There Will Be No Economic Recovery. Prepare Yourself Accordingly.

hi everybody its Devan molyneux from freedomain radio so please buckle yourselves in if you'd be so very kind and I hope that you will make it through this presentation this is very very important stuff to know this is the world that you're living in the world that you're going to grow older in and the world that your children are going to grow up in this is the end of America so let's have a look at some basic facts about where we are and now this pertains mostly to America at the moment but Europe is a little further ahead some other countries a little further behind we're all on the same path in the West it's the end of the West as we know it which has challenges but also great opportunities as well so we generally told the Desura there was a terrible recession it was the greatest recession since the Great Depression of the 1930s but boy now recovery is underway and everything is looking better this unfortunately is not true this is not the same as was before kind of fundamentally we know that right so this is Congress's approval rating since 1974 and it's now down at around five percent five percent approval rating for Congress this is not a country with great faith in its leadership and with good reason so these are things that Americans in general like better than the lawmaking body they like the TSA better than Congress they're like people who hate the Olympics better than Congress they like the most disliked company in America more than the like Congress they're like abortion more than Congress Nixon more than Congress banks and financial institutions more than Congress Paris Hilton more than Congress and if that's not a sign of the Apocalypse I don't know what is and they're like socialism more than Congress well that's a two for one because Congress is patient it's basically socialist so what is going on with the American economy as a whole let's look at some information to give you the big picture more style here more specific details and again I really do thank you view of patience but this is very important stuff so this is civilian employment to population ratio this is the percentage of working-age people who employed you can see in the 1950s it was 56 57 58 percent why well because the majority of women were not in the workforce this is prior to the feminist revolution getting women into the workforce and so on and then that labor force participation begins to really rise and now despite the fact that most women are in the workforce it's crashed down to 58% 58% this is astonishing means less than 60% of working age Americans actually have a job and this counts people who are in the public sector versus just the private sector the public sector requires the private private sector to generate income to have an income so it's kind of parasitical at least you know ideology aside economically it is parasitical and so this is really pretty pretty terrible and as you can see it's not getting better after the recession wages as a percent of the economy as you can see from nineteen fifty fifty fifty to fifty four percent and someone now they're down to 44 percent they've really crashed and they're not recovering this is significant because this means that a significant amount of economic activity is not wage based which means that it's less consumer demand less consumer confidence and so on and we'll get into that as we go forward so what has basically happened well really since the 1980s there has been a massive explosion in borrowing this is true of corporations and households and governments and so on there's lots of different reasons for this certainly computers have greatly enhanced our capacity to make up magic monopoly fiat currency and pretend all of this future stuff is going on but also because wages have stagnated or declined particularly for the poorest they've turned to credit to maintain their lifestyle so household debt as you can see here from 87 and these are all in constant dollars unless otherwise notified and the sources for all of this will be in the notes to the video of the podcast so you can see here household debt just going up and up and out from 1977 onwards from you know 750 billion to 2.3 trillion trillion sorry corporations corporate debt so you can see here starting in the 1980s it is just spiked like crazy and it went down a little bit during theirs now it's climbing back up and of course governments this is federal government debt total public debt as you can see again starting in 1980 1990 and so on particularly after white UK it's just gone through the roof and this is not the result of savings right so if you have a whole bunch of savings then you could lend out more money you can use that as collateral to borrow even more but of course savings rates have declined or the US government is purposefully crushing and controlling interest rates down to the lowest conceivable level because otherwise they have to pay more than a trillion dollars a year just to service their debt as the saving rates decline savings sorry as interest rates decline savings rates decline as well because you're just not getting many money back by putting it in the bank or and so on and so this is all coming from the magic land of type whatever you want into your own computer to tell you how wealthy you are which never lasts so here's some examples of what happened in the in the early 1980s so income grows a growth and gains between 1917 and 2008 so as you can see the richest people are gaining enormously but the poorest bottom 90% it's really stagnant and this is when you create fiat currency when you create money which the government does perpetually and and horrendously the money that you create doesn't get dropped in helicopter bags over poor neighborhoods the money that you create goes to those closest connected to the government first and they get to spend it at the real so they get to spend it at the existing rate of dollar value as the money that they spend spends spreads throughout the economy then what happens is inflation hits because there's too many dollars chasing too few goods and services and so the poorest get the hardest hit from inflation and the richest get the most benefit by being getting their grubby hands first on the monopoly money that's created by the state so this is one reasons as many other reasons but as you can see this doesn't this hasn't achieved the goal or the whole welfare state that started in the sixties Lyndon Johnson's Great Society and so on and Social Security which started in the 30s all of this was designed to close income disparities but fundamentally if we recognized whatever the government does is coercive in nature you know at a personal level at a private level we all understand that violence will get you the opposite of what you want right if you stalk some woman she ain't gonna love you if you kidnap some guys kids to get a job you're not going to be a model employee you're certainly not going to get employee of the month whatever you use violence to achieve you will end up achieving the opposite and we've used the power of the states the violence of the state the violence of Monopoly counterfeiting powers that the federal reserve has we've used the violence of the state to attempt to address complex social issues and since violence always produces the opposite of what we claim we want right how has the war on drugs gun right has the warned illiteracy has the war on poverty poverty was being solved in the 1950s about a percentage point a year was being reduced government intervened and decided to help people so violence will always achieve the opposite of what we want there's a fundamental issue that we're facing now is you know you you plant a demon seed you raise a flower of fire as the song goes and that's really what we've done so average hourly earnings you ever get that feeling that you're just not getting any richer so look at this this is from 1964 to 2008 1964 the average hourly income into two thousand and eight dollars for $17.50 in 2008 it was 18 dot 52 cents so it's really been pretty stagnant for what 45 46 years and that's pretty tragic that is pretty tragic this of course is all propped up by debt everything that we're looking up here is propped up by debt so if this was your income but you were also now $200,000 in debt with no assets to show for it right you just we were in debt to a loan shark to some mafia bars to a casino to Visa then you'd say well you're actually average hourly earnings are way down because these are all propped up