Busted: Bankers and The Global Economy

June 20, 2011

Bernanke to Invent New Term for Printing Money

Filed under: banking, central bank, corporatism, economy, federal reserve, government, inflation, money — digitaleconomy @ 10:27 am

When the U.S. Bureau of Labor and Statistics (BLS) reported their latest consumer price index (CPI) inflation data last week, everybody in the mainstream media worked tirelessly to spin the data in order to proclaim that U.S. price inflation is not a problem. It’s been that way for some time now. Most articles in the media reported that inflation slowed in May due to falling gas prices. The truth is, gas prices rose last month and U.S. price inflation is spiraling out of control.

Price inflation based on the CPI on a year-over-year basis rose during the month of May to 3.57%, up from 3.16% in April, 2.68% in March, 2.11% in February, 1.63% in January, 1.5% in December, and 1.1% in November. The official rate of price inflation has more than tripled over the past 6 months. Yes, maybe the rate of year-over-year price inflation rose by slightly less in May over April, than it did in April over March, but this isn’t good news at all. This U.S. dollar is still rapidly losing its purchasing power and the rate at which it is declining in purchasing power is accelerating.

On an unadjusted basis, gas prices rose 3.6% in the month of May. The media is reporting gas prices based on the BLS’s seasonal adjustments. Only with the BLS’s deceptive seasonal adjustments did gas prices decline by 2% in the month of May. The BLS’s seasonal adjustments will actually reverse starting in the month of July and add to reported gasoline prices. NIA predicts that come August when the BLS releases its July CPI report, the media will begin focusing on unadjusted gasoline prices because the unadjusted gain will be less than the adjusted one. The media always reports the data that supports their agenda and ignores the data that works against it.

The media is obviously just saying what the U.S. government wants them to say. Larry Summers, a Keynesian economist who served for 5 years last decade as President of Harvard and was up until late-2010 director of President Obama’s White House National Economic Council, just said last week that, “the underlying rate of inflation is still trending downwards”. The media’s favorite economist Paul Krugman, a Keynesian who has an op-ed column in the New York Times, said last week that, “There’s really nothing here to shake my view that deflation, not inflation, is the threat.”

Krugman, who has been calling for massive price deflation the whole entire time that NIA has been predicting massive price inflation, is refusing to admit he has been wrong and is telling all Americans to ignore rapidly rising food and energy prices because he claims they are too volatile. He is telling the world to focus solely on the core CPI, which ignores food and energy, the two items that Americans need most to live and survive. Core CPI is weighed heavily by rents and America’s Real Estate bubble still isn’t finished deflating. The only purpose of having a core CPI  is to use it to mislead Americans and deceive them into believing that inflation is not a problem.

nixon greenspanCore CPI was an invention of the Nixon administration, which right there should tell you all you need to know about it. President Nixon’s idea for creating core CPI, was to deceive Americans about price inflation by excluding the items that were rising the most, which he would justify by calling these items “too volatile”. NIA has predicted from the very beginning that inflation will not effect all goods and services equally and that as inflation begins to spiral out of control, inflation would gravitate most towards the prices of the items that Americans need the most, and there is nothing that Americans need more than food and agricultural products, and to a lesser extent energy.

Whenever the mainstream media reports about global inflation and they show a map of the world, the map always shows massive inflation in Middle Eastern and Asian countries, with the U.S. having the least price inflation. The truth is, inflation in Middle Eastern and Asian countries isn’t many times worse than the U.S., it is just that their governments are many times more honest and aren’t as advanced in manipulating economic statistics as our government is. While all of the headlines from major American news organizations about U.S. inflation said last week that inflation is slowing and not a problem, those same news organizations wrote articles about Chinese inflation being at a new 34-month high of 5.5%. The fact is, official U.S. price inflation is also at its highest level in nearly three years and our real price inflation rate is actually higher than China’s reported rate of price inflation.

Based on the BLS’s CPI, year-over-year U.S. price inflation in the month of May of 3.57% was the highest year-over-year price inflation rate since October of 2008, right before the global financial crisis. If it wasn’t for the global financial crisis of late-2008/early-2009 and the world’s mistake of liquidating real assets and hoarding fiat U.S. dollars as a safe haven, it is likely that the official rate of U.S. price inflation would already be in the double-digits today. NIA estimates the real rate of U.S. price inflation, minus geometric weighting and hedonics, to currently be approximately 7.5% on a year-over-year basis. It is possible that the real U.S. price inflation rate will reach double digits in the second half of 2011. That will be devastating to the U.S. economy because at that point it will just about guarantee that the Federal Reserve will have to raise the federal funds rate to north of 10% by the middle of this decade.

