Socio-Economics History Blog

Socio-Economics & History Commentary

America is at the Edge of Niagara Falls

  • Bob Moriarty the founder of 321Gold.com gives his assessment of what is about to happen to America in the coming few months. Admittedly he is a Gold Bug. Nonetheless, what he says is fascinating.
     
  • Bob says in : Chaos on the Horizon? Invest in Real Assets ,
      
    We are to the point where we are about 14 feet from going over the edge of Niagara Falls. We haven’t gone over the edge yet; we haven’t gone to a total collapse. We don’t have riots in the streets; we don’t have a revolution. That’s coming; that’s about two to three months off.
     
    Here’s what we’ve got: the Fed has committed to $8.5 trillion of taxpayers’ money to bail out the worst run companies and banks. It hasn’t worked. Now, they’re at a 0% to .25% on the Fed Funds rate for funds for banks, which means if you go down and you pay $100,000 for a T-bill for 90 days, your return is zero, which is to imply that there is zero risk to investing with the government. Anybody who actually believes that is going to be in for a real shock in the first quarter of next year.
       
  • Hyperinflation seems to be on the near horizon: 9 – 12 months later? US debt default is increasingly being discussed in the open. Bob again :
     
    What we have done is guaranteed hyperinflation in the United States. We have guaranteed the destruction of the United States. We will have riots starting in the first quarter of next year; we will default by the summer of 2009. 
     
  • His view squares with that of Gerald Celente. America will see a major economic collapse followed by riots, martial law (??) , food shortage… etc will follow. Why is US Army redeploying troops to America? Why is the Pentagon openly discussing possible collapse of American society? Martial Law?? These are all very dire predictions for the future of America.
     
  • It does not help that Russian Professor Igor Panarin says in : As if Things Weren’t Bad Enough, Russian Professor Predicts End of U.S.
      
    Mr. Panarin posits, in brief, that mass immigration, economic decline, and moral degradation will trigger a civil war next fall and the collapse of the dollar. Around the end of June 2010, or early July, he says, the U.S. will break into six pieces — with Alaska reverting to Russian control.
       
    “There’s a 55-45% chance right now that disintegration will occur,”
     
  • Crazy Russian?? Well, maybe a little !

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January 2, 2009 Posted by | Economics | , , , , , , , , | 3 Comments

The Rise of the 4th Reich On Coast to Coast AM

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January 2, 2009 Posted by | History | , , , , | 4 Comments

Economic Collapse of 2009 – Greater than Great Depression of 1929

Gerald Celente is a famous analyst/forecaster of Trends Research Institute. He compares the current 21st Century Great Depression with the 1st Great Depression. He gives an insight into what is happening in America and the world now and what is upcoming in early 2009.

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January 2, 2009 Posted by | Economics, History | , , , , , , , , , | 7 Comments

Anti Zionist Jews that lived in Palestine Tell Their Story


  • Jews and Muslims were living in peace for many centuries before 1948 in Jerusalem/Palestine. What is happening now in Gaza is not of G_d. See my earlier post : A Plea for the Families in Gaza .
     
  • Thank G_d for such Anti Zionist G_d fearing Jews. Zionism propagates fear and hate. It has nothing to do with religion. 
     
  • This Rabbi is speaking the truth! The Bible/Torah forbids the oppression of any people. The oppression of the Palestinians is wholly unacceptable and immoral. Here are the proofs :
     
    Exodus 22:21
    “You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.”
     
    Exodus 23:9
    “Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.”
     
    Leviticus 19:34
    The stranger who dwells among you shall be to you as one born among you, and you shall love him as yourself; for you were strangers in the land of Egypt: I am the LORD your G_d.
     
    Deuteronomy 10:19
    Therefore love the stranger, for you were strangers in the land of Egypt.
     
  • Above commandments are very clear ! It is time to speak up for the many Palestinian civilians that have been killed in the current conflict.

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January 2, 2009 Posted by | EndTimes, GeoPolitics, History | , , , | 19 Comments

Signs of the 21st Century Great Depression

homeless

Barbara Davidson / Los Angeles Times

 Here are some rather interesting signs of the 21st century Great Depression that we will not see in normal times.

  • Number of people homeless is soaring : Los Angeles County shelters brim with families :  
     
    By comparison, last year the agency took in 20 families at its emergency shelters over the entire cold weather season from Dec. 1 to March 15, with 15 to 20 more at its downtown mission. Two weeks ago, the mission downtown opened up its fifth floor to two-parent families and single fathers with children, something it has never had to do before. It may also convert its chapel to sleeping quarters.
     
    “This is, as far as I am concerned, a disaster of Katrina-esque proportions,” said Tanya Tull, chief executive of the nonprofit Beyond Shelter. A variety of negative economic forces are contributing, she said, from job losses to an uptick in foreclosures.
       
