Unemployment Is 37.2%, ‘Misery Index’ Worst In 40 Years Paul Bedard washingtonexaminer.com January 21, 2014
Don't believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud. In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government. Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn't being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure. “The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more. “Unemployment in its truest definition, meaning the portion of people who do not have any job, is 37.2 percent. This number obviously includes some people who are not or never plan to seek employment. But it does describe how many people are not able to, do not want to or cannot find a way to work. Policies that remove the barriers to employment, thus decreasing this number, are obviously beneficial,” he and colleague Megan Russell in their new investors note from their offices in Charlottesville, Va. They added that “officially-reported unemployment numbers decrease when enough time passes to discourage the unemployed from looking for work. A decrease is not necessarily beneficial; an increase is clearly detrimental.”
Then there is the Misery Index, which is a calculation based in inflation and unemployment, both numbers the duo say are underscored by the government. He said that the Index doesn’t properly calculate how Uncle Sam is propping up the economy with bond purchases and other actions. “These tricks, along with a host of other dubious accounting schemes, underreport inflation by about 3 percent,” they wrote, adding that the official inflation rate is just 1.24 percent. “Today, the Misery Index would be 7.54 using official numbers,” they wrote. But if calculations tabulating the full national unemployment including discouraged workers, which is 10.2 percent, and the historical method of calculating inflation, which is now 4.5 percent, ‘the current misery index is closer to 14.7, worse even than during the Ford administration.” Wall Street advisor: Actual unemployment is 37.2%, ‘misery index’ worst in 40 years VIDEO BELOW http://washingtonexaminer.com/wall-street-advisor-actual-unemployment
After The Collapse: Six Likely Events That Will Follow An Economic Crash Mac Slavo SHTFplan.com January 21, 2014
It’s not too difficult to understand that we are well on our way to a paradigm shift in America; in fact we’re in the midst of it right now. The writing is on the wall and can no longer be ignored. The US government has run up trillions of dollars in debt, and given the recent debates over the country’s debt ceiling, we can rest assured that neither Congress or the President will act to curtail spending and balance the budget. We will continue adding trillions of dollars to the national debt clock until such time that our creditors no longer lend us money. From the monetary side, the Federal Reserve’s response to this unprecedented crisis has been to simply “print” more money as is necessary. On top of the trillions in dollars already printed thus far, the Fed
continues quantitative easing to the tune of about $80 billion per month. It’s the only arrow left in the Fed’s quiver, because failing to inject these billions into stock markets and banks will lead to an almost instant collapse of the U.S. financial system. Unfortunately, the current strategy is chock full of its own pitfalls, the least of which being the real possibility of a hyperinflationary environment developing over coming months and years. On Main Street, average Americans have seen their wealth decimated. They’ve lost millions of jobs and homes over the course of the last five years. And if recent reports are any indication, the destruction of the middle class will continue unabated for years to come. The resulting effect is a vicious negative feedback loop that continues to build upon itself. Americans no longer have money (or credit) to spend to prop up the economy, thus more jobs will be lost, leading to more people requiring government assistance for everything from food to shelter. We are, on every level, facing a collapse of unprecedented scale. As noted by International Man Jeff Thomas of Casey Research, it’s not that difficult of an exercise to predict what’s coming next: The number of people whose eyes have been opened seems to be growing, and many of them are asking what the collapse will look like as it unfolds. What will the symptoms be? Well, the primary events are fairly predictable: they would include major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US dollar. We know a collapse is coming… If you’re paying attention you probably have the distinct feeling that we are in the middle of it right now. And guess what? The government and military know it’s coming too, as evidenced by large-scale simulations of exactly such an event and its fallout. But the collapse of our financial system, or hyperinflation of our currency, or a meltdown in US Treasuries is only the beginning. We know some or all of these events are all but a foregone conclusion. What we don’t know is the timing of the trigger event that causes the global panic to ensue and what will happen after these primary events take hold. According to Jeff Thomas, while we can’t know for sure, the following “secondary events” are the most likely outcomes when the system as we have come to know it destabilizes. The secondary events will be less certain, but likely: increased unemployment, currency controls, protective tariffs, severe depression, etc. But, along the way, there will be numerous surprises—actions taken by governments that may be as unprecedented as they would be unlawful. Why? Because, again, such actions are the norm when a government finds itself losing its grip over the people it perceives as its minions. Here are a few:
• Travel Restrictions. This will begin with restrictions on foreign travel, including suspension/removal of passports. (This has begun in a small way in both the EU and US.) Later, travel restrictions will be extended within the boundaries of countries (highway checkpoints, etc.)
• Confiscation of wealth. The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft. This does not automatically mean that other assets, such as precious metals and real estate will also be confiscated, but it does mean that the barrier for confiscation has been eliminated. There is therefore no reason to assume that any asset is safe from any government that approves theft through bail-ins.
