Welcome to World War III
Despite increasing personal financial hardship, most people remain unaware of the economic war presently unfolding, many people are convinced a Race War is upon us, they are so terribly wrong. This is about the power of the State, their wealthy donors and their enforcers. George Floyd, Eric Garner and a long list of people are just collateral damage.
Do I think Black men are disproportionately targeted by the enforcers, well actually I do, I believe Black men are disproportionately targeted, anyone that does not fit the “submissive citizen model” is a potential statistic.
I am everything the enemy is supposed to be, White, heterosexual, University Educated, Christian and I have made a quid, but on this issue I stand firmly with my fellow man, some of whom happen to be Black. I will not blindly follow the order of a Police Officer, I will question the State, I will defend my rights I will not fear the corrupt power they wield, I will do so to protect the future for my children.
You will do as you are told, without question or face the wrath of the States protectors. Asking questions about why you are being stopped, what do the Police want, why are you being detained were once your right, now they are an offense punishable by death possibly, and if not it is just the beginning.
If you are arrested the Public Prosecutor will work with the police to lie, cheat and withhold evidence to make sure you are convicted.
If you think that’s bad, it is just the beginning of a much bigger game.
An all-pervasive Mega-Corp and government propaganda campaign has effectively obscured this blatant reality, they are building a Socialist utopia, where they are in charge and the rest of us just go to work, we don’t answer back, we don’t question their authority, we keep our heads down and do as we are told . After extensive analysis, it is evident that World War III could be a war between the Politically connected wealthy of the worldwide population and their political pets and 99.9 % of humanity.
The “War on Drugs” and the “War on Terror” have actually been a war on the citizenry.
The bullsh*t criminalization of cash, the reinvention of what constitutes Money Laundering, the criminalization of taxes, the reporting conditions on Financial transactions have 1 single aim, to keep the have-nots in their place, hard at work for the haves and to ostracize the rest of us.
The Gestapo style policing is just part of the process, take a look for yourself:
This is The Political Elite Vs. The People.
This war has been a one-sided attack to this point. However, as we have seen throughout the world in recent months, the people are starting to fight back, they don’t realize yet how important or how big the fight is, they have been misdirected to only 1 aspect of an insidious plot, racism, but there is so much more to come.
The following report is a statistical analysis of the systemic economic attacks against the citizens of Canada, Australia, The United States and The United Kingdom and possibly The European Union.
The American public has sustained intensive economic attacks across broad segments of the population they have been taxed and regulated in to a corner.
While the attacks are more and more severe in scale over the past four years, they have been implemented with technocratic precision, they have been incrementally applied to this point, successfully keeping the population passive and avoiding any large-scale civilian unrest, while effectively reducing living standards for the majority of the population.
Through under the table deals with Social Media Companies and telcos combined with a stranglehold on the Banks, the government knows more about you than ever and will use it to shape your behavior and punish dissent.
As you will see in this report, the 55 million Americans that have been hit the hardest have thus far acquiesced thanks to temporary financial assistance, such as food stamps and extended unemployment benefits.
The Global Political Elite have been way more strategic in handling the American public, as they’re probably the greatest threat to their continued consolidation of wealth, resources and power, question their authority and meet the fate of George Floyd..
National populations that are not as powerful, and on the periphery of the Economic Elite’s global empire, have been dealt with in much harsher fashion. In several smaller and less powerful countries the dramatic rise in food prices and costs of living have led to all-out revolt – Tunisia, Algeria, Albania and Egypt were among the first to rebel.
While the contagion of rebellion has quickly spread throughout Northern Africa and the Middle East, it’s also spreading in a decentralized manner throughout most of the world, currently threatening popular rebellion throughout Europe, Hong Kong, United Kingdom and Australia.
Like the U.S. population, the geographically clustered European nations represent a potentially powerful countervailing force to the Political Elite’s continuing domination.
Within the United States, the technocratic suppression of the population has been extensive. More and more severe economic and governmental policies have systematically eroded civilian wealth, power and rights. Intensive propaganda has effectively distracted, confused, isolated, marginalized and divided the global citizens.
Despite the success of these efforts to date, given the severe, prolonged, unsustainable and escalating level of economic suffering, outbreaks of civil unrest are inevitable, misdirected for now, but soon to become a serious problem.
The U.S. population, if a critical mass is reached, represents the greatest threat to the Political Elite. In this regard, the American people are their primary adversary.
In writing this report, I will clearly demonstrate the severity and scale of the deliberate systemic economic attacks against the U.S. population, in hope that we are able to urgently build a critical mass of awareness and engage citizens.