  • How is it affecting the man in the street ? People Pulling Up to Pawnshops Today Are Driving Cadillacs and BMWs 
      
    Typically, pawnshop customers have a household income of about $29,000, according to Dave Adelman, president of the 2,400-member National Pawnbrokers Association. But operators around the country say they are seeing a surge in new activity fueled in part by a different clientele: middle- and upper-middle-class customers facing ravaged stock portfolios, tightened bank credit and unexpected layoffs. …….
      
    Lee Amberg, owner of AA Classic Windy City Jewelry & Loan in affluent Evanston, Ill., said he’s been seeing Cartier watches, two-carat diamonds, David Yurman jewelry and pieces from Tiffany’s. One client, he said, brought in a fur coat from Saks Fifth Avenue that retailed at $9,000. She told him she needed a loan to help buy private-school uniforms for her child.
     
  • When you run out of money for food : Almost one in 10 Floridians are on food stamps ,
     
    MIAMI — Unemployed and strapped for cash, Floridians are asking for state assistance to feed their families in record numbers. In the last two years, the number of Floridians on food stamps has increased more than 40 percent to 1.7 million. That increase is the highest in the nation, according to the U.S. Department of Agriculture. And it’s the second-largest jump in the state’s history, surpassed only during the aftermath of Hurricane Andrew…… 
     
  • How bad is it for the gambling rich ? Atlantic City Bleeds as Would-Be Gamblers Pay Bills :
      
    “It’s not like it used to be,” Panagiotou said. “All of the casinos are struggling. People are not going to find money to gamble when they need to find it just to live.” After 28 years of growth, Atlantic City’s gambling proceeds are down for the second time in a row. In the first 11 months of 2008, revenue from casino games fell 6.7 percent to $4.2 billion, regulators reported Dec. 10. Last year’s 5.7 percent decline was the first ever, as the number of visitors slipped to 33.3 million from 34.5 million.    
     
  • Less and less people are eating out : US restaurant sales dip :
      
    LOS ANGELES, US – THE performance of US restaurants worsened in November as visits and sales at established eateries declined from a year earlier, the National Restaurant Association said on Wednesday.‘A solid majority of restaurant operators reported negative same-store sales and traffic levels in November, while nearly one-half expect their sales in six months to be lower than the same period in the previous year,’ said Mr Hudson Riehle, the NRA’s senior vice-president of research and information services. The NRA represents 945,000 restaurant and food service outlets in the United States. 
     
  • People are eating cheaper and buying cheaper.That is why McDonalds and WalMart are doing rather well. Downgrading is the key word. I expect that many mid tier brands ie brands that are in between lowest end and highest end will not survive in the coming years. The filthy rich will not be affected much by this depression. The in betweens, middle class will downgrade to survive.
     
  • CNN asks :  Is recession behind spike in bank robberies?
       
    NEW YORK (CNN) — A rash of bank robberies in New York has the city’s police commissioner worried that criminals have turned banks into “virtual cash machines” and some wondering whether tough economic times are fueling the trend.
     
     
  • How are states and municipalities doing ?
    Cash-strapped states weigh selling roads, parks, lotteries
     
    Like families pawning the silver to get through a tight spot, states such as Minnesota, New York, Massachusetts and Illinois are thinking of selling or leasing toll roads, parks, lotteries and other assets to raise desperately needed cash.
     
    Moorlach Sees Up to 10 Municipal Bankruptcies in Coming Year
      
    The accountant who predicted the nation’s largest municipal bankruptcy says as many as 10 insolvencies will roil the $2.7 trillion U.S. market for state, county and city debt next year as public finances worsen amid calls for federal aid to state and local governments. ….As many as four cities in the Golden State and six others nationwide may seek court protection from creditors next year under Chapter 9 of the bankruptcy code, the section devoted to municipal governments, Moorlach said in an interview. “The total could be higher,” …   

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January 2, 2009 Posted by | Economics, Social Trends | , , , | Comments Off on Signs of the 21st Century Great Depression

Rising Unemployment Worldwide

  • As the Great Depression of the 21st century bites, we are facing an increasing amount of worker retrenchments across the globe.
     
  • It is again pretty dramatic how just within a few months, the red letters have been sent out. Richard Fletcher reports about the situation in UK in After dramas of 2008, prepare for unemployment to take centre stage :
     
    While the collapse of financial institutions dominated 2008, I believe unemployment will dominate 2009.  …. More than 75,000 extra people claimed Jobseeker’s Allowance in November – the largest monthly increase for more than 17 years.
     
    If the forecasters are to be believed the picture will get a lot worse in the coming year. The Chartered Institute of Personnel and Development (CIPD) forecasts that 600,000 workers face redundancy this year – the equivalent of 1,600 people a day. 
     
  • Unemployment is forecasted to hit 3 million officially. Although 3M is a very high figure, don’t doubt that it can go a lot higher. What is especially disturbing is that it will affect the public sector too in UK: Britain’s job ‘bloodbath’ ,
     
    Britain faces an unemployment “bloodbath” in the new year with many tens of thousands of jobs axed in the public and private sectors, according to a cabinet minister. Senior government figures are braced for a dramatic lengthening in dole queues in the first quarter of 2009, as employers delay announcing redundancies until after Christmas.
     
