Middle Class U.S. Consumers Are Tapped Out, Major U.S. Retailers Are Closing More Than 6,000 Stores

By Michael Snyder
image: http://theeconomiccollapseblog.com/wp-content/uploads/2015/05/Closed-Public-Domain-300x300.jpg

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores

image: http://images.intellitxt.com/ast/adTypes/icon1.png
?  The “retail apocalypse” that I have written about so frequently appears to be accelerating.  As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable.  So if this is happening already, what are things going to look like once the next recession strikes?  For a long time, I have been pointing to 2015 as a major “turning point” for the U.S. economy, and I still feel that way.  And since I started The Economic Collapse Blog at the end of 2009, I have never seen as many indications that we are headed into another major economic downturn as I do right now.  If retailers are closing this many stores already, what are our malls and shopping centers going to look like a few years from now? The list below comes from information compiled by About.com, but I have only included major retailers
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that have announced plans to close at least 10 stores.  Most of these closures will take place this year, but in some instances the closures are scheduled to be phased in over a number of years.  As you can see, the number of stores that are being permanently shut down is absolutely staggering… 180 Abercrombie & Fitch (by 2015)
75 Aeropostale (through January 2015)
150 American Eagle Outfitters (through 2017)
223 Barnes & Noble (through 2023)
265 Body Central / Body Shop
66 Bottom Dollar Food
25 Build-A-Bear (through 2015)
32 C. Wonder
21 Cache
120 Chico’s (through 2017)

200 Children’s Place (through 2017)

17 Christopher & Banks
70 Coach (fiscal 2015)
70 Coco’s /Carrows
300 Deb Shops
92 Delia’s
340 Dollar Tree/Family Dollar
39 Einstein Bros. Bagels
50 Express (through 2015)
31 Frederick’s of Hollywood
50 Fresh & Easy Grocey Stores
14 Friendly’s
65 Future Shop (Best Buy Canada)

54 Golf Galaxy (by 2016)

50 Guess (through 2015)
26 Gymboree
40 JCPenney
127 Jones New York Outlet
10 Just Baked
28 Kate Spade Saturday & Jack Spade
14 Macy’s
400 Office Depot/Office Max (by 2016)
63 Pep Boys (“in the coming years”)
100 Pier One (by 2017)
20 Pick ’n Save (by 2017)
1,784 Radio Shack

13 Ruby Tuesday

77 Sears
10 SpartanNash Grocery Stores
55 Staples (2015)
133 Target, Canada (bankruptcy)
31 Tiger Direct
200 Walgreens (by 2017)
10 West Marine
338 Wet Seal
80 Wolverine World Wide (2015 – Stride Rite & Keds)
So why is this happening?
Without a doubt, Internet retailing is taking a huge toll on brick and mortar stores, and this is a trend that is not going to end any time soon.
But as Thad Beversdorf has pointed out, we have also seen a stunning decline in true discretionary consumer spending
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over the past six months…

What we find is that over the past 6 months we had a tremendous drop in true discretionary consumer spending. Within the overall downtrend we do see a bit of a rally in February but quite ominously that rally failed and the bottom absolutely fell out. Again the importance is it confirms the fundamental theory that consumer spending is showing the initial signs of a severe pull back. A worrying signal to be certain as we would expect this pull back to begin impacting other areas of consumer spending. The reason is that American consumers typically do not voluntarily pull back like that on spending but do so because they have run out of credit. And if credit is running thin it will surely be felt in all spending.

The truth is that middle class U.S. consumers are tapped out.  Most families are just scraping by financially from month to month.  For most Americans, there simply is not a whole lot of extra money left over to go shopping with these days.

In fact, at this point approximately one out of every four Americans spend at least half of their incomes just on rent…

More than one in four Americans are spending at least half of their family income on rent – leaving little money left to purchase groceries, buy clothing or put gas in the car, new figures have revealed.
A staggering 11.25 million households consume 50 percent or more of their income on housing and utilities, according to an analysis of Census data by nonprofit firm, Enterprise
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Community Partners. And 1.8 million of these households spend at least 70 percent of their paychecks on rent.

The surging cost of rental housing has affected a rising number of families since the Great Recession hit in 2007. Officials define housing costs in excess of 30 percent of income as burdensome.

For decades, the U.S. economy
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was powered by a free spending middle class that had plenty of discretionary income to throw around.  But now that the middle class is beingsystematically destroyed, that paradigm is changing.  Americans families simply do not have the same resources that they once did, and that spells big trouble for retailers. As you read this article, the United States still has more retail
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space per person than any other nation on the planet.  But as stores close by the thousands, “space available” signs are going to be popping up everywhere.  This is especially going to be true in poor and lower middle class neighborhoods.  Especially after what we just witnessed in Baltimore, many retailers are not going to hesitate to shut down underperforming locations in impoverished areas.

And remember, the next major economic crisis has not even arrived yet.  Once it does, the business environment

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in this country is going to change dramatically, and a few years from now America is going to look far different than it does right now.
Read more at http://investmentwatchblog.com/middle-class-u-s-consumers-are-tapped-out-major-u-s-retailers-are-closing-more-than-6000-stores/#K0S2PR8Ywou73auS.99

Turning America into a Battlefield

Turning America into a Battlefield: A Blueprint for Locking Down the Nation


By John W. Whitehead
April 27, 2015

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.—President Dwight D. Eisenhower, 1961

A standing army—something that propelled the early colonists into revolution—strips the American people of any vestige of freedom. How can there be any semblance of freedom when there are tanks in the streets, military encampments in cities, Blackhawk helicopters and armed drones patrolling overhead?
 
It was for this reason that those who established America vested control of the military in a civilian government, with a civilian commander-in-chief. They did not want a military government, ruled by force. Rather, they opted for a republic bound by the rule of law: the U.S. Constitution.
 
Unfortunately, with the Constitution under constant attack, the military’s power, influence and authority have grown dramatically. Even the Posse Comitatus Act of 1878, which makes it a crime for the government to use the military to carry out arrests, searches, seizure of evidence and other activities normally handled by a civilian police force, has been weakened by both Barack Obama and George W. Bush, who ushered in exemptions allowing troops to deploy domestically and arrest civilians in the wake of alleged terrorist acts.
 
Now we find ourselves struggling to retain some semblance of freedom in the face of police and law enforcement agencies that look and act like the military and have just as little regard for the Fourth Amendment, laws such as the NDAA that allow the military to arrest and indefinitely detain American citizens, and military drills that acclimate the American people to the sight of armored tanks in the streets, military encampments in cities, and combat aircraft patrolling overhead.
 
Making matters worse, we find out that the military plans to use southwestern states as staging grounds for guerilla warfare drills in which highly-trained military troops equipped with all manner of weapons turn American towns and cities in quasi-battlefields. Why? As they tell us, it’s so that special operations forces can get “realistic military training” in “hostile” territory.
 
They’ve even got a name for the exercise: Jade Helm 15.
Whether or not Americans have anything to fear from Jade Helm 15, a covert, multi-agency, multi-state, eight-week military training exercise set to take place this summer from July 15 through Sept. 15, remains to be seen.
 