Part One – The Economic Devastation
According to census bureau data, between 2007 and 2009, average U.S. household wealth declined by 23% as The federal Reserve exported America’s standard of living with a low dollar policy to help a handfull of big businesses, in 2008 they also printed massive amounts of money, every time the Government prints money, the money you have is worth less.
This represents a loss of $29,000 per household. Currently, at least 62 million Americans, 20% of U.S. households, have zero or negative net worth while trillions was pumped in to large corporations that spent billions on lobbying the Political Elite that handed out YOUR money to them.
Find more statistics at Statista
The Census figures cited above are based on statistics that are consistently proven to be lowball estimates. The government and corporate media spread propaganda on vital economic statistics that mask the severity of our financial condition, no numbers coming from governments can be trusted, they are now political tools.
Deceptive inflation, unemployment, poverty and GDP measures, which cast the illusion of recovery, are easily exposed with some research and a closer look into the data.
The high numbers on Wall Street have little to do with the US economy now as the majority of income they reflect is untaxed foreign income, but that;s OK if you can afford the right lawyer and lobbyist.
Throughout this report, we are going to explore significant examples of government economic propaganda. In several cases, the government has been forced to revise their numbers due to proven inaccuracies. The government’s “revisions” are most always for the worse, and are usually just a footnote correction that the general public is rarely ever aware of.
All that being said, for many statistics we are forced to use government data, as there are not any other extensive data sets obtainable from alternative sources.
I – Record Breaking Poverty
The census bureau poverty rate is a dreadfully flawed measurement that uses outdated methodology.
The Census measures poverty based on costs of living metrics established in 1955-56 years ago. They ignore several key factors, such as the increased costs of medical care, child care, education, transportation, and many other basic costs.
They additionally don’t factor geographically-based costs of living. The National Academy of Science measure, which gets very little if any corporate media coverage, provides a much more correct account of poverty, as they factor in these vital cost of living variables.
The Census data disclosed that 41.8 million Americans, 13.1% of the population, lived in poverty in 2018. while that is a staggering number that represents the highest number of American people to ever live in poverty, and a dramatic increase from 15.1% since 2010, it significantly under-counted the total. But many poor people are not even counted in the numbers.
The poverty rate for kids is even worse.
In 2018, 16.2% of all children (11.9 million kids) lived in Poverty USA—that’s almost 1 in every 6 children, that is not a first world economy.
In 2015, the National Center on Family Homelessness analyzed state-level data and found that nationwide, 2.5 million children experience homelessness in a year.
It is vital to note, based on several key indicators, as you’ll see throughout this report, the overall poverty totals have magnified since 2009. Also consider that the recent deficit reduction plan is going to cut “anti-poverty” programs that presently assist tens of millions of Americans.
A study by the National Bureau of Economic research estimates that,
“The poverty rate would double without these programs.”
It is expected that the new deficit deal will cut the funding for these programs in which, based on these estimates, would bring the entire number of USA citizens living in poverty up to 80 million people, 26% of the population.
Those children will grow up to be vilified when they turn to crime because of their poverty, the worst is yet to come for America.
II – Record Breaking Food Insecurity
For another revealing statistic, which has been quickly increasing, we can look into the number of Americans currently living off of food stamps.
In 2005, 25.7 million Americans needed food stamps, currently 45.8 million people rely on them. as the chart above shows, the number of individuals in need of food stamps has been rapidly increasing year-over-year.
Meanwhile, Congress cut the funding for the food stamp program at a time when the Department of Agriculture estimates that a further 22.5 million people will need them, bringing the overall number of American citizens in need of food assistance to a shocking 68.3 million people.
Rebellion runs on an empty stomach, if you wanted riots in the street you could not have planned it better.
III – Record Breaking Unemployment
While the “official” unemployment rate hovers around 14.7%, 23.1 million people, the government’s numbers are deceivingly low once again.
The US unemployment rate jumped to 14.7 percent in April 2020, the highest in the history of the series and compared to market expectations of 16 percent. The number of unemployed persons rose by 15.9 million to 23.1 million, while the number of employed declined by 22.4 million to 133.4 million. The labor force participation rate decreased by 2.5 percentage points over the month to 60.2 percent, the lowest rate since January 1973.
John Williams, from ShadowStats.com, has a consistently proven technique of tracking unemployment that gives a much more correct view of the overall situation. As shocking as it might sound, when you apply his SGS method, counting the total number people in need of employment, you get a current unemployment rate of 22.5% in 2009 before the pandemic, that is an all-time record total of 34 million individuals currently in need of labor.
Here is how the SGS rate is calculated:
“The seasonally-adjusted SGS Alternate unemployment rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged employees, who were defined out of official existence in 1994.
That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.
The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.”
