Tag Archives: 46 million US citizens on food stamps

Economic numbers now screaming it’s panic button time…

Panic button time in US and around the globeWe haven’t seen numbers like these since the last global recession.  I recently wrote about how global trade is imploding all over the planet, and the same thing is true when it comes to manufacturing.

We just learned that manufacturing in China has now been contracting for seven months in a row, and as you will see below, U.S. manufacturing is facing “its toughest period since the global financial crisis”.  Yes, global stocks have bounced back a bit after experiencing dramatic declines during January and the first part of February, and this is something that investors are very happy about.  But that does not mean that the crisis is over.  All bear markets have their ups and downs, and this one will not be any different.  Meanwhile, the cold, hard economic numbers that keep coming in are absolutely screaming that a new global recession is here.

Just consider what is happening in China.  Manufacturing activity continues to implode, and factories are shedding jobs at the fastest pace since the last financial crisis

Chinese manufacturing suffered a seventh straight month of contraction in February.

China’s official Purchasing Managers’ Index (PMI) stood at 49.0 in February, down from the previous month’s reading of 49.4 and below the 50-point mark that separates growth from contraction on a monthly basis.

A private survey also showed China’s factories shed jobs at the fastest rate in seven years in February, raising doubts about the government’s ability to reduce industry overcapacity this year without triggering a sharp jump in unemployment.

For years, the expansion of the Chinese economy has helped fuel global economic growth.  But now things have shifted dramatically.

At this point, things are already so bad that the Chinese government is admitting that millions of workers are going to lose their jobs at state-controlled industries in China…

China’s premier told visiting U.S. Treasury Secretary Jacob Lew on Monday his government is pressing ahead with painful reforms to shrink bloated coal and steel industries that are a drag on its slowing economy and ruled out devaluing its currency as a short-cut to boosting exports.

Premier Li Keqiang’s comments to Lew on Monday were in line with a joint declaration by financial officials from the Group of 20 biggest rich and developing economies who met over the weekend in Shanghai. They pledged to avoid devaluations to boost sagging trade and urged governments to speed up reforms to boost slowing global growth.

Across all state-controlled industries, as many as six million workers could be out of a job, with almost two million in the coal industry alone.

But it isn’t just China.  Right now manufacturing activity is slowing down literally all over the planet, and this is exactly what we would expect to see if a new global recession had begun.  The following chart and analysis come from Zero Hedge

As the below table shows, 28 regions have reported so far. Seven saw improvements in their manufacturing sectors in February, twenty recorded a weakening, and India was unchanged. This means that over 70% of the world saw manufacturing sentiment deteriorate in February compared to January.

February Manufacturing Numbers - Zero Hedge

In terms of actual expansion, there were 21 countries in positive territory and 7 in negative. In particular, Greece moved from neutral to contraction territory, while Taiwan dropped below breakeven from expansion.

Unfortunately, most Americans don’t really pay much attention to what is going on in the rest of the world.  For most of us, what really matters is what is happening inside the good ole USA.

And of course the news is not good.  There were more signs of trouble for U.S. manufacturing in the February numbers, and this continues a trend that stretches back well into last year.  The following is what Chris Williamson, the chief economist at Markit, had to say about these numbers

“The February data add to signs of distress in the US manufacturing economy. Production and order book growth continues to worsen, led by falling exports. Jobs are being added at a slower pace and output prices are dropping at a rate not seen since mid-2012.

“The deterioration in the manufacturing sector’s performance since mid-2014 has broadly tracked the dollar’s rise, which makes US goods more expensive in overseas markets and leads US consumers to favour cheaper imported goods.

“With other headwinds including the downturn in the oil sector, heightened uncertainty due to financial market volatility, global growth worries and growing concerns about the presidential election, it’s no surprise that the manufacturing sector is facing its toughest period since the global financial crisis.

Over the past couple of decades, the U.S. economy has lost tens of thousands of manufacturing facilities.  We desperately need a manufacturing renaissance – not another manufacturing decline.

As good paying manufacturing jobs have been shipped overseas, they have been replaced by low paying service jobs.  As a result, the middle class is shrinking and the ranks of the poor are exploding.

It is hard to believe, but today more than 45 million Americans are on food stamps, and a significant percentage of those individuals actually have jobs.  They are called “the working poor”, and it is becoming a major crisis in this nation.

And no matter what Obama may say, unemployment remains a major problem in the United States as well.  At this point, unemployment rates in 36 states are higher than they were just before the last recession hit in 2008.

Of course a lot of people are going to look at this article and point to the stock market gains of the past couple of weeks as evidence that “things are getting better”.  It is this kind of clueless approach that is keeping the American people from coming together on solutions to our problems.

The truth is that the United States has been experiencing economic decline for decades.  Our economic infrastructure has been gutted, the middle class is steadily deteriorating, and we have amassed the biggest pile of debt in the history of the world.

Anyone who believes that things are “just fine” (OOOObama is one of them, at least according to what he keeps telling us) is in a massive state of denial.  Consuming far more wealth than we produce is not a formula for a sustainable economy.

 

[by Michael Snyder, writing for The Economic Collapse Blog]

 

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As always, posted for your edification and enlightenment by

NORM ‘n’ AL, Minneapolis
normal@usa1usa.com
612.239.0970

 

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The Facts: Why this feels like a depression for most US citizens…

Depression then and now...

Everyone has seen the pictures of the unemployed waiting in soup lines during the Great Depression. When you try to tell a propaganda believing, willfully ignorant, mainstream media watching, math challenged consumer we are in the midst of a Greater Depression, they act as if you’ve lost your mind. They will immediately bluster about the 5.1% unemployment rate, record corporate profits, and stock market near all-time highs. The cognitive dissonance of these people is only exceeded by their inability to understand basic mathematical concepts.