Insisting that there’s nothing to be alarmed about, the Washington Post took great pains to point out that these military exercises on American soil are nothing new. For instance, there was Operation Bold Alligator, in which in which thousands of Marines and sailors carried out amphibious exercises against “insurgent” forces in Georgia and Florida. Operation Robin Sage had Green Beret soldiers engaging in guerrilla warfare in North Carolina. And Operation Derna Bridge sends Marine special forces into parts of South Carolina and the National Forest.
 
Yet if Americans are uneasy about this summer’s planned Jade Helm 15 military exercises, they have every right to be. After all, haven’t we been urged time and time again to just “trust” the government to respect our rights and abide by the rule of law only to find that, in fact, our rights were being plundered and the Constitution disregarded at every turn?
 
Let’s assume, for the moment, that Jade Helm 15 is not a thinly veiled military plot to take over the country lifted straight out of director John Frankenheimer’s 1964 political thriller Seven Days in May, as some fear, but is merely a “routine” exercise for troops, albeit a blatantly intimidating flexing of the military’s muscles.
 
The problem arises when you start to add Jade Helm onto the list of other troubling developments that have taken place over the past 30 years or more: the expansion of the military industrial complex and its influence in Washington DC, the rampant surveillance, the corporate-funded elections and revolving door between lobbyists and elected officials, the militarized police, the loss of our freedoms, the injustice of the courts, the privatized prisons, the school lockdowns, the roadside strip searches, the military drills on domestic soil, the fusion centers and the simultaneous fusing of every branch of law enforcement (federal, state and local), the stockpiling of ammunition by various government agencies, the active shooter drills that are indistinguishable from actual crises, the economy flirting with near collapse, etc.
 
Suddenly, the overall picture seems that much more sinister. Clearly, as I point out in my new book Battlefield America: The War on the American People, there’s a larger agenda at work here.
 
Seven years ago, the U.S. Army War College issued a report calling on the military to be prepared should they need to put down civil unrest within the country. Summarizing the report, investigative journalist Chris Hedges declared, “The military must be prepared, the document warned, for a ‘violent, strategic dislocation inside the United States,’ which could be provoked by ‘unforeseen economic collapse,’ ‘purposeful domestic resistance,’ ‘pervasive public health emergencies’ or ‘loss of functioning political and legal order.’ The ‘widespread civil violence,’ the document said, ‘would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.’”


At what point will all of the government’s carefully drawn plans for dealing with civil unrest, “homegrown” terrorism and targeting pre-crime become a unified blueprint for locking down the nation?  For instance, what’s the rationale behind turning government agencies into military outposts?


There has been a notable buildup in recent years of SWAT teams within non-security-related federal agencies such as Department of Agriculture, the Railroad Retirement Board, the Tennessee Valley Authority, the Office of Personnel Management, the Consumer Product Safety Commission, the U.S. Fish and Wildlife Service and the Education Department. As of 2008, “73 federal law enforcement agencies… [employ] approximately 120,000 armed full-time on-duty officers with arrest authority.” Four-fifths of those officers are under the command of either the Department of Homeland Security (DHS) or the Department of Justice.
 
What’s with all of the government agencies stockpiling hollow point bullets? For example, why does the Department of Agriculture need .40 caliber semiautomatic submachine guns and 320,000 rounds of hollow point bullets? For that matter, why do its agents need ballistic vests and body armor?
 
Why does the Postal Service need “assorted small arms ammunition”? Why did the DHS purchase “1.6 billion rounds of hollow-point ammunition, along with 7,000 fully-automatic 5.56x45mm NATO ‘personal defense weapons’ plus a huge stash of 30-round high-capacity magazines”?


That’s in addition to the FBI’s request for 100 million hollow-point rounds. The Department of Education, IRS, the Social Security Administration, and the National Oceanic and Atmospheric Administration, which oversees the National Weather Service, are also among the federal agencies which have taken to purchasing ammunition and weaponry in bulk.
 
Why is the federal government distributing obscene amounts of military equipment, weapons and ammunition to police departments around the country?


And why is DHS acquiring more than 2,500 Mine-Resistant Armored Protection (MRAP) vehicles, only to pass them around to local police departments across the country? According to the New York Times:

[A]s President Obama ushers in the end of what he called America’s “long season of war,” the former tools of combat — M-16 rifles, grenade launchers, silencers and more — are ending up in local police departments, often with little public notice. During the Obama administration, according to Pentagon data, police departments have received tens of thousands of machine guns; nearly 200,000 ammunition magazines; thousands of pieces of camouflage and night-vision equipment; and hundreds of silencers, armored cars and aircraft. The equipment has been added to the armories of police departments that already look and act like military units.

 
Why is the military partnering with local police to conduct training drills around the country? And what exactly are they training for? In Richland, South Carolina, for instance, U.S. army special forces participated in joint and secretive exercises and training with local deputies. The public was disallowed from obtaining any information about the purpose of the drills, other than being told that they might be loud and to not be alarmed. The Army and DHS also carried out similar drills and maneuvers involving Black Hawk helicopters in Texas, Florida, and other locations throughout the U.S., ostensibly in order to provide local police with “realistic” urban training.
 
What is being done to protect the American populace from the threat of military arms and forces, including unarmed drones, being used against them? Policy analysts point to Directive No. 3025.18, “Defense Support of Civil Authorities” (issued on Dec. 29, 2010), as justification for the government’s use of military force to put down civil unrest within the United States.
 
Why is FEMA stockpiling massive quantities of emergency supplies? On January 10, 2014, FEMA made a statement enlisting the service of contractors who could “supply medical biohazard disposal capabilities and 40 yard dumpsters to 1,000 tent hospitals across the United States; all required on 24-48 hour notice.” This coincides with other medical requests seeking massive amounts of supplies, such as “31,000,000 flu vaccinations,” “100,000 each of winter shirts and pants and the same for summer” and other goods and services requests as well like tarps, manufactured housing units, and beverages. And why does the TSA need $21,000 worth of potassium chlorate, a chemical compound often used in explosives?
 
Why is the Pentagon continuing to purchase mass amounts of ammunition while at the same time preparing to destroy more than $1 billion worth of bullets and missiles that are still viable? Moreover, what is really being done to hold the Pentagon accountable for its doctored ledgers, fraud, waste and mismanagement, which has cost the taxpayer trillions of dollars?


According to Reuters, “The Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China's economic output.”


