Category Archives: Collapse

Is the U.S. Becoming a Third World Nation? by Charles Hugh Smith

You don’t have to look too hard to uncover many similarities between the US and a typical banana republic. From Charles Hugh Smith at oftwominds.com:

This is a chart of an informal kleptocracy which cloaks itself in the faux finery of democracy and a (rigged) “market” economy.

Back in the day, nations that didn’t qualify as either developed (First World) or developing (Second World) were by default Third World, impoverished, corrupt and what we now refer to as failed states–governments that were incapable of improving the lives of their people and the machinery of governance, generally as a result of corruption and self-serving elites, i.e. kleptocracies.

Is the U.S. slipping into Third World status? While many scoff at the very question, others citing the rise of homelessness, entrenched pockets of abject poverty and the decaying state of infrastructure might nod “yes.”

These are not uniquely Third World problems, they’re symptoms of a status quo that’s fast losing First World capabilities. What characterizes Third World/Failing States isn’t just poverty, crumbling infrastructure and endemic corruption; at a systems level these are the key dynamics in Third World/Failing States:

1. The status quo protects insiders at the expense of everyone else.

2. There is no real accountability; failure has no consequences, bureaucrats are never fired for incompetence, reforms are watered down or neutered by institutional sclerosis.

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The Real Reasons Why The Media Is Suddenly Admitting To The Recession Threat, by Brandon Smith

The media is admitting to the recession threat because we’re heading into a recession. From Brandon Smith at alternative-media.com:

One thing that is important to understand about the mainstream media is that they do tell the truth on occasion. However, the truths they admit to are almost always wrapped in lies or told to the public far too late to make the information useful.   Dissecting mainstream media information and sifting out the truth from the propaganda is really the bulk of what the alternative media does (or should be doing).  In the past couple of weeks I have received a rush of emails asking about the sudden flood of recession and economic crash talk in the media.  Does this abrupt 180 degree turn by the MSM (and global banks) on the economy warrant concern?  Yes, it does.

The first inclination of a portion of the liberty movement will be to assume that mainstream reports of imminent economic crisis are merely an attempt to tarnish the image of the Trump Administration, and that the talk of recession is “overblown”.  This is partially true; Trump is meant to act as scapegoat, but this is not the big picture.  The fact is, the pattern the media is following today matches almost exactly with the pattern they followed leading up to the credit crash of 2008.  Make no mistake, a financial crash is indeed happening RIGHT NOW, just as it did after media warnings in 2007/2008, and the reasons why the MSM is admitting to it today are calculated.

Before we get to that, we should examine how the media reacted during the lead up to the crash of 2008.

Multiple mainstream outlets ignored all the crash signals in 2005 and 2006 despite ample warnings from alternative economists. In fact, they mostly laughed at the prospect of the biggest bull market in the history of stocks and housing (at that time) actually collapsing. Then abruptly the media and the globalist institutions that dictate how the news is disseminated shifted position and started talking about “recession” and “crash potential”. From the New York Times to The Telegraph to Reuters and others, as well as the IMF, BIS and Federal Reserve officials – Everyone suddenly started agreeing with alternative economists without actually deferring to them or giving them any credit for making the correct financial calls.

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‘A Total Failure’: Homeless Crisis In Progressive Cities Reaches Fever Pitch, by Tyler Durden

Fox News investigated homelessness in Los Angeles, San Francisco, Portland, and Seattle. These once desirable West Coast cities are becoming increasingly less desirable. From Tyler Duren at zerohedge.com:

As ZH readers are no doubt aware, America’s most ‘progressive’ cities have become ground-zero for a what has become an all-out homelessness crisis, leaving these once-beautiful cities a bastion of human suffering which rival some third-world nations.

This summer, Fox News‘ Barnini Chakraborty embarked on an ambitious project to chronicle the crisis in four West Coast cities; Seattle, San Francisco, Los Angeles and Portland, Oregon.

“In each city, we saw a lack of safety, sanitation and civility,” writes Chakraborty. “Residents, the homeless and advocates say they’ve lost faith in their elected officials’ ability to solve the issue. Most of the cities have thrown hundreds of millions of dollars at the problem only to watch it get worse.”

In May, new data revealed that homelessness in San Francisco had jumped 17% since 2017, and would have risen by 30% if the city had used past definitions.

The U.S. Department of Housing and Urban Development’s definition of homelessness includes people who are living on the streets, in cars or in shelters. San Francisco’s own definition widens the category to people without a permanent address who are in prison, rehab or hospitalized. If the city used the same measurement it had in years past, the numbers would show an increase from 7,400 to 9,784 — or 30 percent in 2019. –Fox News

On Monday and Tuesday, Chakraborti published her findings on Los Angeles, and San Francisco, which notably points out the disparity between progressives driving around in supercars while homeless residents – many of whom are addicted to drugs or have mental problems which prevent them from working, languish on shit-covered streets.

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American Apocalypse: The Government’s Plot to Destabilize the Nation Is Working, by John W. Whitehead

The government has been gearing up for martial law for quite some time. From John W. Whitehead at rutherford.org:

“The most dangerous man to any government is the man who is able to think things out … without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” — H. L. Mencken

The U.S. government is working hard to destabilize the nation.