Here is the U-3 chart, currently showing a 14.7% unemployment rate:
Here is the U-6 chart, currently showing a 22.8% unemployment rate:
On top of these shocking figures, the labor force participation rate, which measures the percentage of the total population currently working, has fallen to a 27-year low of 63.9%.
Currently, an all-time record 6.3 million individuals have been unemployed for over six months. as the chart above shows, the average time it takes for someone to find employment has also just hit an all-time high of 40.4 weeks.
As companies continue to downsize and shift jobs overseas, unemployment is once again accelerating. Private-sector job cuts in July surged 60% to a 16-month high.
When accounting for population growth within the total labor force, from December 2007 to present, we have lost 10.6 million jobs.
Of the new jobs that have been added in 2010, 60% of them are in low-wage fields. Since December 2007, the official unemployment rate has masked the fact that 2.8 million of the news jobs created have been part-time jobs.
Breaking down the data, over the last twelve months, the National Employment Law Project found that well-paying jobs are rapidly decreasing, while low-paying jobs are helping to mask an increasingly dire employment crisis:
- Lower-wage industries constituted 23% of job loss, but fully 49% of recent growth
- Mid-wage industries constituted 36% of job loss, and 37% of recent growth
- Higher-wage industries constituted 40% of job loss, but only 14% of recent growth.
IV – Declining income
While the cost of living from 1990-2010 increased by 67%, worker income has declined.
According to the Internal Revenue Service data, covering the year of 2009, average income fell 6.1%, a loss of $3,516 per worker, that year alone. Average income has declined 13.7% from 2007-2009, representing a $8,588 loss per worker.
The decline in worker income is due to the dramatic increase in CEO pay.
CEO pay has systematically increased year-over-year since the mid-1970s.
From 1975-2010, worker productivity increased 80%. Over this time frame, CEO pay and the income of the economic top 0.1% (one-tenth of one percent) of the population quadrupled.
The income of the top 0.01% (one-hundredth of one percent) quintupled.
To understand the affect effect on CEO pay increases have had on workers’ declining share of income on an annual basis, after analyzing 2008 tax data, leading tax reporter David Cay Johnston summed up the situation with these revealing statistics:
“Had income growth from 1950 to 1980 continued at the same rate for the next 28 years, the average income of the bottom 90 % in 2008 would have been 68 percent higher…
That would have meant an average income for the vast majority of $52,051, or $21,110 more than actual 2008 incomes. How completely different America would be nowadays if the typical family had $406 more every week…”
As shocking as that is, employees have lost an even higher share of income to CEOs. CEO pay skyrocketed by 940% since 1978.
Looking at 2009, according Dollars & Sense report, workers lost nearly $2 trillion in wages that year alone:
“In 2009, stock owners, bankers, brokers, hedge-fund wizards, highly paid company executives, corporations, and mid-ranking managers pocketed – as either income, benefits, or perks such as corporate jets – an estimated $1.91 trillion that 40 years ago would have collectively gone to non-supervisory and production workers within the form of higher wages and benefits.”
As bad as these numbers are, take into account that the attack on American workers has increased significantly since 2009. From 2009 to the fourth-quarter of 2010, 88% of income growth went to corporate profits (i.e. CEOs), while just 1% went to workers.
As the New York Times reported in an article entitled, “Our Banana Republic,” from 1980-2005,
“More than four-fifths of the total increase in American incomes went to the richest 1 %.”
Again, as bad as that was, since 2005 it’s gotten even worse, as Zero Hedge recently reported, labor’s current,
“Share of national income has fallen to its lowest level in modern history.”
This chart shows how workers’ percentage of income has been rapidly declining:
CEO pay grabs a larger share of wages
In a nation of increasing inequality, the most extreme wage disparities are between the heads of large American corporations and typical workers.
This figure tracks the ratio of pay of CEOs at the 350 largest public U.S. firms to the pay of typical workers in those firms’ industries. In 1965, these CEOs made 20 times what typical workers made. As of 2013, they make just under 300 times typical workers’ pay. This higher pay for CEOs does not reflect any increased contribution to corporate output: Other data show that CEO pay grew three times faster than the pay of the top 0.1 percent of wage earners and twice as fast as corporate profits. Moreover, the rising pay of executives was the largest factor in the doubling of the top 0.1 percent and top 1.0 percent share of overall household income growth. CEO pay gains help explain the growing divergence between pay and productivity.
The bottom line, as statistics clearly demonstrate, these trends are getting worse and the attacks against us, as severe as they have been over the past four years, are dramatically escalating.
Part Two – The Political Elite
“There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”– Warren Buffett
Chairman and CEO of Berkshire Hathaway
V – How much Wealth Do The Political Elite Have?
