Economic Woes? The Squeeze Continues...

Did you think 2010 was a tough year? Do you think this is the year things will start to turn around. Or are you pessimistic, thinking things are probably going to get worse? Maybe you’re one of those who just don’t understand what the problems are and just hoping and praying things get better - and soon.

Are you one of those who had a good paying job and had to settle for less money and working well below your skill set? Are (were) you able to hold on to your home or did you have to walk away from it?

While some people have been able to snag a lower paying jobs, others have not been so lucky. Many have lost their homes and now living with other family members or even friends. Others are living out of tents, cars, and whatever they can make a home out of.

Unemployment is still dismally high as government only counts those on unemployment compensation. When government reports a decline in employment they are actually reporting a decline in unemployment compensation. Millions of Americans have been forced to take part time jobs that don’t even pay enough to meet their survival let alone offer health insurance. Many have not been able to secure employment and have given up. It’s millions of people.

When Obama-care kicks in down the road these people will be squeezed hard as they will be force to buy their own insurance. And what will they buy it with? A measly government voucher? The Obama Administration has given away over 1,000 wavers to companies and unions across the the land exempting them from health care law. These same companies and unions are raking the cash to the tune of $5 billion dollars under the health care Early Retiree Reinsurance Program. You thought health care was free and for you - didn’t you?

Once America was the king of productivity and manufactured everything. America is still pretty good at it and still does quite a bit of it - but it has changed. High ticket items are still made in America like cars, aircraft engines, and all kinds of high tech products. But the lower tech lower ticket items with smaller profit margins have all but moved out of the USA or have closed down for good. Today 9% of jobs in the USA are manufacturing as compared with 25% in the 1970s. Since 2001 42,000 factories have closed for good. The void has been filled with low paying retail and service jobs.

According to the Social Security Administration, total, average, and mean wages have been in decline since 2009. At the top of the food chain wages have increased by five times. Are CEOs and executives preparing for a big depression?

The largest corporations have done well thanks to the globalization of the economy. But these corporations have been creating more jobs overseas than in America. Foreign governments are more friendly toward big business offering little regulation.

Big corporations have been lobbing politicians and bureaucrats for years to make laws that benefit their businesses through tax reductions, bail outs, lucrative government contracts, patents, and laws. When they can’t get something done on their own they turn to influential politicians who they can work a deal with. Those deals are always rooted in cash and votes.

The loss of industry has been devastating to American cities. Cities like Philadelphia, Pittsburgh, Detroit, and Dayton have experienced population decline as much as 50%. These cities are now strapped for cash and have reduced services while increasing taxes and fees. These governments have lived way beyond their means and have grown by leaps and bounds as reflected by their annual budgets. Municipal, state, and federal governments have used taxpayer money to push their own agendas on to who else - taxpayers. City Councils conspire against taxpayers by cutting fire, police, and services while politicians and unions keep their perks.

Many corporations, banks, and unions don’t care about the recession. They have all the money they need thanks to the taxpayer. Thousands, millions, and billions of dollars have been given away through the stimulus, bailouts, and health care loopholes. Even to foreign banks have benefited. Many states followed a similar pattern.

The housing collapse is still collapsing as prices continue to drop on real estate. You would think that people would be able to buy but they're not. People still can’t afford it. You don’t need statistics just your local paper. More houses are up for rent now than ever before.

Millions of mortgages are underwater and banks can’t verify the legal owners of the homes they mortgaged. The paper has been diced and chopped up so finely and could be anywhere in the world. Yet the owners are camping right outside their offices overnight trying to save their homes from foreclosure. What is government doing - throwing millions at Freddie Mac and Fannie Mae who are losing money faster than it can be printed.

The commercial real estate market has collapsed. You don't hear about that in the media. But you don’t need the media to drive through your local industrial park to see how many buildings are now empty.

America has borrowed so much money that we will not be able to afford the interest on these loans. This could happen in the next few months. All you have to do is visit If you have a clue your eyeballs will pop out of your head. When the loans default - the dollar crashes.

The US will not default on its loans. The US Treasury will inflate its way out of debt in a feeble attempt to put on a good face and keep the status quo going. The dollar will still crash and as prices on food, shelter, clothing, fuel, and everything else rises until you can't afford it.

Universities are crawling with cash flow. Government is now the only game in town and is giving away billions in loans. Universities are always crying for more free money from government that they don’t need. They have endowments in the billions that they have been sitting on for years. Many graduates are finding college was not worth it. Graduates can not find jobs and are in severe debt. Many loans are now in default and this is the next bubble that will break.

Meanwhile congress keeps politicking on the budget. Republicans want to cut debt over time and the Democrats just want to keep on spending to keep the handouts going they traded for votes. Well we are out of time and there is no more money to spend.

The Federal Reserve keeps the money presses running day and night trying to bail out the world. Geither wants congress to raise the debt limit so the Fed can print more worthless bonds. The “Debt Limit” is code for “we are out of money and it’s time to borrow more because we can print enough fast enough”. And that’s code for “our money is worthless”.

Even if every American is taxed 100% it would still not be enough to balance the budget.

If the democrats and republicans really had the interest of the people and country at hand they would kill off the Fed and restore the dollar by backing it with real money - gold. But don’t hold your breath, the Fed can’t print gold and congress won’t incriminate itself. As bad as things are the recession hasn't hit congress yet.

The Democrats never let an opportunity go by. They are using the budget crises as an excuse to raise more money money under the flag of extortion. Democrats are good at the money and blame game. Their actions are self evident.

Inflation is now setting in. The prices of everything is going up. Food, clothing, fuel, utilities are starting to skyrocket causing more suffering. And it’s not just inflation. Many products that you buy cost more because there are a slew of regulations behind it.

