The "Real" America: Near Record 20% Struggle To Afford Food

With US equity markets on a 7-day roll and excited TV anchors proclaiming the worst over and new all-time highs must signal recovery as they 'celebrate' five years on from Lehman, the following two charts of the state of real America should open a few eyes to just how blinded American has become to the truth (unless you live it).

A stunning 20.0% of Americans were found to have struggled to afford food in the last year - surging in recent months to its highest since the peak of the crisis in 2008 - as American's ability to consistently afford food has not recovered to pre-recession levels. Furthermore, Americans access to basic needs (13 factors including housing, healthcare, and food) hovers near record lows - dramatically lower than pre-recession levels. The Gallup polls point to a very different image of American than Dow 15,000 - and is set to get worse as the food stamp program is set to be cut in November.

More Americans are struggling to afford food -- nearly as many as did during the recent recession. The 20.0% who reported in August that they have, at times, lacked enough money to buy the food that they or their families needed during the past year, is up from 17.7% in June, and is the highest percentage recorded since October 2011. The percentage who struggle to afford food now is close to the peak of 20.4% measured in November 2008, as the global economic crisis unfolded. Read more >>

Five Stages of Collapse

The day of reckoning for a century of putting our faith in the wrong people with wrong ideas and evil intentions is upon us. Dmitry Orlov provides a blueprint for the collapse in his book – The Five Stages of Collapse – Survivors’ Toolkit:

Stage 1: Financial Collapse. Faith in “business as usual” is lost. The future is no longer assumed to resemble the past in any way that allows risk to be assessed and financial assets to be guaranteed. Financial institutions become insolvent; savings wiped out and access to capital is lost.

Stage 2: Commercial Collapse. Faith that “the market shall provide” is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail chains break down and widespread shortages of survival necessities become the norm.

Stage 3: Political Collapse. Faith that “the government will take care of you” is lost. As official attempts to mitigate widespread loss of access to commercial sources of survival necessities fail to make a difference, the political establishment loses legitimacy and relevance.

Stage 4: Social Collapse. Faith that “your people will take care of you” is lost, as social institutions, be they charities or other groups that rush to fill the power vacuum, run out of resources or fail through internal conflict.

Stage 5: Cultural Collapse. Faith in the goodness of humanity is lost. People lose their capacity for “kindness, generosity, consideration, affection, honesty, hospitality, compassion, charity.” Families disband and compete as individuals for scarce resources. The new motto becomes “May you die today so that I can die tomorrow.” Read more >>

Americans in labor force at 35-year low at 63.4 percent

Millions of Americans are off from work this Labor Day. But millions of others are off nearly every day because they have no job—or have given up looking for one.

"It's just a very tough job market now. There's no other way of putting it," said Daniel Opler, professor of history and a labor expert at the College of Mount St.Vincent.

"And the least skilled are in the toughest spot. It's a daunting task to find a job these days," he said.

According to a survey released last month by recruiting firm Express Employment Professionals—using Bureau of Labor Statistics data and its own findings—the number of Americans in the labor force, or those working or seeking a job, is at a 35-year low of 63.4 percent. That translates into some 89.9 million Americans who are not working or seeking work.

This number might seem like a contradiction to the falling overall unemployment rate—from a high of 10 percent in October 2009 to a recent 7.4 percent in July. But a big part of the decline is likely due to the millions who have taken themselves out of the job market, said Bob Funk, CEO of Express Employment.

"It's a tragedy so many people have given up looking for work, " he said. "It's older people and younger people that have in essence just thrown in the towel." Read more >>

Appeals court says White House visitor logs can be kept from public

President Obama and his successors in the Oval Office are not obligated to make public the names of individuals visiting the White House, according to a decision of the federal Circuit Court for the District of Columbia made public Friday.

The case was brought by Judicial Watch, the government watchdog nonprofit that has been fighting a long legal battle seeking to force release of the White House visitor logs as public records under the Freedom of Information Act.

But in a decision that is drawing intense criticism from across the ideological spectrum, the circuit court said the president has a "constitutional perogative" not to tell the American people who he or his staff meets with in the White House.

The court said the president has such a prerogative because he is not covered by the FOIA and because of "special policy considerations" that allow exemption of visitor logs from classification as agency records subject to release under the public records law.