While 68.3 million Americans struggle to get enough food to eat and wages are declining for 90% of the population, U.S. millionaire household wealth has reached an unprecedented level.
According to an in-depth study by auditing and financial advisory firm Deloitte, U.S. millionaire households now have $38.6 trillion in wealth. On top of the $38.6 trillion that this study reveals, they have an estimated $6.3 trillion hidden in offshore accounts.
In total, U.S. millionaire households have at least $45.9 trillion in wealth, the majority of this wealth is held within the upper one-tenth of one percent of the population.
If all this isn’t obscene enough, to further demonstrate how the world economy has now been fully rigged, Deloitte’s analysis predicated, based on current trends, that U.S. millionaire households will see a 225% increase in wealth to $87.1 trillion by 2020.
Accounting for wealth hidden in offshore accounts, they’re projected to have over $100 trillion in total within the next decade.
Most people cannot even comprehend how much $1 trillion is, let alone $46 trillion. One trillion is equal to 1000 billion, or $1,000,000,000,000. to put it in perspective, the entire cost of feeding all 40 million Americans on food stamps was $95 billion.
Now consider, according to the latest Internal Revenue Service data, only 0.076% of the population, less than one-tenth of one percent, earned over $1 million in 2009.
The graph below, based on data from the tax policy Center, shows how much income is earned by a household at any given percentile in income distribution:
The highest bracket for annual income is $50 million or more.
Only 74 Americans are in this elite group. the average income among this category was $91.2 million in 2008.
As astonishing as that is, in 2009 they averaged $518.8 million each, or about $10 million per week. This means, in the depths of the recession, the richest 74 Americans accumulated their income by more than 5 times within this one year.
These 74 individuals made more money than 19 million workers combined. In context, overall, the richest 400 people in the U.S. have as much wealth as 154 million Americans combined, that’s 50% of the entire country.
The top economic 1% of the U.S. population now has a record 40% of all wealth, and have more wealth than 90% of the population combined that is about the right mix for a Socialist Sate.
VI – Who Rules America?
Revealing The Economic top 0.1%
Here is an analysis from an investment manager with mega-wealthy clients breaking down the economic top 0.5% of the population, recently revealed by William Domhoff, sociology professor and author of Who Rules America?
“Unlike those in the lower half of the top 1%, those in the top half and, particularly, top 0.1%, will often borrow for almost nothing, keep profits and production overseas, hold personal assets in tax havens, ride out down markets and economies, and influence legislation within the U.S..
They have access to the absolute best in accounting firms, tax and other attorneys, numerous consultants, private wealth managers, a network of other wealthy and powerful friends, lucrative business opportunities, and plenty of other benefits.
Individuals in the top 0.1% come from many backgrounds but it’s rare to meet one whose wealth wasn’t acquired through direct or indirect participation in the money and banking industries… Most of the serious economic damage the U.S. is struggling with today was done by the top 0.1% and they benefited greatly from it…
For example, in Q1 of 2011, America’s top companies reported 31% profit growth and a 31% reduction in taxes, the latter because of profit outsourcing to low tax rate countries… The year 2010 was a record year for compensation on Wall Street, while corporate CEO compensation rose by over 30%.…
In 2010 a dozen major firms, including GE, Verizon, Boeing, Wells Fargo, and Fed Ex paid U.S. tax rates between -0.7% and -9.2%. Production, employment, profits, and taxes have all been outsourced….
I could go on and on, however the bottom line is this:
An extremely complex and mostly discrete set of laws and exemptions from laws has been put in place by those in the uppermost reaches of the U.S. financial system. It permits them to protect and increase their wealth and significantly have an effect on the U.S. political and legislative processes.
They have real power and real wealth. Ordinary voters in the bottom 99.9% are for the most part not aware of these systems, do not understand how they work, are unlikely to participate in them, and have very little chance of entering the top 0.5%, much less the top 0.1%…
…the American Dream of striking it rich is simply a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability. The chances of getting into that top 0.5% are terribly slim and the door is kept firmly shut by those within it.”
To get into the top economic 0.01% (one-hundredth of one percent) of the population, you have got to possess a household income of over $27 million each year.
If you explore some of the central players who caused this economic crisis, you may see that they are among this Economic elite group.
Former Goldman Sachs CEO and Bush Treasury Secretary Hank Paulson had already accumulated at least $700 million prior to moving to the U.S. Treasury in 2006.
Goldman Sachs gave CEO David Solomon a 20% raise to a head-spinning $27.5 million in assets and cash for his work last year, the company revealed.
The news comes as the Trump administration weighs massive industry bailouts amid the coronavirus crisis — and triggers memories of the Wall Street bailout, which included $10 billion for Goldman Sachs.