The reason you don’t see huge lines of people waiting in soup lines during this Greater Depression is because the government has figured out how to disguise suffering through modern technology. During the height of the Great Depression in 1933, there were 12.8 million Americans unemployed. These were the men pictured in the soup lines. Today, there are 46 million Americans in an electronic soup kitchen line, as their food is distributed through EBT cards (with that angel of mercy JP Morgan reaping billions in profits by processing the transactions).

depression-2

These 46 million people represent 14% of the U.S. population. There are 23 million households on food stamps in a nation of 123 million households. Therefore, 19% of all households in the U.S. are so poor, they require food assistance to survive. In 1933 there were approximately 126 million Americans living in 30 million households. The government didn’t keep official unemployment records until 1940, but the Department of Labor estimated 12.8 million people were unemployed during the worst year of the Great Depression or 24.9% of the labor force. By 1937 it had fallen to 14.3% or approximately 8 million people.

The number of people unemployed during the 1930’s is an excellent representation of the number of households on government assistance during the Great Depression because 79% of all households were occupied by married couples with 4 people per household versus 48% married couple households today with 2.5 people per household. The unemployment rate averaged 19% during the heart of the Great Depression. Therefore, approximately 19% of all the households in the U.S. needed government assistance to feed themselves. That happens to be the exact percentage of households currently needing food stamps to feed themselves.

We are now supposedly five years into an economic recovery. The unemployment rate, according to the government, has fallen from 10% to 5.1%. Maybe a comparison to the the Great Depression in 1937, five years after the worst of it, would reveal some truth. It is not easy to do an apples to apples comparison because very few women worked outside the home in 1937 and the average life expectancy in the 1930s was 60 years old. Today, the majority of women are theoretically in the work force and the average life expectancy is 78 years old. In 1937 only 5% of the population was over 65 years old versus 13% today.

There were approximately 55 million Americans in the labor force in 1937, according to the DOL, and approximately 47 million of them were employed. So 85% of the eligible work force was working. There was no BLS to massage, manipulate, seasonally adjust, or fake the data to make things appear better than they were in 1937. Edward Bernay’s Propaganda techniques and methodologies weren’t perfected for a few more years. According to Census information there were 52 million Americans between the ages of 18 and 44, along with another 21 million between the ages of 45 and 64 in 1937. So even considering that very few women worked and many people died by the age of 60, we had a workforce of 55 million out of an age eligible population of 73 million at a maximum. That yields a participation rate of 75%.

These facts reveal the utter falsity of the propaganda drenched duplicitous data dumped by the BLS on behalf of vested interests who have captured our government and have an agenda requiring the public to be kept in the dark regarding their own dire financial situation. No matter how you slice the data, it reveals an absolute parallel to the situation during the Great Depression. There are 251 million Americans of working age and only 149 million are employed, of which 20 million are part-time and 8 million are self employed. Only 59% of working age Americans actually work. The BLS has the cajones to declare that only 157 million of the 251 million working age Americans are actually in the labor force.

This outrageous assumption flies in the face of all reasonableness, facts, and truth. In 1937, even with women not working outside the home and very few people living past 65 years old, the participation rate was 75%. Today, with the majority of women capable and willing to work and older Americans working well into their 60s, the BLS actually expects a critical thinking person to believe the participation rate is only 62.4%, the lowest since 1977. It’s a pure and simple despicable lie. The true participation rate should exceed the rate in 1937, based on the facts. Using the 75% participation rate today, yields a true unemployment rate of 21%, not the preposterous 5.1% shoveled by the BS artists at the BLS. The 21% rate ties very closely to the figure arrived at by John Williams at Shadowstats. An unbiased assessment of the facts reveals unemployment numbers and people on government assistance numbers that match or exceed those of the Great Depression.

depression-3

I also wonder whether the corporate mainstream media purposely chooses not to show pictures of the poor waiting in long lines to be fed because their function is not to report facts and truth, but to perpetuate the lie that all is well in America.  I pass the Grace Lutheran church at 36th and Haverford Avenue in West Philly everyday on my way to work. Every Thursday is when the church, in partnership with the Philabundance food bank, distributes free food to the people of West Philly. The line stretches around the block at 7:30 am awaiting the Philabundance truck to arrive. There are old, young, black, white, Latino, and Asian in the line. It looks exactly like the line pictured in the Great Depression above. I’m sure there are similar scenes across every city in America on a daily basis. People dependent on food banks and living in homeless shelters are at record levels. Where are the mainstream media pictures? How does that jive with Ben Bernanke’s self congratulatory book tour about how he saved America by secretly handing Wall Street and foreign bankers $16 trillion?

For the average American family, the US economy has been in recession since 2000, with the Greater Depression arriving in 2008. The working age population has grown by 40 million since 2000, with only 12 million jobs added over that time frame. Of those, 10 million were in the government controlled health, education, social services (HES) sectors, with millions of good paying manufacturing jobs destroyed, replaced by a couple million low paying services jobs. As David Stockman points out, Bernanke and the vested interests he serves continue to spew disingenuous propaganda  to cover up the fact average American households continue to experience depression-like conditions. When your real household income is lower than it was in 1989, while your basic living costs for food, energy, transportation, rent, housing, healthcare, taxes, and education have skyrocketed, you just might be experiencing a depression.

 

[The above article appeared recently at SHTFplan.com]

 

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As always, posted for your edification and enlightenment by

NORM ‘n’ AL, Minneapolis
normal@usa1usa.com
612.239.0970

 

 

 

 

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