The Federal Reserve’s balance sheet just reached a brand new record of $2.832 trillion, up from $2.815 trillion in the prior week, as we approach the end of QE2 at the end of June. The stock market is already anticipating the end of QE2 with the Dow Jones currently down over 900 points from its high at the end of April. The declining stock market is pretty much sowing the seeds for a QE3. After all, Federal Reserve Chairman Ben Bernanke doesn’t want to see the phony U.S. economic recovery blow up in smoke.

Bernanke will do everything possible to disguise QE3 and will never admit to there being a QE3. Remember, this is the same Federal Reserve Chairman who lied to every single American on ’60 Minutes’ when he said, “We’re not printing money.” That is exactly what QE2 is, printing money, but just like how Bernanke won’t admit to printing money, Bernanke is now going to retire the term “quantitative easing” and come up with a new term for the Fed’s latest destructive policy of creating massive monetary inflation.

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January 4, 2008

How the Federal Reserve Bank Creates Money

Filed under: — digitaleconomy @ 8:15 pm
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How the Federal Reserve Bank Creates Money by Elvis Manning
This article is copyrighted. Give E. Manning and this website credit.

dollar.jpgOn every $1 billion that the Federal Reserve receives in bonds from the government, the Federal Reserve Bank is legally allowed to create another $15 billion in new credit to lend to states, municipalities, businesses, and individuals or to give away overseas, to charity or the Iraq War. Added to the original $1 billion in bonds issued in debt, the Federal Reserve Bank has the ability to “legally” create $16 billion of created credit for interest-bearing loans. The only cost to the Federal Reserve Bank is approximately $1000 spent for printing the $1 billion that was loaned to the Government.

The Society of Bankers create money out of nothing by writing numbers in their ledger books, and then giving loans to the American people with this money. This allows the people to write checks or take cash (Federal Reserve Notes) on the numbers written in their accounts, and then requiring payment with interest. Money is simply numbers. These numbers are posted in a ledger book, on checks, or on dollar bills. Using this process, most banks are legally allowed to lend out up to 50 times of what they have on deposit, creating the money out of nothing and then charging interest on it.

Money is quite inexpensive to make: in neighborhood of 3 cents a bill. The institution that prints and creates the money has a tidy profit!

With the current federal debt, “we the people” could sign over the whole of the United States to the Society of Bankers and still owe them three more United States. The debt of this country continues to climb at a staggering rate, destined never to be repaid. The United States and most of the world has become totally enslaved to the Society of Bankers, owned lock, stock and barrel by the Vatican and its interests, a fraternal society of old Roman Empire control. ~ E. Manning

March 14, 2008

U.S. Foreclosures Up 60%

Filed under: banking, federal reserve, government, investment, money, politics — Tags: , , , , , , — digitaleconomy @ 6:55 am

foreclosure022008.jpg

Foreclosure filings nationwide jumped 60% in February compared with the same month last year, but they decreased slightly versus January.

The report from RealtyTrac suggests that efforts from government and consumer groups to combat the rising number of foreclosures have not had a significant impact, according to Jared Bernstein, a senior economist at the Economic Policy Institute.

“I don’t see evidence that any of the interventions we’ve been implementing are having any effect,” Bernstein said. He claims the report “doesn’t show that measures have failed but it’s pretty clear that nothing we’ve undertaken is slowing foreclosures.”

Meanwhile, the Fed continues to print money unabated with the net effect of increasing inflationary pressures, while reducing the value of the dollar on the world market in an effort to sustain the economy through volume. ~ E.M.

July 31, 2011

Realities Behind the U.S. Debt Crisis

While incompetent and corrupt politics continues to announce a huge divide between sides, the real truth is that Americans have been deceived. The last election proved how little difference exists between moderates on either side, and that is what politics in the United States plays to. Despite the rhetoric in debt crisis debate, there are few meaningful differences in the plans that are being voted on.

Both bills have been estimated to reduce the national budget deficit by around $900 billion over the next 10 years, which is small change in a nation that is overspending by 50%. $750 billion is linked to actual decisions to cut spending. The remaining savings are another accounting gimmick, a projected reduction in interest payments on the national debt because of the proposed budget cuts. $70 billion of the “huge savings” will be applied to 2012 and 2013. As usual, deciding to do anything meaningful always points off somewhere in the distant future. $70 billion is small potatoes for a large economy that continually overspends by increasing margins.