Given the similarities between the government’s Live Active Shooter Drill training exercises, carried out at schools, in shopping malls, and on public transit, which can and do fool law enforcement officials, students, teachers and bystanders into thinking it’s a real crisis, how much of what is being passed off as real is, in fact, being staged by DHS for the “benefit” of training law enforcement, leaving us none the wiser? These training exercises come complete with their own set of professionally trained Crisis Actors playing the parts of shooters, bystanders and victims in order to help schools and first responders create realistic drills, full-scale exercises, high-fidelity simulations, and interactive 3D films.
Given that Americans are 110 times more likely to die of foodborne illness than in a terrorist attack, why is the government spending trillions of dollars on “national security”? How exactly is the $75 billion given to various intelligence agencies annually to keep us “safe” being spent? And why is the DHS giving away millions of dollars’ worth of federal security grants to states that federal intelligence agencies ruled have “no specific foreign or domestic terrorism threat”?
Why is the government amassing names and information on Americans considered to be threats to the nation, and what criteria is the government using for this database? Keep in mind that this personal information is being acquired and kept without warrant or court order. It’s been suggested that in the event of nuclear war, the destruction of the U.S. Government, and the declaration of martial law, this Main Core database, which as of 2008 contained some 8 million names of Americans, would be used by military officials to locate and round up Americans seen as threats to national security, a program to be carried about by the Army and FEMA.
Taken individually, these questions are alarming enough. But put them together and they add up to the kind of trouble that the American founding fathers not only warned against but from which they fought to free themselves.
Indeed, when viewed collectively, they leave one wondering what exactly the U.S. government is preparing for and whether American citizens shouldn’t be preparing, as well, for that eventuality when our so-called “government of the people, by the people, for the people” is no longer answerable to “we the people.”
WC: 2115


https://www.rutherford.org/publications_resources/john_whiteheads_commentary/turning_america_
into_a_battlefield_a_blueprint_for_locking_down_the_na

USA, Inc Is Violating Public Trust

Posted on May 2, 2015 by arnierosner

http://sitsshow.blogspot.com/2015/05/usa-inc-is-violating-public-trust.html
Reference question:  How does a private corporation access the public trust?

Friday, May 1, 2015

USA, Inc Is Violating Public Trust, Contract and Statutory Code | US Spent $38,913,501,207.80 Over The Legal Limit

We have been hearing a great deal about the United States of America Incorporated being a defunct and now bankrupt organization, which was mentioned in David Wilcocks recent disclosure. This corporation is the 4th servicing company that has gone bankrupt, for the continental United States since 1789.
This is very important because the debts which this corporation incurred are not the people’s responsibility. We are actually the creditors for this company, and as such any debt is actually owed to us. The criminal organization which presently managed this body would have us believe we are the debtors. See the post The National Debt Is Not For Americans To Payback | History of The Corporate Takeover of The Continental United States for a detailed account of this.

The key point here is that the government is the servant of the people and not the reverse. Since it has breached the public trust, by claiming we are servants of government, and has pushed untold horrors on humanity, it is our duty to expose this insurgent run organization who has duped the people, and our opportunity to do so is strongest now.

If the Cabal intends on using this false debt crisis as a way to impose more draconian measures on the people, we who are aware, can take this opportunity to reveal the truth, and show our sleeping brothers and sisters that we can reclaim our status as present beings and end the false paradigm of authority and control.

Like many things in life, we often need to hit rock bottom before we feel driven to change. Please share this information with others and educate them. The conditions on Earth are co-creative result of all us, and together we can remake this world into the paradise it is meant to be.

Related: How the Cabal Maintains Their Power And What You Need To Do To Stop It – Un-Consent | Beyond BRICS: Exposing the Rats

 

Related: USA, Inc. Committed Massive Identity Theft | Trust Law Understood – Open Letter to U.S. Treasury Secretary Lew — from Anna von Reitz

– Justin

Source – CNS News

(CNSNews.com) – According to the Daily Treasury Statement for Friday, April 3, which was published by the U.S. Treasury on Monday, April 6, that portion of the federal debt that is subject to a legal limit set by Congress closed the day at $18,112,975,000,000—for the 21st day in a row.

$18,112,975,000,000 is about $25 million below the current legal debt limit of $18,113,000,080,959.35.

Table III-C on the Daily Treasury Statement for April 3 shows that the federal debt subject to a legal limit began April at $18,112,975,000,000 and closed both April 2 and April 3 at that level.

The debt first hit $18,112,975,000,000, according to the Daily Treasury Statement, on March 13, which was the day Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner and other congressional leaders saying that he was planning to declare a “debt issuance suspension period.”

This was necessary, Lew explained, because in 2014 Congress enacted legislation that “suspended” the debt limit until March 15 and then reinstated it on that date at whatever level the debt had reached by then.

“As you know, in February 2014, Congress passed the Temporary Debt Limit Extension Act, suspending the statutory debt limit through March 15, 2015,” Lew said in his March 13 letter. “Beginning on Monday, March 16, the outstanding debt of the United States will be at the statutory limit. In anticipation of reaching that date, Treasury has suspended until further notice the issue of State and Local Government Series securities, which count against the debt limit.”

The federal debt subject to limit first closed at $18,112,975,000,000 on March 13. Since then, it has closed at that same level on every business day.

State and Local Government Series securities, the Congressional Research Service explains, are “customized securities available for state and local governments to hold proceeds of bond sales,” and are considered part of the federal government debt that is held by the public.

“Because Congress has not yet acted to raise the debt limit,” Lew said in his March 13 letter, “the Treasury Department will have to employ further extraordinary measures to continue to finance the government on a temporary basis. Therefore, beginning on March 16, I plan to declare a ‘debt issuance suspension period’ with respect to investment of the Civil Service Retirement and Disability Fund and also suspend the daily reinvestment of Treasury securities held by the Government Securities Investment Fund and the Federal Employees’ Retirement System Thrift Savings Plan.”

Lew noted that these same actions had been taken “during previous debt limit impasses.”

For example, as CNSNews.com reported, when Secretary Lew declared a debt issuance suspension period in 2013, the Treasury reported the debt subject to the limit was frozen at $16,699,396,000,000 for 150 days, running from mid-May to mid-October of that year.

On March 16 and 17 Lew sent additional letters to Congress further explaining the actions he would be taking during the “debt issuance suspension period” that began on March 16. The Treasury also posted Frequently Asked Question sheets that explained the actions and their statutory basis.

“Under current law, if the Secretary of the Treasury determines that the issuance of obligations of the United States may not be made without exceeding the debt limit, a ‘debt issuance suspension period’ may be determined,” the Congressional Research Service explained in a report published on March 27. “This determination gives the Treasury the authority to suspend investments in the Civil Service Retirement and Disability Trust Fund, Postal Service Retiree Health Benefit Fund, and the Government Securities Investment Fund (G-Fund) of the Federal Thrift Savings Plan.

“In addition,” said CRS, “this gives Treasury the authority to prematurely redeem securities held by the Civil Service Retirement and Disability Trust Fund and Postal Service Retiree Health Benefit Fund.”

“The total federal debt consists of debt held by the public and intragovernmental debt,” the CRS explained in a report published in 2011. “Debt owed to the public represents borrowing from entities other than the federal government, and includes borrowing from state and local governments, the Federal Reserve System, and foreign central banks, as well as private investors in the United States.

“Intragovernmental debt,” said CRS, “consists in debt owed by one part of the federal government to another, which are mostly held in trust funds.”

The net effect of the Treasury’s actions is that although the publicly held debt of the government continues to fluctuate–as the Treasury redeems maturing debt held by the public and issues new debt held by the public—the overall debt subject to the limit set by Congress closes each business day at $18,112,975,000,000.