President Obama began making public some of the White House visitor logs in 2009, but refused a Judicial Watch request for all of the logs. Read more >>

Gallup: Americans' Confidence in Newspapers Continues to Erode

Couple this with NSA and Obama's plummeting approval ratings, and we have a major shift in the collective attitude toward the status quo underway.  

Americans' confidence in newspapers fell slightly to 23% this year, from 25% in 2012 and 28% in 2011. The percentage of Americans saying they have "a great deal" or "quite a lot" of confidence in newspapers has been generally trending downward since 1979, when it reached a high of 51%.

Newspapers rank near the bottom on a list of 16 societal institutions Gallup measured in a June 1-4 survey. Television news is tied with newspapers on the list, with 23% of Americans also expressing confidence in it. That is up slightly from the all-time low of 21% found last year. The only institutions television news and newspapers beat out this year are big business, organized labor, Health Maintenance Organizations (HMOs), and Congress.

Americans' confidence in television news was highest, at 46%, in 1993, when Gallup first asked about it. The question does not indicate the specific type of television news, meaning respondents could be thinking about anything ranging from cable news channels to local news when answering the survey. Read more >>

Consumer confidence plunges to lowest level in more than a year

Consumer confidence plunged in January to its lowest level in more than a year, reflecting higher Social Security taxes that left Americans with less take-home pay.

The Conference Board said Tuesday that its consumer confidence index dropped to 58.6 in January. That's down from 66.7 in December and the lowest since November 2011.

Conference Board economist Lynn Franco said the tax increase was a key reason confidence tumbled and made Americans less optimistic about the next six months.

Congress and the White House reached a deal to prevent income taxes from rising on most Americans Jan. 1. But they allowed a temporary cut in Social Security taxes to expire. For a worker earning $50,000 a year, take-home pay will shrink this year by about $1,000. Read more >>

The High Price Of Understated Inflation

Since the process of adjustment began in the early 1980s, the officially-reported CPI-U number has diverged ever further from the underlying figure calculated on the traditional methodology. Fig. 4.2 gives an approximate idea of quite how distorted US inflation data seems to have become over three decades. Instead of the 3.2% number reported for 2011, for example real inflation was probably at least 7%. Worse still, the official numbers probably understate the sharp pick-up in inflation which America has been experiencing. A realistic appreciation of the inflationary threat would be almost certain to have forced very significant changes in monetary policy.

Taken in aggregate, the extent to which the loss of dollar purchasing power has been understated is almost certainly enormous. Between 1985 and 2011, official data shows that the dollar lost 53% of its value, but the decrease in purchasing power might stand at more like 75% on the basis of underlying data stripped of hedonics, substitution and geometric weighting.

The ramifications of understated inflation are huge. First, of course, and since pay deals often relate to reported CPI, wage rises for millions of Americans have been much smaller than they otherwise would have been. Small wonder, then, that millions of Americans feel much poorer than official figures tell them is the case. By the same token, those Americans in receipt of index-related pensions and benefits, too, have seen the real value of their incomes decline as a result of the severe (and cumulative) understatement of inflation. Read more >>

The BLS has become a total farce

When we reported on the surge in last week's initial claims from 342K to 388K, we made one simple forecast: "Remember: this number will be revised to 391K next week." We were off: it was revised to 392K.

In other words, the data charlatainism at the DOL continues unabated. And of course, today's Initial Claims number which magically "beat" expectations by 1K, printing at 369K, on expectations of 370K, will be revised to a miss of 372K next week. The BLS has become a total farce. In other manipulated news, the BLS reported the culprit for last week's surge in Claims: it was California, which saw a +26,935 jump in initial claims, due to "Layoffs across all sectors, with the largest share from the service industry."

This somehow is supposed to offset the -4,979 claims drop from the week before, when all those plunges and jumps in claims took place. Elsewhere, the number of Americans on extended claims and EUCs dropped to 2.1 million, down 1.4 million from a year earlier. Read more >>

Disability Benefit Program Is Going Broke

For a country still gasping to recover from the Great Recession, disability payments from Social Security have evolved into a lifeline and an economic trap for millions of unemployed Americans threatening the program with insolvency in just four short years.

Created decades ago to help those unable to work because of severe health problems, the $128 billion program stops many from sliding into total poverty and inflicting further damage on the economy. More Americans qualified for disability than found jobs over the past three months, and since 2000, the number of beneficiaries rose by 73 percent, even though the workforce rose by less than 10 percent. But of the 8.7 million beneficiaries, federal officials claim the vast majority – with some estimates as high as 99 percent – will never rejoin the workforce and remain dependent on the federal government.