The real issue resides in the fact that the nation has an unstable fiat currency that has been losing its purchasing power for decades. Today, the well is virtually dry, which could easily result in the collapse of the dollar as international currency. This makes the reality of planning ahead a mere mental exercise instead of meaningful in any way. What is worse is that all this fancy accounting is dependent on an unrealistic gross national product of 4.86%. As a result, this budgeting is an exercise in smoke and mirrors.

If you live in the United States, you’ve probably heard the grim news. National GDP growth for the first quarter of 2011 was just revised down yesterday by 81% from 1.91% to 0.36%. Never mind that 1.91% is paltry growth anyway. Second quarter estimates for the nation look even worse as the Federal Reserve prints more fiat dollars than ever before. Printing greenbacks doesn’t create economic growth or employment.

As the Federal Government wriggles in credit agony, the Treasury had $51.6 billion available for discretionary spending. The U.S. Treasury expects to bring in $172.4 billion from August 3rd through August 31st in tax receipts, while being scheduled to pay out $306.7 billion. This means a projected deficit of $134.3 billion. The Federal Government is scheduled to make its interest payment of $30 billion on the national debt on August 15th. They are now on track to spend a record $514.5 billion this year on interest payments alone. The nation faces an increase of the interest rate because of a likelihood of a credit downgrade, which would destroy any deficit reductions proposed by national politicians.

The Treasury has been able to pay bills in recent weeks by using accounting gimmicks, but that has come to an end in a few days. The Federal Government is in a real pickle without more fiat money printed by the Federal Reserve. Prioritizing incoming tax receipts of an expected $174.2 billion is essential, which will include the $30 billion interest payment on August 15th to avoid default.

The immediate obligations to the populace in August are $49.2 billion in Social Security, $50 billion in Medicare and Medicaid, topped by $12.8 billion in unemployment benefits. $23 billion of $49.2 billion in Social Security payments are due to be paid on August 3rd. $59 billion in treasury bills are due on August 4th to pay back investors. This says nothing of $31.7 billion in defense payments to pay soldiers and the like.

As a U.S. debt default and credit shortage looms, investors continue (so far) to invest in Treasury Bonds as a safe haven, which would be worthless in the event of a national default. All of this assumes, of course, that they don’t rewrite all the rules because of the need to save the international economy. I’m surprised that they haven’t already taken over the ‘renegade’ credit agencies in the name of national security so that the world can continue to ride the dollar bubble.

After all the politics, interest rates are likely to be propelled rapidly upward, resulting in obvious hyperinflation that cannot be quietly manipulated or explained away. The world is flooded with American greenbacks, thanks in no small part to the uninspired management of Ben Bernanke and the Federal Reserve. As a result, the Federal Reserve is likely to be the only buyer for U.S. debt. How long will that last as it is?

May 2, 2011

China Considering Dumping US Investments

The U.S. dollar continues to slide in value as out of control spending continues. China, the largest holder of U.S. debt, is considering dumping two-thirds the dollar reserves that it holds, to the tune of about $3.04 trillion.

According to a report from China’s Xinhua news agency, a member of the Chinese central bank’s monetary policy committee is recommending that Beijing reinvest its foreign exchange reserves. Other Chinese financial authorities confided at a forum in Beijing that China’s current U.S. holdings are too high. The governor of China’s central bank has said that China’s foreign exchange reserves are excessive and that Beijing should begin to diversity its vast pool of dollars.

While American corporations have led the world in economic growth for more than a century, China’s government has had enough business sense to become the world’s second largest economic power. China is on target to overtake the U.S. economy.

Central bankers and many investors want to unplug the dollar as the international mainstay of finance. China wants its currency to play a more dominant role in the global economy, dumping the dollar (treasuries) as a viable investment, since the Federal Reserve is addicted to printing money, which further devalues the dollar to keep the current global money scene afloat.

January 5, 2011

Hyperinflation: Top Economic Predictions

The National Inflation Association is pleased to announce its top 10 predictions for 2011:

1) The Dow/Gold and Gold/Silver ratios will continue to decline.

Major declines in the Dow/Gold and Gold/Silver ratios in the works. The Dow/Gold ratio was 9.3 at the time and finished 2010 down 15% to 8.1. The Gold/Silver ratio was 64 at the time and finished 2010 down 28% to 46. We expect to see the Dow/Gold ratio decline to 6.5 and the Gold/Silver ratio decline to 38 in 2011. Later this decade, we expect to see the Dow/Gold ratio bottom at 1 and the Gold/Silver ratio decline to below 16 and possibly as low as 10.