by debt this is really really important to understand if you put debt into the equation this stuff looks ridiculously worse so remember in the 1960s 1970s all these government programs went in designed to close the income gap to make a more egalitarian society and of course look what's happened a 2011 the richest 5% share of income in the US has increased almost percent since 1967 the pair that the bottom 20% share of income has declined 20% since 1967 so you see whatever you try to achieve with violence you will achieve the opposite off this was supposed to close the gap violence was used it's made it wider so what's happened of course since the 1960s is social programs so Medicare Medicaid and so on basically transfers you steal from one section of the population at gunpoint through taxation or you steal from the unborn through debt or you steal from the poor through inflation through printing of money the creation of money and you take from one section of the population you keep a massive overhead for yourself in welfare programs that 60 70 80 percent of the money is kept by the government so you steal from one person you keep 60 cents of every dollar and then you give 40 cents of 30 cents or 20 cents to the poor of course the people who are bureaucrats love this kind of stuff but here you can see this incredible rise in social programs and this is a he is fundamentally what's driving the deficit of the debt the social programs as a percent of the economy in 1960 you know four or five percent now they are sixteen percent of the GDP our social programs you understand this is not wealth this is just wealth transfer you know I mean the thief gets wealthier if he lifts your wallet but you're not exactly and he's not exactly adding to the wealth of society as a whole so social programs now are consuming the most federal tax revenues this is a single biggest item so as you can see here at this graph the blue is the receipts tax revenues and they've remained relatively constant since the 1950s seems like government is grown a lot but as a percentage of the economy they have not although the percentage the economy is really tricky to measure because there's been such an expansion in government and government programs a lot of which are counted as a measure of the economy that this graph would look a little bit different if we merely looked at the private sector which we'll get to but as you can see the social programs are just eating everything up eating everything up and what's the result of this well this cuts into everything else things like infrastructure roads bridges maintenance I mean that the backlog of decrepitude in the public sector is just crippling so here you can see you are increasing your social program spending and everything else turns to crap transfer payments as mentioned have renow rosen and you can see here them rising transfer payments are rising now now consumes 16% of GDP monstrous monstrous item and what does this turn into well so the total welfare spending that the government is is lavishing upon the poor is 168 dollars per day for every household in poverty right now this is 20 percent more than the median median income for the entire United States in other words we are spending more per household 20% more than they would earn if they were middle-class income earners you understand this is completely unsustainable it traps the poor into a near permanent underclass and social mobility has vastly declined since the introduction of the welfare state it really traps them because – they have to have this huge chasm to lead no leap over they got a leap over what the work and education and experience it takes to get to more than 20% of the income now and of course the poor aren't actually getting all of this money they get all this trickle-down it comes in food stamps it comes in quote free medical services in subsidized housing and so on and this doesn't even count public schools which is another form of welfare because it's services for the poor which have more children than the rich which are paid for by the rich or the middle class so this is not sustainable at all and again spin completely catastrophic for the poor federal net outlays are 18 times 18 times what they were in 1970 and again you can see here just this massive massive rise a lot of this right I mean women go into the workforce women need a government subsidized daycare women go into the workforce and they pay more in taxes which allows the government to use that as collateral to borrow more and print more and well for a program trapped people in a permanent underclass and of course when the government start paying bills the price cap of consumer resistance goes off completely and so you can have all of this ridiculous overhead that goes into the health care system and there's less pressure because the government is now paying more than 50 cents on the dollar for health care so in the 1950s 85 percent of all working age men had a job and it's now below 65% the other thing of course with the collapse of the family and the catastrophic rise in divorce in the 1970s and 1980s one of the things that kept one of the things that made men grow up and get jobs was being a father in the head of household that's not the case anymore and so since the government is stepped in to take the place of fathers and providers male ambition has been blunted somewhat and this is just one of six million different reasons but this is off the top of my head so in the 1950s 85% of all working aged men had a job this is now below 65 percent and as you can see it dropped enormously in the last recession and it's not really climbing back up and this is with the public sector the massive growth in the public sector is swallowing up all of these people again if you only look at the private sector and if you excluded the areas of the private sector which service the public sector these numbers will be looking all mostly different so this is employment population ratio again as you can see it rises up it goes down and it's now pretty low so that's just some graphs hopefully to get your attention let's look at some faxes so we're told that we're in a recovery because the numbers of course are being manipulated this is you know standard statism 101 is just moonligh and manipulate the numbers so they reclassify unemployed people as no longer unemployed right so if you give up trying to get a job and you just leave the workplace you're no longer counted as unemployed because you have to be actively looking for work I mean I guess if you die you're no longer sick but it does sure as hell doesn't mean that you're healthy there's a failure to distinguish between the public and the private sector so if the public sector goes on a hiring binge then this is counted as a reduction in unemployment even though it adds to the deficit adds to the debt and removes people from the workforce who might otherwise be actually producing things of value in the private sector so if you think that the public sector is the same as the public sector at the private sector then basically well I won't give you the metaphor but it's a it's not a good it's not a good way to look at it and of course if you ignore debt then the numbers look a whole lot better than they so let's have a look at some of the ways in which the unemployed are reclassified so according to the US Department of Labor 163 thousand new jobs were created in July 2012 just pick a month the reality is that the u.s. lost over 1.2 million jobs that month now in the five months since June 847 thousand jobs were created but 73% of those jobs were government jobs and remember there are 150,000 people in the u.s. entering the workforce in any given month they're just graduating and whatever it is turning that age and so if you take that out of the equation the government jobs right I mean the government was working fine it's not like they need all these new people Lord knows they have enough people already so if you don't count the government jobs there's been a half million deficit of jobs so since January 2009 the labor force in the United States has increased by eight hundred and twenty seven thousand but those not in the labor force has increased by 8.2 million understand people who are of working age who used to be in the labor force who are no longer in the labor force they've gone golf they vanished 8.2 million if you were to put those numbers back in well so Barack Obama has been president for I guess a little over four four years now the number of Americans not in the work force has increased by