Turn Out The Lights – The Party Is Over: 20 Signs That American Consumers Are Completely And Totally Tapped Out

Many economists have been mystified that even though the recession is “over”, American consumers have not opened their wallets and started spending again like they normally do at the end of a recession.  News report after news report has encouraged Americans to grab their credit cards and to head out to the stores and start spending again, but it just is not happening.  So why are things different this time?  Well, for one thing there is a lot of fear in the air.  Poll after poll after poll shows that faith in the economy has collapsed and that large numbers of Americans fear that things are going to get even worse for the economy soon.  But for millions of other Americans there is another problem – they couldn’t spend more money if they wanted to.  The truth is that living on credit for decades has caught up with us as a nation.  Americans are absolutely drowning in mortgage debt, car loans, credit card debt and student loan debt.  As wages have stagnated, credit has enabled many of us to pursue the American Dream and to live far beyond our means, but that doesn’t last forever.  Now tens of millions of Americans are completely and totally tapped out.  But without the return of the voracious American “consumer” there is not going to be a full economic “recovery”. (Read More...)

Economic Austerity Measures: Bitter Financial Medicine For Nations That Have Been Living Beyond Their Means

Over the past several decades, most of the major industrialized nations have been borrowing and spending unprecedented amounts of money.  This has enabled them to greatly stimulate their economies, and has allowed hundreds of millions of people to live fabulous lifestyles.  But there is a problem when nations try to live beyond their means for decades.  A big problem.  The problem is called debt.  Right now the world is facing a sovereign debt crisis that threatens to throw the entire globe into a very, very deep recession.  In fact, Bank of England Governor Mervyn King recently called this the worst financial crisis in history.  While that might be a bit dramatic (at least at this point), the reality is that the situation in the financial world is becoming very, very serious.  You see, debts have to be paid back eventually.  All over the globe, national governments are trying to deal with debt and interest on debt that has piled up so dramatically that they don’t know what to do about it.  For example, the United States is in a complete mess.  The U.S. national debt is scheduled to soon surpass 13 trillion dollars.  To get an idea of how big that is, if you went out and spent one dollar every single second,  it would take you more than 31,000 years to spend one trillion dollars.  It would take you more than 403,000 years to spend 13 trillion dollars.  Are you starting to get the picture?  This gigantic debt that the U.S. government has accumulated is about to turn the American Dream into the American Nightmare.  It is literally impossible for the United States to ever pay the national debt off, and as it continues to explode it will increasingly become a crushing load that the U.S. economy can simply not support. (Read More...)

The Coming Collapse Of The U.S. Dollar

As the U.S. media trumpets the arrival of a great “economic recovery”, the vast majority of the American people are completely unaware that the entire U.S. financial system is caught in a hopeless death spiral.  The cold, hard reality is that any temporary “green shoots” that we are seeing in the economy are there not because our politicians have figured out a way to deal with the financial problems of the United States.  No, the “green shoots” are there because our politicians have flooded our economy with a whole bunch more debt.  Debt will stimulate an economy for a little while, but the truth is that any new debt just makes our long-term economic problems even worse.  But now we are caught in a never ending cycle of debt, and there is no hope that we will ever be able to pay if off.  Most Americans do not understand economics, but if they did, they would realize that the American Dream is literally being destroyed right in front of their eyes.  Not only have we squandered the vast amounts of wealth that our forefathers left us, we have also piled up the biggest mountain of debt in the history of the world.  We have created an economic nightmare from which there is no escape.  Our children and our grandchildren will be trapped in it for their entire lives.  What we have done to future generations of Americans is absolutely criminal. (Read More...)

The Coming Economic Collapse Of Japan – And Why You Should Be Extremely Concerned About It

Most Americans pay very little attention to what is going on in the economies of other nations.  But they should.  The reality is that in today’s global economy, what is happening on the other side of the world can have a dramatic impact on the U.S. economy.  In particular, the ongoing implosion of Japan’s economy should greatly concern us all.  Japan is the 3rd biggest economy in the world and is one of America’s most important trading partners.  If Japan experiences a total economic collapse it will create a tsunami of financial panic around the globe.  In fact, it is likely that a default by the government of Japan would plunge the world into such an economic nightmare that the American Dream would quickly vanish for millions of American families.  So just how close is Japan to a financial collapse?  Well, Fitch Ratings says that Japan’s gross public debt has reached 201 percent of GDP and is likely to continue to pile up into very dangerous territory for the foreseeable future.  It is estimated that this gigantic mountain of debt amounts to 7.5 million yen for every person living in Japan.  Needless to say this is extremely troubling.  Japan has the highest level of public debt to GDP of any of the industrialized nations.  Japan is literally drowing in red ink.  Meanwhile, even with all of the massive government spending that has caused all of this debt, Japan’s economy still continues to implode at a frightening pace.  Japan’s discouraging battle with deflation dragged into its 13th straight month in March as prices continued to decline and the unemployment rate rose sharply.  In fact, the number of unemployed in Japan totalled 3.5 million in March.  This represented a 4.5 percent rise from the same period a year ago. (Read More...)

Generation Y: The Broke Generation

No group in America has been hit harder during the current recession than young adults.  Millions of Americans are graduating from college with virtually no money, lots of debt and with very dim employment prospects.  Those who don’t go to college are even worse off.  All their lives these young Americans were taught if they studied hard, got an education and worked within the system that good jobs and the American Dream would be waiting for them.  But now millions of them are realizing that all of their studying and hard work is not providing them with the rewards that they always thought they would get.  This is causing large numbers of young American adults to become depressed and disillusioned.  In fact, record numbers of them are moving back in with their parents.  But without decent jobs, what are they supposed to do?   (Read More...)

15 Reasons Why The U.S. Economic Crisis Is Really An Economic Consolidation By The Elite Banking Powers

Is the United States experiencing an “economic crisis” or an “economic consolidation”?  Did the financial problems of the last several years “happen on their own”, or are they part of a broader plan to consolidate financial power in the United States?  Before you dismiss that possibility, just remember what happened back during the Great Depression.  During that era, the big financial powers cut off the flow of credit, hoarded cash and reduced the money supply.  Suddenly nobody had any money and the economy tanked.  The big financial powers were then able to swoop back in and buy up valuable assets and real estate for pennies on the dollar.  So are there signs that such a financial consolidation is happening again? (Read More...)

10 Clear Signs That This Will Be A Double-Dip Recession In The United States

The U.S. economy has been riding out one of the worst recessions in modern history, but unfortunately every economic signal seems to be indicating that we are going to be experiencing a “double-dip” recession instead of a recovery.  U.S. government debt is out of control, a massive “second wave” of mortgages is scheduled to reset starting this year, banks have significantly tightened credit, pension funds across the U.S. are broke at a time when a ton of Baby Boomers are ready to retire, and a massive financial crisis in the Eurozone threatens to throw the world into financial chaos.  The truth is that 2010 is going to be another very tough year economically, and for many the American Dream is quickly becoming a distant memory.  The following are ten clear signs that this will be a double-dip recession in the United States…. (Read More...)

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