2) Colleges will begin to go bankrupt and close their doors.

The USA has a college education bubble in America that was made possible by the U.S. government’s willingness to give out cheap and easy student loans. With all of the technological advances that have been taking place worldwide, the cost for a college education in America should be getting cheaper. Instead, private four-year colleges have averaged 5.6% tuition inflation over the past six years.

College tuitions are the one thing in America that never declined in price during the panic of 2008. Despite collapsing stock market and Real Estate prices, college tuition costs surged to new highs as Americans instinctively sought to become better educated in order to better ride out and survive the economic crisis. Unfortunately, American students who overpaid for college educations are graduating and finding out that their degrees are worthless and no jobs are available for them. They would have been better off going straight into the work force and investing their money into gold and silver. That way, they would have real wealth today instead of debt and would already have valuable work place experience, which is much more important than any piece of paper.

Colleges and universities took on ambitious construction projects and built new libraries, gyms, and sporting venues, that added no value to the education of students. These projects were intended for the sole purpose of impressing students and their families. The administrators of these colleges knew that no matter how high tuitions rose, students would be able to simply borrow more from the government in order to pay them.

Americans today can purchase just about any type of good on Amazon.com, cheaper than they can find it in retail stores. This is because Amazon.com is a lot more efficient and doesn’t have the overhead costs of brick and mortar retailers. NIA expects to see a new trend of Americans seeking to become educated cheaply over the Internet. There will be a huge drop off in demand for traditional college degrees. NIA expects to see many colleges default on their debts in 2011. These colleges will be forced to either downsize and educate students more cost effectively or close their doors for good.

3) U.S. retailers will report declines in profit margins and their stocks will decline.

Although most analysts on Wall Street believe retailers will report a major increase in holiday season sales over a year ago, NIA believes any top line growth retailers report will come at the expense of dismal bottom line profits. NIA expects many retailers to report large declines in their profit margins for the 4Q of 2010 and first half of 2011. Retailers have been selling goods at bargain basement prices in order to generate demand. Americans, being flush with newly printed dollars from the Federal Reserve, have been eager to buy up supplies of goods at artificially low prices. However, shareholders will likely sell off their retail stocks on this news. As share prices of retail stocks decline, retailers will begin to rapidly increase their prices by mid-2011.

4) The mainstream public will begin to buy gold.

Although the mainstream media continues to proclaim we have a gold bubble, it is impossible to have a gold bubble when mainstream America isn’t buying gold. The average American is more likely to be a seller of gold through companies like Cash4Gold, in order to raise enough dollars to put food on their table. Most Americans today don’t even know the price of gold. During the next 12 months, we expect to see a huge ramping up in the public’s knowledge about gold. More Americans than ever will know the current price of gold and understand that it is real money. By the end of 2011, we expect the general public to begin looking at gold as an investment, just like they began looking at Real Estate as an investment in 2003. Sometime during the next six months, we believe you will overhear a stranger at a restaurant talking about investing into gold. We believe the price of gold could surge to as high as $2,000 per ounce in 2011.

5) We will see a huge surge in municipal debt defaults.

In the closing months of 2010, we saw yields on municipal bonds rise to their highest levels since early 2009. After 29 consecutive weeks of inflows into municipal bond funds, investors are now pulling money out of municipal bond funds by record amounts, with $9 billion exiting municipal bond funds in the five weeks leading up to Christmas. NIA believes there could be a small dip in municipal bond yields over the next couple of months as investors realize that municipal debt defaults might not be imminent, but we expect municipal bond yields to begin rising again by mid-2011 with a huge surge in municipal debt defaults coming in the second half of 2011. Although the Federal Government has a printing press that it uses in order to pay its debts, cities and municipalities do not.

6) We will see a large decline in the crude oil/natural gas ratio.

When we released our top 10 predictions for 2010, crude oil was $73 per barrel and we predicted that oil prices would rise to $100 per barrel in 2010. Crude oil ended up rising by 26% in 2010 to $92 per barrel, coming short of our outlook. However, it is possible our $100 per barrel oil forecast might be off by just a month or two. We wouldn’t be surprised to see $100 per barrel oil within the first two months of 2011 and if so, we expect to see a huge movement in America this year towards natural gas.