As of March 13, according to the Daily Treasury Statement, the federal debt held by the public was $13,083,880,000,000. By April 2, it had risen to $13,096,592,000,000; and, by April 3, it had risen to $13,113,626,000,000.

But on all days from March 13 through April 3, the federal debt subject to the legal limit set by Congress was 18,112,975,000,000.

Attachment:

 REACHING THE DEBT LIMIT-CRS-03-27-15.pdf

 OVERVIEW OF THE FEDERAL DEBT-CRS-05-11-11.pdf

Hawaii Volcanic lava lake now SURGING — Webcam links to view here (live feeds)

Breaking news out of Hawaii at Kilauea volcano.    The lava lake that reached its top, is now SURGING lava out of the caldera into the greater volcanic crater.
Watch the May 2, 2015 overflow / lava surge here:




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Above: May 2, 2015 – The lava lake inside Kilauea, HI volcano filled its caldera to the top,

and is now surging out over the edges which contain it, now filling the greater Kilauea volcano crater

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Kīlauea Volcano, Summit Webcams

http://hvo.wr.usgs.gov/cams/region_kism.php

• [KIcam] Kīlauea Caldera from HVO

• [K2cam] Halemaʻumaʻu Overlook Vent from HVO

• [HMcam] Halemaʻumaʻu Overlook Vent from Halemaʻumaʻu Overlook

• [HTcam] Halemaʻumaʻu Overlook Vent Thermal from Halemaʻumaʻu Overlook

• [HWcam] Halemaʻumaʻu Overlook Vent from the West Rim of Halemaʻumaʻu

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This past week (last week of April 2015) , the lava lake inside Kilauea volcano began to rise quickly. Locals came from miles around to witness the rare volcanic event.
The lava lake rose beyond its normal banks, and spread out across the greater Kilauea caldera.  Over the past 3-4 days the high lake has remained rather steady.
Today, May 2 2015, the lava lake has now made a rapid surge outwards (upwards?) .
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Still images of the new surge of lava, May 2, 2015:





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---

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High resolution images of the previous overflow from a few days ago (April 29 2015):







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URGENT! Mysterious Unidentified Object Just Showed Up At CERN!

Posted on May 1, 2015 by Kev Baker in CERN

 

 

 Just when you thought things couldnt get any more strange when it comes to CERN, I bring you a story that will have leaving you scratching your head and wondering … wtf?
Well theres only a small thing like a mysterious unidentified object to not conCERN yourself with!

Read More Here

UNLIMITED GOLD FOR AMERICAN ECONOMY. FROM ERASMUS OF AMERICA - MAY 2, 2015 - 12:50 PM

        

    

     SINCE APRIL, 2012, I HAVE POSTED SEVERAL HUNDRED NATIONAL REPORTS ON NESARA NEWS OF WHICH MANY TO MOST COVER OR INCLUDE NATIONAL AND INTERNATIONAL ECONOMICS. OBVIOUSLY I COULD NOT HAVE POSTED SO MANY REPORTS ON ECONOMIC SCIENCE IF I KNEW NOTHING ABOUT IT! I STUDIED WITH SIX OF THE MOST BRILLIANT ECONOMISTS OF AMERICA AND EUROPE AND OBTAINED MORE KNOWLEDGE OF ECONOMIC SCIENCE BY OTHER MEANS ALSO. 

      RIGHT NOW MANY FINANCIAL SOURCES ARE WRITING AND WARNING OF THE PREDICTED PENDING COLLAPSE OF THE AMERICAN DOLLAR. AND WITH THAT THE DEPRESSION CREATED COULD BE FAR WORSE THAN THE ONE AMERICA HAD THROUGH THE 1930'S. POWERFUL INTERESTS FOR VARIOUS REASONS WANT TO ENGINEER THE COLLAPSE OF THE AMERICAN DOLLAR FOR INTERNATIONAL TRADE. THEN YOU COULD LIVE IN AMERICA LIKE THE GERMANS DID UNDER THE WEIMAR REPUBLIC OF GERMANY AFTER WORLD WAR I WAS OVER. 

     WHERE MAYBE BEFORE HYPERINFLATION HIT UNDER THE GERMAN WEIMAR REPUBLIC, TWO TO FOUR GERMAN MARKS COULD BUY A LOAF OF GERMAN BREAD. AFTER HYPERINFLATION HIT GERMANY DUE TO THE COLLAPSE OF THE VALUE OF THE GERMAN MARK, THEN EVENTUALLY IT GOT SO BAD THAT YOU COULD TAKE A WHEELBARROW OF MONEY SUCH AS ONE HALF MILLION GERMAN MARKS TO EVENTUALLY MAYBE EVEN TWO TO FOUR MILLION GERMAN MARKS TO BUY A LOAF OF BREAD TO FEED YOUR FAMILY WITH! WITH AN ECONOMY UNDER SUCH TREMENDOUS PUNISHMENT BECAUSE THEIR MONEY WAS NEXT TO WORTHLESS, HITLER WAS ABLE TO WIN NATIONAL POWER ON THE PROMISE THAT HE WOULD STRAIGHTEN OUT THE GERMAN ECONOMY IF HE AND HIS NAZI PARTY WON NATIONAL POWER IN GERMANY. HE WON NATIONAL POWER AND IN ABOUT TWELVE MONTHS HE DELIVERED ON HIS PROMISE AND EMPLOYMENT RAPIDLY BECAME FULL EMPLOYMENT IN GERMANY AND YOU GOT PAID GOOD WAGES ON YOUR JOBS IN GERMANY. I TALKED YEARS AGO TO GERMANS WHO LIVED IN GERMANY WHEN ALL THIS HAPPENED AND I GOT THE REAL STORY FROM THEM WHY HITLER ENDED UP WINNING THE SUPPORT OF BASICALLY ALL OF GERMANY.

       WHILE SPENDING ELEVEN CALENDAR YEARS IN MILITARY ACADEMIES, I HAD AN EXCELLENT MILITARY REFERENCE LIBRARY AT MY DISPOSAL AND AMONG MANY OTHER REFERENCES READ THE BOOK OF A 1937 FRENCH INTELLECTUAL EXPLAINING WHY HITLER WAS NO THREAT TO EUROPE IN STARTING A MAJOR WAR. AMERICAN AND EUROPEAN ECONOMISTS HAD ANALYZED THAT HITLER COULD NOT MAKE THE GERMAN ECONOMY STRONG ENOUGH BEFORE 1945 TO 1951 AT THE EARLIEST TO TRY AND START A MAJOR WAR IN EUROPE. THESE AMERICAN AND EUROPEAN ECONOMISTS WERE WRONG AS HISTORICAL EVENTS PROVED AND I GOT CURIOUS WHAT ECONOMIC TRICK HITLER CAME UP WITH SO HE SKYROCKETED THE GERMAN ECONOMY FAR FASTER THAN THESE WESTERN ECONOMISTS THOUGHT THAT HE COULD. I SPENT YEARS READING ENGLISH TRANSLATIONS OF GERMAN REPORTS, ETC. AND OF COURSE HITLER'S POLITICAL "BIBLE" OF "MEIN KAMPF." FINALLY I FELT CONFIDENT THAT I HAD CRACKED THE TOP ECONOMIC SECRET OF NAZI GERMANY. 

