Let Mazal Decide

Americans say they need a crisis. Perhaps the World needs World Crisis I instead of the WWIII. As Rahmbo says, never let the opportunity of a good crisis go to waste. This is political engineering that I can actually look forward to; Mazal-nomics 101 - letting fate decide [i.e. God] could actually be the trump card this transition needs. I'm game if this is in fact the game.

JPost.com:

The US government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave, closing national parks and stalling medical research projects.

Federal agencies were directed to cut back services after lawmakers could not break a political stalemate that sparked new questions about the ability of a deeply divided Congress to perform its most basic functions.

After House Republicans floated a late offer to break the logjam, Senate Majority Leader Harry Reid rejected the idea, saying Democrats would not enter into formal negotiations on spending "with a gun to our head" in the form of government shutdowns.

The political dysfunction at the Capitol also raised fresh concerns about whether Congress can meet a crucial mid-October deadline to raise the government's $16.7 trillion debt ceiling.

With an eye on the 2014 congressional elections, both parties tried to deflect responsibility for the shutdown. President Barack Obama accused Republicans of being too beholden to Tea Party conservatives in the House of Representatives and said the shutdown could threaten the economic recovery.

The political stakes are particularly high for Republicans, who are trying to regain control of the Senate next year. Polls show they are more likely to be blamed for the shutdown, as they were during the last shutdown in 1996.

"Somebody is going to win and somebody is going to lose," said pollster Peter Brown of the Quinnipiac University poll. "Going in, Obama and the Democrats have a little edge."

The dollar held steady on Tuesday even though much of the US government was due to start shutting down. S&P stock futures inched up 0.2 percent, unchanged from earlier price action after the cash index fell 0.6 percent on Monday, while US Treasury futures slipped 5 ticks.

Most Asian markets were trading higher on Tuesday.

POLITICAL POLARIZATION

The shutdown, the culmination of three years of divided government and growing political polarization, was spearheaded by Tea Party conservatives united in their opposition to Obama, their distaste for Obama's healthcare law and their campaign pledges to rein in government spending.

Obama refused to negotiate over the Republican demands and warned a shutdown could "throw a wrench into the gears of our economy."

Some government offices and national parks will be shuttered, but spending for essential functions related to national security and public safety will continue, including pay for US military troops.

"It's not shocking there is a shutdown, the shock is that it hasn't happened before this," said Republican strategist John Feehery, a former Capitol Hill aide. "We have a divided government with such diametrically opposed views, we need a crisis to get any kind of results."

In the hours leading up to the deadline, the Democratic-controlled Senate repeatedly stripped measures passed by the House that tied temporary funding for government operations to delaying or scaling back the healthcare overhaul known as Obamacare. The Senate instead insisted on funding the government through Nov. 15 without special conditions.

Whether the shutdown represents another bump in the road for a Congress increasingly plagued by dysfunction or is a sign of a more alarming breakdown in the political process could be determined by the reaction among voters and on Wall Street.

"The key to this is not what happens in Washington. The key is what happens out in the real world," said Democratic strategist Chris Kofinis. "When Joe Public starts rebelling, and the financial markets start melting down, then we'll see what these guys do."

A Reuters/Ipsos poll showed about one-quarter of Americans would blame Republicans for a shutdown, 14 percent would blame Obama and 5 percent would blame Democrats in Congress, while 44 percent said everyone would be to blame.

An anticipated revolt by moderate House Republicans fizzled earlier on Monday after House Speaker John Boehner made personal appeals to many of them to back him on a key procedural vote, said Republican Representative Peter King of New York.

After Boehner made his appeal, House Democratic Whip Steny Hoyer called on him to permit a vote on a simple extension of federal funding of the government without any Obamacare add-on. "I dare you to do that," Hoyer roared.

THE FALLOUT

The potential fallout has some Republican Party leaders worried ahead of the 2014 mid-term elections and the 2016 presidential race, particularly given the Republican divisions over the shutdown.

Republican Senator Ted Cruz of Texas, who commandeered the Senate floor for 21 hours last week to stoke the confrontation and urge House colleagues to join him, sparked a feud with fellow Republicans who disagreed with the shutdown and accused the potential 2016 presidential candidate of grandstanding.

"Whether or not we're responsible for it, we're going to get blamed for it," King told reporters on Monday. "They've locked themselves into a situation, a dead-end that Ted Cruz created."

It was unclear how long the shutdown would last and there was no clear plan to break the impasse. The Senate on Tuesday planned to recess until 9:30 a.m. (1330 GMT), at which time Democrats expect to formally reject the House of Representatives' latest offer for funding the government.

The shutdown will continue until Congress resolves its differences, which could be days or months. But the conflict could spill over into the more crucial dispute over raising the federal government's borrowing authority.

A failure to raise the $16.7 trillion debt ceiling would force the country to default on its obligations, dealing a potentially painful blow to the economy and sending shockwaves around global markets.

Some analysts said a brief government shutdown - and a resulting backlash against lawmakers - could cool Republican demands for a showdown over the debt limit.

"A lot of this is political theater. It's not about real policy. Part of this is taking a stand for their constituents," said Julian Zelizer, a historian at Princeton University.

"If there is fallout from a shutdown and there is a big enough shock, maybe they will be willing to move on to other issues," he said.

Obama says negotiating over the demands would only encourage future confrontations, and Democrats are wary of passing a short-term funding bill that would push the confrontation too close to the deadline for raising the debt ceiling.

"The bottom line is very simple - you negotiate on this, they will up the ante for the debt ceiling," Democratic Senator Chuck Schumer said.