nearly 8.5 million they've just they just vanished and they're no longer counted as unemployed but they were employed and they're still of legal age to work or age to work and so the jobs gap is not closing it's all smoke and mirrors the u.s. lost 9 million private-sector jobs during the Great Recession since growth job since job growth has resumed 5 million private-sector jobs have been created now some of those of course are there to service the increase in the public sector but the level of private sector jobs remains 13 million below the pre-crisis trend right so 150,000 jobs need to be created a month to keep up with the population growth and so in since the recession began 30 million jobs have been lost let alone the ones that needed to be created just to keep pace with population growth so here's how it looks right so this is a graph which has the trend going on in sort of private sector payrolls and you can see here in the black line that it's it's really gone down and of course it's starting to go back up when the government hires a whole bunch of people this stimulates private sector activity right so the government opens up you know the new Department of you know Bob's let's get everyone under 12 a mohawk Department of whatever then they need to baby buildings they need computers they need training they need office equipment they need furniture they need all of the stuffs stimulated but it's all nonsense it's all smoke and mirrors this is and it also drives up the price for everyone else all the stuff that's being supplied to the new made up government workers is driving up the price for everyone else because it raises demand in an artificial way so it harms the private sector in a huge way so unemployment since the recession has only tended to drop because people are leaving the workforce not exactly what we want almost 550 thousand Americans leave the labor force in any given month so here's some more numbers of course since Jan 2009 hundred ninety four thousand new jobs have been created in that time almost 15 million people have been added to the Food Stamp rolls when Barack Obama first took office long-term unemployed workers in the u.s. 2.6 million they were long-term unemployed 2.6 million now that number is sitting at 5.6 million there are it depends the numbers you go 88 fc100 to 88 million working-age Americans that are not employed and not looking for employment just sit on that number for a second I know it's staggering I've double-checked it there are about 88 million working-age Americans not employed and not looking for employment right so the percentage of working-age Americans with a job has been under 59% for 39 months in a row now since the recession and certainly since 2000 since 2000 there's a rise of manufacturing capacity and free trade in two areas right China and in India and this has been massively positive China's experienced single high single double-digit growth rates and in India tens of thousands of people every month are being raised out of poverty as a result of free markets in free trade but because America and Europe have very restrictive policies on manufacturing right lots of pseudo environmental concerns lots of legalese lots of legislation to control for Health and Safety stuff which is really not necessary lots of things that unions and and benefits and subsidies and and all of that pensions so a lot of manufacturing has fled so in 2000 about 20% of all jobs in America were manufacturing jobs now that's down to 5% Manufacturing was the route out of the lower-class to the middle class right you get here you're broke you get a job in a factory you work there for 40 years your kids go to college bingo bango Bungo you're in the middle class that Avenue has dropped off catastrophic ly and it continues to do so so 60% of the jobs lost during the last recession were mid wage jobs medium wage jobs 58 percent of the jobs created since then a low wage jobs right right so there they're taking away your sirloin and giving you a half frozen vegetable patty right so what's replacing what has been lost is not a one-to-one right what's replacing quality jobs is crap jobs service sector jobs and so on the US economy lost almost a quarter million small businesses during the recent recession 220,000 in 2010 the number of jobs created at new businesses in the u.s. was less than half of what it was in 2000 and this is before Obamacare comes in our guest has come in America is losing half a million jobs to China every single year now of course normally what would happen is if China was competing with you you would people would get paid less in order to compete with China or you'd find um some other ways to innovate but just losing jobs because it's illegal to pay less in in many areas in the United States and of course the regulatory overhead is insane so this is truly astounding I mean it's Mulder stuff over particularly look at it from the standpoint of the hard-working poor or the wannabe hard-working poor the US has lost an average of approximately 50,000 manufacturing jobs every single month since China joined the World Trade Organization in 2001 last 50,000 manufacturing jobs I actually went to China into and for business for about a month and I could see all of this activity started happen almost like ooh I don't know the manufacturing is gonna be a great place to be in North America anymore I made my career adjustments accordingly more than 56,000 manufacturing facilities in the US have been shut down since 2001 so you know a 40 year old or 50 year old factory worker what are you going to do what are you going to do this is catastrophic this is all there is not the result of the free market this is a result of status policies which have raised a protectionist wall around us manufacturing to the point where it cannot compete we we can always compete with lower wage people I mean you can always compete with lower wage people because it's not like in India the workers get 12 years full-time education paid for by the state you know I mean for everyone who's a manufacturing there they have massive amounts of under education in India so why can't you compete well you can it's just the government's allow you to because they're too many restrictions on opening and running manufacturing facilities about 20% of all US adults are currently working jobs that pay poverty level wages I mean they're functional serfs in the economy and that's completely tragic more than 40% of Americans who actually are employed are now working in service jobs which are often very low paying again really tragic less than 25 percent of all jobs in the u.s. are good jobs and that number continues to shrink and this includes government jobs again take that out of the equation I mean it's just catastrophic more than half of all small business owners in America quote say they would not start a business today given what they know now and in the current environment talk to doctors – oh my god so we really are facing the involuntary end of employment for massive sections of the population against their will I mean just look at you know you're asked for 300 jobs you say 300 jobs are opening here you'll get like 30,000 applications people want to work it just model out it by force in the u.s. more than 41 percent of all working age Americans are not working how sustainable is this if you gather together all of the workers that are officially unemployed in the u.s. into one nation they would be the 68th largest country in the entire world so the public sector has grown enormously and the public sector I mean let's just take the classic state model I'm not a status but let's take the classic state model that a certain amount that the public sector is necessary for the economy to function let's say that roads need to be down by the state and other kind of things is an infrastructure and so on so let's say that because the government is way way way beyond where it used to be in terms of its it's at least 50 to 75 times what it was to provide those services in the past so a growth in the public sector comes at the huge expense of the private sector and that expense shows up in many ways so clearly the private sector has to pay more taxes or there's more debt or more inflation to pay for the public sector you have transferred people from being productive in the private sector to being parasitical in the public sector you've driven up prices in the private sector for all the resources devoted to the public sector I mean the list just goes on and on and of course you're training people in skills