China Real Estate Bubble
China added the equivalent of more than 50 Manhattans, in construction, in just five years. This real estate bubble has been financed by unrestrained credit growth since 2009. There is excessive borrowing in the loan shark err… Shadow banking system… Just like Japan in the late 80’s and you know what happened to Japan.
Global Government Debt
Between mid-2007 to mid-2013, the global government debt has gone from 70 to 100 trillion dollars. Of that, 4.5 trillion dollars was from the U.S. alone. Borrowing has soared as central banks suppress benchmark interest rates to spur growth. Given the significant expansion in government spending, do not expect this number to go down.
Cost of Living Will Quadruple
In one way or another, everything, from food to fuel, is subsidized. Those subsidies are being paid with ever-increasing debt. It is inevitable that at some point the U.S. dollar will be wiped out. Without those subsidies to support this ponzi system, prices are going to take off.
In some good news, because of the sequestration and furloughs, there were 89,000 fewer audits in 2013. We really need a lot more of these folks! Anyway, the IRS only pulled in an additional 9.83 billion dollars in revenue from audits.
A new survey confirms that Obamawreck is not affordable to the uninsured. The plight of the uninsured was a major selling point for the passage of the Obamawreck scam.
Chevy Volt sales were down over 25% in February. They have only sold 58 of the tax-subsidized, and highly publicized Cadillac ELRs. When the second bankruptcy comes, hopefully the UAW is not compensated again.
Here are a few of the 16 examples showing how the U.S. has become messed up…
1. Courts banning free speech of the American flag over safety.
2. Parents abandoning, not only their pets, but their children in woods.
3. Some are saying the increased divorce rate has contributed to an improving economy.
Oceans Clears Smog
Researchers at UC San Diego found that the sea surface can absorb and remove up to 15% of smog-forming nitrogen oxides that build up in polluted air in coastal cities at night. Half of the world’s population lives within 125 miles of a coast. So, nature has again been able to clean up the messes we make. If only it could clean up our political and economic mess.
Finally, please prepare now for the escalating economic and social unrest. Good Day!
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