{"id":2593,"date":"2010-04-19T13:00:58","date_gmt":"2010-04-19T20:00:58","guid":{"rendered":"http:\/\/www.survival-spot.com\/survival-blog\/?p=2593"},"modified":"2017-10-17T09:45:23","modified_gmt":"2017-10-17T15:45:23","slug":"20-reasons-why-the-u-s-economy-is-dying-and-going-to-recover","status":"publish","type":"post","link":"https:\/\/www.survival-spot.com\/survival-blog\/20-reasons-why-the-u-s-economy-is-dying-and-going-to-recover\/","title":{"rendered":"20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover"},"content":{"rendered":"

\"EconomicEven though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy.\u00a0 Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be experiencing another time of economic growth and prosperity very shortly.\u00a0 But this time around that is not<\/strong> the case.\u00a0 The reality is that\u00a0we are being sucked into\u00a0an economic black hole\u00a0from which\u00a0the U.S. economy will never fully recover.<\/p>\n

The problem is debt.\u00a0 Collectively, the U.S. government, the state governments, corporate America and American consumers have accumulated the biggest mountain of debt in the history of the world.\u00a0 Our massive debt binge has financed our tremendous growth and prosperity over the last couple of decades, but now the day of reckoning is here.<\/p>\n

And it is going to be painful.<\/p>\n

The following are 20 reasons why the U.S. economy is dying and is simply not going to recover….<\/p>\n

#1)<\/h2>\n

Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression?\u00a0 Well, the “second wave” of mortgage defaults in on the way and there is simply no way that we are going to be able to avoid it.\u00a0 A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millons of people who simply cannot pay their mortgages.\u00a0 The chart below reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years….<\/p>\n

#2)<\/h2>\n

The Federal Housing Administration has announced plans to increase the amount of up-front cash paid by new borrowers<\/a> and to require higher down payments from those with the poorest credit.\u00a0 The\u00a0Federal Housing Administration currently backs about 30 percent of all\u00a0new home\u00a0loans and about\u00a020 percent of all new home refinancing loans.\u00a0 Tighter standards are going to mean that less people will qualify for loans.\u00a0 Less qualifiers means that there will be\u00a0less buyers for homes.\u00a0 Less buyers means that home prices are going to drop even more.\"The<\/p>\n

#3)<\/h2>\n

It is getting\u00a0really hard to find a job in the United States.\u00a0\u00a0A total of 6,130,000 U.S. workers had been unemployed for 27 weeks or more<\/a> in December 2009.\u00a0 That was the most ever since the U.S. government started keeping track of this statistic\u00a0in 1948.\u00a0 In fact,\u00a0it is\u00a0more than double the 2,612,000 U.S. workers who were\u00a0unemployed for a similar length of time in December 2008.\u00a0 The\u00a0reality is that once Americans lose their jobs they are increasingly finding it difficult to find new ones.\u00a0 Just check out the chart below….<\/p>\n

\"Duration<\/p>\n

#4)<\/h2>\n

In December, there were also 929,000 “discouraged” workers<\/a> who are not counted\u00a0as part of\u00a0the labor force because they have “given up” looking for\u00a0work.\u00a0 That is the most since the\u00a0U.S. government first started keeping track of discouraged workers in 1949.\u00a0 Many Americans have simply given up and are now chronically unemployed.<\/p>\n

#5)<\/h2>\n

Some areas of the U.S. are already virtually in a state of depression.\u00a0 The mayor of Detroit estimates that the real unemployment rate in his city is now somewhere around 50 percent.<\/p>\n

#6)<\/h2>\n

For decades, our leaders in Washington pushed us towards\u00a0“a global economy” and told us it would be so good for us.\u00a0 But there is a flip side.\u00a0 Now workers in the U.S. must compete with workers all over the world, and\u00a0our greedy\u00a0corporations are free to pursue the cheapest labor available anywhere\u00a0on the globe.\u00a0 Millions of jobs have\u00a0already been shipped out of the United States, and\u00a0Princeton University economist Alan S. Blinder\u00a0estimates that 22% to 29% of all current U.S. jobs will be offshorable within two decades<\/a>.\u00a0\u00a0The days when\u00a0blue collar workers could live the American Dream are gone and they are not going to come back.<\/p>\n

#7)<\/h2>\n

During\u00a0the 2001 recession, the U.S. economy lost 2% of its jobs and it took four years to get them back. This time around\u00a0the U.S. economy\u00a0has lost more than 5% of its jobs<\/a> and there is no sign that the bleeding of jobs\u00a0is going to\u00a0stop any time soon.<\/p>\n

#8)<\/h2>\n

All of this unemployment is putting severe stress on state unemployment funds.\u00a0 At this point, 25 state unemployment insurance funds have gone broke<\/a> and the Department of Labor estimates that 15 more state unemployment funds\u00a0will likely go broke within two years and will need massive loans from the federal government just to keep going.<\/p>\n