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The New Manna: A Zimbabwe Dollar - In God We Trust

Evil and Amalek don't play the game of life with logic and of course not with Torah wisdom; it's a game of odds and basic math patterns, based on sub-par algorithms. The article presented says doomsdayers [i.e. blogs about moshiach, etc.] are fear mongers who exploit the facts as he presents in his case. The hand that he tips actually says that the nature of evil is a gambler and a risk taker as long as the odds are good enough; lets call it socio-blackjack, with a cheesy Vegas dealer name Bazza at your service.

Their view is that Zimbabwe was simply under-managed, and with American brass it can be steered, righted, and brought back to prosperity; throw in a few wars for the cause [not WWIII standard as a doomsdayer would suggest] and soon we'll be back to decadence, which is a right that every American has [as per their indoctrination] while the nations abroad are sold [or told?] to endorse, worship, and push the agenda of America enjoying its eternal birthright [Esau anyone?].

There are two possible key issues here: either they lose, and welcome Moshiach, or they try to win, and, well, yes, Geulah will be extended - but the fiasco and charade that they put on display for public will be quite pathetic, as probably every prophecy in Tanach will now have an easy platform to inform the people of God's intentions. What do we say to this - have fun? Buckle up? oy vey.

By the way, I'm going on record as agreeing with him, as I think God wants this elongated as possible to allow for teshuvah, save lives, etc. as outlined by the Vilna Gaon - who says its like being decreed a big rock to crush you; only God has mercy and agrees to throw the rock on you, but only as sand pebbles - many of them - like American dollars will be.

The Geulah process has already begun in certain sectors, and this will allow people to get on board and gain merit, again, thanks to an elongated process. And at the end of the day, I think Hashem just wants in his heart that one day he should pay an Avreich in Kollel a  Billion dollar monthly check, just in principle the World must see that day, for fate must contain a sense of irony.

Forbes.com:

From all the doom and gloom about U.S. and European economics you would have thought the end of the financial world was nigh. In fact a lot of people are saying that right now. Want some good news? It is not going to happen. That is not to say I haven’t written a lot of gloomy economic stuff myself. Yet, to be honest, I’m over that now. The economic accident happened in 2007/2008. The developed world’s economy didn’t die. It is now recovering. It is only a start but we have entered a new era nonetheless.

The idea is, U.S. and Europe are on a binge of deficit spending and this has created a titanic overhead of sovereign debt that can’t be supported or repaid.

This is correct. But do not panic.

The conclusion of the doomsters is that consequently the economic world will implode and the globe will spin off its axis into outer darkness. Well, the bit about spinning out of the orbit of the sun is an exaggeration, but not by much.

The doomsters see a collapse of so called fiat money, i.e. money as we know it and an economic and social breakdown will follow. Gold and bullets are to be the only currency.

According to this line of prediction, we should all be rearing chickens in anticipation and ready to grow bean shoots in our closets for food. While you are at it, get some plans to create a stealth smokehouse. Forget zombies; the marauders of the future financial collapse are going to be real people.

Woe on us, prepare!

This prepper-view is nonsense. The view that fiat money is going to disappear is mad and silly. Fiat money is going nowhere, except down in value.

Special Offer: After a big drop, Apple’s valuation and dividend yield look tempting. Time to buy? Click here for a free-trial and immediate access to Forbes Dividend Investor advisory service.

Whatever the political and economic rights and wrongs of the matter, what happens next is as close to the doomsters fall of the Roman Empire part 2, as a roller coaster ride is to a plane crash.

Why?

It is infuriatingly simple. Let us say the U.S. government got to a state that it owed 120% of GDP in debt. The U.S. is not there yet but it will likely get there soon enough.

What happens next? The U.S. simply engineers a 7% rate of inflation, all other things being equal and in two Presidential cycles U.S. debt to GDP is roughly halved to the old sweet spot of 60% to GDP. Of course modelling that with all the possible variables is way more complicated than that, but you get the idea.

Halving the value of money does the trick of sorting out this whole sorry mess. Now that might sound horrendous but it is not.

So okay you are a doomster and you think the end is nigh and that gold is money. Well, gold has gone up roughly 10% a year compounded since the end of Bretton Woods in 1971. This implies an average compound rate of inflation of 10%; if you believe that gold is real, inviolate, hard money, which as a doomster you most definitely do.

The world didn’t end over those 40 years as money was devalued forty fold. The fiat system didn’t implode, in fact everyone got a lot richer, even though in the meantime 2.5 cents of gold became worth a dollar or put in gold standard terms, 2.5 cents in 1971 has been inflated to $1 today.

If the dollar got devalued in real terms at 10% a year, as we have enjoyed in gold terms on average for 42 straight years, a 120% debt to GDP would hit 60% in around 6 years. This is why it is not a good idea to panic and get doomy.

The key is to be positioned for the denouement of current economic rescue attempts. The solution is the dilution of debt, through the devaluation of money. The governments of the west will not run out of money. That’s impossible. What will happen to rebalance the debts of the U.S. and Europe is what we need to focus on.

In a nutshell, bonds are going to get monetised. Sovereign debt will be turned into cash. Operation twist has put a large proportion of that mountain of debt at the short end of maturities. The economy of the U.S. is going to get very liquid indeed. That is the one thought to hold.

If you believe the developed world is going to get into a tail spin, it won’t be that fiat money will disappear. Instead there will be much more of it about.

The question therefore is how to play the outcome of cash flooding everything.

You can do worse than look back to the seventies to see what happened and use that period as a model of what to do. The answer isn’t to prepare for Armageddon. It is to invest in inflation linked assets producing index linked yield.

So perhaps buying bits of mountain desert to rent out to terrified ‘preppers’ is the way to go, because not only will the property value and rent rise with real inflation, you’ll also be paid in gold.

Forsight in Klippah?

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Moshiach and His Bat Made in China

Read the following presented article very carefully. It cleverly shows answers to big questions:

Why is the EU in debt? - They have no Central Bank [thanks to empirical paranoia] and thus can't handle the international pressure and need for stability.