Solomon’s compensation for 2019 includes $2 million in salary, more than $15 million in stock and a $7.7 million cash bonus.
Former company CEO Lloyd Blankfein took in a record $41 million in compensation in 2008. Solomon is the second-highest-paid CEO in company history.
Bonuses for company employees shrank during the same period, and Goldman Sachs’ profits fell to a four-year low. The company also set aside $1.1 billion for a hoped-for settlement with U.S. regulators over the role it played in a Malaysian corruption scandal.
Goldman Sachs collected $10 billion from U.S. taxpayers as part of the $700 billion bailout of the banking industry in the wake of the 2008 financial crisis — created by banks and investment companies.
Citigroup CEO Vikram Pandit just took home $80 million, in what may eventually total more than $200 million in compensation and bonuses.
Coming in at the top of the list is JP Morgan Chase CEO Jamie Dimon, who just took home $31.5 million.
The top earner was UnitedHealth Group chief Stephen J. Hemsley, with $102 million in total pay. Hemsley drew $3.3 million in salary and bonus, but also realized $98 million from the exercise of vested stock options.
Part Three – The Perfect Storm Overhead
(Inequality = Debt = austerity = Civil Unrest = Inflation + Deflation = Stagflation)
The cuts in taxes for the mega-wealthy have led to record wealth inequality and resulted in a record national deficit.
Meanwhile, to make up for the deficit that the richest one-tenth of one percent of the population has created, Democrats and Republicans are committed to creating Draconian budget cuts to vital social services, that target the poor, middle class, elderly and sick, while handing out billions more in corporate welfare annually. (Inequality = Debt = Austerity)
Just as the government has done, to make up for tax revenue lost to the mega-wealthy, Americans have made up for the decline in income by taking on massive amounts of debt as well. (Inequality = Debt)
In a severely unequal society, massive debt can perpetually be created, therefore forming a vicious cycle of increasing inequality and increasing debt, until the fragmentation of society reaches a breaking point when those in debt cannot afford to pay back their debts without starving to death.
We are currently reaching that breaking point.
(Inequality = Debt = austerity = Civil Unrest)
VIII – Debt Slavery -The indentured Servant Has Become The Indebted citizen
As for statistics on Americans being buried in financial debt, the indentured servant has evolved into the indebted citizen.
As mentioned before, from 1990-2010 costs of living have increased 67%, while wages have stagnated and declined. because the national debt has reached a record $14.6 trillion, total personal debt is now over $16 trillion. consumer debt is $2.5 trillion. credit card debt is $805 billion and student debt now exceeds $1 trillion .
Obviously, the more severe your debts are, the more you have to cut back in spending and therefore the less money you have to buy new things. (Debt = Austerity)
Meanwhile, a perfect storm circles overhead as society breaks down and falls into an economic death spiral-health care, food and gas prices are skyrocketing, while income and residential values are plummeting. (Inflation + Deflation = Stagflation)
Given these conditions, it’s not surprising that over 250 million Americans, another record-breaking number, are presently living paycheck-to-paycheck struggling to make ends meet.
IX – Inflation
The following charts, from advisor perspectives, show the rise in costs of living since 2000:
As you can see, the price of basic necessities are consistently increasing, only clothing (apparel) has declined. The second chart highlights the crucial skyrocketing cost of energy:
The third chart highlights the pernicious skyrocketing cost of education:
The cost of education basically buries a young person in a debt that they will spend a major portion of their life attempting to get out of.
Given the increasing costs of living, and the decreasing ability to make an expected income from such an expensive level of education, this young demographic will most likely live an entire life locked into spiraling levels of debt that they will never be able to get out of.
When reporting on inflation, the Bureau of Labor Statistics has twice, since 1980, revised their methodology to mask the severity of inflation, just like how they mask the severity of unemployment.
In their consumer price index (CPI), that measures inflation, they have heavily discounted the measurement weight of energy, food and education-three of the most important costs for most american households.
To understand the importance in their revised methodology, current “official” CPI is at a 3.6% annual rate. However, if calculated the way it was before former federal reserve Chairman Alan Greenspan altered it in 1980, it would be 11.1%, three times worse than officially stated.
So while the government and the Federal Reserve claim that inflation is low, at 3.6% over the past year, food prices have increased 39% and U.S. gas prices have increased 34% over the same time-frame.
The increase in gas cost over the past one-year masks the severity of total gas price inflation, that is presently 125% more expensive since December 2008, increasing from $1.67 per gallon to $3.75.
The hidden tax
The Federal Reserve’s strategic policy known as Quantitative Easing (QE) has been a major factor in the rising cost of basic necessities by deliberately stimulating inflation, while decreasing the value of the dollar.