     I DISCUSSED THIS THEORY OF MINE WITH AMERICAN ECONOMISTS. THEY SAID THAT I HAD AN INTERESTING THEORY BUT I COULDN'T BE RIGHT AND GAVE THEIR EXPLANATIONS BASED UPON AMERICAN ECONOMIC TEXTBOOKS WHY I COULD NOT BE RIGHT. THEY ASKED ME TO BELIEVE THEM LIKE THEY WERE INFALLIBLE POPES IN ECONOMIC SCIENCE BUT DID NOT GIVE ME THE FACTS AND LOGIC TO SHOW WHY I SHOULD BE WRONG. 

     FINALLY BY AMAZING CIRCUMSTANCES I LOCATED THE CAPTAIN IN CHARGE OF HITLER'S PERSONAL BODYGUARD AT HIS MOUNTAIN RETREAT NEAR BERCHTESGADEN, GERMANY. ONCE IN AN IDLE MOMENT, HITLER BOASTED TO THIS GERMAN CAPTAIN OF THE GREAT ECONOMIC SECRET OF NAZI GERMANY WHICH WAS CODE NAMED "THE INVERTED INFLATION" AND WHY IT WAS CALLED THAT. I HAD CRACKED THE NAZI ECONOMIC SECRET TOTALLY EXCEPT I DID NOT KNOW UNTIL RECEIVING THIS GERMAN TESTIMONY OF THE CODE NAME FOR THIS ECONOMIC SECRET SYSTEM OF NAZI GERMANY. WHEN I DISTRIBUTED TO ECONOMIC CIRCLES THE CONFIRMED TESTIMONY OF THIS GERMAN CAPTAIN, MY REPUTATION SKYROCKETED IN ECONOMIC SCIENCE AND THEN I HAD ACCESS TO THE MOST BRILLIANT ECONOMIC GENIUSES IN THE WORLD. I STUDIED WITH SIX OF THEM AS THEIR TRAINED SUCCESSORS TO WHAT THEY PUBLICLY TAUGHT AND WHAT DUE TO THE POWER ELITE CENSORING MUCH TRUTH IN ECONOMIC SCIENCE, THINGS THAT THEY COULD NOT PUBLICLY TEACH IN SUCH AS COLLEGES AND UNIVERSITIES OF AMERICA AND EUROPE. 

      AND FINALLY I FOUND OUT ONE FINAL SECRET THAT HITLER DID NOT TELL THIS GERMAN CAPTAIN ABOUT THE GREAT ECONOMIC SECRET THAT MADE NAZI GERMANY SO PROSPEROUS SO FAST AND ABLE TO FIGHT EVEN A WORLD WAR FAR AHEAD OF WHEN ECONOMISTS THOUGHT THAT GERMANY COULD DO THIS. BERNARD BARUCH, THE "WIZARD OF WALL STREET," WAS MADE THE INDUSTRIAL WAR CZAR OF AMERICA IN WORLD WAR I UNDER PRESIDENT WOODROW WILSON. HE DID A BRILLIANT JOB OF ORGANIZING THE WAR INDUSTRY OF AMERICA AND FAST DEVELOPING AND DELIVERING THE MILITARY EQUIPMENT AND SUPPLIES NEEDED BY THE AMERICAN FORCES FIGHTING IN EUROPE. AT THE END OF WORLD WAR I HAVING HANDLED AMERICAN INDUSTRY WITH SUCH A STRONG AND SMART HAND FOR THE WAR EFFORT, HE COMMENTED ON HIS OBSERVATION HOW YOU COULD CREATE A BOOMING ECONOMY WITH ANY INDUSTRIAL NATION IN THE WORLD. NO ONE IN AMERICA LISTENED TO HIM. AMERICA WAS IN A PARTY MOOD WITH THE END OF WORLD WAR I AND NO ONE WANTED TO LISTEN TO ANY SERIOUS SUBJECT AT THIS TIME! AMERICA NEVER HEARD WHAT BERNARD BARUCH HAD SAID AS A GOOD GESTURE FROM A MAN WHO NORMALLY SERVED THE CORRUPT FINANCIAL INTERESTS OF AMERICA INSTEAD. 

     NAZI INTELLIGENCE WANTED TO STUDY BERNARD BARUCH ON SMART WAYS TO FAST ORGANIZE AND DEVELOP THE WAR INDUSTRY OF A NATION. THEY ALSO STUMBLED UPON THIS STUDIED CONCLUSION OF BERNARD BARUCH ABOUT HOW TO BOOM ANY INDUSTRIAL ECONOMY IN THE WORLD AND FAST. NAZI INTELLIGENCE FORWARDED THIS INFORMATION TO HITLER AND HIS ADVISERS. THEY THOUGHT THIS CONCEPT OF BERNARD BARUCH BRILLIANT AND WITH SOME GERMAN TOUCHES ADDED TO IT BECAME "THE INVERTED INFLATION OF NAZI GERMANY." IT MADE GERMANY NEARLY STRONG ENOUGH ALMOST OVERNIGHT TO POTENTIALLY CONQUER THE WORLD WITH THIS ECONOMIC ANSWER BACKING THEIR MILITARY POLICY FOR GERMANY. I FINALLY CRACKED THE ENTIRE TOP ECONOMIC SECRET OF NAZI GERMANY!

     BY THE WAY A HISTORICAL HINT HERE! BECAUSE EVEN DICTATORSHIPS NEED PUBLIC OPINION TO BACK THEM TO MAINTAIN POWER WITH, THE NAZI DICTATORSHIP LET THE GERMAN PEOPLE HEAR THAT THE NAZIS WERE "SOAKING THE FAT BOYS" UNDERSTOOD AS JEWS TO HELP FINANCE THE FAST GROWTH OF THE GERMAN ECONOMY AND GERMAN MILITARY. THIS WAS A PROPAGANDA LIE BUT INTENDED TO LET THE GERMANS CHUCKLE THAT THE RICH JEWS WERE BEING SOAKED TO FINANCE ALL THIS SO THE GERMANS WOULD NOT BE ASKING THE DEADLY QUESTION WHAT SYSTEM WAS REALLY FINANCING THE RAPID GROWTH OF THE GERMAN ECONOMY AND GERMAN MILITARY? I COULD TELL MUCH MORE BUT THIS IS ENOUGH FOR THIS REPORT! AND THE CONSERVATIVES WOULD GUESS BUT DO NOT HAVE THE RIGHT ANSWER TO THIS QUESTION! IT IS GREAT FOR A CONSERVATIVE ECONOMY BUT THE CONSERVATIVES HAD NEVER USED THIS ECONOMIC TACTIC AND SYSTEM IN HISTORY BEFORE AS FAR AS I COULD VERIFY FROM HISTORICAL RECORDS. 