Why is America in debt? - America is collapsing under the same decree on the EU, only is lasting longer. The EU was created to compete against America.

Who is on top? - China! They have a model of success that is sending them near the top. It is clear that America / Obama is leading America into a Chinese [communist] philosophy of re-growth. It is also clear that Romney [and his Chinese attack comments] had a similar plan of taking on China with the Amero concept, a united North America].

Who is winning? - Israel! When you have read the article, realize that Galus China will never happen, as they are in a compulsion repetition of "finally winning" syndrome. Israel is the only country on earth that is able to implement China's victory strategy, and they are, and they are winning. America is trying, but it will never be able to achieve what Israel can. God simply designed Israel to succeed in this day and age; perhaps the future will hold a different hand, but for the time being, Israel owns 2012 and beyond.

In other words: Welcome to Pax Judaica. The only challenge will be to turn it into a Kedusha enterprise.

Zionism is the blood that fuels the animal, our job is to turn blood into Light. Zionism has led the way, but one must not forget, the Torah of Eretz Yisrael, Torah Zionsim, digs back most recently tore the students of the Vilna Gaon [to name one example].

May the Jewish People merit a true Zionism, and merit to hear the Kol HaTor in our Land.

****I will highlight key points that relate to Israeli successful implementation.

People's Daily Online:

The report of the 18th CPC National Congress proposed to speed up the formation of a new mode of economic development by focusing on enhancing the new driving force of innovation and relying more on domestic demand, especially consumer demand for economic development and thus outlined a clear roadmap for our country to achieve economic transformation.

Experts said that we should stick to the roadmap, firmly grasp the strategic basis of "expanding domestic demand", substitute the new engine of innovation for the traditional elements, and gradually bid farewell to the traditional model of development to realize China's economic transformation.

Transformation is the key to China's economic rebirth

Since the Reform and Opening up, China has created an economic miracle with an average economic growth rate of above 9.8 percent over 34 consecutive years, ranking the world's second-largest economy in 2010.

However, with changes in the elements that support China's economic development, the traditional unbalanced, uncoordinated, and unsustainable extensive growth mode has come to an end.

Economic circles unanimously agree that China's economy has entered a period of major transition where transformation is the key to China's economic rebirth.

President of China Reform and Development Research Institute Chi Fulin said that China's economic growth is at a historical inflexion point to converse from high-speed to medium speed. The economic slowdown since 2011 reflects the short-term economic fluctuations as well as long-term trend of economic growth. Only by releasing the huge potential demand and accelerating the transformation of development mode can we cope with the changes in the pattern of domestic and international economy.

Economic commentator Ma Guangyuan believes that as international economic downturn led to deterioration of China’s foreign trade conditions, China must transform its economic development model as soon as possible.

Facing the test of “middle-income trap,” China needs to get rid of the development mode that extremely relies on investment and exports to fuel economic growth, lacks technological innovation, and has low consumption, backward service industry, vague boundary between markets and the government and slow pace of urbanization, and enter a stage of modern economic growth. Therefore, the 18th CPC National Congress has an epoch-making significance to arrangement of economic transition, Ma said.

“Economic restructuring is the key of striding over the middle-income trap,” said Zhang Monan, an associate research fellow with the Economic Forecasting Department of the State Information Center.

Zhang pointed out that it must comprehensively adjust the growth pattern and economic structure to achieve economic transformation, including using innovation to promote supply growth and tapping domestic market potential

Reliance on innovation and domestic demand to achieve economic transformation

“Innovation is the requirements of scientific outlook on development and transformation of economic development mode,” said Li Yiping, professor of Renmin University of China. He pointed out that the progress of world economy needs innovation, so does Chinese economy.

Deputy Dean of the Academy of Macroeconomic Research at the National Development and Reform Commission Wang Yiming also stressed that Chinese economy must rely on innovation to realize a transformation from emphasizing scale expansion to focusing on promotion of quality and efficiency.

The 18th CPC National Congress pointed out that as the strategic support of improving social productive forces and overall national strength, scientific and technological innovation must be placed in the core position of national development, concentrating the whole society’s wisdom and strength on innovative development.

Ma Guangyuan said that the concept is unprecedented, clearly showing the courage and determination of China to say goodbye to investment-driven development mode in the past.

About the role of expanding domestic demand in changing the mode of economic development, the 18th CPC National Congress said, “We must firmly grasp the strategic basis of expanding domestic demand to accelerate the establishment of a long-term and effective mechanism and unleash the consumption potential.”

Fueling consumption is the strategic focus in expanding domestic demand. Chi Fulin said that China is still in a rising stage over the next 10 years and owns huge consumption potential. As long as the consumer demand can be effectively released, it is possible to maintain a moderate growth rate of 7 percent to 8 percent in the next 10 years. 

Notice how all of the red highlights [China's hopes] are being successfully implemented by Israel - in uniform. Israel's demographics, reality, nationalism, philosophy, government, etc, make it the perfect chemistry for Pax Judaica. Equally notice how America will never again be able to recapture the chess pieces it lost off the board.

One must assume that there is a tremendous guiding light behind Israel. We are not here for naught; the Light of Moshiach is ready to shine through the darkness. Just as a light shines brightest before darkness, the galus shines brightest before its demise.

As the Ramchal says: One Kingdom must not trespass another. The Kingdom of Galus is nearing its end, seen by its magnificant glow.

With that you can be sure, Moshiach is next and close by.

****Israel’s economic growth should start picking up in the first half of next year thanks to a boost in external demand, the OECD concluded in its biannual economic outlook on member states Tuesday. Output growth is projected to drop from 3.1 percent in 2012 to 2.9% in 2013 (incorporating a 0.2 percentage-point boost from the new Tamar offshore gas field), but then rebound to 3.9% in 2014, the report said.


