Sunday, July 22, 2012

The Evidence Of A Coming Recession Is Overwhelming

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We first noticed the first signs that the economy was beginning to soften about three months ago. Now the evidence of a slowdown has become so overwhelming that it is difficult to avoid the conclusion that we are headed for a recession. We cite the following as evidence.

Retail sales (both total and non-auto) have dropped for three consecutive months. This has happened only five times since 1967----four times in 2008, and one now. Vehicle sales have tapered off with May and June being the two weakest months of the year. Consumer confidence for both the Conference Board index and the University of Michigan Survey are at their lowest levels of 2012.

On the labor front, June payroll numbers were weak once again and averaged only 75,000 in the second quarter. The latest weekly new claims for unemployment insurance jumped back up to 386,000 and the last two months have been well above the numbers seen earlier in the year.

The ISM manufacturing index for June fell 3.8 points to 49.7, its first sub-50 reading in the economic recovery. The ISM non-manufacturing index for June dropped to its lowest level since January 2010. Most recently the Philadelphia Fed Survey for July was negative (below zero) for the third consecutive month.

The small business confidence index declined in June to its lowest level since October and has now dropped in three of the last four months. Plans for capital spending and new hiring have dropped sharply.

Despite all of the talk about a housing bottom, June existing home sales fell 5.4% to its lowest level since the fall of last year. In addition mortgage applications for home purchases have been range-bound since October.

Core factory orders, while volatile on a month-to-month basis, have declined 2.6% since year-end, and the ISM numbers cited above indicate the weakness is likely to continue.

The Conference Board Index of leading indicators has declined for two of the last three months and is now up only 1.4% over a year earlier, the lowest since November of 2009, when it was climbing from recessionary numbers. The ECRI Weekly Leading Index is indicating a recession is either here now or will begin in the next few months.

The breadth and depth of the slowdown are greater than the growth pauses experienced in mid-2010 and mid-2011, and indicate a strong likelihood of recession ahead. In addition the foreign economies will be a drag as well. A number of European nations are already in recession and others are on the cusp. The debt, deficit and balance sheet problems of the EU's southern tier are a long way from any solution, and will not remain out of the news for long. China is coming down from a major real estate and credit boom, and is not likely to avoid a hard landing. The Shanghai Composite is in a major downtrend, declining 28% since April 2011. The view that China is immune because of their unique economic system reminds us of what people were saying about Japan in 1989.

The stock market is ignoring these fundamentals as it did in early 2000 and late 2007 in the belief that the Fed can pull another rabbit out its hat. It couldn't do it in 2000 or 2007 when it had plenty of weapons at its disposal. Now there is little that the Fed can do, although it will try since it will not get any help, as Senator Schumer so aptly pointed out at Bernanke's Senate testimony. In sum, we believe that the stock market is in store for a huge disappointment.

War On All Fronts

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The Russian government has finally caught on that its political opposition is being financed by the US taxpayer-funded National Endowment for Democracy and other CIA/State Department fronts in an attempt to subvert the Russian government and install an American puppet state in the geographically largest country on earth, the one country with a nuclear arsenal sufficient to deter Washington’s aggression.

Just as earlier this year Egypt expelled hundreds of people associated with foreign-funded “non-governmental organizations” (NGOs) for “instilling dissent and meddling in domestic policies,” the Russian Duma (parliament) has just passed a law that Putin is expected to sign that requires political organizations that receive foreign funding to register as foreign agents. The law is based on the US law requiring the registration of foreign agents.

Much of the Russian political opposition consists of foreign-paid agents, and once the law passes leading elements of the Russian political opposition will have to sign in with the Russian Ministry of Justice as foreign agents of Washington. The Itar-Tass News Agency reported on July 3 that there are about 1,000 organizations in Russia that are funded from abroad and engaged in political activity. Try to imagine the outcry if the Russians were funding 1,000 organizations in the US engaged in an effort to turn America into a Russian puppet state. (In the US the Russians would find a lot of competition from Israel.)

The Washington-funded Russian political opposition masquerades behind “human rights” and says it works to “open Russia.” What the disloyal and treasonous Washington-funded Russian “political opposition” means by “open Russia” is to open Russia for brainwashing by Western propaganda, to open Russia to economic plunder by the West, and to open Russia to having its domestic and foreign policies determined by Washington.

“Non-governmental organizations” are very governmental. They have played pivotal roles in both financing and running the various “color revolutions” that have established American puppet states in former constituent parts of the Soviet Empire. NGOs have been called “coup d’etat machines,” and they have served Washington well in this role. They are currently working in Venezuela against Chavez.