No, this is not another conspiracy theory.

Although it is certainly not far-fetched to suggest that the government might be engaged in nefarious activities that run counter to the best interests of the American people, doing so will likely brand me a domestic terrorist under the FBI’s new classification system.

Observe for yourself what is happening right before our eyes.

Domestic terrorism fueled by government entrapment schemes. Civil unrest stoked to dangerous levels by polarizing political rhetoric. A growing intolerance for dissent that challenges the government’s power grabs. Police brutality tacitly encouraged by the executive branch, conveniently overlooked by the legislatures, and granted qualified immunity by the courts. A weakening economy exacerbated by government schemes that favor none but a select few. An overt embrace of domestic surveillance tactics if Congress goes along with the Trump Administration’s request to permanently re-authorize the NSA’s de-activated call records program. Heightened foreign tensions and blowback due to the military industrial complex’s profit-driven quest to police and occupy the globe.

The seeds of chaos are being sown, and it’s the U.S. government that will reap the harvest.

Mark my words, there’s trouble brewing.

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Socialism isn’t a failure. It’s a fraud. By Mark E. Jeftovic

Socialism is a lie, which is obvious from its basic premises and should not have needed over 100 years of failure to demonstrate. No one of sound mind can ignore that history, even if they don’t put two and two together from the basic premises. From Mark E. Jeftovic at guerrilla-capitalism.com:

“Want to be rich? Start a good business.
Want to be really  rich? Become a socialist.”
— Unknown.

There is no shortage of empirical data that socialism fails every time it has been tried, and leaves the largest body count in it’s wake. Dr. Kristian Niemtietz’s “Socialism: The Failed Idea that Never Dies” documents the three distinct stages socialism goes through

  1. The Honeymoon Phase
  2. The What Aboutery Phase
  3. And finally, when all that’s left is a smoking crater and a pile of bodies, “the not real socialism phase”

Niemietz documents each occurrence of socialism in the 20th century in his book to show that central planning and redistribution simply do not work.

Then there’s the Black Book of Communism, which tallies up the body count of the socialist regimes of the 20th century (over 100 million souls).

So it’s curious, why are our intellectual, cultural and sundry political and economic elites decrying capitalism and promulgating socialism as a cure for societies perceived ills?

The answer, I think, is because socialism isn’t actually meant to succeed economically. It’s successful if it keeps the population under control, and the elites in charge.

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House of Cards, by the Zman

All we’ve done since the financial crisis of 2008-2009 is build an even larger skyscraper of cards. From the Zman at theburningplatform.com:

One of the things that was revealed in the 2008 mortgage crisis was the fragility of the global financial system. The system that was born of the Louvre Accords was supposed to be robust and resilient, unlike the previous arrangements. The masters of finance would be able to keep a steady hand on the tiller, guiding the world economy through each storm, rather than have a free-for-all ever time there was a little turmoil. Up until 2008, everyone knew something like the mortgage crisis was impossible.

A credit based financial system was supposed to get around the problem of currency devaluation to solve political problems. That’s been a problem since the advent of coinage. When the state gets in trouble, the easiest ways to solve it is to spend money on the public. Whether it was debasing the coinage or printing paper money, the solution to spending money that did not exist was the create it. That always created new and bigger problems for the society down the line.

One way of looking at the mortgage crisis is as a form of currency devaluation. The global financial system is based in credit. That’s the base unit of value. Government debt and to a slightly lesser degree, corporate debt, is the foundation of the global financial system. Government issues debt, which increases the supply of money in the system, as that debt is used as collateral in the system. Central banks can buy and sell debt to control the supply of money in the system.

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Writing on the Wall, by MN Gordon

There’s a real economy out there that’s a lot different, and worse off, than the one suggested by Washington’s statistics. From MN Gordon at economicprism.com:

One of the more disagreeable discrepancies of American life in the 21st century is the world according to Washington’s economic bureaus and the world as it actually is.  In short, things don’t add up.  What’s more, the propaganda’s so far off the mark it’s downright insulting.

The Bureau of Labor Statistics (BLS) reports an unemployment rate of just 3.7 percent.  The BLS also reports price inflation, as measured by the consumer price index (CPI), of 1.8 percent.  Yet big city streets are lined with tents and panhandlers grumble “that’s all” when you spare them a dollar.

In addition, good people, of sound mind and honest intentions, are racking up debt like never before.  Mortgage debt recently topped $9.4 trillion.  If you didn’t know, this eclipses the 2008 high of $9.3 trillion that was notched at the precise moment the credit market melted down.

Total American household debt, which includes mortgages and student loans, is about $14 trillion – roughly $1 trillion higher than in 2008.  Credit card debt, which is over $1 trillion, is also above the 2008 peak.  To be clear, these debt levels are not signs of economic strength; rather, they’re signs of impending disaster.  Moreover, they’re signs that American workers have been given a raw deal.

How is it that the economy’s been growing for a full decade straight, but the average worker’s seen no meaningful increase in their income?  Have workers really been sprinting in place this entire time?  How did they end up in this ridiculous situation?

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