The real US unemployment rate is 25% if you use the same formula the Bureau of Labor Statistics used long ago in 1980. This is according to Dr John Williams of Shadow Stats.
The real US inflation rate is 10%. This is also according to Dr John Williams.
The Misery Index was created by Arthur Okun, an economic advisor to President Lyndon Johnson. The Misery Index is calculated by adding together the unemployment and inflation rates. The previous high was 21.9% in June of 1980. It is now 35%. I leave it to you to estimate how many months it will take the US Misery Index to reach 50% and then 100%. I am on record as saying that the US Misery Index will hit 100% before April.
The US 30 year Treasury bond yield is 2.81%. I leave it to you to calculate how much you would lose every year for 30 years even if Ben Bernanke could hold inflation to the current 10%. This should tell us why Ben Bernanke is just about the only one in the world silly enough to buy long term Treasury bonds and hold them.
Only 51% of last year’s college graduates have found fulltime jobs and their average wage was $12.27 an hour before taxes. Student debt in America is now over one trillion dollars. A ten year $25,000 loan at 10% will only burden those young people making $12.27 an hour before taxes with 120 monthly payments of $330.38.
Ben Bernanke loaned 7.7 trillion dollars at 0.01% to his very best friends in the Big To Fail Banks. Contrast this with a recent college graduate with a typical credit card debt of $3,500. Usually an initial credit card offer of 9.9% inevitably becomes 29.9%. A ten year $3,500 loan at 29.9% will require only 120 monthly payments of $92.24. Hint: If you add $92.24 to $330.38, you will understand why so many recent college graduates making $12.27 an hour before taxes cannot be expected to make their $422.62 in monthly payments.
Carmen Reinhart and Kenneth Rogoff wrote This Time Is Different: Eight Centuries of Financial Folly which was released in October 2009. They told us that when the total public debt of any nation exceeds 90% of its Gross Domestic Product that it will eventually default. The US GDP if properly adjusted by subtracting the 2012 US deficit.of 1.2 trillion dollars is less than 14 trillion and contracting at 7% a year after discounting for inflation. The US federal debt is 114% of GDP if it is adjusted for reality. If you add in 4 trillion dollars for US state and local debts, you will conclude that total US government debt is 20 trillion dollars or 143% of GDP. If you add government guarantees like Fannie Mae’s underwater mortgages, then you will understand why the Federal Deposit Insurance Corporation will no longer guarantee all of your American bank deposits beginning in January of 2013. It seems the FDIC and the Federal Reserve are preparing for your future when the bankers decide to push you off that financial cliff in January. you do notice that they can use the remaining money to bail out one fairly well sized bank between bow abd January.
Dr Steve Keen who champions Debt Cancellation says we have the highest total level of public and private debt in 500 years. Depressions cancel Unpayable Debts through bankruptcies, defaults, wage cuts and Austerity.That means we will have the Greatest Depression in 500 years if we do not have a systematic and scientific worldwide program of Debt Cancellation. I remind you that between 3 and 7 million Americans died of starvation in the last Depression according to the demographer Borisov. I have also said many times that America has 200 million more people now and 90% of them live far away from farms so I expect at least 10 million Americans will die of starvation if we do not cancel debts very, very soon.
All of this financial turmoil including the death of millions every year by starvation and suicide is part of a long term plan to transfer all wealth from us to the bankers who have insisted on the right to collect interest on money that created out of nothing since 1348 when they destroyed the economy of not only Venice but all of Europe leading to the deaths of millions. If Mrs Jones deposits $10,000, her bank can loan out $100,000. Her bank pays her 1% or $100 at the end of the year but they will collect $10,000 in interest on Mrs Jones original deposit. This is called fractional reserve banking. Hyman Minsky traced our economic booms and busts back fractional reserve lending which puts more money into circulation trough debt creation. In fact bankers insist we have a debt based currency which means we must first borrow money and go into debt before money can be created. Our currency is also interest bearing. Lincoln’s Greenbacks did not pay interest. President Kennedy issued non-interest bearing Treasury Banknotes to replace interest bearing Federal Reserve Notes. Both men were murdered for their efforts in behalf of humanity. We all have interest bearing currencies because the bakers insist we pay them money for creating fictional government debts. If America had Greenbacks, they would be saving a trillion dollars a year because there would not have 20 trillion dollar in government debts. Even IMF economists have had to admit that they were completely wrong about fractional reserve banking. I say they gave been wrong about everything else too.
I will conclude by saying something again I will either no longer have to say in 7 months or sometime soon under martial law no longer be able to say:
The Fundamental Fact of Your Existence as a modern man or woman is that the bankers of New York and London want to reduce you to Debt Slavery.
Accept that fact and move on to the solution.
That is their plan for you.
What is your plan for them?
Author’s Notes: These are related articles.
The Mathematics Of Austerity: Proving Austerity Never Was Even Intended To Work
A Fractional Reserve Gold Standard: The Next Big Fraud
Nine Myths And Misconceptions About Money That Can Literally Kill You
The Federal Reserve From Creation in 1913 To Destruction in 2013
This is the article about the IMF admitting they had it all wrong.
IMF Economists: ‘We Were Wrong.’ Will Someone Please Tell The Press And The Politicians.’