• Food Shortages. The food industry operates on very small profit margins and survives only as a result of quick payment of invoices. With dramatic inflation, marginal businesses (suppliers, wholesalers, and retailers) will fall by the wayside. The percentage of failing businesses will be dependent upon the duration and severity of the inflationary trend.
• Squatters Rebellions. A dramatic increase in the number of home and business foreclosures will result in homelessness for anyone whose debt exceeds his ability to pay—even those who presently appear to be well-off. As numbers rise significantly, a new homeless class will be created amongst the former middle class. As they become more numerous, large scale ownership of property may give way to large scale “possession” of property.
• Riots. These will likely happen spontaneously due to the above conditions, but if not, governments will create them to justify their desire for greater control of the masses.
• Martial Law. The US has already prepared for this, with the passing of the 2012 National Defense Authorization Act (NDAA), which many interpret as declaring the US to be a “battlefield.” The NDAA allows the suspension of habeas corpus, indefinite detention, and the assumption that any resident may be considered an enemy combatant. Similar legislation may be expected in other countries that perceive martial law as a solution to civil unrest.
The above list is purposely brief—a sampling of eventualities that, should they occur, will almost definitely come unannounced. As the decline unfolds, they will surely happen with greater frequency. Full article at Casey Research via The Daily Crux
We could go point by point on this list and provide a plethora of evidence to validate Jeff’s claims, but that would take pages upon pages of references. The fact is that the US government, for the last decade, has been moving increasingly closer to what can only be described as a police state. With watch lists, militarized police departments, legislative actions, and executive orders the government has already set the stage for these secondary events. When the system itself is no longer able to support the tens of millions of Americans receiving monthly government assistance, one hiccup could set the whole thing ablaze. While it can’t be avoided on a national scale, there are advance preparations that individuals and their families can make to, at the very least, insulate themselves from the secondary event triggers. This includes storing essential physical goods and keeping them in your possession. Things like long-term food supplies, barterable goods, monetary goods, self defense armaments and having a well thought outpreparedness plan will, if nothing else, provide you with the means necessary to stay out of the way it all hits the fan.
U.S. Debt Up $1,608,304 For Each Baby Born The Year Obama Took Office Terence P. Jeffrey CNS News January 21, 2014
Under President Barack Obama, the total debt of the U.S. government has increased by approximately $1,608,304 for each of the 4,130,665 babies born in the United States in 2009, the year Obama took office. Today--Jan. 20, 2009--is the fifth anniversary of Obama’s first inauguration. If the federal government were to continue accumulating net debt throughout the expected 78.5-year lifespan of a baby born in 2009 at the same average annual pace it has accumulated net debt during Obama’s first five years as president, the government would add more than $104 trillion in net debt
during the life expectancy of those babies. So far during Obama’s presidency, the federal government has borrowed a net total of $6,643,363,305,451.78. That works out to an average of approximately $1,328,672,661,090 per year, or $104,300,803,895,565 over 78.5 years. The National Center for Health Statistics estimates that the life expectancy of a baby born in the United States in 2009 is 78.5 years. The $104,300,803,895,565 the federal government would borrow during the lifetimes of babies born in 2009—if the government were to continue to borrow at the annual pace of $1,328,672,661,090 it maintained in Obama’s first five years —would equal approximately $25,250,366 for each of those babies. At the close of business on Jan. 20, 2009, the day Obama was inauguragted, the total debt of the federal government was $10,626,877,048,913.08, according to the U.S. Treasury. At the close of business on Jan. 16, 2014, the latest day reported, the total debt of the federal government was $17,270,240,354,364.86. The $6,643,363,305,451.78 that the federal debt has increased during Obama’s first five years equals approximately $1,608,304 for each of the 4,130,665 babies that the National Center for Health Statistics says were born in the United States in 2009. It also equals approximately $321,661 per year over the last five years for each of the babies born in 2009. (Forty-one percent of those babies born in 2009--or 1,693,658 of them--were born to unmarried mothers, according to the National Center for Health Statistics.) The $6,643,363,305,451.78 that the federal debt has increased during Obama’s first five years also equals approximately $57,762 for every one of the 115,013,000 households the Census Bureau now estimates there are in the country. It also equals an average of about $11,552 per year per household. The $6,643,363,305,451.78 the federal debt has increased under Obama is more than all the debt the U.S. government accumulated under all presidents from George Washington through Bill Clinton. The total debt of the U.S. government first surpassed $6,643,363,305,451.78 on June 30, 2003, when it rose from $6,589,675,806,363.96 to $6,670,121,155,027.26. Between Jan. 20, 2009 and today, the Obama administration has run up more debt than the U.S. government accumulated from the Declaration of Independence in 1776 through June 29, 2003.
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