U.S. Economy Deteriorating At An Even Faster Pace

Despite doubling the national debt and the expansion of the money supply to some $8 trillion since the beginning of Obummer’s misbegotten presidency, the U.S. economy is once again in a free fall. Actually, there has been no real recovery, but a continual deterioration of living standards despite the lies and distortions from the financial media and government authorities.

Conditions, however, are now descending at an even faster pace.

Recently, the leading manufacturer of heavy equipment, Caterpillar, announced that job cuts would exceed 10,000 through 2018. Up to 5,000 employees will receive pink slips between now and the end of 2016. Retail sales for the manufacturing giant have slumped 11% between June and August.

While Caterpillar’s contraction is an ominous sign, a more telling indicator of worsening economic conditions came from the Federal Reserve’s refusal to raise interest rates at its latest FOMC meeting. Many commentators had speculated that the Fed would raise rates at least a quarter of one percent on the belief that the economy was strengthening.

The Fed, of course, based its refusal to raise rates on “international concerns” – China’s stock market selloff. The real reason is that the nation’s central bank understands, although it will not publicly admit it, that the economy is far too weak to “absorb” a rate hike, no matter how infinitesimal.

More importantly, the Fed cannot raise rates to any significant degree because the entire financial system, which is built on “cheap money,” would immediately plunge into a significant downturn similar to that of 2008, or worse. The federal government and many of the states and municipalities would default since they could not continue to finance their current profligate borrowing and spending patterns with higher interest rates.

Thus, the Fed is trapped in a world of zero interest rates for the foreseeable future. As economic conditions continue to worsen, the central bank will more than likely turn to another round of money printing like its infamous “QE” program.

While the Fed is locked into a zero interest rate policy, the Obama Administration and Congress remain oblivious to economic reality. A few years back, Obama and the one-time Democratically-controlled Congress tried a “stimulus” program which did nothing but increase the national debt. Also weighing down the economy is the disastrous Obamacare program, which will only become more burdensome as time passes.

Just as troubling, none of the current crop of presidential hopefuls, with one possible exception, has proposed or suggested any credible measure that will improve matters. None of the fundamental problems that are crippling the economy have been seriously addressed.

The reason why there has been no recovery is that the malinvestments and bubbles created during the last boom have not been allowed to contract and/or burst. Instead, the Fed pumped massive amounts of “liquidity” (money printing) into the markets, which kept these institutions (mostly banks) and their assets afloat.

A credit implosion will not come about “voluntarily.” The Fed will not increase interest rates, nor will the Obama Administration or Congress have the courage to cut spending to relieve pressure on the Fed to finance its unsustainable deficits and continue to inflate the stock market.

Instead, there eventually will be a monetary crisis surrounding the dollar, which will force interest rates to rise, which will lead to widespread defaults and bankruptcies and an ensuing depression which will dwarf every previous economic downturn in American history.

Alternative financial analysts have, for some time, pointed to the declining living standards not only in the U.S., but throughout the Western world. Egon von Greyerz of Matterhorn Asset Management has predicted some very unpleasant times in the not too distant future: “The coming years will not be easy. I wrote an article a few years ago called ‘The Dark Ages Are Here’ and I now really think they are imminent. These will be difficult times for most of us.”

Ultimately, the only way the U.S. economy will be turned around is through a change in ideology. The ideas and policies upon which not only the U.S. but the entire Western world’s economies are predicated upon must be debunked. Until the principles and beliefs of the current economic system are intellectually discredited, the U.S. economy will continue to stagnate and eventually collapse.

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The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.

Watch: 2-Time Obama Voter Goes To Trump Rally And ERUPTS On Obama- ‘Donald Trump’s The Man!’

A black man who vote for President Obama twice unleashed his feelings of betrayal by the current White House resident at a Donald Trump rally in Georgia on Saturday.

The man stood in front of the North Atlanta Trade Center in Norcross and yelled out his opposition to Barack Obama and his support for Trump to be the next President of the United States.

“Obama has failed us,” he said. “It’s time for somebody to make a stand!”

“I never voted before,” the man proclaimed. “And I voted for [Obama] twice. He broke my heart.”

“He broke our hearts, especially black people,” he added. “We ain’t got no jobs!” 

According to the Pew Research Center, the poverty rate among African Americans has increased since Obama became president, from 25.8 to 27.2 percent. Further, the black labor participation rate, at 60.2 percent, is the lowest it has been since 1977.

The man said that Obama had “bamboozled” him, but “He’s not doing it to me no more, because Donald Trump is the man!” 

Many passersby at the Trump rally obviously agreed with what gentlemen was saying.

Exit polling from the 2012 election found that 93 percent of African Americans voted for Obama, along with 71 percent of Hispanics and 73 percent of Asians, according to CNN.

Donald Trump has been pleased to point out that recent polling found him receiving a far greater percentage of the African American vote than any recent Republican candidate for president, though his support with Hispanics looks similar.

The man at Trump’s Saturday rally apparently does not need any more convincing.

“[Trump] is going to make all of us blessed, very successful. He’s going to take back this country…If you all want America great, every last one of you needs to go fight for Donald Trump!”

The Gov’t Just Announced The U.S. Economy Has Set A New Record- And It’s Awful News

Stocks fell Friday following lower-than-expected labor statistics for the month of September.