Of course, Washington is infuriated that its plans for achieving hegemony over a country too dangerous to attack militarily have been derailed by Russia’s awakening, after two decades, to the threat of being politically subverted by Washington-financed NGOs. Washington requires foreign-funded organizations to register as foreign agents (unless they are Israeli funded). However, this fact doesn’t stop Washington from denouncing the new Russian law as “anti-democratic,” “police state,” blah-blah. Caught with its hand in subversion, Washington calls Putin names. The pity is that most of the brainwashed West will fall for Washington’s lies, and we will hear more about “gangster state Russia.”

China is also in Washington’s crosshairs. China’s rapid rise as an economic power is perceived in Washington as a dire threat. China must be contained. Obama’s US Trade Representative has been secretly negotiating for the last 2 or 3 years a Trans Pacific Partnership, whose purpose is to derail China’s natural economic leadership in its own sphere of influence and replace it with Washington’s leadership.

Washington is also pushing to form new military alliances in Asia and to establish new military bases in the Philippines, S. Korea, Thailand, Vietnam, Australia, New Zealand, and elsewhere.

Washington quickly inserted itself into disputes between China and Vietnam and China and the Philippines. Washington aligned with its former Vietnamese enemy in Vietnam’s dispute with China over the resource rich Paracel and Spratly islands and with the Philippines in its dispute with China over the resource rich Scarborough Shoal.

Thus, like England’s interference in the dispute between Poland and National Socialist Germany over the return to Germany of German territories that were given to Poland as World War I booty, Washington sets the stage for war.

China has been cooperative with Washington, because the offshoring of the US economy to China was an important component in China’s unprecedented high rate of economic development. American capitalists got their short-run profits, and China got the capital and technology to build an economy that in another 2 or 3 years will have surpassed the sinking US economy. Jobs offshoring, mistaken for free trade by free market economists, has built China and destroyed America.

Washington’s growing interference in Chinese affairs has convinced China’s government that military countermeasures are required to neutralize Washington’s announced intentions to build its military presence in China’s sphere of influence. Washington’s view is that only Washington, no one else, has a sphere of influence, and
Washington’s sphere of influence is the entire world.

On July 14 China’s official news agency, Xinhua, said that Washington was interfering in Chinese affairs and making China’s disputes with Vietnam and the Philippines impossible to resolve.

It looks as if an over-confident US government is determined to have a three-front war: Syria, Lebanon, and Iran in the Middle East, China in the Far East, and Russia in Europe. This would appear to be an ambitious agenda for a government whose military was unable to occupy Iraq after nine years or to defeat the lightly-armed Taliban after eleven years, and whose economy and those of its NATO puppets are in trouble and decline with corresponding rising internal unrest and loss of confidence in political leadership.

The Price Of Corn Hits A Record High As A Global Food Crisis Looms

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Are you ready for the next major global food crisis? The price of corn hit an all-time record high on Thursday. So did the price of soybeans. The price of corn is up about 50 percent since the middle of last month, and the price of wheat has risen by about 50 percent over the past five weeks. On Thursday, corn for September delivery reached $8.166 per bushel, and many analysts believe that it could hit $10 a bushel before this crisis is over. The worst drought in the United States in more than 50 years is projected to continue well into August, and more than 1,300 counties in the United States have been declared to be official natural disaster areas. So how is this crisis going to affect the average person on the street? Well, most Americans and most Europeans are going to notice their grocery bills go up significantly over the coming months. That will not be pleasant. But in other areas of the world this crisis could mean the difference between life and death for some people. You see, half of all global corn exports come from the United States. So what happens if the U.S. does not have any corn to export? About a billion people around the world live on the edge of starvation, and today the Financial Times ran a front page story with the following headline: "World braced for new food crisis". Millions upon millions of families in poor countries are barely able to feed themselves right now. So what happens if the price of the food that they buy goes up dramatically?

You may not think that you eat much corn, but the truth is that it is in most of the things that we buy at the grocery store. In fact, corn is found in about 74 percent of the products we buy in the supermarket and it is used in more than 3,500 ways.

Americans consume approximately one-third of all the corn grown in the world each year, and we export massive amounts of corn to the rest of the world. Unfortunately, thanks to the drought of 2012 farmers are watching their corn die right in front of their eyes all over the United States.

The following is from a Washington Post article that was posted on Thursday....

Nearly 40 percent of the corn crop was in poor-to-very-poor condition as of Sunday, according to the U.S. Agriculture Department. That compared with just 11 percent a year ago.

“The crop, if you look going south from Illinois and Indiana, is damaged and a lot of it is damaged hopelessly and beyond repair now,” said Sterling Smith, a Citibank Institutional Client Group vice president who specializes in commodities.