Looking at their recent QE2 program, the dollar lost 7.5% of its value from January 2010 through March 2010. From August 2010 through March 2010, the dollar lost 17% of its value. to understand how this acts as a hidden tax, consider if you had $10,000 in the bank, over this time frame you would have lost $1700 in purchasing power. Therefore your $10,000 would currently be worth $8300.
At the same time, the cost of gas and food drastically increased.
The Phantom Recovery
By decreasing the value of the dollar, the Federal Reserve is also inflating the stock market by creating the impression that stock prices are rising, which, when measured in dollars, they have.
However, in real terms, their overall value has diminished.
To understand how deceptive this strategy has been in giving the appearance of a rising market, instead of measuring overall stock value in dollars, let’s investigate their overall value when measured in terms of gold:
As investor Michael Krieger explains:
“You will see from the chart above the downtrend of stock prices in real terms is completely intact and that they have now hit a brand new low, below the previous low point in March 2009.
In fact, although stocks did temporarily rise in real terms from the low in 2009 for the year as a whole, they were still down 5% in real terms.
Then in 2010, stocks were 14% lower in terms of gold. Finally, despite a short rally early in 2011, stocks in terms of gold are down 23% year-to-date.”
Dollar Vs. Gold
When comparing the value of the dollar to the value of gold, the dollar has lost a shocking 84% of its value since 2000. In 2000, gold was worth $279 per ounce, as of June 6, 2020 gold is worth $1742.
In fact, the dollar continues to fall in value whereas gold continues to rise.
All these factors together produce an ideal storm of stagflation.
As 90% of American citizens experience income declines, and the value of the dollar declines, the price of necessities are rising, while the one major asset many Americans have, a house, is also declining in value. Already, thanks to declining home values, 28% of U.S. homeowners owe more on their mortgages than their home is presently worth.
With 10.4 million American families having lost their homes to foreclosure since 2007, Amherst Securities, a leading broker/dealer focused on mortgage-related investments, estimates that another 10.8 million homes are in danger of default over the next six years.
This will obviously continue downward pressure on home values.
X – The beaten masses – Confronted With Severe financial Hardship, Why Do Americans stay Passive?
With an unprecedented total of wealth, tens of trillions of dollars, held within the top one-tenth of one percent of the U.S. population, we currently have the highest and most severe inequality of wealth in U.S. history.
Not even the thieves Barons of the Gilded Age were as greedy as the modern-day Economic Elite.
As celebrated American philosopher John Dewey once said,
“There is no such thing as the liberty or effective power of an individual, group, or class, except in relation to the liberties, the effective powers, of other individuals, groups or classes.”
Since the mid-1970s, employee production and wealth creation has exploded. as the statistics throughout this report prove, the dramatic increase in wealth has been almost entirely absorbed by the economic top one-tenth of one percent of the population, with most of it going to the highest one-hundredth of one percent.
If you’re curious why a critical mass of individuals desperately struggling to make ends meet are still not fighting back with overwhelming force and running the mega-wealthy aristocrats out of town, let’s consider two significant factors:
People are so busy trying to keep up their current standard of living that their energies are consumed by holding on to the little that they have left.
People have little or no understanding of how much wealth has been consolidated within the top economic one-tenth of one percent.
Considering the first factor, it’s obvious that people have become beaten down psychologically and financially.
A report in the Guardian entitled, “Anxiety keeps the super-rich safe from middle-class rage,” suggests that people are so desperate to hold on to what they have that they are too busy looking down to look up:
“As psychologists will tell you, fear of loss is more powerful than the prospect of gain. The struggling middle classes look down more anxiously than they look up, particularly in recession and sluggish recovery.”
Considering the second factor, people do not understand how much wealth has been withheld from them.
The average person has never personally experienced or seen the excessive wealth and luxury that the mega-rich live in. Wealth inequality has grown so extreme and the wealthy have become so far removed from average society, it is as if the wealthy exist in some outer stratosphere beyond the comprehension of the average person.
As the Guardian report mentioned above also states:
“…having little daily contact with the wealthy and little knowledge of how they lived, they simply didn’t think about inequality much, or regard the rich as direct competitors for resources.
As the sociologist Garry Runciman observed:
‘Envy is a difficult emotion to sustain across a broad social distance’…
Even now most underestimate the rewards of bankers and executives. Top pay has reached such levels that, rather like interstellar distances, what the figures mean is hard to grasp.”
In fact, the common American vastly underestimates the severe wealth inequality that we currently have.
This survey, featured in the New York Times, reveals that Americans think our society is far more equal than it actually is:
Americans drastically underestimated the level of wealth inequality in the United States.