Is it any wonder we are $14 trillion in debt?

If you aren’t aware of all this nonsense then it’s time to get with the program. If your turning a blind eye to it or supporting it then you are part of the problem. If you think it won’t affect you then you are fooling yourself. You are going down with the rest of us.

It has come to pass to step out of the child like world of instant, emotional, and self gratification. It is time to keep your heart to yourself and family. It is time to give your head to your country. Your country has become emotionally compromised.

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LRCBlogger profile image

LRCBlogger 5 years ago

Long term debt is really concerning. I will say the financial markets have been roaring and extremely profitable. Employment has improved and so has consumer sentiment. I read a stat the other day that 1/2 of the fortune 500 plan on hiring this year. The real challenge as you pointed out, is getting serious decisions made on the deficit and debt.

The very sharp people will profit from the upcoming uncertainty and turmoil but most will struggle.

someonewhoknows profile image

someonewhoknows 5 years ago from south and west of canada,north of ohio

We,have been living under a corporation in Washington D.C. that uses the name "THE UNITEDSTATES".

A UNITEDSTATES CITIZEN is a citizen of Washington D.C.

ZIPCODES are REGIONS of the District of Columbia

Your Birth cerificate is proof of ownership by the government.

You are considered a corporate entity by virtue of the use of your name in "ALL CAPITAL LETTERS".

Look at your name as it's printed on any mail you recieve. If,it's in all caps it's a corporate name.

If,not,it's the real person.

Don't believe me check any good dictionary under "Capital letters" for definition or the section on punctuation.

joer4x4 profile image

joer4x4 5 years ago from Philadelphia, PA Author


I think the markets are a blip on the screen. One reason the price of oil is rising and oil is used in just about everything today.If it goes too high it could be devastating.

I don't trust the unemployment numbers. I know more than a few who were laid off for some time and there are to many empty office buildings.

But time will tell and I hope I'm dead wrong but once a trend starts it usually finished out.

someonewhoknows -

Interesting you should bring that up. I read something to that effect years ago doing some research. If memory serves me the claim was the USA actually incorporated in the mid 1800s? I never followed up on it.

Thanks for the comments:)

breakfastpop profile image

breakfastpop 5 years ago

I'm with you. The markets are going to start to react to the turmoil in the world. Prices will soar, the dollar will lose more ground and we are going to be in deep do do. This administration is doing nada to help us weather the storm.

LRCBlogger profile image

LRCBlogger 5 years ago

Joer, you are right on, just like what happened only a few short years ago, if oil continues to rise and we see 140 a barrell or anywhere close, companies suffer from increased variance in logistics costs, products go up, resin & plastic go up, etc etc. It will send us right back down (however, it will present another very profitable opportunity in the trading markets).

The challenge is that oil moves more on speculation than anything else and the big financial firms along with OPEC have the largest influence. I wonder if they are dumb enough to shoot themselves in the foot again by running up the price and getting greedy.

someonewhoknows profile image

someonewhoknows 5 years ago from south and west of canada,north of ohio

There will be a push for a new currency just as they have in Europe.The next step would be a world currency or a cashless society.The way I heard it there is a group that wants to control the economy of the world and it's people.You have heard of the mark of the beast I take it.It's a system for control of very one through their money or what used to be money.It,will all be digits on a computer.They can just turn off your chip if they see you are a problem for them.They will justify it by saying that it the only way to prevent criminal behaviour and the underground economy from not paying taxes etc.All of which is true.However at what cost?

Your Freedom!

joer4x4 profile image

joer4x4 5 years ago from Philadelphia, PA Author

My thinking is that is if oil goes high - markets will drop, reduce spending, and will further weaken the dollar. We have to remember when we buy oil we buy it directly with dollars. All other countries must buy dollars first then buy oil. This is why oil has been traditionally cheaper in the US

On top of that the Fed keeps printing dollars to keep the circulation up to cover the world debt because the dollar is the worlds currency. Every county is in debt. The US is the only country that can legally print money by international agreement (not Constitutional law). But like anything else the more of it you have the less it is worth and it isn't working.

I believe there will not be a new currency until the dollar crashes on its own because it will trigger a depression. Unlike the Sterling of decades ago there are far more dollars in circulation and tied up in debt. Instead, as money devalues and debt increases, we will have to suffer through some inflation first then a depression will hit.

I think a lot of this hinges on energy. If someone or some company can come up with a better energy source than we have now then is may turn the whole thing around.

Now that's enough... you guys are forcing my hand on an up coming hub...LOL!

pennyfraser 5 years ago

Currently, the cost of health care is rising at a much higher rate than inflation. Even if we were to implement your beloved single payer, at a certain point we can not afford to pay for every new treatment and technology that comes along if we want to have any semblance of an economy. If you dont have insurance you should check out "Penny Health Insurance" for information on how to get one.

CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Joe - everything is a zero sum game, even public dept. So somebody had to give money to finance the dept. Interesting to see who did it.

For the last 10 years from 2001 on public dept rose from 5 Trillion to 14 Trillion USD. While in 2001 half of the dept was privately backed, in 2010 it was 65% or 8,5 Trillion of treasuries in private hands.

The other part of the dept not in private hand is FED money or intergovernmental holdings, in other words: money out of thin air.

Who is private?

During the last 10 years, liabilities to foreign investors rose some 6,5 Trillion USD. From September 2008 on virtually all privately held treasuries were bought by foreign money. Does that tell enough?

Some lesson to learn: The world spent a considerable amount of money to help Uncle Sam get along, this money is not available for propelling world economy. But emerging markets, BRIC economies didn´t care for that and keep on growing and prospering. With due respect: Face it, the US is not the center of the world any more.

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