2010 Economic Collapse US
One of the main purposes of this blog is to wake people up in term of the possibility of economic collapse in 2010
Wiki definition of 2010 economic collapse is a devastating breakdown of a national, regional, or territorial economy. It is essentially a severe economic depression characterised by a sharp increase in bankruptcy and unemployment. A full or near-full economic collapse is often quickly followed by months, years, or even decades of economic depression, social chaos, and civil unrest.
So if 2010 will be the year of economic collapse for US and the rest of the world what will be the major driver and signs. Already countries are threatening to default so economic collapse is already starting in the european countries. I will focus on the US as that is what will affect the rest of us the most if its economy collapses.
For me there are two main issues in US the first is Financial Crisis which can't be fixed by current political system and next is actual psyche of normal people where a tipping point has been reached and a significant number of people have stopped trusting authority, media and the american dream.
Psyche of the population has reached a stage where they have been manipulated so much by media that the lies are eating the insides of the population as the reality they see around them does't match the reality the media is telling them.
Below are signs of a Collapsing Economy
- Sovereign Debt Crisis facing European PIIGS, UK, Japan and the USA
- USA Crony Capitalism being controlled by K Street and new political parties being formed e.g Tea Party
- States and Municipal Budget Shortfalls and are swimming in Oceans of Debt e.g California in Crisis and New York loaning 6 billion from pension fund to pay pension fund.
- Baby Boomers are retiring so pulling out their investment which will affect liquidity, which is already a big issue
- The Commercial Real Estate Debt Bubble and people doing strategic defaults on those loans.
- Oil production over the last hasn't significantly moved while people wanting the oil has increased
- A affect of de-pegging of China's Yuan, their Property bubble and their young workes expectations have changed in terms of work
To throw another spanner in the possibility of economic recovery you have the earth trying to shake of all the fleas, possibility of war between Iran and Israel and great environmental pollution in terms of the Gulf Spill
This blog is of hope, so besides waking people up to the reality we are facing we have to believe that there is solution that that can fix our problems.
You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong no matter who does it or who says it.
The most underrated reported Facts about the US Economy
In 2010 the U.S. government is projected to issue almost as much new debt as the rest of the governments of the world combined.
It is being projected that the U.S. government will have a budget deficit of approximately 1.6 trillion dollars in 2010.
Total U.S. government debt is now up to 90 percent of gross domestic product.
Total credit market debt in the United States, including government, corporate and personal debt, has reached 360 percent of GDP.
U.S. corporate income tax receipts were down 55% (to $138 billion) for the year ending September 30th, 2009.
There are now 8 counties in the state of California that have unemployment rates of over 20 percent.
In February, there were 5.5 unemployed Americans for every job opening.
According to a Pew Research Center study, approximately 37% of all Americans between the ages of 18 and 29 have either been unemployed or underemployed at some point during the recession.
More than 40% of those employed in the United States are now working in low-wage service jobs.
According to one new survey, 24% of American workers say that they have postponed their planned retirement age in the past year.
Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008. Not only that, more Americans filed for bankruptcy in March 2010 than during any month since U.S. bankruptcy law was tightened in October 2005.
Mortgage purchase applications in the United States are down nearly 40 percent from a month ago to their lowest level since April of 1997.
RealtyTrac has announced that foreclosure filings in the U.S. established an all time record for the second consecutive year in 2009.
In Pinellas and Pasco counties, which include St. Petersburg, Florida and the suburbs to the north, there are 34,000 open foreclosure cases. Ten years ago, there were only about 4,000.
In California’s Central Valley, 1 out of every 16 homes is in some phase of foreclosure.
The Mortgage Bankers Association recently announced that more than 10 percent of all U.S. homeowners with a mortgage had missed at least one payment during the January to March time period. That was a record high and up from 9.1 percent a year ago.
U.S. banks repossessed nearly 258,000 homes nationwide in the first quarter of 2010, a 35 percent jump from the first quarter of 2009.
For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
More than 24% of all homes with mortgages in the United States were underwater as of the end of 2009.
U.S. commercial property values are down approximately 40 percent since 2007 and currently 18 percent of all office space in the United States is sitting vacant.
In 2009, U.S. banks posted their sharpest decline in private lending since 1942.
New York state has delayed paying bills totalling $2.5 billion as a short-term way of staying solvent but officials are warning that its cash crunch could soon get even worse.
Half a dozen cash-poor U.S. states have announced that they are delaying their tax refund checks.
Two university professors recently calculated that the combined unfunded pension liability for all 50 U.S. states is 3.2 trillion dollars.
According to EconomicPolicyJournal.com, 32 U.S. states have already run out of funds to make unemployment benefit payments and so the federal government has been supplying these states with funds so that they can make their payments to the unemployed.
This recession has erased 8 million private sector jobs in the United States.
Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of 2010.
U.S. government-provided benefits (including Social Security, unemployment insurance, food stamps and other programs) rose to a record high during the first three months of 2010.
39.68 million Americans are now on food stamps, which represents a new all-time record. But things look like they are going to get even worse. The U.S. Department of Agriculture is forecasting that enrollment in the food stamp program will exceed 43 million Americans in 2011.
U.S. law enforcement authorities claim that there are now over 1 million members of criminal gangs inside the country. These 1 million gang members are responsible for up to 80% of the crimes committed in the United States each year.
The Dow Jones Industrial Average just experienced the worst May it has seen since 1940.
In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
Approximately 40% of all retail spending currently comes from the 20% of American households that have the highest incomes.
According to economists Thomas Piketty and Emmanuel Saez, two-thirds of income increases in the U.S. between 2002 and 2007 went to the wealthiest 1% of all Americans.
The bottom 40 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
If you only make the minimum payment each and every time, a $6,000 credit card bill can end up costing you over $30,000 (depending on the interest rate).
According to a new report based on U.S. Census Bureau data, only 26 percent of American teens between the ages of 16 and 19 had jobs in late 2009 which represents a record low since statistics began to be kept back in 1948.
According to a National Foundation for Credit Counseling survey, only 58% of those in “Generation Y” pay their monthly bills on time.
During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter.
According to the Tax Foundation’s Microsimulation Model, to erase the 2010 U.S. budget deficit, the U.S. Congress would have to multiply each tax rate by 2.4. Thus, the 10 percent rate would be 24 percent, the 15 percent rate would be 36 percent, and the 35 percent rate would have to be 85 percent.