While recent data indicates that the richest 20 percent of Americans own 84 percent of all wealth, people estimated that this group owned just 59 percent-believing that total wealth in this country is way more evenly divided among poorer Americans.
What’s more, when we asked them how they thought wealth should be distributed, they told America they wanted an even more equitable distribution, with the richest 20 percent owning just 32 percent of the wealth.
This was true of Democrats and Republicans, rich and poor-all groups we surveyed approved of some inequality, but their ideal was far more equal than the current level.”
Here is a chart showing the results from their survey:
The fact of the matter is that the overwhelming majority of U.S. population is unaware of the immense wealth at hand.
An entire generation of unprecedented wealth creation has been concealed from 99% of the population for over 35 years. Having never personally experienced or known of this wealth, the common American cannot comprehend what is possible if even a fraction of it was used for the betterment of society as a whole.
In fact, given modern technology and wealth, not one American citizen should live in poverty.
The statistics clearly demonstrate that we currently live in a Neo-Feudal society. In comparison to the wealthiest one-tenth of one percent of the population, who are sitting on top of tens of trillions of dollars in wealth, we are modern day serfs, essentially propagandized peasants.
The fact that the overwhelming majority of American citizens are struggling to get by, while tens of trillions of dollars are consolidated among a small fraction of the population, is a crime against humanity.
The day the average American fully comprehends how much wealth is consolidated within just the top one-tenth of one percent of the population, there will be a massive uprising and all the paid off politicians will be run out of town.
The next time you are stressed, struggling to make ends meet and pay off your debts, just think about the trillions of dollars sitting in the obscenely bloated pockets of one-tenth of one percent of the population.
The first step in overcoming your peasant status is to understand that you are indeed a peasant. This is a bitter pill to swallow and most will prefer to, as they have been conditioned to do, continue on their path of media-induced delusion, denial, apathy and ignorance.
However, I still cling to the hope that once enough people become awake to this hidden and obscured reality, we can have the non-violent revolution we so desperately need.
Until then, the rich get richer as a critical mass with increasingly dire economic prospects desperately struggles to make ends meet.
Part Four – Fascism in America
Other than driving large segments of the American population into poverty, and pushing the majority into huge debt and a state of financial desperation, there’s an ever darker side to what is unfolding these days.
The Political Elite have turned America into a modern day fascist state. Fascism is a terribly powerful word which evokes many strong feelings. People may think that the term cannot be applied to modern-day America.
However, as Benito Mussolini once summed it up:
“Fascism should more properly be called corporatism, since it is the merger of state and corporate power.”
In the early 1900s, the Italians who invented the term fascism also described it as “stato corporativo,” meaning: the corporate state.
Very few Americans would argue the fact that corporations now control our government and have the dominant role in our society. Through a system of legalized bribery-campaign finance, lobbying and the revolving door between Washington and corporations-the most power international corporations dominant the legislative and political process like never before.
Senator Huey Long had it right when he warned:
“When fascism comes to America, it will come in the form of democracy.”
As President Franklin D. Roosevelt once described fascism:
“The liberty of a democracy is not safe if the people tolerate the growth of private power to a degree where it comes stronger than their democratic state itself. That, in its essence, is fascism – ownership of government by an individual, by a group, or any controlling private power.”
The most blatant modern example of this was the bailout of Wall Street, when the “too big to fail” banks got politicians to promptly distribute trillions of tax dollars in support and subsidies to the very people who caused the crisis, without any of them being held responsible.
XI – modern day Slavery
Another shocking example of how far we have descended into fascism is that the American Legislative Exchange Council (ALEC), which is a group of corporate executives who literally write government legislation.
They have gone as far as setting up a system that imprisons the poor and then puts them to work, instead of paying living wages to non-imprisoned workers. Make no mistake, this is a modern day system of slavery unfolding before our eyes.
At the leadership of ALEC and various other Economic Elite organizations, poverty has essentially become a crime.
To demonstrate these attacks against the poor, there was $17 billion cut from public housing programs, while there was an increase of $19 billion in programs for building prisons,
“effectively making the construction of prisons the nation’s main housing program for the poor.”
Before laws began to be rewritten in 1980, with direct input from ALEC, they had a jail population of 500,000 citizens.
After laws were rewritten to target poor inner city voters with much more severe penalties, the U.S. jail population skyrocketed to 2.4 million individuals. They currently have the largest jail population in the world. With only 4% of the world’s population, we have 25% of the world’s jail population.
As I reported previously, in a report entitled, “American gulag – World’s Largest prison Complex“:
“The U.S., by far, has more of its citizens in prison than any other nation on earth. China, with over a billion citizens, doesn’t imprison as many people as the U.S., with only 308 million american citizens.