     THE GERMANS DID NOT HAVE GOLD BACKING FOR THEIR CURRENCY FOR INTERNATIONAL TRADE BUT CAME UP WITH AN ALTERNATIVE ANSWER WHICH WORKED FINE FOR INTERNATIONAL TRADE FOR NAZI GERMANY. BUT HIDDEN IN THE BERNARD BARUCH INDUSTRIAL ECONOMY CONCEPT IS A TRICK WAY IT COULD BE USED IN AMERICA TO HAVE ALL THE GOLD BACKING FOR AMERICAN CURRENCY EVER WANTED FOR INTERNATIONAL TRADE. 

     VOTE IN FAST MY OMNI LAW AS NATIONAL LAW FOR AMERICA IN 2015 AND I SHOULD BE ABLE TO ARRANGE BEFORE LONG FOR ALL THE GOLD BACKING THAT AMERICANS COULD EVER DREAM OF FOR BACKING THEIR NATIONAL CURRENCY. WE HAVE A NATIONAL ANGLE NO OTHER NATION HAS AND I HAVE A CUNNING MIND IN ECONOMIC SCIENCE AND SEE ANGLES SOMETIMES THAT OTHERS WOULD NOT SEE. THAT IS WHY I WAS ABLE TO CRACK THE TOP ECONOMIC SECRET OF NAZI GERMANY. THEY HAD A VERY CUNNING AND SOUND ANGLE TO BOOM THE NATIONAL ECONOMY WITH. MY CUNNING CRACKED THEIR CUNNING AND I FOUND OUT THEIR WHOLE ECONOMIC SECRET. 

     LET'S BE FRANK. WITH A MOTHER RATED BY I.Q. TEST TO BE THE MOST BRILLIANT CHILD IN AMERICAN HISTORY UP TO HER TIME AND ENTERED A STATE UNIVERSITY WITHOUT PRIOR FORMAL EDUCATION SELF-EDUCATING HERSELF SINCE SHE WAS A CHILD ACTRESS WITH NO TIME FOR FORMAL EDUCATION, WHAT MAKES YOU THINK THAT I WOULD NOT BE BORN WITH A VERY CUNNING MIND AND LIKELY ALSO A LOT OF COMMON SENSE ADDED TO IT? I.Q. TESTS MEASURE FORMAL ACADEMIC TYPE BRAINS AS TO BOOK LEARNING CAPACITY, BUT DO NOT MEASURE LEVELS OF COMMON SENSE OR CUNNING TO A PERSON. THESE ARE ALSO FORMS OF POTENTIAL HIGH INTELLIGENCE AND PROBABLY HIGHER LEVELS OF INTELLIGENCE THAN JUST FORMAL ABILITY FOR BOOK LEARNING. LEARNING STUDY NOTES DOES NOT MAKE YOU SMART. APPLICATION OF KNOWLEDGE IS THE PROOF OF THE PUDDING WHETHER YOU ARE EDUCATED OR NOT, SMART OR NOT, SHOULD BE LISTENED TO OR NOT. 

       BERNARD BARUCH IS LONG SINCE DEAD, BUT IF HE WERE ALIVE TODAY AND I TOLD HIM HOW WITH HIS INDUSTRIAL ECONOMIC CONCEPT WE COULD FAST HAVE COLOSSAL BACKING OF GOLD FOR ALL AMERICAN DOLLARS USED IN INTERNATIONAL TRADE, HE WOULD BE STUNNED. FIRST MAYBE LIKE A SLEDGEHAMMER HIT HIM. THEN A GIANT GRIN BREAKS OUT AND HE SMILING SAYING "THAT IS CLEVER!" AND HIS EYES WOULD LIGHT UP AS HE LAUGHED AT HOW OBVIOUS THIS ANGLE WAS IS WHY NO ONE SAW IT BEFORE! 

     ONCE STATED, PROBABLY ALL AMERICANS WOULD CATCH ON TO WHAT I SEE AND SAY "LET'S DO IT!" BUT AS TIMING IS IMPORTANT TO MAKE THIS WORK TO MAXIMUM ADVANTAGE FOR AMERICA, I CAN'T LET THE CAT OUT OF THE BAG YET! PASS THE OMNI LAW AS FAST AS WE CAN IN AMERICA! LET ME QUICK ASSEMBLE SOME ECONOMISTS WHO WILL BE WORKING WITH ECONOMIC POLICIES SET UP BY THE OMNI LAW AFTER YOU APPROVE THEM FIRST BY NATIONAL REFERENDUM. I WILL TELL THE SELECTED ECONOMISTS HOW THE ANGLE WORKS. ONCE OVER THEIR STUNNED AMAZEMENT THAT NO ONE THOUGHT OF THIS BEFORE, THEY MIGHT GRIN AND SAY "LET'S DO IT." IF THEY LIKE MY IDEA, LET THEM BE SWORN TO SECRECY, ENDORSE THE ANGLE, BUT KEEP THEIR MOUTHS SHUT ON HOW IT IS DONE UNTIL WE PULL OFF THE OPERATION THAT PULLS IN ALL THIS GOLD BACKING FOR OUR AMERICAN DOLLARS IN INTERNATIONAL TRADE. THEY ENDORSE ME AND TELL YOU TO VOTE FOR IT WITHOUT BEING TOLD FIRST HOW THE ANGLE WORKS. YOU BELIEVE THEM AND YOU VOTE TO AUTHORIZE THAT I AM A SHORT TERM ECONOMIC CZAR OF AMERICA FOR LET'S SAY 9 MONTHS. CONGRESS STILL MEETS AS USUAL, NOTHING DIFFERENCE EXCEPT I AM PULLING THE STRINGS TO DELIVER THE BIGGEST GOLD BACKING OF OUR NATIONAL CURRENCY EVER SEEN IN HISTORY. NATIONAL DEBT ELIMINATED, MAYBE FEDERAL INCOME TAXES NO LONGER NECESSARY, ECONOMY BOOMING LIKE NEVER BEFORE IN AMERICAN HISTORY, AND ALL NATIONS HAVE THEIR ECONOMIES BLESSED BY THE NOW SUPER BOOMING AMERICAN ECONOMY BACK ON ITS FEET ONCE MORE AND THE HEALTHIEST EVER SEEN!

     YOU HAVE SMART FINANCIAL NEWSLETTERS SO OFTEN TO NEARLY ALWAYS RIGHT PREDICTING THE SOON COLLAPSE OF THE AMERICAN DOLLAR AND THEN AMERICANS LIVE IN POTENTIAL TOTAL HELL ON EARTH FOR THE NEXT 25 YEARS OR SO. OR BACK MY OMNI LAW AND HAVE A BOOMING ECONOMY LIKE YOU HAVE NEVER EXPERIENCED BEFORE AND THE ECONOMY BOOMING SO FAST AS TO SHOCK YOU WITH THIS FAST GROWING SUPER PROSPERITY FOR AMERICA AND ALL AMERICANS. AND SO WE HAVE A UNITED AMERICA AND NOT A BALKANIZED AMERICA COMPLETE WITH CITIES BURNED DOWN, PEOPLE DYING ALL OVER AMERICA, ETC. , ALL FOREIGNERS WHO WE WANT TO BECOME AMERICAN CITIZENS MUST LEARN ENGLISH AS THE NATIONAL LANGUAGE AND MUST UNDERGO COURSES TEACHING THEM THE HISTORY AND CULTURE OF AMERICA THAT THEY WILL BE JOINING SO LONG AS WE NATIONALIZE THEM. IF THEY DON'T LIKE OUR CULTURE AND NATIONAL HISTORY, THEN GO TO ANOTHER COUNTRY AS WE DON'T WANT FOREIGNERS COMING TO AMERICA TO TRY AND CONQUER IT FROM WITHIN! WE WERE FOUNDED ON GREAT VALUES AS A NATION. WE JUST HAVE TO RETURN TO THESE FOUNDING VALUES AND AMERICA WILL BE GREAT AS A NATION THE WAY IT SHOULD BE. 