Though the official unemployment rate remained unchanged at just north of five percent, many critics of the Bureau of Labor Statistics say that figure does not take into account the millions of Americans who have dropped out of the workforce altogether.

One telling number included in the report addresses that growing segment of the population. While August set a record with roughly 94 million individuals older than 16 out of the labor force, that number grew to more than 94.6 million last month.

The nation’s workforce participation rate hit similarly distressing levels in September, marking the lowest percentage — 62.2 — of engaged Americans in nearly four decades. While the news is not good for the nearly 14 million Americans either unemployed or looking for work, it did not come as a surprise to many critics of the Obama administration.

Are you surprised so many Americans have dropped out of the workforce in the Obama economy? Share your thoughts in the comments section below.

Oops: Joe Biden Just Let Something Slip That Obama Definitely Doesn’t Want Talked About

Wage stagnation, income inequality and unemployment are stalking the American economy, Vice President Joseph Biden said Tuesday, contradicting past White House claims of widespread economic recovery.

Biden, who remains a possible candidate for the Democratic nomination for president, said black Americans suffer the most.

“While the unemployment rate for African-Americans has dropped by more than 7 percent since the height of the recession, it is still double the unemployment rate as the rest of the country,” he said. “And over the last 30 years, African-Americans have faced even greater wage stagnation then the rest of the country.”

He said “a basic bargain” has broken down in the United States.

“If you contributed to the success of the enterprise … you got to share in the benefits. If you worked hard and played by the rules, you got to share in the nation’s prosperity,” Biden said.

“The bargain has to be restored,” Biden said. “The people who were once left out have to be brought in.”

“We know that there is a lot more work to do to make the resurgence available to everyone,” he said.

Biden’s remarks followed a theme he has been sounding since Labor Day, citing the fact that the economic recovery of the past seven years hasn’t yet reached the middle class. At the time, Biden described the economic recovery as “devastating for workers.”

Biden made his remarks at a speech during the National Historically Black Colleges And Universities Week Annual Conference in Washington, D.C.

h/t: Breitbart

Congress Fiddles While The Economy Burns

Reports that the official unemployment rate has fallen to 5.1 percent may appear to vindicate the policies of easy money, corporate bailouts, and increased government spending. However, even the mainstream media has acknowledged that the official numbers understate the true unemployment rate. This is because the government’s unemployment figures do not include the 94 million Americans who have given up looking for work or who have settled for part-time employment. John Williams of Shadow Government Statistics estimates the real unemployment rate is between 23 and 24 percent.

Disappointingly, but not surprisingly, few in Washington, D.C. acknowledge that America’s economic future is endangered by excessive spending, borrowing, taxing, and inflating. Instead, Congress continues to waste taxpayer money on futile attempts to run the economy, run our lives, and run the world.

For example, Congress spent the majority of last week trying to void the Iranian nuclear agreement. This effort was spearheaded by those who think the U.S. should waste trillions of dollars on another no-win Middle East war. Congressional war hawks ignore how America’s hyper-interventionist foreign policy feeds the growing rebellion against the dollar’s world reserve currency status. Of course, the main reason many are seeking an alternative to the dollar is their concern that, unless Congress stops creating — and the Federal Reserve stops monetizing — massive deficits, the U.S. will experience a Greek-like economic crisis.

Despite the clear need to reduce federal spending, many Republicans are trying to cut a deal with the Democrats to increase spending. These alleged conservatives are willing to lift the “sequestration” limits on welfare spending if President Obama and congressional Democrats support lifting the “sequestration” limits on warfare spending. Even sequestration’s miniscule, and largely phony, cuts are unbearable for the military-industrial complex and the rest of the special interests that control our government.

The only positive step toward addressing our economic crisis that the Senate may take this year is finally holding a roll call vote on the Audit the Fed legislation. Even if the audit legislation lacks sufficient support to overcome an expected presidential veto, just having a Senate vote will be a major step forward.

Passage of the Audit the Fed bill would finally allow the American people to know the full truth about the Fed’s operations, including its deals with foreign central banks and Wall Street firms. Revealing the full truth about the Fed will likely increase the number of Americans demanding that Congress end the Fed’s monetary monopoly. This suspicion is confirmed by the hysterical attacks on and outright lies about the audit legislation spread by the Fed and its apologists.

Every day, the American people see evidence that, despite the phony statistics and propaganda emanating from Washington, high unemployment and rising inflation plague the economy. Economic anxiety has led many Americans to support an avowed socialist’s presidential campaign. Perhaps more disturbingly, many other Americans are supporting the campaign of an authoritarian crony capitalist. If there is a major economic collapse, many more Americans — perhaps even a majority — will embrace authoritarianism. An economic crisis could also lead to mob violence and widespread civil unrest, which will be used to justify new police state measures and crackdowns on civil liberties.

Unless the people demand an end to the warfare state, the welfare state, and fiat money, our economy will continue to deteriorate until we are faced with a major crisis. This crisis can only be avoided by rejecting the warfare state, the welfare state, and fiat money. Those of us who know the truth must redouble our efforts to spread the ideas of liberty.

© Copyright 2015 Ron Paul

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by WesternJournalism.com.