for the public sector which if and when they lose their skills in the part they lose their jobs in the public sector they have to be retrained in the right to whole mess so total total compensation costs for management professional and related occupations half of all state and local governments employed averaged over $50 per hour at work per hour worked and we use the word worked here in the loosest possible sense state and local government employee spent an average of 40 $1.56 per hour worked for employee compensation in September 2012 total employer compensation cost for private industry workers instead of being 40 $1.56 or 50 dollars and 43 cents were $28.95 September 2012 in the US the average federal work an hour and 60 percent more than the average worker in the private sector and again you know being a libertarian means always being sorry that you're right you know it's like being a doctor telling some guy stop smoking stop smoking stop smoking oh you have lung cancer I'm sorry that I was right I know it was going to be right I'm sorry that I'm right and this is clear I mean if there's no limit fundamentally to rising prices in the public sector I mean there's no competition there's no investors who can take their money elsewhere there's no going out of business of course they're going to add a whole bunch more that's how you buy votes this is the foundation of the Democrat Party in 2006 only 12 percent of all federal workers made 100 grand or more per year now 22 percent of all federal workers do u.s. public pensions a four point six trillion dollar short the amount of assets needed to cover projected liabilities right so they get a whole bunch of money and they're supposed to invest that money and they're supposed to pay their retirees out of that money their way underfunded way of course they lost a lot of money in the recession and they're allowed to do these crazy calculations rather hard to say oh I'm going to get an 8% return on investment which hasn't been seen for decades and they are just vastly underfunded this is of course back to go and pillage the last kidney out of the last taxpayer to pay for all this nonsense because pensions are a way of buying peace with public sector unions and private sector unions at the expense of the unborn who have no say the matter can't vote and don't even exist yet right because you're kicking the can down the road when you give people pensions instead of wage increases as is debt right fundamentally so private-sector job losses dwarf government gains so since the start of the recession the government has added five hundred ninety thousand jobs and the private sector has lost almost 8 million jobs since the Recovery Act government has added 400 thousand jobs the private sector has lost two point six five million jobs right so the private sector is where you really need to look for the economic recovery you cannot get economic recovery coming from the public sector right that's like replacing your heart with a cancer what is the payroll change since January of 2008 right private sector has gone down minus 4% whole government has gone down minus 2% federal government excluding the post office has gone up almost 12% and right so this is just all the manipulation now I mean they're going to hire like crazy so they can bring their numbers down and every one of the Huffington Post can pretend that socialism works the u.s. share of global GDP has fallen from 31.8% in 2001 to 21.6% in 2011 you understand this is a compl catastrophe where it's gone down nearly a third in only 10 years this is an utter collapse of the economy 61% of all Americans were middle income back in 1971 today only 51% of all Americans are again this includes the public sector as we mentioned in 1950 80 percent of all men in the US had jobs now less than 65 percent of them have jobs one out of every four American workers makes $10 an hour or less $10 an hour or less this is after the robot revolution this is after the computer revolution this is after the internet revolution this is after the most massive potential gains and productivity that has ever occurred in the history of the world in the history of any kind of economics whatsoever and all of this has been diverted in a mad violent plunge to attempt to redress social problems with the infinite brutal unsubtle Club of government force and this is the result this is not what was planned but this is what was predicted by anybody who had any sense of ethics property in the free market payroll change this is from July 2012 payroll changed since January 2008 minus 5 million in the private sector minus 4 point 6 1 million right so total payroll change has been minus 5 million in the private sector it's been the vast majority of that 4.6 that 5 million is in the private sector the government has gone down 400,000 and change the federal government as we mentioned has gone up 2.2 225,000 people okay so this is startup jobs created per 1,000 Americans broken down by President Bush Senior Clinton Bush jr. and Obama so let's look at how these numbers break down Bush Senior eleven point three Clinton eleven point two Bush jr. ten point eight Obama seven point eight and there's not to pick on Obama I mean these you know in a sense was promoted captain in the Titanic but it was three inches above the water but you can see that these are really catastrophic numbers 77% of Americans are living paycheck to paycheck at least some of the time this is not how it was supposed to be medium household income in America has fallen for four consecutive years overall it is declined by almost over four thousand dollars over the last four years completely catastrophic and this is the time of increased debt thirty-six percent of Americans say that they don't contribute anything to retirement savings aid they don't have the money and B they still believe in the Mirage of Social Security twenty four percent of American workers say they have postponed their planned retirement age in the past year the ancients a new world forty-three percent of Americans have less than ten thousand dollars saved up for retirement which isn't going to do any good to you at all twenty-eight percent of all Americans do not have a single penny saved for emergencies and this means that they're hanging by a thread above the chasm of falling out of even the lower classes into the dependent classes so 4050 years ago America like most of the West launched a massive program to accelerate the end of poverty poverty was already being solved in the post-war period this was to accelerate the end of poverty now violence achieves the opposite of what you wanted to achieve and what has been the result of the war on poverty well in the u.s. today around 100 million Americans are considered to be the poor or near poor back in 2007 nineteen point two percent of all American families had a net worth of zero or less than zero by 2010 that figure had soared to thirty two point five percent forty percent of all Americans have $500 or less in savings right you grow the economy primarily through putting money in the bank which then gets lent to lent to entrepreneurs who start new businesses who provide new services who invest in capital improvements to become more productive who invest in education for their workers whatever it is you ain't saving you ain't growing and you ain't Savin about ten million households in the u.s. don't even have a single bank account can off the grid and not cuz they're super wealthy the US has a higher percentage of workers to low wage work than any other major industrialized nation in 2010 2.6 million more Americans fell into poverty largest increase ever seen since the US government began keeping statistics on this back in 1959 violence achieves the opposite you major war on poverty you will swell poverty and this has huge results in these kinds of catastrophic wealth losses and losses of opportunity have huge results on things as fundamental as marriage there are now 20 point 2 million Americans that spend more than half their income on housing that's a 46% increase from 2001 only 51 percent of all Americans that are at least 18 year olds old are currently married back in 1960 this was 72% and marriage of course is the foundation for the mental physical social emotional health of your children and this is really it's just producing more people who are going to have much higher risks to be criminals drug addicts abusers and problematic bullies and you name it in 1984 the median net worth of households led by someone 65 or older was ten times larger than the median