******...and in America: The Fed said today that seven of 12 districts reported “either slowing or outright contraction in manufacturing” as some contacts “expressed concern about the outlook for 2013, in part, due to the uncertainty regarding the outcome of the fiscal cliff.”

Follow @RabbiKSoulMazal

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Galus China: Look Closer

Galus China Update: Coming Into Fruition.

Some 150 Chinese businessmen and politicians are expected to visit Israel in September to explore potential investments in the local high-tech industry.

The delegation will meet with some 50 companies participating in the Haifa Investment Conference, set for September 10-11. The conference is sponsored by the Foreign Ministry and the ICE Group.

The Chinese are said to be particularly interested in greentech, communications and software technology, biotech and medical technology.

"This conference aims to be a platform for Israeli high-tech companies, and to assist them in location potential Chinese partners," Amos Talmor, Founder & Managing Partner of ICE Group said.

"China is the gate to Asia and the whole world," he added.

[enter Erev Rav Intent Here]

The conference also means to celebrate Haifa's new "twin city" status vis-à-vis Shanghai, and its close ties with Chengdu and Shenzhen.

"China represents one of the best opportunities for Israeli companies today and the City of Haifa is invested in realizing that promise," Haifa Mayor Yona Yahav said.

The Chinese delegation will officially be the guest of the Foreign Ministry and the Industry, Trade and Labor Ministry.

 

 

Gateway of Tumah: Wealth and Exploitation: Galus China / Erev Rav

 

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The Last Leg To Rome: Edom In Motion

Rome is ready to fall; some say it IS falling, just in super slow motion.

[With intent on keeping inevitable inflation in super slow motion to keep from a hyper inflation full blossom]

It is clear that there is not a Western Power ready to assume duties of Global Policeman Agent Esav after America relinquishes her duties.

For this we welcome Pax Judaica.

In the meantime, a slow digestion of the cursed toxic-Dollar commences. At least Edom knows he will fall - his fate is not a mystery to him.

Thus Erev Rav alliance in Zion [however ironic from Esav] will cure the disease...to the extent that the signal feature of the Erev Rav is their inherent wealth [and the Erev Katan's mitigating function as inherently unwealthy]; perhaps the Blessed Shekel is being prepared for its subjugation into World Currency Lore - which may fringe upon near eternity God Forbid.

The power in potential in Tumah is derived from the fact that when the Besi Hamikdash will stand forever, the Shekel will be implemented in this function, but in Kedusha.

WHTC.com:

From shtfplan.com comes 65 signs that the economic collapse is already happening. I'm not sure if you'll agree with all of them, but the facts are difficult to ignore, and in my opinion enough to warrant a serious panic attack! Read on and tell me if everything is A-Ok, or, if things are ready to explode!

1. Since Barack Obama entered the White House, the number of long-term unemployed Americans has doubled from 2.7 millionto 5.4 million.

2. The average duration of unemployment in the United States is nearly three times as long as it was back in the year 2000.

3. The unemployment rate in the U.S. has been above 8 percent for 40 months in a row, and 42 percent of all unemployed Americans have been out of work for at least half a year.

4. Unemployment in the eurozone has hit another brand new record high. It is now sitting at 11.2 percent. It has risen for 14 months in a row.

5. The U.S. economy lost more than 220,000 small businesses during the recent recession.

6. The percentage of Americans that are self-employed fell by more than 20 percent between 1991 and 2010.

7. Overall, the number of “new entrepreneurs and business owners” dropped by a staggering 53 percent between 1977 and 2010.

8. The unemployment rate in Spain is now up to 24.6 percent.

9. Morgan Stanley is projecting that the unemployment rate in Greece will exceed 25 percent in 2013.

10. Since Barack Obama became president, the price of a gallon of gasoline has risen from $1.85 to $3.49.

11. The average American household spent approximately $4,155 on gasoline during 2011, and electricity bills in the U.S. have risen faster than the overall rate of inflation for five years in a row.

12. About three times as many new homes were sold in the United States in 2005 as will be sold in 2012.

13. While Barack Obama has been in the White House, home values in the United States have declined by 12 percent.

14. According to AARP, 600,000 American homeowners that are 50 years of age or older are currently in foreclosure.

15. Right now there are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.

16. According to Gallup, the current level of homeownership in the United States is the lowest that they have ever measured.

17. Federal housing assistance increased by a whopping 42 percent between 2006 and 2010.

18. In some areas of Detroit, Michigan you can buy a three bedroom home for just $500.

19. All around us our cities are crumbling. According to the American Society of Civil Engineers, 2.2 trillion dollars is needed just to repair critical infrastructure in the United States.

20. The unemployment rate in New York City is now back up to 10 percent. That equals the peak unemployment rate in New York City during the last recession.

21. Back in 1950, more than 80 percent of all men in the United States had jobs. Today, less than 65 percent of all men in the United States have jobs.

22. The U.S. Postal Service is about to default on a 5.5 billion dollar payment for future retiree health benefits.

23. According to Graham Summers, “when we account for all the backdoor schemes Germany has engaged in to prop up the EU, Germany’s REAL Debt to GDP is closer to 300%.”

24. According to the Federal Reserve, the median net worth of families in the United States declined “from $126,400 in 2007 to $77,300 in 2010“.

25. The U.S. trade deficit with China during 2011 was 28 times larger than it was back in 1990.

26. The United States has lost more than 56,000 manufacturing facilities since 2001.

27. During 2010 alone, an average of 23 manufacturing facilities permanently shut down in the United States every single day.

28. The U.S. government says that the number of Americans “not in the labor force” rose by 17.9 million between 2000 and 2011. During the entire decade of the 1980s, the number of Americans “not in the labor force” rose by only 1.7 million.