      AND IF WE PASS THE OMNI LAW FAST ENOUGH, THE JADE HELM MILITARY EXERCISES ARE TO BE PROMPTLY CANCELLED BY NATIONAL REFERENDUM THROUGH THE OMNI LAW. THESE MILITARY EXERCISES VIOLATE THE INTENT OF THE U.S. CONSTITUTION AND U.S. BILL OF RIGHTS AND ARE NOT TO BE TOLERATED BY A FREE PEOPLE IN THE FREE NATION OF AMERICA. GEORGE WASHINGTON, THOMAS JEFFERSON, PATRICK HENRY, AND OTHER FOUNDING FATHERS OF AMERICA WARNED THAT THE AMERICAN PEOPLE NEVER ALLOW THINGS LIKE THIS TYPE MILITARY EXERCISE TO BE DONE IN AMERICA. 

     FULL NAME OF OUR OMNI LAW AS SHOWN ON OUR WEBSITE IS "THE OMNIBUS CIVIL RIGHTS ACT FOR AMERICA". IT IS MODELED AFTER THE CIVIL TRIBUNE CONCEPT OF ANCIENT ROME WHICH JAMES MADISON, "FATHER OF THE U.S. CONSTITUTION" AND "FATHER OF THE U.S. BILL OF RIGHTS" ENDORSED AS THE SMARTEST IDEA OF ANCIENT MANKIND TO PROTECT HIS RIGHTS FROM TYRANNY IN GOVERNMENT AND FORCE THE GOVERNMENT TO BE GOVERNED BY THE WILL OF THE PEOPLE OF THE NATION INSTEAD OF TRYING TO BE MASTER OVER THEIR PEOPLE INSTEAD. 

     ALL FINANCIAL ACTIVITIES IN AMERICA COST MONEY TO DO. OUR MOVEMENT INCLUDED! ORDER PRODUCTS FROM OUR WEBSITE OR ELSE PUT LOAN MONEY INTO OUR OMNI LAW LOAN PROGRAM TO HELP FINANCE THE FASTER PASSAGE OF THE OMNI LAW IN AMERICA. ALL FINANCES RAISED HELP SPEED UP THE PASSAGE OF THE OMNI LAW. AND FOR THOSE CREDITED WITH LOAN MONEY IN OUR OMNI LAW LOAN PROGRAM ON OUR WEBSITE, THEY GET 10% DIVIDED PRO-RATA OF THE SETTLEMENT MONEY THAT WASH., D.C. IS GOING TO HAVE TO PAY ME FOR A HALF CENTURY SUPPRESSION OF MY FATHER'S VATICAN ENDORSED INDUSTRIAL FOOD PROCESS POPE PIUS XII ENDORSED AS POTENTIALLY THE MOST IMPORTANT NEWS FOR MANKIND SINCE THE COMING OF CHRIST SINCE IT WAS SO IMPORTANT TO WORLD HEALTH BY POTENTIALLY SOLVING THE TWIN PROBLEMS OF STARVATION AND MALNUTRITION IN THE WORLD. THE SOVIET UNION ALSO ENDORSED IT AS THE MOST IMPORTANT FOOD DISCOVERY FOR HEALTH IN WORLD HISTORY. ALSO, OTHER PROMINENT SOURCES. 

      THIS WILL BE THE BIGGEST FINANCIAL SETTLEMENT IN HUMAN HISTORY AND YOUR PRO-RATA SHARE OF 10% OF THIS SETTLEMENT MONEY BASED UPON YOUR NUMBER OF $25 LOAN UNIT CREDITS IN THE TOTAL OMNI LAW LOAN PROGRAM DETERMINES HOW MUCH OF THE SETTLEMENT MONEY YOU GET OUT OF THIS. SINCE WASH., D.C. THROUGH LAST WEEK IS STILL TRYING TO BLOCK THIS VATICAN ENDORSED INDUSTRIAL FOOD PROCESS FROM BEING SET UP IN AMERICA, UNDER GENOCIDE TREATY LAW AND OTHER LAWS, THEY ARE GOING TO GET CRUCIFIED UNDER LAW IN WASH., D.C. UNTIL THEY COME TO TERMS WITH ME THAT I AM WILLING TO ACCEPT FROM THEM. 

     I DON'T THINK THAT GOD GAVE THE LEGAL COMMISSION TO WASH., D.C. TO KILL OFF THE ENTIRE HUMAN RACE ON EARTH BY SUPPRESSION OF THIS GREAT FOOD DISCOVERY WHEN UNIVERSITY TESTS AND MEDICAL LAB TESTS FROM ALL OVER THE WORLD PREDICT THE END OF THE HUMAN RACE ON EARTH IF THIS GREAT FOOD DISCOVERY IS NOT ADDED IN TIME TO THE DIET OF THE AMERICAN PEOPLE AND ALL OTHER RACES ON EARTH. WE DO NOT HAVE TO ACCEPT ANY MORE MONEY IN THE 10% OF THE SETTLEMENT MONEY ON THIS FOOD PROCESS ONCE WE REACH OUR GOAL OF $100 MILLION RECEIVED IN CASH OR LOAN CREDITS INTO THE OMNI LAW LOAN PROGRAM SHOWN ON OUR NATIONAL WEBSITE.

      OUR WEBSITE IS WWW.FASTBOOMAMERICANECONOMY.COM OUR EMAIL IS FASTBOOMAMERICANECONOMY.COM@GMAIL.COM OUR MAILING ADDRESS FOR ORDERS AND LOAN PAYMENTS NOT SENT THROUGH OUR WEBSITE IS NIFI, P.O. BOX 1465, SENECA, SC 29679 . MAKE CHECKS, ETC. OUT TO NIFI AND TELL US WHAT THE PAYMENT IS FOR!

       WHEN CONGRESS REALIZES THE LEGAL JAM THEY ARE IN OVER THE HALF CENTURY SUPPRESSION OF THE VATICAN ENDORSED INDUSTRIAL FOOD PROCESS AND STILL SUPPRESSED BY REPEATED OBAMA TACTICS FROM THE WHITE HOUSE USING FRONTS, I THINK THAT THEY ARE GOING TO QUICK PASS OUR OMNI LAW BEFORE THEY BECOME DEFENDANTS BEING SUED IN THE LARGEST LAWSUIT IN HUMAN HISTORY AND ONE WHICH WE WILL WIN, NOT THEM! WE EXPECT TO HAVE 100-200 NATIONS BACKING US IN SUING WASH., D.C. IF THEY DON'T MAKE THEIR PEACE WITH ME RATHER FAST NOW! MOST GOVERNMENTS DO NOT WANT ALL THEIR PEOPLE KILLED OFF BY WASHINGTON GENOCIDE POLICY OF OBAMA, CONGRESS, ETC.! THEY WILL BACK US ONCE WE ASK THEM TO!