Both the Obama administration and congressional Republicans say that they are weighing reforms to salvage the finances of the disability system before the politics of the issue harden along partisan lines. "It requires you to think very hard about the social contract for this program," said Janice Eberly, the assistant Treasury secretary for economic policy. "Working is preferred to any programmatic alternatives, both from the individual's view and the taxpayers' view." Read more >>

The New York Times Admits That Virtually Every Major News Organization Allows The News To Be Censored

In one of the most shocking articles that the New York Times has ever put out, a New York Times reporter has openly admitted that virtually every major mainstream news organization allows government bureaucrats and campaign officials to censor their stories.

 For example, almost every major news organization in the country has agreed to submit virtually all quotes from anyone involved in the Obama campaign or the Romney campaign to gatekeepers for "quote approval" before they will be published.  If the gatekeeper in the Obama campaign does not want a certain quote to get out, the American people will not see it, and the same thing applies to the Romney campaign. 

The goal is to keep the campaigns as "on message" as possible and to avoid gaffes at all cost.  But this kind of thing is not just happening with political campaigns.  According to the New York Times, "quote approval" has become "commonplace throughout Washington".

 In other words, if you see a quote in the newspaper from someone in the federal government then it is safe to say that a gatekeeper has almost certainly reviewed that quote and has approved it.  This is another sign that "the free and independent media" in this country is a joke.  What we get from the mainstream media is a very highly filtered form of propaganda, and that is one reason why Americans are turning away from the mainstream media in droves.  People want the truth, and more Americans than ever realize that they are not getting it from the mainstream media. Read more >>

Most Americans Are Flat Broke

Most Americans don't have nearly enough money stashed away for emergencies and more than one-in-four don't even have a single penny saved. While the general rule of thumb is to have an emergency fund that will cover at least six months of expenses, only 25% of Americans have that amount saved, research released Monday by Bankrate.com finds.

About 49% of Americans don't even have enough money saved to cover three months of expenses -- slightly worse than the 46% of Americans who reported having less than three months worth of savings last year. And 28% don't have any cushion whatsoever -- up from 24% last year, according to the report, which was based on a survey of 1,000 adults. "Incomes are largely stagnant, so it's difficult for people to make significant headway on savings when household expenses are creeping higher but incomes are not," said Greg McBride, senior financial analyst for Bankrate.com.

"Prolonged unemployment has also depleted the savings of many people who at one time had a more appropriate cushion." Read more >>

Living on Food Stamps in Middle-Class Suburbia

CNNMoney
Since the recession, persistent unemployment has left middle-class life out of reach for millions of Americans.
But few residents of Morris County, N.J., could have ever imagined they would end up on government assistance. Morris County is known for its wealth and million-dollar homes. Median household income there is over $91,000. Yet, the number of people receiving food stamps in the area has nearly tripled in the past five years.

Phyllis Tonnesen is on the front lines of the epidemic. She works for the Department of Human Services Office of Temporary Assistance. In her 27 years at the agency, she says this is the worst she's ever seen it.

The Bad Jobs Report Just the Beginning of the Coming Nightmare

The Economic Collapse
Unemployment in America is still about at the same level as it was back at the beginning of 2012.  The tough stretch that we are going through right now is only a very small taste of the economic nightmare that is on the horizon.

If you think that things are a "disaster" right now, just wait until you see what is coming.
At the moment, 53 percent of all Americans with a bachelor's degree under the age of 25 are either unemployed or underemployed, and there are more than 100 million working age Americans that do not currently have jobs.

But this is only just the beginning. During the next major economic downturn, the unemployment rate in the United States is going to soar well up into the double digits. Many Americans will look back on 2010, 2011 and 2012 as "the good old days".

Right now, there are only small pockets of the country that are total economic hellholes. For example, Yuma, Arizona has an unemployment rate of 26 percent, and El Centro, California has an unemployment rate of 26.2 percent. In the future, those kinds of numbers are going to become the norm all over the nation.
Sadly, most Americans have no idea what is coming. Read more >>

Air Force Drones Can Now (Accidentally) Spy on You

Heron 1 (Unmanned Aerial Vehicle) (Photo credit: chooyutshing)

As long as the Air Force pinky-swears it didn’t mean to, its drone fleet can keep tabs on the movements of Americans, far from the battlefields of Afghanistan, Pakistan or Yemen. And it can hold data on them for 90 days — studying it to see if the people it accidentally spied upon are actually legitimate targets of domestic surveillance.