29. Eight million Americans have “left the labor force” since the recession supposedly ended. If those Americans were added back into the unemployment figures, the unemployment rate would be somewhere up around 12 percent.

30. Approximately 53 percent of all U.S. college graduates under the age of 25 were either unemployed or underemployed last year.

31. At this point, one out of every four American workers has a job that pays $10 an hour or less. If that sounds like a high figure, that is because it is. Today, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does.

32. Back in 1980, less than 30% of all jobs in the United States were low income jobs. Today, more than 40% of all jobs in the United States are low income jobs.

33. According to one study, between 1969 and 2009 the median wages earned by American men between the ages of 30 and 50 declined by 27 percent after you account for inflation.

34. In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.

35. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5% of all personal consumption back in 1980. Today they account for approximately 16.3%.

36. Medicare spending increased by 138 percent between 1999 and 2010.

37. Over the next 75 years, Medicare is facing unfunded liabilities of more than 38 trillion dollars. That comes to $328,404 for each and every household in the United States.

38. Back in 1990, the federal government accounted for 32 percent of all health care spending in America. Today, that figure is up to 45 percent and it is projected to surpass 50 percent very shortly.

39. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

40. Since 2008, the U.S. economy has lost 1.3 million jobs while at the same time 3.6 million more Americans have been added to Social Security’s disability insurance program.

41. Since Barack Obama entered the White House, the number of Americans living in poverty has risen by 6.4 million.

42. The number of Americans on food stamps has risen from 32 million to 46 million since Barack Obama became president.

43. Right now the poverty rate for children living in the United States is 22 percent, and approximately one-fourth of all American children are enrolled in the food stamp program at this point.

44. The number of children living in poverty in the state of California has increased by 30 percent since 2007.

45. Child homelessness in the United States has risen by 33 percent since 2007.

46. According to the National Center for Children in Poverty, 36.4 percent of all children that live in Philadelphia are living in poverty, 40.1 percent of all children that live in Atlanta are living in poverty, 52.6 percent of all children that live in Cleveland are living in poverty and 53.6 percent of all children that live in Detroit are living in poverty.

47. Approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.

48. According to the U.S. Census Bureau, the percentage of Americans living in “extreme poverty” is now sitting at an all-time high.

49. In the United States today, somewhere around 100 million Americans are considered to be either “poor” or “near poor”.

50. It is now being projected that about half of all American adults will spend at least some time living below the poverty line before they turn 65.

51. Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

52. Total consumer debt in the United States has risen by 1700 percent since 1971.

53. Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark.

54. According to one recent survey, approximately one-third of all Americans are not paying their bills on time at this point.

55. In 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for ever dollar that they earned. Today, the bottom 95 percent of all income earners in the United States have $1.48 of debt for every dollar that they earn.

56. The United States was once ranked #1 in the world in GDP per capita. Today we have slipped to #12.

57. According to the U.S. Census Bureau, 49 percent of all Americans live in a home where at least one person receives benefits from the federal government. Back in 1983, that number was below 30 percent.

58. Incredibly, 37 percent of all U.S. households that are led by someone under the age of 35 have a net worth of zero or less than zero.

59. Today there are approximately 25 million American adults that are living with their parents.

60. The U.S. dollar has lost more than 96 percent of its value since 1900. You can thank the Federal Reserve system for that.

61. During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

62. Overall, the U.S. national debt has grown by nearly 10 trillion dollars over the past decade.

63. The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president.

64. 40 years ago the total amount of debt in America (government, business and consumer) was less than 2 trillion dollars. Today it is nearly 55 trillion dollars.

65. As Financial Armageddon recently point out, so many homeless people are pooping on the escalators at San Francisco’s Civic Center Station at night that the escalators are breaking down and repair teams have been called in to clean up the mess. As the economy gets even worse, will scenes like this start playing out in all of our cities?

For what Israel is to Uganda, then America is to Zimbabwe?
Midda Kineged Midda

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Moshiach and Torah: Anti-Politics

As my Zaidie would say, if something needs done, "you do it Now! :  N - O - W!"
(and that is pronounced doubleyuh)

Mitt Romney has made a very important point in his plight to become the next President:
America needs solutions now; yet the man who can provide these solutions, isn't!

Obama is in the driver's seat, and [his so called] change is needed now; not tomorrow and not yesterday - now. But he is acting all political on America and holding them along with the rest of the World hostage to shoddy politics - even worse than Israeli Zionism!

If he would act now, perhaps some of the crisis issues facing modern Rome would begin to disintegrate with a fiscally responsible America. But Obama is pushing this envelope way beyond its point of integrity, ONLY for his reelection!

Is there a good answer? Yes an no. The World simply has spiraled out of control, while the good answer is the Torah has the answers, and I say this practically, and not as some Utopian point of view: we need Yovel! [the Jubillee restored]

If Torah has one redeeming merit in the eyes of the Nations, let it be Yovel! It happens to be the answer, and thus it is not for naught that the Torah has the concept. Many innovative thinkers that comprise the various sectors of the World have already toyed with the idea and recognized this as a [if not "the"] solution. But politics will be politics, and as we all know, politics are like lawyers: interested in their own mishagus as opposed to solutions.

The irony is, is that today more than ever we can truly see the gadlus of Torah, that it has the answers to every place of Life, and it simply isn't a political construct - it happens to be the Truth [ that is missing from our current day society in an almost total eclipse; may Moshiach only be hastened!]




FoxNews.com:

President Obama and Republicans are engaging in dangerous brinksmanship. Putting off a political solution to the looming “fiscal cliff” until after the election risks a second Great Depression.

Without a compromise by January, $400 billion in mandatory spending cuts and more than $100 billion in tax increases will immediately go into effect. With our economy only growing by only $300 billion annually, such a shock would thrust it into a prolonged contraction.