The crude oil/natural gas ratio currently stands at 20. Historically, the crude oil/natural gas ratio has averaged 10 and based on an energy equivalent basis, crude oil and natural gas prices should have a 6 to 1 ratio. Brand new fracking technology has caused natural gas supplies in the U.S. to rise to record levels. Although our country might be flooded with natural gas, the natural gas fracking boom that is taking place across the U.S. today is causing ground water in the U.S. to become contaminated. Americans living near natural gas wells that use fracking, are finding that they can now light the water coming out of their faucets on fire. New government regulations are likely to crack down on natural gas fracking and this will come at the same time as American individuals and businesses begin to convert their automobiles and machinery to run off of natural gas. A large decline in the crude oil/natural gas ratio in 2011 is likely, possibly down to as low as 15.

7) The median U.S. home will decline sharply priced in silver.

For the past couple of years, being able to make ones mortgage payment has been the primary concern for the average American. In an attempt to support housing prices and keep mortgage interest rates at artificially low levels, the Federal Reserve has been implementing massive quantitative easing and buying mortgage backed securities. NIA believes the Federal Reserve will be successful at putting a nominal floor under Real Estate prices. NIA also believes that the Federal Reserve’s actions will cause a massive decline in the value of the U.S. dollar, which will allow Americans to more easily pay back their mortgages with depreciated U.S. dollars.

However, the Federal Reserve will not be successful at reinflating the Real Estate bubble. In fact, in terms of real money (gold and silver), NIA believes Real Estate prices will decline to record lows. The median U.S. home is currently priced at $170,600 or 5,500 ounces of silver. Priced in silver, the median U.S. home price is down 16% from one month ago and 45% from one year ago. After the inflationary crisis of the 1970s, silver rose to a high in 1980 of $49.45 per ounce. The median U.S. home price in 1980 was $47,200, which means the median U.S. home/silver ratio declined to a low of 954.

With the Federal Reserve printing money at an unprecedented rate and record amounts of new homes built during the recent Real Estate bubble, NIA believes it is inevitable that the median U.S. home will decline to a price of 1,000 ounces of silver this decade and possibly as low as 500 ounces of silver. In 2011, we believe a decline in the median U.S. home price to 4,000 ounces of silver is possible.

8) Food inflation will become America’s top crisis.

Starting a few decades ago and accelerating in recent years, America has seen a boom in non-productive service jobs, mainly in the financial sector. Most of these jobs were made possible by inflation. Without inflation, which steals from the purchasing power of the incomes and savings of goods producing workers, the majority of the jobs on Wall Street would not exist today and our country would be in much better financial shape because of it.

With most Americans in recent decades seeking non-productive jobs in the financial services sector because that is where they could access the Fed’s cheap and easy money, very few Americans sought jobs in the farming and agriculture sector. In the 1930s, approximately 28% of the population was employed in the agriculture sector, but today this number is less than 2%. Agriculture currently makes up only 1.2% of U.S. GDP, compared to the services sector, which makes up 76.9% of U.S. GDP.

There is currently a major shortage of farmers in the U.S. and a lot of land that was previously used for farming has now been developed with Real Estate. To make matters worse, agricultural products now trade on the international market and Americans must now compete against citizens of emerging nations like China and India for the purchasing of food.

Prices of goods and services do not rise equally when governments create monetary inflation. Inflation gravitates most towards the items that Americans need the most and there is nothing that Americans need more to survive than food and agriculture. As the U.S. government prints money, the first thing Americans will spend it on is food. Americans can cut back on energy use by moving into a smaller home and carpooling to work. They can cut back on entertainment, travel, and other discretionary spending. However, Americans can never stop spending money on food.

The days of cheap food in America are coming to an end. The recent unprecedented rise that we have seen in agricultural commodity prices is showing no signs of letting up. In the past few days, sugar futures reached a new 30-year high, coffee futures reached a new 13-year high, orange juice futures reached a new 3-year high, corn futures reached a new 29-month high, soybean futures reached a new 27-month high, and palm oil futures reached a new 33-month high.

We estimate that it takes as long as six months for rising agricultural commodity prices to be felt by U.S. consumers in their local supermarket. Even if food producers and retailers accept substantially lower profit margins in 2011, we are still guaranteed to see double-digit across the board U.S. food inflation in the first half of the year. That is correct, let us repeat, NIA guarantees that Americans will see double-digit food inflation in the first half of 2011.