The U.S. per capita statistics are 700 per 100,000 citizens. in comparison, China has 110 per 100,000. in the Middle East, the repressive regime in Saudi Arabia imprisons 45 per 100,000.
U.S. per capita levels are equivalent to the darkest days of the Soviet gulag.”
XII – The death toll
The dramatic increase in poverty has obviously torn many families apart and caused a devastating psychological toll, but consider the rise in deaths as a result of poverty and severe wealth inequalities.
This is a awfully difficult statistic to accurately measure, but Columbia University’s school of Public Health conducted an intensive examination of mortality and medical data and estimated that,
“875,000 deaths in the U.S. in 2000 could be attributed to a cluster of social factors bound up with poverty and income inequality.”
As a report by Debra Watson sums up the study,
“There is no reason to believe, after a decade that has seen sustained attacks on social programs and consistently high unemployment rates, that the social mortality rate has declined. On the contrary, it has likely risen.”
Indeed, poverty and income inequality have skyrocketed since 2000.
Now, let’s consider the fact that, according to the Bureau of the Census, 31.1 million people lived in poverty in 2000, and according to Columbia’s study 875,000 deaths came as a result. this implies that 1 out of every 35.5 people living in poverty die annually as a result of their impoverishment. If you extrapolate this data to the 2009 total of 52.8 million people living in poverty, you get an estimate of 1,486,338 deaths within that year.
Even if you use the lower poverty totals from the Bureau of the Census, 43.6 million people, you get an estimate of 1,228,169 deaths in 2009.
XIII – Deliberate systemic Attacks
The dramatic increase in economic inequality and poverty, along with the unprecedented rise in wealth within the top one-tenth of one percent of the population has not happened by mistake. It is the designed result of deliberate governmental and economic policy.
It is the result of the richest people in the world, and the “too big to fail” banks, using the campaign finance and lobbying system to buy off politicians who implement policies designed to exploit 99.9% of the population for his or her financial gain. To call what is happening a “financial terrorist attack” on the United States, is not using hyperbole, it is the technical term for what is presently occurring.
Compare the million people who die annually as a result of these economic attacks, to the 2,977 that died on 9/11. As tragic as 9/11 was, these economic attacks are much more severe and damaging to United States as a nation, albeit a much slower and unseen death toll.
Nonetheless, the result is of genocidal proportions. One can statistically compare the economic attacks on the U.S. to the invasion of Iraq, which some estimate as leading to one million deaths. Once again, many of those deaths came in brutal and spectacular fashion in bombing campaigns known as “shock and awe.”
However, the death toll compares to the hidden brutality of a four-year campaign of economic “shock and awe.” Even as Iraq was invaded, the U.S. has been invaded by a worldwide banking cartel.
As shocking as that is to realize, consider that this is happening throughout the world.
While the U.S. poverty death rate is perhaps higher than in most European countries, the Federal Reserve’s economic policies – along with policies from the International Monetary Fund, World Bank and Bank of International Settlements – have caused rioting and uprisings over skyrocketing food prices and costs of living throughout the world.
The fact of the matter, and very harsh and unfortunate reality of this crisis, is that the global economic central planners are deliberately carrying out genocidal economic policies.
When tens of trillions of dollars deliberately flow to the top economic one-tenth of one percent of the worldwide population, while large percentages live in poorness, you have got to conclude, in technical terms, that a Neo-Feudal-Fascist state is upon United States, it is not democracy, it is not capitalism.
The wealthy have never been richer, while their paid off politicians make budget cuts for the poor and middle class, and cause the cost of basic necessities to skyrocket.
You can call me extreme, however the truth of this is extreme, these people, the worldwide economic top one-tenth of one percent, are genocidal fascists carrying out a holocaust. fascism has evolved…
There is no need to get blood on your hands while rounding up people and putting them into concentration camps when you can do it through economic policy while sitting in a jacuzzi on a corporate jet, or in a three-piece custom-made Armani, fully detached and insulated from the world in which you plunder.
However, as what happens with all empires, greed and arrogance makes them overreach. The beaten down masses get to a point where they literally can’t live under these conditions.
This desperation spreads throughout the population until it reaches a critical mass, then, suddenly, they rise up and the empire begins to collapse…
Tunisia, Algeria, Egypt, Israel, (Northern Africa, the middle East), Albania, Greece, Spain, United Kingdom (Europe), Wisconsin…
The Political Elite are overreaching and their empire is collapsing. The decentralized global rebellion has begun… Welcome to World War III.
Which side of history do you want to be on?
As a wise old friend once said,
“You can’t be neutral on a moving train.”
S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.