The Facts

The Facts

Through the course of the past few years, I’ve come to a realization.  The facts don’t add up to what we are being indoctrinated with daily.  We are told we have an unemployment rate of 8.8%, but we aren’t educated on what that means.  We are told that inflation is only between 1-2%, while our food and gas prices have risen by more like 20-30%.  Our budgets are getting tighter, while the government assures us “everything is ok, it’s normal.”  We are told that we are coming out of a recession, while our people continue to lose their jobs or experience a decrease in pay.  The media has taken us on roller coaster after roller coaster with good news, followed by reality checks that completely contradict what was reported. 

At some point, we as Americans must examine the facts.  It is the duty of every American to understand what is happening and to hold our representatives accountable when their direction makes no sense.  Based on the facts, you will see that the direction of our Senate, Congress, the White House, and even our local governments are not currently making sense.  There is only one way to fix any situation, and that is to shine the light of truth on it.  Only then will we see clearly, and act honorably.  Let’s set politics aside, and examine the cold, hard facts.    

THE REALITY OF OUR ECONOMY

Real Time Federal Balance Sheet Ticker- US Debt Clock.org

-The United States proposed budget this year has a $1.65 trillion deficit, accompanied by trillion dollar deficits as far as the eye can see

-Standard & Poor’s has altered its outlook on U.S. Government debt, downgrading it from stable to “negative” and is warning that we could soon lose our AAA rating

-The USA has continued time and time again to raise the debt ceiling, and our debt is now around $14 trillion, with the expectation that we will hit the debt ceiling again May 16, 2011 if congress doesn’t act

-The U.S. has lost approximately 42,000 factories since the year 2001.  Approximately 75% of these factories employed 500 or more workers while in operation

-The U.S. has lost an average of 50,000 manufacturing jobs per month since China joined the WTO in 2001

-In 1980, the U.S. imported 37% of our oil.  Present day, we import nearly 60% of our oil

-Approximately half of all American workers make $25,000 or less

-The mayor of Newark, NJ recently sold off 16 government buildings including police and fire station headquarters just to pay bills.  This is happening all over the country

-Last year, 2010, Social Security ran a deficit for the first time since 1983, with future SS deficit projections soaring

-Average household debt in the U.S. has now reached an average of 136% of household income, compared to 17% in China

-Approximately one-third of all Americans have no savings and no retirement funds

-Only 47% of working age Americans have a full time job at this point

-In 2010 for the first time ever, more than 1 million Americans lost their homes to foreclosure, with these numbers expected to be higher in 2011 

-State & Local debt has reached an all time high of 22% of U.S. GDP

-According to a recent study, the 50 U.S. state governments collectively are $3.2 trillion short in meeting their pension obligations

-The combined debt of Fannie Mae, Freddie Mac and Sallie Mae, has increased from $3.2 trillion in 2008 to $6.4 trillion in 2011

-U.S. households are now receiving more income from the U.S. government than they are paying to the government in taxes

-59% of Americans are now receiving money from the federal government is some form

-If the U.S. government was forced to use GAAP accounting principles, the true budget deficit would be around $4-5 trillion every year

-In March of 2011, food prices rose in the U.S. at the fastest rate in 36 years

-The number of “low income” jobs in the U.S. has risen steadily and now accounts for 41% of all jobs in the U.S.

-When you adjust wages for inflation, middle class workers in the U.S. make less money today than they made in 1971

-Steve Forbes recently predicted that the U.S. Dollar is in such bad shape that we will likely go back to the gold standard within the next five years

-JP Morgan is the largest processor of food stamp benefits in the U.S., and the more Americans that go on food stamps, the more profits for JP Morgan

-Since the real estate peak- home prices have fallen a staggering $6.3 trillion in value

-During the first three months of 2011, less new homes were sold in the U.S. than in any three month period ever recorded

-New home sales in the U.S. are now down 80% from the peak in July 2005, with home prices falling 33% from where they were at the peak of the housing bubble

-Between 2000 and 2009, America’s trade deficit with China has increased by nearly 300%

-Since 2007, the number of Americans on food stamps has gone from 26 million, to 44 million today

-The average CEO now makes approximately 185 times more than the average American worker

-According to the U.S. Census, the number of children living in poverty has gone up by 2 million in the past two years

-Since the establishment of the Federal Reserve in 1913, the U.S. Dollar has lost approximately 95% of its purchasing power

-As of the end of 2009, less than 12 million Americans were employed in manufacturing.  The last time less than 12 million Americans were employed in manufacturing was 1941

-The U.S. has the third worst poverty rate among the advanced nations tracked by the Organization for Economic Cooperation and Development

-Our debt is forecasted to be 800% of GDP by the year 2037- unsustainable

-The official unemployment rate of 8.8% does not include discouraged workers who are no longer looking for work, or the underemployed- Part Time workers trying to find Full Time employment

-The official measure of unemployment was changed by John F. Kennedy during his administration, to no longer include the discouraged or underemployed worker. 

-True unemployment today when calculated as it was during the Great Depression, is between 22-24%

-Unemployment peaked during the Great Depression around 25%

-Gross Domestic Product has been manipulated here in the United States using purchases on credit, and methods of a technique called hedonics

-True GDP remains in the negative along with GNP

-Looking at the history of all recessions within the past 100 years, the US was able to re-employ all workers who had lost their jobs within 2 years at 6% GDP. 

-Official GDP was originally said to be 3.5%, but economists recently scaled back those projections to 2.5%

-The official Consumer Price Index/Inflation rate has been held to a 1-2% range over the past few years, while commodity prices soar anywhere from 25% to 130% year over year.  If your cost of living has increased only 1-2% will you please raise your hand? 

-Money supply has been increased by the Federal Reserve from $850 billion to well north of $1.8 trillion all within the last two years through TARP, Bail-Outs, QE1 and QE2.  Essentially, money supply has more than doubled in the past two years

-The Federal Reserve currently is buying 70% of the new Treasuries issued by the United States Government through QE programs. 

-Government essentially cannot function without the assistance of the Fed’s bond buying program.

-The US Dollar over the past two years has lost against every other major currency on an almost daily basis

-The USA has exported inflation to the entire world, due to the fact that most nations peg their currencies to US Dollars.  Better said, when we print, they print.

-China has raised interest rates five times since October of 2010 to battle inflation

-India has raised interest rates eight times within the last year to battle inflation

-The European Union for the first time in history raised interest rates in April 2011 ahead of the Federal Reserve, to battle inflation

-Forty-six out of fifty states here in the US are operating at a deficit

-Inflation by definition is an increase in the money supply

-The key symptom of inflation is price increases

Comments
  1. Sulema says:

    Thx for taking the time to explain the terminlogy towards the learners!

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