The failure the Obama $767 billion stimulus package to adequately jump start growth makes a second such initiative unlikely. Interest rates are at already at record lows. These leave policymakers too few tools once things start unraveling. However, President Obama has given Republicans hardly any political choices but to roll the dice. Facing reelection, he promises to veto any extension of Bush-era tax cuts for middle- income Americans if Congress does not raise rates on upper-income families. He won’t entertain meaningful cuts in entitlement spending or health care. Today, in August, businesses are already curtailing investments in machinery and information technology, as a hedge against a contracting economy in 2013, and consumers are spending less. Retail sales fell each of the last three months. -

But, even if Mr. Obama wins reelection in November, he likely will be saddled with a Republican House. Armed with a mandate, he will get higher taxes on upper income families. However, he has made commitments to expand the US naval resources in the Persian Gulf and Asia to counter Iran and China. He can’t finance those without giving Republicans some of the entitlement reforms they want but can’t get now.

For the economy, one of three outcomes is likely: 1. President Obama wins in November but doesn’t reach a deal with Republicans before February or March. Mass layoffs begin late this fall, especially in the defense sector, and the economy stumbles badly. 2. Mr. Obama wins and deals with Republicans in Congress by late December. Taxes go up, and overall spending is cut, but not as much as current legislation requires. The combination still derails the fragile recovery. 3. Governor Romney wins and implements a pro growth agenda, but the current situation is too urgent to wait for actions that won’t take effect until at least next spring and summer.

Today, in August, businesses are already curtailing investments in machinery and information technology, as a hedge against a contracting economy in 2013, and consumers are spending less. Retail sales fell each of the last three months. The Great Recession was caused by manifest structural problems in the economy: a wide trade gap with China and on oil; banks that had forgotten how to earn profits through sound lending; failed financial regulations and skyrocketing health care costs. President Obama’s policies have mostly exacerbated those problems. That’s why the recovery is so weak, and a second recession now could put the economy down for good. Too many young adults unemployed or in poorly paying jobs are living with aging parents. Many older Americans are running down IRAs before reaching retirement age, hoping for better days.

The safety nets provided by parents and savings will soon tear. If the economy goes down again, the negative feedback cycle of fewer jobs, less spending, more layoffs, and so forth will be much more severe than in 2008. The hallmark of a depression is a recession that does not sow the seeds of recovery by creating pent up demand for business and consumer durable goods. Truck and car replacements played a mighty role in our most recent, albeit weak, recovery. With many Americans slipping from the middle class, businesses may simply downsize for a permanently smaller U.S. economy, and families will own fewer vehicles, appliances and electronic toys. Unemployment in the range of 15 percent easily could become the new normal.

President Obama should risk upsetting his base and offer Republicans in Congress a reasonable deal now. Republicans should admit what they already know—Mitt Romney is no messiah—and take the risk of compromising now. American can’t afford for their elected officials to dither any longer.

No, Romney is not the Messiah, and funny enough we aren't hearing anything about Obama's Messiahdom anymore either.

THE only answer is the true Messiah, and this is something that has been foretold since the advent of the Torah on Sinai. The conditions are here, and we are in a process that will reveal the King Messiah. Even if Revelation is much down the road as the Ramchal describes, it is our job to harness this ko-ach, and bring it into the World - by understanding just what Moshiach entails for Mankind. There is much that we can do ourselves and now. We don't need something of a x-tian savior Moshiach [which is a tragedy that this idea has trespassed into Torah thinking people], we need proactive followers of God and Torah to make the vessel and hasten whatever comes first: the Beis HaMikdash or Moshiach himself.

If the Torah has solutions, then we need to start living out the Torah - there are things we can do right now.

Why Wait?
Torah and Kind Acts
Remove Chevlei Moshiach
Along WIth Shabbos and Meals
Returning To The Ways Of Hashem

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USA Lottery Winner Gets $222 Trillion!

"...But I saved my receipt Sir! I'm Good For The Money!"


YahooNews:

America is headed for a fiscal cliff at the end of this year. If Congress does not act, $1.2 trillion in automatic spending cuts will take effect as will a number of tax hikes on Jan. 1. Many economists believe this so-called fiscal cliff could send the country back into recession. Boston University economics professor Larry Kotlikoff describes just how bad America's finances are as a result of trillions of dollars in unfunded entitlement liabilities in his new book The Clash of Generations: Saving Ourselves, Our Kids, and Our Economy. He joined The Daily Ticker's Aaron Task to discuss the nation's indebtedness and his solutions for how to fix America's ongoing fiscal crisis. He details the seriousness of the problem in the post below.

By Laurence Kotlikoff

The 78 million-strong baby boom generation is starting to retire in droves. On average, each retiring boomer can expect to receive roughly $35,000, adjusted for inflation, in Social Security, Medicare, and Medicaid benefits. Multiply $35,000 by 78 million pairs of outstretched hands and you get close to $3 trillion per year in costs. This is not a partisan issue. The dirty little secret that neither President Obama nor Mitt Romney is telling you is that our kids, who are being stuck with the bill, can't afford it. They are at the end of the great postwar chain letter that has been benignly labeled 'Pay As You Go' but is properly called 'Take As You Go.' One administration after another has bought oldsters' votes by letting them take resources from the young while appeasing the young with the prospect of taking their turn at generational theft.

This is not to knock government involvement in retirement saving and healthcare. Uncle Sam has a legitimate role in making sure people save and get health insurance. But that's different from robbing Peter's generation to pay Paul's. All Ponzi schemes end and Uncle Sam's will end particularly badly by blowing up in the baby boom's face. Their kids can't remotely cover what's needed, so the baby boomers -- who, as a group, are incredibly poorly prepared for retirement -- won't get the benefits they've been promised. In June, the Congressional Budget Office (CBO) released its Alternative Fiscal Scenario (AFS) — the CBO's projection of the government's finances into the future. The projections are truly scary, but they received zero press coverage — not a word from the NY Times, Wall Street Journal, Washington Post, or any other major media outlet.

