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10 Signs The U.S. is Becoming a Third World Country

The United States by every measure is hanging on by a thread to its First World status. Saddled by debt, engaged in wars on multiple fronts with a rising police state at home, declining economic productivity, and wild currency fluctuations all threaten America's future.

The general designations of the ranking system for world status date back to the 1950s, and have included countries at various stages of economic development. Since the Cold War, the definition has come to be synonymous with repressive countries where a wealthy class of ruling elites segment society into the haves and have-nots, many times capitalizing on the conditions that follow an economic crisis or war.

While much of the world is still mired in poverty, the reduced cost of innovative tools such as computing and connectivity ironically puts traditional Third World countries at the forefront of a new lean-and-mean economy that is based on ideas of empowerment for the disenfranchised. For better or worse, the world is leveling due to Globalism. However, America and other over-leveraged countries face this re-balancing of the globe at a time when they have dwindling resources. We can speculate about who and what is to blame for America's fantastic fall, but for the purposes of this article we shall focus on the obvious signs that the United States is beginning to resemble a Third World country.

http://www.activistpost.com/2010/08/10-signs-us-is-becoming-...



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read this today:

snippets:

"Over the past year, producer prices have risen by 4.2 percent, above June's figure but down from this spring, when the index increased by more than 5 percent in March, April and May.

That's a bigger increase than consumer prices, which rose by only 1.2 percent in the past year. That shows companies are reluctant to pass on their higher costs to consumers, who are already reluctant to spend due to high unemployment, tight credit and weak wage growth.

One big driver in higher producer prices was fresh and dry vegetables, which jumped in price by 9.8 percent, the most since March. Peas jumped by almost 81 percent, the most since October 2007. Tomatoes, which have been volatile for much of this year, soared by 68.6 percent, also the largest increase since March.

Egg prices rose in July by 19.4 percent, the biggest jump since April 2009.

Another big driver of the higher index was a 1.5 percent rise in the price of pickup trucks, SUVs, minivans and cargo vans. That was the largest increase since January.

Pharmaceutical costs, meanwhile, rose by 0.7 percent."

from article: "Wholesale prices rise on higher food costs"

http://www.google.com/hostednews/ap/article/ALeqM5jfuYCNDwSb...

Excellent article.

Thanks for posting.

bumping for . . .

relevance.

it's hard to be awake; it's easier to dream--

Is a Crash Coming? Ten Reasons to Be Cautious

Could Wall Street be about to crash again?

This week's bone-rattlers may be making you wonder.

I don't make predictions. That's a sucker's game. And I'm certainly not doing so now.

But way too many people are way too complacent this summer. Here are 10 reasons to watch out.

1. The market is already expensive

Stocks are about 20 times cyclically-adjusted earnings, according to data compiled by Yale University economics professor Robert Shiller. That's well above average, which, historically, has been about 16. This ratio has been a powerful predictor of long-term returns. Valuation is by far the most important issue for investors. If you're getting paid well to take risks, they may make sense. But what if you're not?

2. The Fed is getting nervous

This week it warned that the economy had weakened, and it unveiled its latest weapon in the war against deflation: using the proceeds from the sale of mortgages to buy Treasury bonds. That should drive down long-term interest rates. Great news for mortgage borrowers. But hardly something one wants to hear when the Dow Jones Industrial Average is already north of 10000.

3. Too many people are too bullish

Active money managers are expecting the market to go higher, according to the latest survey by the National Association of Active Investment Managers. So are financial advisers, reports the weekly survey by Investors Intelligence. And that's reason to be cautious. The time to buy is when everyone else is gloomy. The reverse may also be true.

4. Deflation is already here

Consumer prices have fallen for three months in a row. And, most ominously, it's affecting wages too. The Bureau of Labor Statistics reports that, last quarter, workers earned 0.7% less in real terms per hour than they did a year ago. No wonder the Fed is worried. In deflation, wages, company revenues, and the value of your home and your investments may shrink in dollar terms. But your debts stay the same size. That makes deflation a vicious trap, especially if people owe way too much money.

5. People still owe way too much money

Households, corporations, states, local governments and, of course, Uncle Sam. It's the debt, stupid. According to the Federal Reserve, total U.S. debt—even excluding the financial sector—is basically twice what it was 10 years ago: $35 trillion compared to $18 trillion. Households have barely made a dent in their debt burden; it's fallen a mere 3% from last year's all-time peak, leaving it twice the level of a decade ago.

6. The jobs picture is much worse than they're telling you

http://www.silverbearcafe.com/private/08.10/crash.html

Follow me on Twitter for breaking news from a libertarian perspective

www.twitter.com/AbolishTheFed

Michael Nystrom's picture

This is an important article

Not to scare you, but to be seriously aware of what is going on.

Awareness. Observation.

The simple act of observation is the beginning of changing the outcome. The outcome cannot be changed if we are asleep.

The only way to make sense out of change is to plunge into it, move with it, and join the dance. - Alan Watts

The last one

is the most important and most dangerous and has received the least attention.

Capital controls are the surest indication that the end(outright confiscation of wealth and property) is not far away.

I'm going to make cheap necklaces

and sell them to tourists. sir, sir, sir, sir, sir one dollar, sir, sir, sir, sir, one dollar.
Is there a "second world"?

Wow how true and depressing

Wow how true and depressing