net worth of households led by someone 35 or younger right so the gap between those who'd accumulated resources over the course of their life and those who were kind of just starting out or the process of starting out was about tenfold now the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger right and this is why I say Social Security is a complete boondoggle because there's no money save for it it's basically just a dusty bunch of I use that have to be taken out of the kidneys of the young so people who are much poorer relative to the baby boomer retiree population which is the wealthiest population the world has ever seen the young are being taxed who have much less money to pay for the retirements of the old who have way more money as a group I mean this is a completely regressive tax so debt we had a look at this earlier as break this down a little bit more total consumer debt in the US has risen by seventeen hundred percent since nineteen seventy one in 80 in 1983 the bottom five percent of all income earners had sixty-two cents of debt for every dollar that they earned right you want something you pay for it credit it's the devil's handshake at least that's how it was when I was growing up so in 1983 bottom 95% of all income earners had 62 cents of debt for every dollar that they earned by 2007 that figure had soared to a dollar forty eight cents or a dollar forty eight of debt for every dollar that you earned one third of all Americans are currently not paying their bills on time 43 percent of all American families spend more than they earn each year this is just household debt not corporate debt not government debt after adjusting for inflation u.s. college students are borrowing about twice as much money as they did a decade ago college debt outstanding is at around a trillion dollars again people had it's not that they have a failure to launch it's there's no place for them to land when they get out of college it's 85 percent as we'll see if college students they move back in with their parents 46% of all Americans carry a credit card balance from month to month the infinite payment of compound interest of the US households that do have credit card debt the average amount of credit card debt is a truly shocking fifteen thousand seven hundred ninety nine dollars that interest rates ranging from thirteen to eighteen to higher percentage that's astonishing and astounding and incredibly hard to pay off Americans are carrying a grand total of seven hundred ninety eight billion dollars in credit card debt so if you were alive when Jesus was born you spent a million dollars every single day since then you still would not have spent seven hundred and eighty nine seven hundred ninety eight billion dollars by now it's a lot of money 45% of all auto loans are made to subprime borrowers that works well with the housing market didn't it the ratio of household debt to personal income in the u.s. is now one hundred and fifty four percent that doesn't make your jaw drop in you to reach for a bar of gold read it again cancer of inequality is growing enormous Lee we have become a you know a Morlock kind of society 83% of all US stocks are in the hands of one percent of the people 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans only the top 5% of US households have earned enough additional income to match the rising housing cost since 1975 for the first time in u.s. history banks on a greater share of residential housing net worth in the u.s. than all individual Americans put together the bottom 50% of income earners in the u.s. now collectively owned less than 1% of the national wealth cannot build a society on this kind of inequality it will fall over and it will fall on the poor as it always does and this is you know people who focus on the free market really the only people who care about the poor not in a piece in the poor not in giving the poor stuff not in drugging the poor with free stuff but in actually creating conditions wherein the poor can help themselves stop giving them fish give them the lake and the capacity to fish they'll be fine but this idea that we're going to use government power to help the poor has just created a situation of imminent catastrophe for the lower classes in the United States today corporate profits written all-time high the percentage of Americans that are living in extreme poverty is also at an all-time high in corporations are making and sitting on a hell of a lot of money and one of the reasons they're not spending that money is something called regime uncertainty which is what the hell is going to happen next from the legal system from the law system from the regulatory system from the tax system from you name it what is can they don't know so they're waiting and there's not that much demand because there's so little money sitting out there among the people so more than 100 million Americans are enrolled in at least one welfare program run by the federal government not even counting Social Security or Medicare back in the 1970s about one out of every 50 Americans was on food stamps today about one out of every six point five Americans is on food stamps I mean this is late Roman Empire bread and circuses crap it's just astounding one-fourth of all children in the United States are enrolled in the food stamp program hey didn't get rid of daddy's just do wonderful things for the family 21 percent of all children in the US are living below the poverty line in 20 the highest rate in 20 years this after 40 year war on poverty median household income for families with children dropped by six thousand three hundred dollars between 2001 and 2011 and this counts public sector workers who've had massive increases half of all American children will be on food stamps at least once before they turn 18 the number of Americans living in poverty has increased by about six million over the past four years about as we mentioned one out of every four workers in the u.s. brings home wages that are at or below the federal poverty level almost 60% of all children in the US are living in homes that are either considered to be low-income or impoverished the number of children living in poverty in the state of California for instance has increased by 30 percent since 2007 in the city of Detroit today this smoking crater Center of experiments in central planning and endless socialist tinkering in the city of Detroit today more than 50 percent of all children are living in poverty and close to 50 percent of all adults are functionally illiterate they can still vote you see but they're functionally illiterate which is why you have to give them phones I guess 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government this is why you can't cut these programs the mean the programs will be cat mathematics will do a fine job of cutting the programs but you can't cut them politically unless you actually have a bald-faced reality based conversation with the American voter but unfortunately the American voter has been trained by the government to believe in the government for 12 years so you would first have to dismount the propaganda and that takes a huge amount of work certainly longer than your average election cycle but unless you are willing to have an absolutely frank discussion with the neediness dependence and ignorance of the American voter it's not going to change and what politicians going to want to do that right so in 1983 it was less than thirty percent of Americans lived in a home with one person receiving financial assistance now it's almost 50 percent number of Americans living in poverty rose to a new all-time record of almost 50 million during 2011 53 percent of all Americans with a bachelor's degree under the age of 25 or either unemployed or underemployed and again this counts those who got jobs in the public sector 85% of all college seniors plan on moving back in with their parents after graduation yay life never starts now the real inflation rates have been estimated at ten percent per year so not only is there a lot less money but the money is worth a lot less in and of itself so if you have a ten percent inflation rate per year the value of your money gets cut in half in only seven years this is catastrophic so on average you could buy about 10 gallons of gas for an hour of work back in the mid-90s now the average hour for work will get you less than six gallons of gas to get the same purchasing power that you got out of $20 back in 1970 you would have to have more than one hundred and sixteen dollars today do you see how much the value