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On his way back to Buenos Aires, Argentina...Joel Bowman
No time for lengthy preludes today, Fellow Reckoner. We’re on our way back to the big smoke after having spent the past few days hanging out at Doug Casey’s picturesque Estancia de Cafayate, up in the Salta province in northern Argentina.
The conference was a lot of fun and we met some great people. Anyway, we’ll have some notes for you on all that next week, after we get settled back in Buenos Aires. In the meantime, let’s dive right into this week’s feature column. We received a ton of reader feedback on this piece so, as always, please feel free to join the conversation by emailing us with your own thoughts at the address below. Enjoy...
[This column originally appeared in The Daily Reckoning on Tuesday, November 8, 2011]
The Daily Reckoning PresentsUS Poverty Stats: Where the Feds Are At Fault
Remember our report from yesterday: “Generation Jobless” was howThe Wall Street Journal put it. Here’s more. From the blog “Economic Collapse:”Bill Bonner 19 Statistics About The Poor That Will Absolutely Astound You.
Now, dear reader, we ask ourselves: how could the most sophisticated, most dynamic, best capitalized, high tech enhanced capitalism in history produce such an outcome?
#1 According to the US Census Bureau, the percentage of “very poor” rose in 300 out of the 360 largest metropolitan areas during 2010.
#2 Last year, 2.6 million more Americans descended into poverty. That was the largest increase that we have seen since the US government began keeping statistics on this back in 1959.
#3 It isn’t just the ranks of the “very poor” that are rising. The number of those just considered to be “poor” is rapidly increasing as well. Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty.
#4 The poverty rate for children living in the United States increased to 22% in 2010.
#5 There are 314 counties in the United States where at least 30% of the children are facing food insecurity.
#6 In Washington DC, the “child food insecurity rate” is 32.3%.
#7 More than 20 million US children rely on school meal programs to keep from going hungry.
#8 One out of every six elderly Americans now lives below the federal poverty line.
#9 Today, there are over 45 million Americans on food stamps.
#10 According to The Wall Street Journal, nearly 15 percent of all Americans are now on food stamps.
#11 In 2010, 42 percent of all single mothers in the United States were on food stamps.
#12 The number of Americans on food stamps has increased 74% since 2007.
#13 We are told that the economy is recovering, but the number of Americans on food stamps has grown by another 8 percent over the past year.
#14 Right now, one out of every four American children is on food stamps.
#15 It is being projected that approximately 50 percent of all US children will be on food stamps at some point in their lives before they reach the age of 18.
#16 More than 50 million Americans are now on Medicaid. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid.
#17 One out of every six Americans is now enrolled in at least one government anti-poverty program.
#18 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006.
#19 It is estimated that up to half a million children may currently be homeless in the United States.
The answer is simple: capitalism doesn’t give you what you want. It gives you what you deserve. And it usually does so with such a long delay that few people connect cause with effect.
Instead, they rant and rave. They blame the rich. They call for more regulation. More distribution. More handouts, subsidies, and bailouts.
They demand that the feds ‘do something!’...not realizing that the feds — more than anyone else — are responsible for their misery:
The feds tricked them into spending more than they could afford — with artificially low rates and EZ credit.
The feds loaded them up with mortgage debt — thanks to their federally subsidized mortgage industry.
The feds practically invented sub-prime mortgage debt; and directed lenders towards the poorest and most vulnerable parts of the society.
The feds enticed old people into complete dependence — with the Social Security, Medicaid and Medicare programs.
The feds led the young into debt too — with easy student loans that effectively transferred money from them to the education industry.
The feds jimmied the health system into such a mess that Americans now spend 45 times as much as Cubans...and have the same life expectancy.
The feds’ funny money system caused the export of millions of good jobs to emerging markets.Rise up, ye debt-trodden masses! Rise up against your real enemy: the feds. You have nothing to lose but your chains
Regards,
Bill Bonner
for The Daily Reckoning
Joel’s Note: Yes, dear reader, the feds continue their unabated assault on the US monetary system. And as long as the “debt-trodden masses” demand that the feds “do something”, it seems likely — if not certain — that the unfortunate trends in US poverty mentioned above, will likewise continue.
And so it seems that now, more than ever, is the perfect time to start protecting the wealth you’ve worked so hard to gain, and that the feds seems so intent on destroying. This brand new presentation may help you do just that. We’ll let it speak for itself; but we will say that it contains a special offer that we think you’ll be very interested in. Click here now to view this brand new presentation.Just How Rich Could You Get When the Innovation Curve Goes Vertical?
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ALSO THIS WEEK in The Daily Reckoning...
Where Are Your Papers?
