Federal Reserve Chairman Ben Bernanke is on the way out the door, but the consequences of the bond bubble that he has helped to create will stay with us for a very, very long time. During Bernanke’s tenure, interest rates on U.S. Treasuries have fallen to record lows. This has enabled the U.S. government to pile up an extraordinary amount of debt. During his tenure we have also seen mortgage rates fall to record lows. All of this has helped to spur economic activity in the short-term, but what happens when interest rates start going back to normal? If the average rate of interest on U.S. government debt rises to just 6 percent, the U.S. government will suddenly be paying out a trillion dollars a year just in interest on the national debt. And remember, there have been times in the past when the average rate of interest on U.S. government debt has been much higher than that. In addition, when the U.S. government starts having to pay more to borrow money so will everyone else. What will that do to home sales and car sales? And of course we all remember what happened to adjustable rate mortgages when interest rates started to rise just prior to the last recession. We have gotten ourselves into a position where the U.S. economy simply cannot afford for interest rates to go up. We have become addicted to the cheap money made available by a grossly distorted financial system, and we have Ben Bernanke to thank for that. The Federal Reserve is at the very heart of the economic problems that we are facing in America, and this time is certainly no exception.
Every night Americans prove that they are willing to do absolutely horrible things to their fellow human beings. Most of the time, we never even hear about the sick and twisted things that happen on the side streets and dark alleys of America. Once in a while a particularly twisted story will get picked up by the news, but usually most Americans are pretty much able to isolate themselves from the depravity that is happening all around them. Unfortunately, the social decay that is eating away at our society like cancer is spreading. It is getting harder and harder for average Americans to keep the darkness at bay. When it suddenly reaches out and touches your family, it can be absolutely shocking. America is not the kind, loving and gentle place that is portrayed in our movies and on our television shows. The sad truth is that America is becoming colder and meaner with each passing day. Yes, there are definitely some Americans that are kind and compassionate, but they are in the minority. As our economic decline becomes even more severe, the hearts of even more Americans are going to grow cold. And people with cold hearts can do some absolutely terrible things. The following are 10 disturbing tales from the side streets and dark alleys of America…
One day after praying to God asking for strength and guidance from the Holy Spirit for difficult events that I know are soon before me, these verses were revealed to me:
“fear not, for I am with you; be not dismayed, for I am your God; I will strengthen you, I will help you, I will uphold you with my righteous right hand.” – Isaiah 41:10 (ESV)
“Beloved, do not be surprised at the fiery trial when it comes upon you to test you, as though something strange were happening to you. But rejoice insofar as you share Christ’s sufferings, that you may also rejoice and be glad.” – 1 Peter 4:12-13
“I love the LORD, because he has heard my voice and my pleas for mercy. Because he inclined his ear to me, therefore I will call on him as long as I live.” – Psalm 116:1-2 (ESV)
I love my God! Thank you! Thank you for hearing my plea and letting me know that you are there and that you care. It indeed helps me to carry on, weary as I am.
What do 1929, 2000 and 2007 all have in common? Those were all years in which we saw a dramatic spike in margin debt. In all three instances, investors became highly leveraged in order to “take advantage” of a soaring stock market. But of course we all know what happened each time. The spike in margin debt was rapidly followed by a horrifying stock market crash. Well guess what? It is happening again. In April (the last month we have a number for), margin debt rose to an all-time high of more than 384 billion dollars. The previous high was 381 billion dollars which occurred back in July 2007. Margin debt is about 29 percent higher than it was a year ago, and the S&P 500 has risen by more than 20 percent since last fall. The stock market just continues to rise even though the underlying economic fundamentals continue to get worse. So should we be alarmed? Is the stock market bubble going to burst at some point? Well, if history is any indication we are in big trouble. In the past, whenever margin debt has gone over 2.25% of GDP the stock market has crashed. That certainly does not mean that the market is going to crash this week, but it is a major red flag.
“Fathers, do not exasperate your children; instead, bring them up in the training and instruction of the Lord.”
There seems to be a lot of confusion about what the NSA is actually doing. Are they reading our emails? Are they listening to our telephone calls? Do they target American citizens or is it only foreigners that they are targeting? Unfortunately, the truth is that we aren’t going to get straight answers from our leaders about this. The folks running the NSA have already shown that they are willing to flat out lie to Congress, and Barack Obama doesn’t exactly have the greatest track record when it comes to telling the truth. These are men that play word games and tell lies for a living. So it would be unrealistic to expect them to come out and tell us the unvarnished truth about what is going on. That is why it is so important that whistleblowers such as Edward Snowden have come forward. Thanks to them and to the brave journalists that are willing to look into these things, we have been able to get some glimpses behind the curtain. And what we have learned is not very pretty. The following are 21 facts about NSA snooping that every American should know…
All over the United States, frustrated homeowners are banding together, arming themselves and patrolling their own streets. One of the primary reasons this is happening is because police budgets all over the nation are being slashed at a time when violent crime rates in the United States are increasing and many our our largest cities are being transformed into crime-infested war zones. So instead of waiting for government to come up with a solution, many Americans are taking matters into their own hands. For example, one community group in Milwaukie, Oregon has started posting flyers with an ominous message for potential criminals: “This is a Glock block. We don’t call 911.” You can see a photo of this flyer right here. One of the founders of the “Glock Block” is a breast cancer survivor named Coy Tolonen. She decided to arm herself after a thief stole one of her favorite statues out of her front yard while she was watching…
It’s mostly petty crime that neighbors are sick and tired of: stolen lawn ornaments, vandalism. But for neighbors like Tolonen, a breast-cancer survivor, that’s enough: “I will defend myself — and my home,” she told KOIN 6 News.
Eventually the money runs out. Much of America was shocked when the city of Detroit defaulted on a $39.7 million debt payment and announced that it was suspending payments on $2.5 billion of unsecured debt, but those who visit my site on a regular basis were probably not too surprised. Anyone with half a brain and a calculator could see this coming from a mile away. But people kept foolishly lending money to the city of Detroit, and now many of them are going to get hit really hard. Detroit Emergency Manager Kevyn Orr has submitted a proposal that would pay unsecured creditors about 10 cents on the dollar. Similar haircuts would be made to underfunded pension and health benefits for retirees. Orr is hoping that the creditors and the unions that he will be negotiating with will accept this package, but he concedes that there is still a “50-50 chance” that the city of Detroit will be forced to formally file for bankruptcy. But what Detroit is facing is not really that unique. In fact, Detroit is a perfect example of what the future of America is going to look like. We live in a nation that is rotting, decaying, drowning in debt and racing toward insolvency. Already there are dozens of other cities across the nation that are poverty-ridden, crime-infested hellholes just like Detroit is, and hundreds of other communities are rapidly heading in that direction. So don’t look down on Detroit. They just got there before the rest of us.
“Sing to God, sing in praise of his name, extol him who rides on the clouds; rejoice before him—his name is the LORD. A father to the fatherless, a defender of widows, is God in his holy dwelling.”
“As a father has compassion on his children, so the LORD has compassion on those who fear him;”