The latest projection shows massive fiscal deficits as far as the eye can see. In less than a dozen years, the CBO projects federal debt will exceed 100 percent of GDP. By the time today's 20 year-olds have reached middle age, the debt to GDP ratio will be 200 percent, a figure that would make Greece blush. But the truth is far worse than these figures convey. The truth is that our politicians have been very careful in their labeling of government receipts and payments so as to keep most of the coming bills associated with 'Take As You Go' off the books. Consider, for example, Uncle Sam's promises to pay me my Social Security and Medicare benefits starting in roughly 10 years. The present value (the value in the present) of these promises is $400,000. How does this differ from my holding a Treasury bond valued at $400,000? Fundamentally, it differs not at all, which means that the government has a lot more debt than it's reporting. How much more?

I'm not sure you want to know. I recently calculated the fiscal gap using the CBO's AFS forecast. The fiscal gap measures the present value difference between all projected future federal expenditures (including servicing official debt) and all projected future taxes. The fiscal gap is thus the true measure of our government's total indebtedness and the true measure of fiscal sustainability. How big is the fiscal gap? Brace yourself. It's $222 trillion large! In comparison, official debt in the public's hands is only $11 trillion.

Here's one way to wrap your head around our $222 trillion fiscal hole: closing it via tax hikes would require an immediate and permanent 64 percent increase in all federal taxes. Alternatively, the government could cut all transfer payments, e.g., Social Security benefits, and discretionary federal expenditures, e.g., defense expenditures, by 40 percent. Waiting to raise taxes or cut spending makes these figures worse. In short, our government is totally broke. And it's not broke in 30 years or in 20 years or in 10 years. It's broke today. There are radical polices to save the day at least cost to all generations. I've laid out these policies at www.thepurpleplans.org. Take a look, endorse the plans if you like them, and forward them to our two "leaders." There's always the chance that one of them will take a stand against fiscal child abuse.

To The Tune Of 222 Trillion Dollars!
2012 Means Something; At Least Something!

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[Global] Freeze! Holding Amalekite Money

Unlike Walmart, there will not be falling prices any time soon!

For whatever its worth - the World seems desperate to stop. Whether it be Money, War, Science, etc...interesting how the theme of 2012 IS revolving around "Stopping."

Slate.com:

Today’s fragile global economy faces many risks: the risk of another flare-up of the eurozone crisis, the risk of a worse-than-expected slowdown in China, and the risk that economic recovery in the United States will fizzle (yet again). But no risk is more serious than that posed by a further spike in oil prices.

The price of a barrel of Brent crude, which was well below $100 in 2011, recently peaked at $125. Gasoline prices in the United States are approaching $4 a gallon, a damaging threshold for consumer confidence, and will increase further during the high-demand summer season.

The reason is fear. Not only are oil supplies plentiful, but demand in the United States and Europe has been lower, owing to decreasing car use in the last few years and weak or negative GDP growth in the U.S. and the eurozone. Simply put, increasing worry about a military conflict between Israel and Iran has created a “fear premium.”

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The three most recent global recessions prior to 2008 were each caused by a geopolitical shock in the Middle East that led to a sharp spike in oil prices. The 1973 Yom Kippur war between Israel and the Arab states led to global stagflation (recession and inflation) in 1974-75. The Iranian revolution in 1979 led to global stagflation in 1980-82. And Iraq’s invasion of Kuwait in the summer of 1990 led to the global recession of 1990-91.

Even the recent global recession, though triggered by a financial crisis, was exacerbated by spiking oil prices in 2008. With the barrel price reaching $145 in July of that year, oil-importing advanced economies and emerging markets alike faced a recessionary tipping point.

The risk that Israel’s threat to attack Iran’s nuclear installations will, in fact, lead to an outright military conflict may still be low, but it is growing. Israeli Prime Minister Benjamin Netanyahu’s recent visit to the U.S. demonstrated that Israel’s fuse is much shorter than America’s. The current war of words is escalating, as is the covert war that Israel and the United States are allegedly engaging in with Iran (including killings of nuclear scientists and use of cyber-warfare to damage nuclear facilities).

Iran, with its back to the wall as sanctions bite harder (especially the recent SWIFT and central bank restrictions, and Europe’s decision to stop importing Iranian oil), could react by increasing tensions in the Gulf. Eventually, it could easily sink a few ships to block the Strait of Hormuz, or unleash its proxies in the region, which include pro-Iranian Shiite forces in Iraq, Bahrain, Kuwait, and Saudi Arabia, Hezbollah in Lebanon, and Hamas and Islamic Jihad in Gaza.

Recent attacks on Israeli embassies around the world appear to signal Iran’s reaction to the covert war being waged against it, and to the tightened sanctions, which are aggravating the effects of the regime’s economic mismanagement. Likewise, the recent escalation in cross-border fighting between Israel and Gaza-based Palestinian militants could be a sign of things to come.

The next few weeks could bring a reduction in tensions, as the United States, France, Germany, the United Kingdom, China, and Russia go through another round of attempts to prevent Iran from developing nuclear weapons or the capacity to produce them. But if this attempt fails, as is likely, one cannot rule out the possibility that by summer Israel and the United States will agree that, sooner rather than later, force will have be used to stop Iran.

Indeed, while Israel and the United States still disagree on some points—Israel wants to strike this year, while the Obama administration is opposed to military action before facing the voters in November—the two sides are converging on aims and plans. Most importantly, the U.S. is now clearly rejecting containment (accepting a nuclear Iran and using a deterrence strategy). So, if sanctions and negotiations don’t credibly work, the U.S. (a country that doesn’t “bluff,” according to Obama) will have to act militarily against Iran. The U.S. is now providing bunker-buster bombs and refueling planes to Israel, while the two militaries are increasing joint military exercises in case an attack becomes necessary and unavoidable.

