The U.S. Fed: Unintended Consequences Of Its Actions

To try to solve the U.S. unemployment and under-employment problem impacting 25 million Americans and their families, the Fed announced it will start buying U.S. mortgage securities of up to $40 billion a month, indefinitely. It will also keep interest rates at near zero until at least 2015. And it will create as much money as necessary to do these things. This Fed announcement sent stock markets soaring for investors love bailouts.

How Can One Fix An Economy That Is Not Broken?

In the U.S. the Democrats and Republicans each claim they can "fix the economy," as they argue over who should receive tax cuts. There is talk of more Fed "intervention" and of relatively modest cuts in government spending to "reduce the deficit." But these half-hearted attempts to "fix" the economy will fail for the economy isn't "broken." Reality is the U.S. and global economies are no longer viable in their current forms.

Why The U.S. Government Won't Be Able To Pay Its Bills

The U.S. government is far down the path to defaulting on its debt which will trigger a U.S. financial collapse, the likes of which the U.S. has never seen before. It will bring catastrophic results to all of us Americans, with devastating impact on people all over the world.

The Best Way To Prepare For The Future

The best way to prepare for the future is to fully live your life today.

What Is It Like To Live In A Collapsing European Economy?

As Spain's economy is collapsing, families are rallying to support one another in such difficult times. And what impacts them will eventually impact all of us for no national boundaries can prevent it. In the end, they are us and we are them and their pain will touch each of our hearts.

Are You Ready To Pay Far Higher Taxes?

Throughout America, cutting government spending and tax cuts for the Middle Class are very popular concepts. In South Carolina (SC), for example, in the current Republican primary campaign, crowds are wowed by those concepts as politicians promise to deliver on them. Yet for each tax dollar SC pays, it gets back $1.35 and the people love that as well because there is plenty of money to pay for 7 military bases and all the military contracting, which employs thousands of people. SC people favor a "strong defense," and many of them support more military spending.

Economic Downgrades Hit Europe

Global credit rating agency S&P on Friday (1/13) cut the credit ratings for France, Austria and 7 other European nations, further endangering the rescue funds several of them desperately need as investors grow more scared. Other than from the two World Wars, the magnitude and depth of this massive European Economic Crisis is unprecedented and its impact will ultimately be felt all over the world.

German Economy, Europe's Savior, Suddenly Starts Sinking

The German economic powerhouse suddenly slipped in the 4th quarter ended December 31st. This at a time when Portugal, Ireland, Italy, Greece and Spain will need a massive financial bailout and the U.S. will need German investment..

Will The Tightening Global Banking Squeeze Crush Your Economy?

As the Euro Zone confronts a possible Depression with governments in Portugal, Ireland, Italy, Greece and Spain slashing spending and hiking taxes, lenders are facing huge write offs and are tightening credit standards and in some cases calling in lines of credit. This credit tightening is also taking place in Britain and in the U.S. where in the U.S. some giant lenders are calling in lines of credit or sharply raising fees and interest rates to small businesses. Small businesses are the U.S.'s job engine and if they don't prosper, neither will the U.S.

Can The U.S. Economy Be Resurrected?

The U.S. government and the Fed have tried everything they can to save the economy. Huge corporate bailouts, multiple massive stimulus plans, interest rates near zero for banks, cash for clunkers and tax incentives to buy homes, yet other than stopping a collapse, it's not working, as the economy is stumbling and ready to fall. Home prices are dropping and foreclosures are mounting, while the job market is a disaster. What will resurrect the U.S. economy?

Will The Global Financial Crisis Get Worse?

The Euro Zone is desperate to avoid massive debt write offs that could endanger national banks and other major financial institutions and Portugal, Ireland, Italy, Greece and Spain are taking drastic cost cutting and tax hiking actions to accommodate them. The problem is those actions if implemented are so severe, their people will never allow it. Yet if they did allow it, their economies would face a Depression, something which is likely to happen anyway.

The Coming 2012 Global Economic Crisis

U.S. stock markets are surging because somehow our economic problems are behind us. Don't get caught up in this illusion for our massive problems are not being resolved and unless we as a people throughout the world change economic direction, the impact on us will be profound. These 5 brutal factors are confronting us:

Did Europe Solve The Debt Crisis Threatening To Crash The Global Economy?

On Friday, it seemed so as the Dow Jones Industrial Average skyrocketed 186.56 points. But its sharp rise won't last for long, for what was far more important is the government bond markets barely responded. These bond markets fund the staggering and rapidly mounting debts of these European nations.

Should The 10 Biggest U.S. Banks Be Broken-Up?

Because of the massive multi-billion dollar government  taxpayer funded bailouts, the 10 biggest U.S. banks now control 77% of all U.S. banking assets, an ironic reward for these banks nearly taking down the global economic system. But as a result, they have been deemed "too big to fail" by the U.S. government, which means they have huge leverage over U.S taxpayers and these banks make a mockery of the capitalistic system, as they can divide the spoils with the support of the U.S. Fed, which hopes to see them grow stronger so they can weather additional financial shocks to come such as from the European debt crisis and the home foreclosure fiasco. To ensure the support of the government and the Fed continue, these banks pay lobbyists big fees to give to politicians.

Did The Dramatic U.S. Fed Action Rescue The Global Economy?

The U.S. Fed moved quickly with its banking partners the European Central Bank, and the banks of Canada, England, Japan and Switzerland to expand a program providing emergency cheap U.S. dollar loans to European and other banking institutions to try to prevent a collapse of the global financial system. In response, global stock markets skyrocketed. But did this solve the severe financial problems?

Are U.S. Housing Prices Beginning To Rise?

No, with few exceptions, they are continuing to fall. Some housing analysts, builders, economists and pundits became optimistic when during the prime summer selling season, in some markets prices edged slightly higher. But many of those sales were foreclosures, while vast numbers of additional foreclosures were held off the markets by lenders still getting their paperwork in order.

Oh God America, What Happened To You?

1 in 4 American children now live in poverty! That's 16 million children, living in cars, cheap motels, homeless shelters and other makeshift housing, some of it on the streets. And those numbers are growing. Meanwhile the U.S. Military Industrial Complex (MIC) is flooded with money, as it builds fighter jets, drones, ships, tanks, weapons of mass destruction and sends "contractors" to help fight endless wars and military occupations.

Has A Southern European Bank Run Begun?

Yes a huge bank run has begun as the European financial crisis is quickly growing worse. Fearful businesses, institutions and individuals are pulling their savings out of banks in financially troubled nations such as those in Italy and Spain, the 3rd and 4th largest European economies. This bodes badly because these nations desperately need to attract money to pay their bills especially at a time when bond sales are so weak and interest rates to attract that money are soaring. Banks that suffer a run on their deposits will have trouble loaning to governments or to businesses, which will help sink their economies.

Will The Euro Zone Recover Or Collapse?

It will collapse. Why? 22.6% of Spain's workers are unemployed and that number is growing. Spain is Europe's 4th largest economy yet 1/2 of Spain's young people are out of work! To put this in perspective, at the height of the 1930's Great Depression, U.S. unemployment hit 25%.

Is This The Coming Of The Next Great Depression?

Yes it is, for we never even escaped the 2008 collapse. What is happening? To make bigger profits, U.S. multi-national firms aggressively shipped U.S. factories overseas along with their middle class jobs. Those jobs were replaced with lower wage retail jobs selling foreign made goods. In fact, U.S. wages adjusted for inflation are exactly what they were 33 years ago. Yet the cost of housing, cars, education, medical care and other middle class necessities kept rising.* So how did U.S. wage earners keep paying for them? They went deeply into debt like never before in U.S. history.