The Joy of Going for Broke

By MN Gordon, Economic Prism

One of the fabulous familiarities of living in a fading society is that not a day goes by where something utterly flabbergasting doesn’t occur.  We don’t like it, of course.  But who are we to stand in the way of it.

Naturally there’s nothing we can do about it…except enjoy it as best we can.  Here’s what we mean…

The U.S. federal government has run up $16.8 trillion in debt.  Pencil in household, business, state, and local government debts and you get $59.6 trillion.  You’d think by now something would’ve given way.

No doubt, many things have and are giving way – like Detroit.  Still, as John Maynard Keynes, the messiah of deficit spending once remarked, “There’s a lot of ruin” in a nation.

The ruin, of course, can be enraging…if you let it be.  However, we recommend against that.  Rather, we recommend you find entertainment in it.

Feeding the Caribbean with Food Stamps

For example, as we just noted, (Read More….)

Five Reasons Why We Need Big Oil Drilling

The speculations regarding the need for expanding oil drilling in the United States, both offshore and inland, receives plenty of bad press. There are certainly dangers to drilling and transporting oil when it is not done properly. However, people tend to focus on the few negative events while ignoring the total impact and positive effect that drilling for oil has on this country. Considering the potential benefits of continuing to expand oil drilling might sway some of the minds of the naysayers.

Stability of the Dollar

The economic climate of the United States has changed for the better over the past decade, but we are still far from being secure and thriving. Drilling for oil continually supplies jobs that assist in maintaining the health of the American economy. Rig operators, on-site construction, administrators, and maintenance specialists all depend on this practice for their livelihood. The economic benefits are essentially a given. The government would potentially be able to lower its deficit and address other key concerns through the royalties made from exporting more oil. Additionally, reducing the (Read More….)

What Happens If The United States Does Not Honor Financial Commitments Here And Abroad?

Authored By Dave Webb

The first thing that will happen will be a massive display of horror from our creditors. Nations like China, India, and Japan. You will see protests in the streets all over the world. It will not be safe for any diplomatic mission anywhere in the world. A good portion of our embassies will be burned to the ground with the people in them.

The implications of a default are listed here:

1. All foreign nations will stop exporting goods to our shores. The shelves will quickly empty at Walmart and all other retail places dependent on those goods.

2. There will be a demand from our many creditors to honor our debts. This could lead to a World War! Especially from governments we are heavily in debt to. These nations will demand we honor debts to their countries.

3. Diplomatic relations world wide be broke off by the creditor nations. All our embassies will have to close.

4. The empty shelves of Walmart will lead to a revolt from the citizens of this country.

(Read More….)

The Disaster Yet To Come And How We Need To Change It . . .

Authored By Dave Webb

I am not exactly qualified to be an economics person. I am basically anti-machine when it comes to the drastic takeover of industry. I am anti-foreign labor person as well. What I see happening is the natural competition of the market place taken to extremes. And that is what is destroying economies all over the planet. No one and I mean no one has come up with a successful plan to compete with this problem population.

There is no way any industry can compete with starving people in a national economy from India or China. We are talking about two populations that are massive. So massive that it is difficult to even conceive of how cheap human labor in those countries has become.

The nearest description I can come up with is an ant hill. That is how bad it is. In the 60s, a product produced here for $20 would be available there for $2. Add in shipping by bulk cheap carrier and you might come up with $3-$5 depending how far the product had to be shipped. Subtract a currency exchange way out of control and you are back down to maybe 75 (Read More….)

Five Reasons The U.S. Needs to Drill for More Oil on American Soil

Oil is a crucial resource. It powers businesses and homes with heat and electricity, and provides workers with a steady income. Unfortunately, many people such as the EPA and other radical environmentalist groups and individuals want to impede the drilling process for fear-mongering and authoritarian reasons. Some of these reasons include: global warming, destruction of animal habitats, oil depletion, and destruction of Earth. Their justifications are specious. Preventing oil drilling would only hurt American citizens, not help. Here are five reasons why the United States should drill oil on the home front.

Picture Credit- Belridge, California, USA, 2003 Edward Burtynsky Photography

America has a sky-high unemployment rate.

The current U.S. unemployment rate is about 7-8%. There are many individuals and families who are in dire need of a stable occupation. Industrial energy (Read More….)

5 Reasons Every Person Must Know Behind Recent Global Economic Crisis

About Recent Global Economic Crises:

It is actually an ongoing 2007-2012 global economic and financial crisis having multiple factors directly or indirectly involved. Economic, political and organizational interests have played a main role in giving rise to these global crises.
This global financial and economic crisis generally seems to have affected few areas only, but on a close look, you will find everyone becoming a victim of this crisis. It has large effects on a common man. Many workers of massive companies have been bankrupted and many have become unemployed. There is an overall decline in every business.

Photo Credit Walworth County Today

Some major reasons include:

1.Failure of Toxic Mortgages:

One major reason of this global economic crisis is the failure of toxic mortgages in US.

Some risky mortgages were actually packaged with few secure mortgages and were then sold as (Read More….)

Would Getting the Economy On Track Give Us A Free Pass Out of the Federal Budget Mess?

Would Getting the Economy On Track Give Us A Free Pass Out of the Federal Budget Mess?

By Scott Bittle and Jean Johnson, Authors of Where Does the Money Go? Rev Ed: Your Guided Tour to the Federal Budget Crisis

It looks like the country might finally be gearing up to tackle our massive federal deficits and growing federal debt. If history is any guide, serious debate about unpleasant things like cutting popular programs and raising taxes will be accompanied by plenty of people hawking miracle cures that will take away our pain.So it’s no surprise that a lot of commentators, on both the left and the right, say that the real answer to the deficit and national debt is to fire up the economy and “grow our way out of it,” with some even calling economic growth “the miracle deficit cure.”

There’s hardly anything more popular than prosperity. Business people thrive when the economy is growing; it creates jobs and rising incomes so workers like it too. If you’re a comic book fan, even super-villains like Lex Luthor and the Penguin enjoy the benefits. (Read More….)