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It’s an epically morbid Monday morning – as the scent of government FAILURE is detected the world round.  Whether it’s the Russians “temporarily” confiscating pensions; the Reserve Bank of India lowering rates despite the recent run on the Rupee; or the abysmal U.S. retail outlook – as highlighted by this morning’s HORRIBLE consumer spending poll – the stench of fiat PONZI SCHEMES are as pungent as they are pervasive.  As to the global “failure ringleader” – i.e., the naked Emperor known as America; it’s pending “debt ceiling” debate clouds around the skyline with fog as dense as night.  No matter how one spins it, this bankrupt nation owes at least $220 trillion – and counting.  Sooner or later, it will be called out by global financial markets; it’s just a matter of time…

Gallup Consumer Spending Poll

As for today’s piece, it has been stewing inside me for months; and thankfully, another great Michael Snyder compilation coaxed it out.  Titled “30 Mind-blowing Statistics about Americans under Age 30,” it summarizes just how low the REAL American economy has sunk; and consequently, why not only will QE NEVER be tapered, but the already monstrous U.S. government will only grow larger.  In a nutshell, younger Americans – as Gerald Celente calls them, “Generation Effed” – suffer not only from an epic, depression-like dearth of quality jobs, but have been sentenced to bear the consequences of decades of political and economic sin.  In other words, they have been “sold down the river” to fund above average lifestyles of the Baby Boomers; catalyzed, of course, by America reneging on the gold standard in 1971.

To put you in the proper “mood” to experience this article, I BEG you to watch the following short by my good friend Daniel at Future Money Trends, titled “The Destruction of America’s Middle Class (in under Seven Minutes).”  The end speaks of a “game plan” to survive; but for most, this is not an option.  The vast majority have been sentenced to become feudal slaves in a dying economic system – with ZERO chance of redemption.  After all, with 76% of Americans living paycheck to paycheck – and 46% having less than $800 in savings – what can they do other than “forage” for survival.  Fortunately, those reading the Miles Franklin Blog have options available to them – most of all, to PROTECT their net worth by trading dying scrip, no matter what’s written on it – for REAL MONEY.

Think about it.  The nation’s largest private employer – Walmart – is a discount retailer no longer hiring full-time workers due to the soaring costs of benefits.  You can thank Obamacare – which is decidedly NOT going away – for pushing them over the edge in this regard.  However, Obamacare is but one of many competitive factors enabling Walmart the luxury of turning its unskilled labor force into a cadre of helpless temps.  For the record, the second largest private employer in America is Kelly Services; i.e., a TEMP AGENCY.  And then you have the largest public employer, the U.S. government; which PRINTS MONEY to pay its nearly three million unproductive workers.  Let alone, the other 20 million state and local government workers; cumulatively, producing nearly ZERO GDP for a host of bankrupt municipalities.  As for the next wave of American worker drones, it’s become quite clear college is but a scam to enrich universities producing NOTHING but worthless “degrees” and exploding, un dischargeable debts.  Cumulatively, the amount Americans have gone into “hock” since the GLOBAL financial system permanently broke in 2008 is unfathomable – with only one direction to go; MUCH, MUCH HIGHER…

Fed Gov Consumer Credit

FYI, America’s manufacturing base was not sent overseas entirely due to heartless, short-sighted corporate lobbying; as let’s face it, it was just a matter of time before billions of Eastern Hemisphere workers took them via a vastly cheaper compensation structure.  However, American politicians, bankers, and industrialists combined to “sell the nation’s soul” to China in record time; leaving the nation’s workforce with no way to prepare.

Consequently, the majority of Americans have become either “haves” or “have-nots”; with the disparity dramatically widening since the fake, MONEY PRINTING-fueled economic boom (thanks, “Sir Alan”) peaked at the turn of the century.  The graph below – of labor’s share of corporate profits – is yet another signpost of the DEATH OF THE MIDDLE CLASS; as is the 35-year low in the U.S. Labor Participation Rate.  As for the former, note the “twin peaks” in the years 2000 and 2008.  Coincidence?  I think not!

Nonfarm Business

Driving home the point with a BOLD-FACED exclamation point is the graph below; telling the sad tale of the American caste system better than any other imaginable.  Since the turn of the century, the “95%” have seen exploding wage growth, whilst the rest have barely struggled to stay positive; with even the best jobs failing to keep up with inflation.  However, since the aforementioned systemic break in 2008, the situation has dramatically worsened; as incredibly, the top twentieth of workers have experienced RECORD wage growth, whist the bottom 95% have seen flat to declining wages.

And oh yeah, REAL inflation has hovered around 8%-10% annually through this entire period, further impoverishing the vast majority of Americans.  Thus, does it surprise you that more than half of all Americans require entitlement payments; including nearly 50 million on Food Stamps and 11 million on disability?

Real Average Hourly Wage Growth

Why am I focusing on this sad turn of events in what was very recently the world’s most affluent nation?  Because it will hopefully shock you into realizing America have become a “DEPENDENCY NATION” that CANNOT be fixed.  Like the fiat currency system itself, America’s big government – not to mention, those of much of the Western world – have become Ponzi Schemes that CANNOT be reduced under any circumstances.  Government jobs CANNOT be reduced, and Federal Reserve “QE” CANNOT be tapered; and thus, both the scope and authoritarianism of existing regimes are destined to expand until they collapse of their own weight.

The collapse of the Dollar, Euro, Yen, and ALL fiat currencies will only be expedited by each unit printed and spent; and inevitably, gold and silver will reclaim their roles as the “once and future kings” of money.  When this occurs, either you will have “made the trade” to Precious Metals – enabling you and yours to survive and thrive; or alternatively, will become part of the 95% described above – rapidly morphing into 99% of America’s increasingly destitute society.