Melt Up

I have just been listening to a video on the state of our economy, titled “Melt Up”.  It is explaining just how bad the state of the USA economy is.

I am sure if you do any grocery shopping or buy gasoline that food and oil prices are rising.  Yet, wages are stagnate or decreasing.

Government figures show unemployment at around 10% and the true unemployment rate is closer to 16+%.

Now we are listening to and reading about the disasters hitting Japan and people are asking everyone to send money to help the Japanese.  It is a noble cause  and well worth offering a hand.  However, it is hard to give help when we are hurting so much ourselves.

In the video “Melt Up” they state that the USA has military bases in 140 countries.  I doubt anyone could name even half of those countries and it’s costing us about $1 trillion a year to keep them operational.  It would make an interesting study to ask people why they think we have military bases all over the world and if they agree with that.

I also follow the Weiss Report.  Recently Martin Weiss stated (http://www.moneyandmarkets.com/mind-boggling-political-cowardice-2-43500?FIELD9=1):

“Despite the greatest government rescue operations of all time, America continues to suffer through the toughest of times.

The place is every home, business, and community. The time is now.

And the pattern is now clear: First a great speculative bubble … then a greater bust … followed by massive government stimulus, bailouts and money printing … and then … still another, even greater bubble and bust.

When all is said and done, some people make fortunes. But millions of average hard-working people lose their jobs, get evicted from their homes, sink deeper into debt, and even risk abject poverty.

When it collapses (the USA dollar), the economic repercussions are a financial tsunami of untold dimensions, including:

• Surging prices for food, energy, and other commodities.
• Massive, long-term rises in silver and gold.
• Dramatic rises in interest rates — first, long-term rates; later, short-term rates as well.

And not long thereafter …

• Destruction of the middle class with a rapidly widening gap between the super-rich and the impoverished;
• Rapid disappearance of moderating voices, accompanied by extreme political polarization between the left and the right.
• And worst of all, the threat of a fundamental deterioration — even disintegration — in our cultural, social, and political system.

What Washington does NOT want you to know:

• Three massive crises all converging NOW — each one capable of changing America forever.
• The infuriating reason why you could find yourself paying more than $11 for a gallon of gasoline and over $10 for a gallon of milk.
• Why you could soon see interest rates exploding into double digits … and Social Security and Medicare benefits slashed.
• Why more than 2,000 U.S. banks are now vulnerable to this crisis.”

Pretty scary predictions, aren’t they.  Of course he then offers to provide a solution as will I.  His solution is more for the investor who already has lots of money to invest.

Another solution is for that shrinking middle class that he talks about as well as those in the lower levels who are willing to step out, take action and ask for help.

More on another  solution in an upcoming article.