By Wendy McElroy
Requiring a passport as the key to freedom of movement is akin to gagging someone while maintaining that he retains freedom of speech. The passport has grown into what is arguably the single most powerful tool of totalitarian America, second only to law enforcement itself. It no longer pretends to protect individuals; not a single terrorist has been apprehended as a result of passport checks. But it does cement the totalitarian state. The mandatory passport should be reviled and rejected as an abuse of human rights and common decency. A nation that requires one cannot be free.
Thailand: 7,500 Miles From Greece...and Loving It!
By Chris Mayer
Gaithersburg, Maryland
A local contact here in Bangkok warned me not to come. But I went anyway. I arrived at the airport, which was mostly empty. There was hardly any traffic on the streets. When I got to the hotel, it was a little eerie seeing the sandbag defenses up around the hotel. In fact, most buildings had sandbags around them in case the floodwaters broke through. And when I walked in the hotel lobby, I was greeted by name. “Welcome, you must be Mr. Mayer.”
Crack This Code: EROEI
By Chris Mayer
Gaithersburg, Maryland
“I just want to stop and make sure we’re not on fire,” Brad said as we pulled over. My friend Brad Farquhar is the co-founder and vice president of Assiniboia Capital, which invests in farmland. We had just driven through a canola farm some 50 miles outside of Regina, Saskatchewan. And apparently, the canola crop can get sucked in the car engine and cause a fire. Worried about a smoky smell, we pulled over to check it out. But we were clean.
Banking on Your Phone
By Patrick Cox
Marco Island, Florida
Right now, there are a limited number of players in the lucrative payment network world. Visa, MasterCard and American Express would like to move to your phone. They fear, however, that enabling electronic wallets in phones would allow aggressive young players onto their turf. PayPal, Amazon and Google are, in fact, financial networks, and they would love to do your banking.Urgent Message From Addison Wiggin
I had no clue what Addison was doing in the office SO early Friday morning. Especially with a camera crew.
You see, Addison doesn’t often appear on camera. I knew something big must have been cooking.
And now that I’ve just seen the footage, I finally get the reason for his urgent message.
Check out this rare video warning that he’s recorded for you... right here...
The Weekly Endnote...
And now, it’s over to a few readers for some thoughts, ideas and rumors...
First up, this one from Reckoner Daniel B...
Bonner’s last sentence sent my thoughts back to another place and time where the economy was in a shambles, the people had little to eat and nothing to do, and they were not sure why it had happened to them. The symptoms of post WWI Germany seem to resonate with what is happening in America right now. High unemployment with no relief in sight, inflation on the move and looking to go higher, and most Americans wonder why this is happening. Who indeed, will show up to arouse these people looking for an answer?
The question remains as to what intent that savior has in mind as he or she ascends to their new throne. I’m sure the citizens of 1930 Germany did not envision what was to become of their country following the election of the radical leader who would disrupt their lives to a degree never before seen by man.
And this, from Reckoner George H...
Joel, in your November 9 column you chastise eurocrats for failing to think ahead.
You were too harsh. Look through EU regulations and you will find that these people have thought of many issues to resolve uncertainties for the average European.
A regulation defines a banana by, among other things, degree of curvature from the axis, tapering to the stem etc. The hausfrau shopping in Dusseldorf can buy her yellow fruit safe in the knowledge that it has curved neither too far or too little from prescribed norms and is, therefore, truly a banana.
Similarly, regulations define the ‘greenness’ of the walking man sign for pedestrians.
Until these brilliant regulations were passed, I recall standing perplexed at crosswalks wondering whether I was facing a sign that was green enough to allow me to cross. No more dangers of confusing the green with red [which I presume also has its definition].
So they missed a few things like collapse of the financial system. As long as their bananas curve the right way, things will be just fine.
And finally, some thoughts from Reckoner Carol K.
Bill nailed it once again... I have a grandson that is part of the 18% living with Mom and Dad.
Yes, he does have a job, of sorts, and talks about moving out but...
He probably makes $12 an hour or a bit more and that won’t pay rent, utilities, food, gas or insurance for a car Dad paid for and leave money for fun with pals etc.
He lives at home, is 25 and about to lose his healthcare under Mom’s job insurance.
He finished Community college with general degree in nothing much.
But he has a golden parachute. He has his own room, no rent, and access to the family house with food always available, laundry facilities, etc. etc. He now only has to pay for gas and a cell phone.
He recently took a fun trip to Las Vegas with his pals. Why give all of that up?
I laughed and cried all the way through the movie Failure To Launch as it is too true, and that kid had a real job and income.
What incentive is there to give up all of this for the freedom of being on his own? That offers him nothing but debt and poverty in a split second.
Now if Social Security goes away and my retirement crashes, I may have to move in with him!
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As always, we welcome your thoughts. Email them to the address below and...
..enjoy your weekend.
Cheers,
Joel Bowman
Managing Editor
The Daily Reckoning
Sunday 13 November 2011
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