       PASS THIS REPORT AROUND TO ALL AS THE FATE OF AMERICA IS BEING DECIDED BASICALLY AT THIS TIME WHAT WAY AMERICA WILL GO HEREAFTER WHETHER LIFE OR DEATH AS A NATION!

     YOURS FOR GOD AND COUNTRY, ERASMUS OF AMERICA (PEN NAME FOR THAT AMERICAN LEADER WHO WILL NOT SUBMIT TO WOULD-BE TYRANNICAL GOVERNMENT. EITHER WASH., D.C. RETURNS BACK TO CONSTITUTIONAL GOVERNMENT BY PASSAGE OF THE OMNI LAW OR ELSE I FIGHT BY LEGAL AND POLITICAL MEANS UNTIL ALL THE WORLD BACKS ME AGAINST THE CRIMINALS RUNNING THE WHITE HOUSE, CONGRESS, ETC. THIS IS A DEADLY BATTLE WHICH WASH., D.C. SHOULD AVOID AS THE BETTING ODDS ARE THAT I WILL WIN AND NOT THE CRIMINALS IN WASH., D.C.! THE FATE OF AMERICA WILL BE DECIDED BY THE OUTCOME OF THIS CLASH BETWEEN GOOD AND EVIL IN AMERICA. I PREFER PEACE SO SETTLE PEACEFULLY WITH ME NOW! IF NOT, I WILL FIGHT UNTIL I WIN AND I EXPECT TO WIN!)

  

WWW.FASTBOOMAMERICANECONOMY.COM     

FASTBOOMAMERICANECONOMY.COM@GMAIL.COM

       

Insolvency

Nobody believes that the states will eternally drag the burden of these interest payments.
It is obvious that sooner or later all these debts will be liquidated in some way or other,
but certainly not by payment of interest and principal according to the terms of the contract.
- Ludwig von Mises, Human Action (1949)

U.S. bankruptcy code (Sec. 101 (32)) defines insolvency for businesses as the "financial condition such that the sum of such entity's debts is greater than all of such entity's property, at fair valuation."

Although the federal government's $18.2 trillion debt is commonly compared to U.S. GDP
of only $17.4 trillion, a far more appropriate debt comparison would be to compare it to assets possessed by the U.S. federal government (since, after all, the "economy" is not obligated to pay the national debt). The values of such assets, liquid or otherwise, are inherently difficult to ascertain – some are unknown (e.g., real estate, mineral rights, offshore oil deposits) while others are of suspect value (e.g., student loans, U.S. Postal Service).

Most reports estimate such assets at well below $4 trillion, so the net worth of the federal government would be negative $14 trillion. The Federal Reserve is a bit more optimistic: it estimates the U.S. government's net worth at negative $12 trillion. Either way, the federal government is clearly insolvent under its own law, if it were a business.

The U.S. bankruptcy code contains another definition of insolvency; one which is in fact specific to government (municipalities). Here insolvency is defined as "generally not
paying its debts as they become due"or "unable to pay its debts as they become due."

Insolvency is not simply a balance sheet issue, but rather one of cash flow: illiquidity is another form of insolvency. Under this definition, except for the occasional
(and short-lived) shutdowns, the U.S. federal government is thought liquid and solvent through its taxing power and printing press. But this will quickly change if expenditures skyrocket.
With $18.2 trillion in debt, the easiest way this may happen is if interest rates rise.

What are interest rates?
Given the recent history of massive intervention in the bond markets by central banks,
few remember that interest rates are ultimately a product of the free market. At a fundamental level, they reflect the time preferences of various actors within the economy. Add in assessments of credit risk as well as expectations of future price levels, and a structure of interest rates over various time frames is revealed. All markets can be suppressed, distorted, or manipulated, but only for a limited time. The bond market is
no different; ultimately interest rates will resort to higher levels.

How far must interest rates rise for the U.S. government to be "unable to pay its debts
as they become due"? Currently, the federal government effectively pays only 1.3% on
its debt obligations – a rate unknown since the depths of World War II. Over the last 75 years, there have been periods of far greater effective rates (the early 1980's experienced 8%) with an average of over 3% - all while the U.S. government possessed vastly better credit worthiness.

Even with record 2014 tax receipts of over $3 trillion, federal debt levels are almost six
times current receipts. It is no different than a household earning only $30,000 a year with $180,000 of debt. And this is the official debt level; include Social Security, pension funds, or any of the other myriad promises made, and financial obligations easily balloon to 30 or more times tax receipts. Given this financial condition, one can easily argue that an applicable market-based interest rate for U.S. government debt would be far, far higher – perhaps akin to Greece, perhaps worse.

What happens to interest payments as a percentage of tax receipts with higher interest rates, and thus the ability to pay other obligations? Currently at "only"8%, they grow to
20% with the historical average interest rate. At interest rate levels experienced in the
early 1980's, they expand to almost 50%. All of these projections assume tax receipts
are stable, but a recession would compound the calamity as tax receipts fall. The 2008 recession caused tax receipts to fall 18% over a two-year period. Combine 8% interest
rates with a recessionary hit to tax receipts, and interest payments alone swell to 60%
of total tax receipts. Well before reaching such high levels of interest payments, the
federal government would lose the ability to pay other expenses "as they become due"
– or otherwise.

For this reason, the U.S. government has suppressed interest rates for years: it simply cannot afford for them to rise. It will continue to do so by remaining reliant
(and increasingly so) upon the printing press to purchase bonds and lower rates. But
this strategy will only work for so long. Whether through a sober assessment of credit worthiness by investors or via rising price inflation, the market will compel higher interest rates. If the Federal Reserve then continues with proliferate production runs of the printing presses, expect Mises to be prophetic: bondholders will be "repaid", but with a currency which hardly meets the "terms of the contract."

How To Prepare for US Government Insolvency
As insolvency will be answered with a de facto default – a repayment to bondholders with
a substantially depreciated currency – all investors must prepare for price inflation. It may not develop within the next 12 months, it may very well be preceded by an asset deflation, but it will arrive. When it does, it may appear in 1970's fashion: suddenly and substantially. Reflexively, all investors expecting price inflation seek protection with precious metals.
While precious metal investments are perfectly prudent and will ultimately prove quite profitable, other inflation hedges should be considered – especially those providing income backed by hard assets such as certain types of real estate. Given historically low interest rates, aggressive investors may even wish to partially finance such investments by borrowing at fixed rates.

US government insolvency will involve more than just price inflation, it will include turmoil
in every financial market and in every economic sphere. Investors must remain liquid, flexible, and nimble as opportunities will develop as quickly as risks appear.

The above is by Managing Director of Windrock Wealth Management Christopher P. Casey.

Until our next issue, stay cool and remain low profile!