of money has gone down because of all of this printing and all of this debt and this money all of this debt and all of this printing accumulates value in the upper classes at the expense of the lower classes in the unborn the two most vulnerable sectors of society right the state is an illusion and a lion that lies to you and preys on the weakest says it's only cares about the weakest it will end up preying on the weakest this of course is a central reason as I mentioned before white savings are so low government debt ie your children's debt during 2012 the US government had to roll over nearly three trillion dollars of old debt the u.s. national debt is now more than 22 times larger than it was when Jimmy Carter became president where it was relatively peanuts during the Obama administration the US government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office and please let's not hear anything about how Bill Clinton's administration produced a surplus that was all nonsense that surplus was financial scum jiggery and also because there was a huge tech boom taxes went up but it was all a bubble so I hope I won't get too much nonsense about that if the federal government began right now to pay repay the u.s. national debt not even counting interest at a rate of $1.00 per second it would take over 440,000 years to pay off the national debt in other words three showings of the hobbit if Bill Gates gave away every single penny of his fortune to the US government it would only cover the US budget deficit not the debt or the operating expenses the budget deficit for about 15 days it's never going to be repaid people have been the u.s. national debt is increasing by about 150 million dollars every single hour so I better hurry up or I'm going to be hundred and sixty million dollars worth of podcasting during fiscal year 2012 62 percent of the federal budget was spent on entitlements entitlements can't cut the government without cutting entitlements and this whole Republican plan of well if you don't increase taxes you will cut government spending it's all nonsense in 1965 only about one of every 50 Americans was on Medicaid today one out of every six Americans is on Medicaid can you believe that a government program grew and went over-budget first time for everything I guess so this is says Doug Casey's mentioned this is the greatest depression the condition of the US economy today mirrors the economic situation prior to the Great Depression so their slow economic growth massive deficits high unemployment and foreclosures and a shaky banking system real unemployment not the magic monkey numbering that goes from the government's estheticians real unemployment is at the same level it was during the Great Depression which is at about 25 percent but now the drop in house prices and sales is actually worse than it was during the Great Depression and the stock market has been dropping and stocks are currently overvalued as much as 50 percent and youth unemployment of course in the u.s. is now at the highest level that we've seen since World War two ah but it's even worse in some ways because the Great Depression in the 1930s didn't have any of these structural economic and social problems nor the massive unfunded liabilities and obligations in 1929 just prior to the Great Depression manufactured by the Federal Reserve America was not sixteen trillion dollars in debt it was not facing over 100 trillion dollars in unfunded liabilities right so yeah the amount of money that the government is committed to pay that it can't pay is three hundred and sixty thousand dollars per citizen not per household not per Co joint wins per citizen in 1929 most of the stay were not bankrupt insolvent and dependent on government handouts to survive one country one County Cook County which includes Chicago Illinois now ODEs over a hundred and eight billion dollars in debt the biggest part of it in unfunded government employee pensions that ball is still like that's then that's that ball still rolling down towards Indiana Jones these unfunded liabilities of the future of far worse than our existing problems in 1929 there was no they were not 21 million government employees with bloated salaries obscene pensions and free health care for life right so I mentioned before one out of five federal employees earn over $100,000 in 1929 there was no such thing as Social Security or Medicare or Medicaid the federal government did not have these obligations written into law that threatened to consume the entire federal budget within a few years so not only are we in the same places right before the Great Depression of the 1930s but we're in a far worse place because of all of the unfunded liabilities and social programs so while Barack Obama has been president the US government is spent about $11 for every seven dollars of revenue that it is actually brought in over the past four years welfare spending has increased by 32 percent in inflation-adjusted dollars in real dollars spending on welfare programs has it written by almost four hundred percent over the past thirty years how is poverty doing while it's increasing it's one of these weird things I remember a long time ago I had a conversation with a friend of mine he said they said you know the there are far fewer agricultural subsidies in country X rather than here and he's like well here of course because of the agricultural subsidies or our food is cheaper because that's what seems to make sense well we're spending more money on the poor therefore we should be solving the problem of poverty it's how it works when I go to buy bananas if I spend more money on bananas I get more bananas but that's the free market in the government everything is reversed when you have put violence into the mix coercion monopoly powers everything you spend produces the opposite effect it's it's a real weird backwards upside-down universe right the moment you stop punching your friends they ain't so friendly right the moment you lock someone in the basement they kind of want to get out whatever you do using violence produces the opposite and so this has been predicted for many years by people far smarter than I and so as you increase government spending on poverty you will expect a concomitant increase in the amount of poverty when you spend government money fighting drugs you will expect an increase in the amount of drugs being bought and sold when you spend government money to reduce the price of healthcare you will expect the price of healthcare to rise violence produces the opposite if the federal government used gap accounting standards like publicly traded corporations are forced to do by the government right remember the government is all about setting up rules that exclude you the real federal budget deficit for 2011 would have been five trillion dollars instead of 1.3 trillion dollars Ryan don't don't believe anything that they're telling you don't believe anything that they're telling you it is far worse but of course those who are in the upper classes in the media classes in the political classes they need you to pretend that there's a recovery that the you know the green shoots are not the fingers of zombies coming up to strangle you right they need you to believe the stuff so that you won't panic to prop up the stock prices to keep them going for another year or two in office right they're just you know this is the captain of the Titanic telling everyone at a 30-degree angle everything's fine don't worry about it because he wants to get to the lifeboat I don't believe anything that they're telling you the United States already has more government debt per capita than Greece Portugal Italy Ireland or Spain right the pigs of Europe the US government is responsible for more than 1/3 of all the government debt in the entire world what with 5% of the population the amount of US government debt held by foreigners is about five times larger than it was a decade ago and they're only holding on to that debt they're only holding on to these bonds because it's the moment they start selling it they'll have to record the resulting loss in value on their books and they'll go into heavy deficits or even worse deficits between 2007 and 2010 US GDP grew by 4.2 6% but the u.s. national debt soared by 61% and again that gdp includes crap like health care health care is not it's a cost it's not wealth and and it includes government spending and government employees and so on there which is anyway I think I've made that point so let's start summing up the national debt is now more than 37 times larger