If the drums of war grow louder this summer, oil prices could rise in a way that will most likely cause a U,S, and global growth slowdown, and even an outright recession if a military conflict erupts and sends oil prices soaring.

Moreover, broader geopolitical tensions in the Middle East are not fading and might intensify. Aside from deep uncertainty regarding the course of events in Egypt and Libya, now Syria is on the verge of civil war, and radical forces may get the upper hand in Yemen, undermining security in Saudi Arabia. There is still concern about political tensions rising in Bahrain and Saudi Arabia’s oil-rich Eastern Province, and potentially even in Kuwait and Jordan, all areas with substantial Shia populations or other restless groups.

Now that the U.S. has left Iraq, rising tensions between Shiite, Sunni, and Kurdish factions do not bode well for the country’s ability to boost oil production soon. There is also the ongoing Israel-Palestine conflict, tension between Israel and Turkey, and hot spots—particularly Afghanistan and Pakistan—in the wider neighborhood.

Oil is already well above $100 abarrel despite weak economic growth in advanced countries and many emerging markets. The fear premium might push prices significantly higher, even if no military conflict ultimately takes place and could trigger a global recession if one does.

This article comes from Project Syndicate.

Where is our "Raya Mehemna" - Faithful Shepherd?!
- He who will get us out of this mess! - Novelty On The Way? -5772/3

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Where In The World Is George?

It's OK, just charge it!



As the U.S. government spends an unprecedented amount of money to fix the economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby Uncle Sam sells Treasury securities of varying maturity.

For investors, government bills, notes and bonds are considered safe because they have a guaranteed rate of return, based on faith in future U.S. tax revenues. The government has been partially funding operations via Treasury securities for decades.

This borrowing adds to the national debt, which has recently surpassed $15 trillion and is rising every second. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing that currently stands at $16.4 trillion. 

Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here's who owns the most. Foreign countries listed include private and public investors, according to monthly U.S. Treasury data.

1. Federal Reserve and Intragovernmental Holdings

U.S. debt holdings: $6.328 trillion

That’s right, the biggest single holder of U.S. government debt is inside the United States and includes the Federal Reserve system and other intragovernmental holdings. Of this number, The Fed's system of banks owns approximately $1.65 billion in U.S. Treasury securities (as of January 2012), while other U.S. intragovernmental holdings - which include large funds such as the Medicare Trust Fund and the Social Security Trust Fund - hold the rest.  

In the monthly Treasury bulletin, both are combined into one category and the total accounts for a stunning $6.328 trillion in holdings as of September 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities. The Social Security Trust fund is required by law to invest in securities where the principal and interest is guaranteed by the Federal government. 

About a decade ago, the total government holdings were "only" $2.5 trillion.

2. ChinaPhoto: DAJ RM | Getty ImagesU.S. debt holdings: $1.132 trillion

The largest foreign holder of U.S. Treasury securities, China currently has $1.132 trillion in American debt, although it is down from all time highs of $1.173 trillion in July 2011. For more on China and currency, see CNBC Explains.



3. Other Investors/Savings Bonds

U.S. debt holdings $1.107 trillion

With the most recent numbers from June 2011, this extremely diverse group includes individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts, estates, savings bonds, corporate and noncorporate businesses for a total of $1.107 trillion.

Although the level of debt held in U.S. savings bonds has remained basically constant since 2000, the broad category of "other" investors has nearly quadrupled since reaching a four-year low in December 2007.

[Also see: Money Missteps That Matter]

4. JapanPhoto: APU.S. debt holdings: $1.038 trillion

One of the U.S.'s largest trade partners, Japan is also one of the U.S.'s largest debt holders, currently owning $1.038 trillion in Treasury securities.



5. Pension Funds

U.S. debt holdings: $842.2 billion

Pension funds control large amounts of money, reserved for personal retirements, and thus are obligated to make relatively safe investments. This group, which includes private and local government pension funds, holds $842.2 billion in U.S. debt. The private pension fund category also includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund.

6. Mutual FundsU.S. debt holdings: $653.5 billion

According to the Federal Reserve, mutual funds hold the sixth-largest amount of U.S. debt compared to any other group, although mutual fund holdings have diminished by more than $105 billion since December 2008. Including money market funds, mutual funds and closed-end funds, this group of investments managed about $653.5 billion in U.S. Treasury securities as of June 2011, which are the most recent numbers available.

7. State and Local Governments

U.S. debt holdings: $484.4 billion

U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.

[Also see: Save Up to 50% at the Grocery Store]

8. The United KingdomPhoto: Dominic Burke | Getty ImagesU.S. debt holdings: $429.4 billion

The U.K. currently holds $429.4 billion in U.S. debt, but the country's investment has fluctuated dramatically during the past two years. Now at its all-time high (and rapidly increasing), British holdings were as low as $55 billion in June 2008.

9. Depository Institutions

U.S. debt holdings: $284.5 billion

As of June 2011 (the most recent numbers available), the Federal Reserve Board of Governors lists depository institutions as holding about $284.5 billion in U.S. debt.

This group includes commercial banks, savings banks and credit unions. In 2011, its holdings more than tripled from the 2008 low of $105 billion. Between June and September 2011, holdings for depository institutions fell by nearly $44 billion.

10. Insurance CompaniesPhoto: Sylvain LeprovostU.S. debt holdings: $250.1 billion

According to the Federal Reserve Board of Governors, insurance companies hold $250.1 billion in Treasury securities. This group includes property-casualty and life insurance firms.






It's OK for America to Ponzy it up, while Bernie Madoff is made the villain? Will the U.S. Government be occupying the room next to Bernie?

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