty grow explosively in the United States during the last couple presidential administrations.  According to one study, median incomes have fallen in over 80 percent of the major metropolitan areas in this nation since the year 2000…

A major new analysis of income in America published by Pew earlier this month found that more than 80% of the country’s 229 metropolitan areas have seen real (inflation-adjusted) incomes fall steadily since the start of this century. Some of the steepest declines in median incomes have been seen in cities hit by industrial decline – for example a 27% drop in Springfield, Ohio and 18% in the conurbation that includes Detroit. But, ominously, even fast expanding success stories have seen incomes falling.

The area around Denver, Colorado, has seen its population grow by 600,000 since 1999, but its median income has fallen from $83,500 to less than $76,000. Similarly Raleigh, North Carolina, is a fast-growing city buoyed by a cluster of research universities and biotech firms; the population has shot up from 800,000 to 1.3 million this century. Yet its middle class has shrunk from 55% of the population to 50%, and median incomes have fallen by more than $11,000 to about $74,000.

Once upon a time, the middle class was a solid majority in this country.

In fact, 61 percent of all Americans were considered to be middle class back in 1971.

But now, the middle class in the United States is becoming a minority for the first time ever

“After more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it,” the Pew report said. “Since 1971, each decade has ended with a smaller share of adults living in middle-income households than at the beginning of the decade, and no single decade stands out as having triggered or hastened the decline in the middle.”

One of the big things that is destroying the middle class is the death of entrepreneurship.  For decades, small business creation was one of the primary engines that helped fuel the growth of the middle class, but in recent years small business creation has fallen to depressingly low levels

Fewer new businesses were created in the last five years in the US than any period since at least 1980, according to a new analysis (pdf) by the Economic Innovation Group (EIG), a bipartisan advocacy group founded by the Silicon Valley entrepreneur Sean Parker and others. Businesses that did form are also far more concentrated than ever before: just 20 counties accounted for half of the country’s total new businesses. All of them were in large metro areas.

It’s hard to put into scale the collapse of new business formation. We have no precedent for that rapid and steep of a collapse,” said John Lettieri, co-author of the report and co-founder of EIG, in an interview. “It will have a ripple effect in the economy. You‘re going to feel that impact five, 10, and 15 years in the future.”

Of course just about every other economic indicator shows the dramatic decline of the middle class as well.  As you can see from this set of charts from Zero Hedge, median family income, the labor force participation rate and the rate of homeownership are all way down over the last decade.  Meanwhile, the U.S. national debt, the number of Americans on food stamps and healthcare costs are way up.  Does that sound like a “healthy economy” to you?

Chart 2

Unfortunately, this is about as good as things are going to get.  A major new economic downturn is already brewing, and layoff announcements at major firms are running 24 percent higher this year than they were last year.

The America that most of us grew up in is dying, and what we have seen so far is just the tip of the iceberg.  If you follow my work closely, then you already know that I believe that much, much worse is coming.  But our leaders just continue on with business as usual.  They keep doing the same things over and over again, but they keep expecting different results.

What they are doing to “fix” things is not going to work, and that should be exceedingly apparent to everyone by now.

We need to start valuing working families again, and that means encouraging the growth of small businesses and encouraging the creation of middle class jobs.

Sadly, we have already entered the early stages of the next great economic crisis, and so things are going to get a whole lot worse for the working class before there is any chance of them getting better.

*About the author: Michael Snyder is the founder and publisher of End Of The American Dream. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*

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IF YOU READ NOTHING ELSE, THE FOLLOWING POSTS ARE ESSENTIAL:

How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)

What Exactly Does Global Economic Collapse Coming May 2016 Mean? 

Dr. Willie and Peter Schiff Together: Total Currency Collapse and Reset Coming

When Obama Suspends 2016 Election, a Guide to Survive Martial Law (Videos)

Economic Implosion Will Lead to Stock Market at 5,000 by 2017 Forecaster Says

Ron Paul, Jim Willie, Peter Schiff, and Collapse of US Dollar on a Global Scale

SKINNY DOLLAR

FOR MORE GREAT MATERIAL FROM JIM WILLIE:

Dr. Jim Willie: There Are No Prisoners Taken in The Global Money War

Dr. Jim Willie, Threat’s by Putin, Death of U.S. Dollar, and a New Arms Race

Dr. Jim Willie: Deutsche Bank Could Very Well Collapse Entire Banking System

Dr. Jim Willie: 7 Signs U.S. Economy Collapses; Gold Will Soon Back US Dollar!

Dr. Jim Willie: “Violent Gold and Silver Breakout” Coming to Economic Markets!

Dr. Jim Willie: Western Economic Markets Collapsing; Eurasian Markets Rise

Dr. Willie: Economic System is Collapsing Right Now; Us Dollar in a “Short Squeeze”

Dr. Jim Willie: The Dollar is Dead! Even Mainstream Media Realizes it!

Jim Willie: Chinese Replace US Swift Banking System, Hastening US Dollar Collapse

Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar

Dr. Jim Willie: Financial Deals Happening Behind Closed Doors; US Not Invited

Dr. Jim Willie: Economic Collapse is On Our Doorstep

Jim Willie: “The Quickening” is Approaching Global Economic Markets

Jim Willie: Both Our Allies and the American People Absolutely Hate Our Government

Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions

Jim Willie, the Crumbling Global Economy, and the Dollar Crisis

Dollar

FOR MORE GREAT MATERIAL FROM PETER SCHIFF:

Peter Schiff: “Trump’s Very Massive Recession May Have Already Begun”

Peter Schiff: Americans Fear Future With ‘Dead-End Economy, Crap Jobs, and Awful Wages’

Peter Schiff: “Can Donald Trump Really Make America Great Again?”

Peter Schiff: Dollar Collapse Will Be the Single Biggest Event In Human History

Peter Schiff: Obama “Peddling Fiction” As Unemployed Tops 100 Million People

Peter Schiff: Here Comes the Great, Great, Great, Great Recession!

Peter Schiff: “Whatever Obama Was Calling Recovery… is OVER!”

CNBC Actually Admits Peter Schiff Was Right… Again (Video)

Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead

Peter Schiff: Warning! Economic Storm Clouds Ready to Rain

Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options

 

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