than it was when Richard Nixon took the u.s. off the gold standard Oh funny you know when you can print whatever money you want you tend to print more money the national debt is now more than five thousand times larger than it was when the Federal Reserve was first created Federal Reserve I know everyone keeps emailing me as it's a private institution it is not a private institution it is not a private institution because that has monopoly powers granted to it by the state the national debt jumped more on the very first day of fiscal year 2013 than it did from 1776 to 1941 combined let me say that again it's really important understand this the national debt jumped more on the very first day of fiscal year 2013 first day than it did from 1776 to 1941 combined what with a civil war and World War one and the Great Depression and World War two one day these are end times Mayan calendar should have had an American flag on it historically the interest rate on ten-year US Treasuries has averaged six point six eight percent if the average interest rate on the government debt rose at that level today the government would have to spend more than a trillion dollars a year just on interest on the national debt but they're crushing it you don't have a free market when two fundamental things are controlled by the government you have a fascist system if the government controls interest rates you don't have a free market if the government controls money you don't have a free market because money and interest are the two foundations the two signals the two most important elements of stability and predictability that are needed to have a free market so once the government has those things you know yeah a guy's heart beats for a second or two after his head gets cut off but doesn't mean you can win a marathon anytime soon Boston University economist lawrence Kotlikoff is warning that the US government is facing a gen empted gigantic tsunami of unfunded liabilities in the coming years that we are counting on our children and our grandchildren to pay no no they won't be able to because they can't get jobs they live with their parents and they're virtually andaaz of student debt to pay off Carl cough speaks of a fiscal gap which he defines as the present value difference between projected future spending and revenue his calculations have led him to the conclusion that the federal government is facing a fiscal gap drum roll please drum roll of death of 222 trillion dollars in the years ahead the US tax code is now more than 3.8 million words long William Shakespeare's works are about 900,000 words long the value of the US dollar has declined by more than 96 percent since the Federal Reserve was first created the money of course the difference goes into the pockets of the wealthy corporate profits as a percentage of a percentage of GDP are at an all-time high wages as a percentage of GDP are near an all-time low of course you with government debt with government emulation of interest rates with government printing of feared currency you get this whole humor asked government facing financial sector which is completely catastrophic for the economy as a whole right so you can just go screw around with the financial sector to get profits in the short run rather than investing in labor capital in and so on so the fact that corporate profits are going up and wages are going down is entirely the results of this fascistic control of the economy you see this all the time when fascism takes over wealthiest 1% of all Americans own more wealth than the bottom ninety five percent combined this is aristocracy and serfdom right back to the Middle Ages but with an iPad the wealthiest 400 families in the US have about as much wealth as the bottom 50% of all Americans combined the six ears of Walmart founder Sam Walton have a net worth that is roughly equal to the bottom 30% of all Americans combined so how are the American people doing well you know despite the gossamer delusion rainbow webs that the media is consistent consistently trying to spin over your rational eyeballs now people are seeing through the smoke cameras which is why I say we know all this we know all this deep down I did the video years ago called there will be no economic recovery and again being a libertarian being an anarchist means always hating to be right but knowing that you're going to be right more people now feel that the u.s. is in a recession that they did in October of 2008 almost 70 percent of Americans think we are in a serious or moderate recession while 13% still believe it's a mild one but they all have government jobs I'm sure 71% of all Smith's of all small business owners believe that the US enemy is still in a recession almost half of Americans believe that another Great Depression is likely within the next 12 months and look I mean a lot of the Econo economic quote growth that we see is just being propped up by wild and massive government self financing through the Fed buying up a whole bunch of Treasuries and it's crazy the government through trillions of the giant banks including foreign banks the big banks used a lot of that money to speculate in commodities including food and other items which is now driving up the price of consumer necessities right so the government gives all this money to the banks the banks then use that money to speculate they're certainly not going to lend it out to businesses who don't want to grow because of regime uncertainty the banks will end up speculating in commodities just driving up those prices and so you pay for the money or your children pay for it to go to the banks and then you also pay for the increased prices and whatever you buy because the banks are using your tax money to speculate in the market ah but it is there are some indications that we are hitting bottom and that's good right this is such a terrible addiction to state power and coercion and lies and propaganda manipulation and fantasy but eventually all addicts if they don't die which then it's not going to happen they hit bottom right they wake up with a hookers panties next to the body of a wolf in a ditch in Vegas and they're like well maybe I should cut back on the blow so only 23 percent of all Americans believe that the government is the solution to the problem and again most of those have government jobs I'm sure 64 percent of all Americans believe that the government is the problem so we're in the beginning stages of actually admitting that there is a problem and having some sense of what the problem is fantastic Congress as we mentioned has a five percent approval rating so that's good so I know this has been a hopefully not too tough presentation to watch but this is all very very important to know to understand and to accept and to appreciate these are the realities you need to take care you need to take care to know what the truth is about the world that you're living in you need to take care to protect yourself from what is coming as best you can get some gold get some food get so friendly with your neighbors build up a community you know I think one of the major reasons that the Americans the government wants to drive gun control is because they know that there's going to be a lot of problems the money runs out and the money is going to run out there is no way about it there is no way to stop it politically it is too close too big and the population is still too fantastical and unreal in their thinking to be able to reason with so this is going to have to be one of those times where it is a hard bounce to a more real and more virtuous place so thank you so much for watching and listening if you would like to check out more of this show I am the winner of the 2012 Liberty inspiration award ahead of Ron Paul Tom woods and the Antonio Beeler so thank you everyone who wrote in for that freedomain radio it's my show and my listeners show largest most popular philosophy show on the web almost 50 million downloads I guess with you watching this that's 50 million and one if you would like to check it out lots of free books free materials it's a donation based thing so if you can sue be really helpful if you could help pay for some of the resources that the show requires mostly it's a it's it's a bowling ball polish for my forehead but there are a few other costs as well of course thank you so much for watching and listening you can go to FDR URL com forward slash end us if you would like to get the sources for this presentation and I look forward to talking to you again soon thank you so much for your time and attention