The Air Force, like the rest of the military and the CIA, isn’t supposed to conduct “nonconsensual surveillance” on Americans domestically, according to an Apr. 23 instruction from the flying service. But should the drones taking off over American soil accidentally keep their cameras rolling and their sensors engaged, well … that’s a different story.

In other words, if an Air Force drone accidentally spies on an American citizen, the Air Force will have three months to figure out if it was legally allowed to put that person under surveillance in the first place. More...

The 86 Million Invisible Unemployed

There are far more jobless people in the United States than you might think. While it's true that the unemployment rate is falling, that doesn't include the millions of nonworking adults who aren't even looking for a job anymore. And hiring isn't strong enough to keep up with population growth.

As a result, the labor force is now at its smallest size since the 1980s when compared to the broader working age population. A person is counted as part of the labor force if they have a job or have looked for one in the last four weeks. Only about 64% of Americans over the age of 16 currently fall into that category, according to the Labor Department. That's the lowest labor force participation rate since 1984.

It's a worrisome sign for the economy and partly explains why the unemployment rate has been falling recently. Only people looking for work are considered officially unemployed. Last year there were 86 million people who didn't have a job and weren't consistently looking for one, according to Labor Department data. More...

1 Out of 4 Employed Americans Make Less Than $10/hour

McDonald's workers on strike, Paris (Photo credit: Tilemahos_E)

Low wage jobs have been a big part of the so-called recovery.  What they also signify is a more troublesome trend that continues to eat away at the middle class in this country.  I’ve noted that the per capita average income for Americans is $25,000 and many seem to be shocked when they hear how low this figure is. 

A recent presentation only reinforces this figure by discussing the number of working Americans in low wage fields.  The problem with having such a large portion of our population in low wage work is that as the cost of living goes up many of these people have a harder time providing for necessities like food, education, and also healthcare. 

Surprising or not, the nation has been seeing a massive divide between the working class and those at the top.  The low wage employment growth signifies a continuation of this trend. More...

U.S. Homeownership Hits Decade Low

PRINCETON, NJ - The 62% of Americans who say they own their own home marks a new low since Gallup began tracking self-reported homeownership in 2001.

The current level of homeownership marks a decline from 68% in 2011. For most of the prior decade, roughly seven in 10 Americans reported owning their own home. While the recession and financial crisis took place in 2008-2009, homeownership rates didn't begin to reflect the bursting of the housing bubble until 2010, when 65% of Americans reported owning their own home -- the lowest level recorded before this year. More...

Americans’ Incomes Have Dropped 6.7 Percent During the ‘Recovery’

According to Sentier’s report, the median American household income has actually fallen during the “recovery.” Not only that, but it has fallen even more than it did during the recession. Gordon Green, former chief of the Governments Division at the U.S. Census Bureau and co-author of the report (with fellow Census veteran John Coder), says, “Real income fell by 3.2 percent during [the recession]. And during the recovery it went down by 6.7 percent.” So “income [has] declined twice as much in the recovery as in the recession itself.”

While the real median income of American households dropped 6.7 percent during the first two years of the “recovery,” the incomes of many households dropped even more than that. The income drop was steeper for those under 25 years of age (their incomes were down 9.5 percent), for those between 25 and 34 years of age (down 9.8 percent), for black Americans (down 9.4 percent), for families with three or more children (down 9.5 percent), and for families headed by part-time workers (down 11.5 percent). And that’s despite the fact that the report’s income tallies include unemployment compensation and monetary public assistance (both state and federal). More...

8 in 10 Americans: Economy is in poor shape

Image by DonkeyHotey via FlickrMore than 80% of Americans surveyed say the economy is in poor shape, with unemployment still the public's top concern, according to the latest CNN/Opinion Research Corporation survey.

Not everyone is down in the dumps. Seventeen percent of Americans say the economy is somewhat good. Only 1% say the economy is very good.

And that's pretty much the same way Americans have answered since Sept. 2008, on the eve of President Obama's election.

The reason for the dour outlook? Thirty-eight percent of respondents cited unemployment as the most important economic issue facing the country. The federal budget deficit was the second most popular answer, with 28%.

Rising gas prices (21%), mortgage and housing costs (6%) and taxes (4%) round out the top five concerns. More...

Working Class Americans Panhandling for Gas

Working Class Americans Panhandling for Gas