#9)<\/h2>\n

37 million Americans now receive food stamps<\/a>, and the program is expanding at a pace of about 20,000 people a day.\u00a0 The United States of America is very quickly becoming a socialist welfare state.<\/p>\n

#10)<\/h2>\n

The number of Americans who are going broke is\u00a0staggering.\u00a0 1.41 million Americans filed for personal bankruptcy in 2009 – a 32 percent increase over 2008<\/a>.<\/p>\n

#11)<\/h2>\n

For decades, the fact that the U.S. dollar was the reserve currency of the world gave the U.S. financial system an unusual degree of stability.\u00a0 But all of that is changing.\u00a0 Foreign countries are increasingly turning away from the dollar to other currencies.\u00a0\u00a0For example,\u00a0Russia\u2019s central bank announced on Wednesday that it had started buying Canadian dollars<\/a> in a bid to diversify its foreign exchange reserves.<\/p>\n

#12)<\/h2>\n

The recent economic downturn has left some localities totally bankrupt.\u00a0 For instance, Jefferson County, Alabama is on the brink of what would be the largest government bankruptcy in the history of the United States<\/a> – surpassing the 1994 filing by Southern California’s Orange County.<\/p>\n

#13)<\/h2>\n

The U.S. is facing a pension crisis of unprecedented magnitude.\u00a0\u00a0Virtually all\u00a0pension funds in the United States, both private and public, are massively underfunded.\u00a0\u00a0With millions of Baby Boomers getting ready to retire, there is simply no way on earth that all of these obligations can be met.\u00a0 Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the collective unfunded pension liability for\u00a0all 50 U.S. states for Forbes magazine<\/a>.\u00a0 So what was the total?\u00a0 3.2 trillion dollars.<\/p>\n

#14)<\/h2>\n

Social Security and Medicare expenses are wildly out of control.\u00a0 Once again, with millions of Baby Boomers now at retirement age there is simply going to be no way to pay all of these retirees what they are owed.<\/p>\n

#15)<\/h2>\n

So will the U.S. government come to the rescue?\u00a0 The U.S. has allowed the total federal debt to balloon by 50% since 2006<\/a> to $12.3 trillion.\u00a0 The chart below is a bit outdated, but it does show the reckless expansion of U.S. government debt over the past several decades.\u00a0 To get an idea of where we are now, just add at least 3 trillion dollars on to the top of the chart….<\/p>\n

\"U.S.<\/p>\n

#16)<\/h2>\n

So has the U.S. government learned anything from these mistakes?\u00a0 No.\u00a0 In fact, Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $2 trillion to pay its bills, a record increase that would\u00a0allow the U.S. national debt to reach approximately\u00a0$14.3 trillion<\/a>.<\/p>\n

#17)<\/h2>\n

It is going to become even harder for the U.S. government to pay the bills now that tax receipts are falling through the floor.\u00a0 U.S. corporate income tax receipts were down 55%<\/a> in the year that ended on\u00a0September 30th, 2009.<\/p>\n

#18)<\/h2>\n

So where will the U.S. government get the money?\u00a0 From the Federal Reserve of course.\u00a0 The Federal Reserve bought approximately 80 percent<\/a> of all U.S. Treasury securities issued in 2009.\u00a0 In other words, the U.S. government is now being financed by a massive\u00a0Ponzi scheme.<\/p>\n

#19)<\/h2>\n

The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying the U.S. dollar and the value of the remaining collective net worth of all Americans.\u00a0 The more dollars there are, the less each individual dollar is worth.\u00a0 In essence, inflation is like a hidden tax on each dollar that you own.\u00a0 When they flood the economy with money, the value of the money you have in your bank accounts goes down.\u00a0 The chart below shows the growth of the U.S. money supply.\u00a0 Pay particular attention to the very end of the chart which shows what has been happening lately.\u00a0 What do you think this is going to do to the value of the U.S. dollar?….<\/p>\n

\"United-States<\/p>\n

#20)<\/h2>\n

When a nation practices evil, there is no way that it is going to be blessed in the long run.\u00a0 The truth is that we have become a nation that is dripping with corruption and wickedness from the top to the bottom.\u00a0 Unless this fundamentally changes, not even the most perfect economic policies in the world are going to do us any good.\u00a0 In the end, you\u00a0always reap what you sow.\u00a0 The\u00a0day of reckoning for the U.S. economy is here and it is not<\/strong> going to be pleasant.<\/p>\n

[Via TheEconomicCollapseBlog.com<\/a>]<\/p>\n","protected":false},"excerpt":{"rendered":"

Even though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy.\u00a0 Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[391,195],"tags":[],"class_list":["post-2593","post","type-post","status-publish","format-standard","hentry","category-economy","category-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/posts\/2593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/comments?post=2593"}],"version-history":[{"count":1,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/posts\/2593\/revisions"}],"predecessor-version":[{"id":17961,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/posts\/2593\/revisions\/17961"}],"wp:attachment":[{"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/media?parent=2593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/categories?post=2593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.survival-spot.com\/survival-blog\/wp-json\/wp\/v2\/tags?post=2593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}