  1. If there is one thing you should take from this, it's that the government and fed reserve are in the business of continuously creating the illusion that things are better than they are, and to ensure nothing is done to reduce to accumulation of wealth and power of the 1%, whom they actually work for.

  2. this video was published 5 years ago and the predictions did not come true.. There was no "end" and there was indeed a very good recovery…

  3. If I had it my way, my baby boomer/bachelor self would have been allowed to die of natural causes at the age of 48 instead of my near dead body self being taken to hospital. I followed procedures and advice by the educated people before then. I am permanently damaged in some areas that forced me to leave that field. I had more money to give to nearest relatives. Education is just another business. Personally, I had disruptions, but I have advanced education. If I could go back in time to whenever was my last best day to walk, I would go for a long walk to the woods, and let nature take its course.

  4. I'm sure the caliphate will come any second now……any second, just let me ready my clock…..any second……almost there……just a couple more days/ years give or take…any second….

  5. Listen: They wealthy are kicking ass at making money in America, don't expect anything to change…America is about "every man for himself" and this economy is a result of that thinking…there are Human Farmers and there are the humans that are farmed. Alpha will always farm the beta.

  6. Its not just that we are declining economically, but our age-old rivals, the Mongols, are benefiting off of this by using the commercial wealth of the United States to experience large amounts of economic growth, and by "trade" they're gaining our knowledge of science and technology, for one day to be used against us

  7. Very informative, although a few years older now. I think this video is still bang on the money….. they keep propping it up, but the fall will come. And when it does it'll be worse.

  8. Now that Trump is in I am curious how things have improved. I would love a government that actually wanted to help with freedom and less government control and dependence.

  9. Everything you have said is 100% true. But I am not sure where the tipping point is? As an individual I am tired of never getting ahead. But, maybe I am not working hard enough.

  10. Economics relies on value for money. Inviting millions of people that can not read or write, is economics downfall.
    It's the rise of aggressive socialism.
    Essentially Europe now represents the soviet union, with Germany, the worlds largest war criminal at the helm.
    Not only do Germany owe billions in 2nd world war reparations to Poland and UK, they're demanding money from us for our own downfall.
    Canada is the desperate party guest that wants to be seen as all inclusive with its foreighn chums.

  11. Why do you single out social programs as being "not wealth"? Isn't ALL government spending "wealth transfer" by means of "violence"? What does it matter in your ideology is one segment is 3% or 16%?
    Also, this figure almost certainly fails to include unauthorized spending, such as the $21 trillion (with a t) in unaccounted, unallocated military spending. During the same time, the value of the stock market has gone up by a bit over $30 trillion. Hmm…. I wonder how the rich got richer?
    Programs designed to fail, fail. Straight up kleptocracy works. Doesn't an hour of intellectual dissection to explain (or counter) that.

  12. all the debt graphs should be adjusted for inflation. You state that inflation is theft from people who save. it is. But its also theft from people who lent money to the state and so a pretty good way of getting rid of debt (until the economy collapses)

  13. The employment graph suggests to me that regardless of gender, about 50% of the population cant be in the market, most of em are women but saying that therefore women should stay in the house is a bit extremist so i think that the standard should become again the 1 income household regardless of who works, (the man or the woman), granted most of the women will choose to stay home but some men will also do this and some women will preferred to work.

  14. Great presentation. Amazing some of these stats barely see the light of day. Makes you wonder if the market is mostly currency devaluation and hidden inflation. What's still holding it up in 2018 like it's defying gravity?

  15. Hahaha. Looks like you were way off on that one. Had killary been elected you would most likely have been correct since she was the way obummer would have got a 3rd term.

  16. Perhaps you were not counting on the entire Global Trade system and all the major world powers pumping their currency, debt, and economy up up and away. A rising tide floats all ships; at least until a rogue wave smashes them all to bits

  17. I’m still waiting from 5yrs ago of your stupid crash bullshit.

    I sold everything and moved? U idiot. It’s 2018 and the stock market is booming and people r doing great! WTF. Are u part of the fake news Bull?

    Can someone ban this idiot

  18. Hey Stefan, what's you take on things now ? Are we just inflating the bubble or will we ever pay our debts down ?

  19. We have to learn how to be poor in a new/old way. I'm a minimalist so converting a cargo trailer to a little home is ideal for me, no plans on ever having a family. I have many friends with land so it's easy to garden as much food as I'm willing to put the work in for. Even a garden made from buckets and foraged soil (or making a composting operation, there's free biomass EVERYWHERE, including coming out of your ass) would be able to grow a lot of nutritious food. The internet is freely available in most of this country in libraries, so the information needed to do all this isn't hard to find, though you need basic computer literacy first. I feel fortunate to have been educated in many things that I didn't appreciate at the time. Because of that I have been able to continue educating myself without any trouble. The system is failing, so let's go back to connecting with the soil, water, and sunlight. They are the foundation of true value, can't eat money, and the stuff you can buy with it in the store is likely bad for you in some way, including the produce with all the chemicals used all over the world

  20. I have no clue on what to do. Im 28 and still stuck at home. Ive been working in the maintenance department of a florida school county for 5 years now. I only get paid 12 dollars an hour. The benefits are great. My health insurance is top rate cost 50 dollars a month with a 600 dollar deductible. I guess I'm lucky there. Ive just been saving little at a time and have a car paid off. I have like 20k in my savings now but i don't make nearly enough to get my own place. Im hoping to meet the right girl and use my money to put a down payment on a home. There are not many jobs in florida that really pay more than 12 dollars an hour.

  21. Everyone has a copy of the block chain and they all know what USI tech did to me. So why do they think they can continue to act. The block chain will expose there wickedness. The block chain will punish them because the block chain is righteous.

  22. And yet everyone can afford masters degrees in Lesbian Inuit suffering, and drive $27,000 cars? let me know when people are actually poor in practice and not just on paper, and i'll pay attention.

  23. Thank you! When my husband gets home he will watch this with me! He has a BS in Biology and concentrations in Mathematics and Anthropology. When he graduated he couldn't find a job in our state. He finally took a job driving semi. He makes more doing this than he would if he worked in a lab!!

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