Shockingly, except for Glenn Beck (who was kind enough to feature our food inflation report), absolutely nobody in the mainstream media is doing anything to warn Americans about the food inflation crisis that is ahead. In fact, left-wing groups like Media Matters (funded by George Soros) have been working tirelessly to try and discredit NIA’s research while reassuring Americans that they need not worry about food inflation. The truth is, when Americans realize that they can no longer take food for granted, we will likely see the outbreak of an all out food price panic with everybody rushing to the supermarket to stock up on goods before prices rise even further. The end result will likely be government price controls and empty store shelves, but NIA doesn’t project this to occur until later this decade.

9) QE2 will disappoint and the Federal Reserve will prepare QE3.

The Dow Jones is now back up to 11,670, which is where it was in mid-2008 before the crash. NIA believes that most of QE2 has already been priced into the market, before the Federal Reserve even prints the $600 billion. At some point, we expect it to become apparent to all that the U.S. economic recovery is phony and stock prices are rising solely due to inflation. In our opinion, we will see some sort of catalyst that causes the stock market to sell off at some point and the consensus on Wall Street will be that QE2 will not be enough to save the U.S. economy. By the end of 2011, we expect the Federal Reserve to begin planning QE3. QE3 might be the final dose of inflation that causes the U.S. economy to overdose into hyperinflation.

10) Sarah Palin will announce she is running for President as a Republican.

NIA believes that Sarah Palin has been setup perfectly to run for President in 2012 and that she will announce her candidacy for the Republican nomination with great fanfare from tea party supporters in 2011. We give Sarah Palin credit for recently speaking out against the Federal Reserve’s QE2 and warning Americans about the food inflation crisis that is ahead. Unfortunately, we believe Sarah Palin is not a true independent and is being controlled by the Republican establishment, which is just as responsible as the Democrats are for the financial crisis we have today. As President, Palin would be unlikely to implement the measures that are necessary to prevent hyperinflation. In our opinion, we need to elect a true libertarian candidate as President who will cut government spending, balance the budget, and restore sound money. NIA intends to support Ron Paul, if he decides to run for President.

Thanks to the National Inflation Association for these really decent and down-to-earth predictions.

October 12, 2010

U.S. on the Way to the Third World?

Everyone is talking about unemployment, but nobody is talking about the long-term reality of the U.S. economy. Wall Street is playing investment games with agricultural commodities to make money, which is now impacting prices apart from traditional supply and demand. This translates to higher prices despite a poverty-stricken economy. Food processors and manufacturers are cutting products sizes and raising prices, which means that Americans continue to get the short shrift on all sides.

Then there are the jobs. This month the U-6 category from the Bureau of Labor Statistics (a measure of unemployment that includes those who have stopped looking for work)  jumped to 17.1%, yet another red flag.

Also, consider the U.S. trade deficit that sends billions of dollars overseas to foreign countries, never to return, evaporating into the global economy. The deficit means that the Fed will print more money to add to an already robust global dollar supply.

The nation has another banking crisis, where it has been revealed that fraudulent foreclosure documents were signed without evaluation. This could plunge both the the mortgage industry and the banking industry into another “too big to fail” bailout. Who are we kidding? Messy lawsuits could be the order of the day as buyers and investors seek redress for damages, either real or imaginary. All this financial pressure will undoubtedly influence exporting more jobs outside of America to cut corporate costs. That is why you are hearing all the media hype about Americans not being trained enough for sophisticated jobs that they no longer qualify for. They are preparing you for the ugly truth, even if the reasons are really fiction.

Many Americans struggle to pay for necessities now as those prices continue to rise. Food basics are once again on the rise. Food processors are likely to pass that on American consumers. To counter all the bad news, the Fed is considering creating inflation with the hope of boosting the economy. Printing more dollars to send overseas is hardly a solution. Printing dollars to keep those dollars here is the only viable solution, but hardly an option since most corporate shareholders only care about the bottom line as they send the bulk of their work to cheaper labor markets. Whether that bottom line rests on foreign factories or in American ones doesn’t matter to them.

This short-sided thinking is unsustainable at best, even as corporations seek government funding because they are unwilling to take risks in the U.S. marketplace. They seek that money only because the U.S. government is stupid enough to offer incentives to those that don’t really need the cash. It just pads the bottom line for larger corporations, as that money evaporates forever with little reward for Americans. Meanwhile, the media continues to boast that small business is responsible for a robust economy, even as the U.S. government penalizes small business. Enjoy the new American third world and the decline of the nation in favor of funding multinational corporations.

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