    Thousands of civil servants and town hall workers will share the pain as government efficiency savings bite, while struggling retailers and manufacturing industry are heading for heavy redundancies.
     
    Contradicting saloon-bar wisdom, which says public jobs are safe, the public sector will not be immune from waves of redundancies, with unions warning of more than 5,000 planned job losses among town hall workers alone. They could be the tip of the iceberg as councils face tough financial settlements from central government.
     
  • UK is in an extremely bad state, worse than most want to admit publicly. There are talks that UK may default on its public debts. Again I don’ t think this is idle talk. Looking at the amount of debts accumulated over the past 7 years, the extreme excesses, the borrow with abandon culture chasing after property prices, no surprise here should UK default ! If only UK had not gone into this unnecessary Iraq war. They would be much richer.
     
  • Official unemployment for UK is now at 6%, already the highest since 1997. The next comparison by mid 2009 will likely be ‘worse since the Great Depression’ when the unemployed ranks stretch dole lines. 1 in 10 unemployed? Easily. Will go as high as 1 in 4 unemployed I think.
     
  • We now go to the darling of growth for the past 2 decades : China. Economists have rapidly revised China’s growth rate from 9-10% to 5% and a few thinks – under 5%. Economic growth of 5% is nothing to laugh about for any economy. However for China, it is considered a dangerous level. The Beijing central government estimates that China needs to grow by 7-8% to generate enough jobs for the rural migrant workforce. These rural migrant workers which goes to the urban areas to look for jobs is estimated at 200+ million.
     
  • Rising unemployment is a massive worry for the Chinese government. Reuters report  Unemployed masses worry stability-obsessed China :
     
    A commentary in the Communist Party mouthpiece, the People’s Daily, said on Wednesday China faced a tough task maintaining social stability in the face of serious economic challenges.
     
    China is worried that the thousands of factories shutting or laying off workers, especially along the export-dependent coast, could lead to unrest if the unemployed hit the streets.
     
  • Even the highly educated are finding jobs hard to come by :
     
    The employment situation may be worse than the 1990s … This time, college graduates are not finding work, and there are so many of them….
     
    More than six million students will try to enter China’s workforce next year, half a million more than last year. Up to a quarter could have difficulty finding jobs
     

    INTERNATIONAL-US-CHINA-ECONOMY-UNEMPLOYMENT

    A migrant worker carries his belongings at a railway station in Nanjing, Jiangsu province, in this November 6, 2008 file photo. REUTERS/Sean Yong/Files

  • There is a huge reverse migration going on, as rural migrant workers lose their jobs and decide to return to their farmland. China’s great migration wrenched back by crisis :
     
    The biggest migration in human history has gone into reverse. China’s ocean of blue-collar workers is streaming back to the country’s farming hinterland, bringing thwarted aspirations and rising discontent in tow as their city jobs, their paths out of poverty, fall victim to the global economic crisis……
     
    “Lots of factories have closed. Mine shut about three months ago. There was nothing to do, so I came home,” said Wu Hao, 21, sporting a stylish striped sweater and a sleek metal suitcase. After a year spent making circuit boards in Guangzhou, he was heading back to his family’s patch of farmland, a full month before the Chinese new year when he would usually visit home.
     
    Officials estimate that more than 10 million migrant laborers have already returned to the countryside as thousands of companies have been dragged under by weak global demand for everything from clothes to cars. 
     
  • The sad stories these migrant workers tell are worth recording for history:
      
    “Sales were really bad and the boss just kept giving us holidays. We had 15 days off last month,” said Tan Jun, who also clambered off train K192 in Chengdu. “Next year I won’t go back.” 
      
     
  • In America, the latest most notable company to announce lay off is Microsoft, Microsoft getting ready to lay off 17% of staff
     
    The rumor that Microsoft was set to lay off people on January 15th, 2009 is no longer a rumor but a fact. Staff at Microsoft have been informed that the company is readying major layoffs to its worldwide operations and it’s not a small cut, either.
     
    Currently Microsoft employs about 90,000 people across the world and from what we’re hearing, some 15,000 of those are expected to be giving marching orders come January 15th. That’s almost 17 percent of Microsoft’s total work force, not exactly a small number

     
  • In Japan, The Asahi Shimbun is asking opposing politicians to set aside their differences and address the ‘crisis and emergency ‘ :
     
    More workers are losing their jobs, being forced out of their homes and wondering how they will earn a living from tomorrow. Do the politicians of this country truly understand the pressing sense of crisis and emergency under which people are now living?
     
    The three major opposition parties, including Minshuto (Democratic Party of Japan), submitted an emergency job measures bill to the Upper House on Monday. The legislation seeks to cope with the job losses now sweeping the country amid the global financial crisis.
     
  • When a highly profitable company like Microsoft lays off people you know that it is really bad. No company, the private or public sector is safe.

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January 2, 2009 Posted by | Economics | , , , | Comments Off on Rising Unemployment Worldwide