About 30 percent of the soybean crop was in poor-to-very-poor condition, which compared with 10 percent a year ago.

Conditions for both crops are expected to worsen in Monday’s agriculture agency report.

More than half of the country is experiencing drought conditions right now, and this is devastating both ranchers and farmers. Right now, ranchers all over the western United States are slaughtering their herds early as feed prices rise. It is being projected that the price of meat will rise substantially later this year.

The following is from a recent MSNBC article....

For example, you may want to make room in your freezer for meat because prices for beef and pork are expected to drop in the next few months as farmers slaughter herds to deal with the high cost of grains that are used as livestock feed, said Shawn Hackett of the agricultural commodities firm Hackett Financial Advisors in Boynton Beach, Fla. But, he added, everything from milk to salad dressing is going to cost more in the near term, and eventually the meat deals will evaporate as demand outstrips supply.

So there may be some deals on meat in the short-term as all of these animals are slaughtered, but in the long-term we can expect prices to go up quite a bit.

But it isn't as if food is not already expensive enough. The price of food rose much faster than the overall rate of inflation last year.

As I wrote about yesterday, American families found their grocery budgets stretched very thin during 2011. Just check out these food inflation rates from last year....

  • Beef: +10.2%
  • Pork: +8.5%
  • Fish: +7.1%
  • Eggs: +9.2%
  • Dairy: +6.8%
  • Oils and Fats: +9.3%

If prices rose that fast last year, what will those statistics look like at the end of this year if this drought continues?

Sadly, America is not alone. According to Bloomberg, the U.S. is not the only place that is having problems with crops right now....

Dry weather in the U.S., as well as the Black Sea region; a poor start to the Indian monsoon and the possibility of emerging El Nino conditions suggest agricultural products may rally, Barclays said in a report e-mailed yesterday.

And all of this is very bad news for a world that is really struggling to feed itself.

In many countries around the globe, the poor spend up to 75 percent of their incomes on food. Just a 10 percent increase in the price of basic food staples can be absolutely devastating for impoverished families that are living right on the edge.

You may not have ever known what it is like to wonder where your next meal is going to come from, but in many areas around the world that is a daily reality for many families.

Just check out what is happening in Yemen....

Crying and staring at his distended belly, 6-year-old Warood cannot walk on his spindly legs.

"We become so familiar with sickness," said his mother, who according to social norms here does not give her name to outsiders.

She says she has watched two of her children die. "I have to decide: Do I buy rice or medicine?"

The United Nations estimates that 267,000 Yemeni children are facing life-threatening levels of malnutrition. In the Middle East's poorest country hunger has doubled since 2009. More than 10 million people — 44% of the population — do not have enough food to eat, according to the United Nation's World Food Program.

In the United States, we aren't going to see starvation even if nearly the entire corn crop fails. Our grocery bills might be more painful, but there is still going to be plenty of food for everyone.

In other areas of the world, a bad year for global crops can mean the difference between life and death.

Sadly, it is being projected that the current drought in the United States will last well into August at least.

But even when this current drought ends, our problems will not be over. The truth is that we are facing a very severe long-term water crisis in the western United States.

Just check out the following facts from foodandwaterwatch.org....

-California has a 20-year supply of freshwater left

-New Mexico has only a ten-year supply of freshwater left

-The U.S. interior west is probably the driest it has been in 500 years, according to the National Academy of Sciences and the U.S. Geological Survey

-Lake Mead, the vast reservoir of the Colorado River, has a 50 percent chance of running dry by 2021

The 1,450 mile long Colorado River is probably the most important body of water in the southwestern United States.

Unfortunately, the Colorado River is rapidly dying.

The following is from a recent article by Jonathan Waterman about how the once might Colorado River is running dry...

Fifty miles from the sea, 1.5 miles south of the Mexican border, I saw a river evaporate into a scum of phosphates and discarded water bottles. This dirty water sent me home with feet so badly infected that I couldn’t walk for a week. And a delta once renowned for its wildlife and wetlands is now all but part of the surrounding and parched Sonoran Desert. According to Mexican scientists whom I met with, the river has not flowed to the sea since 1998. If the Endangered Species Act had any teeth in Mexico, we might have a chance to save the giant sea bass (totoaba), clams, the Sea of Cortez shrimp fishery that depends upon freshwater returns, and dozens of bird species.

So let this stand as an open invitation to the former Secretary of the Interior and all water buffalos who insist upon telling us that there is no scarcity of water here or in the Mexican Delta. Leave the sprinklered green lawns outside the Aspen conferences, come with me, and I’ll show you a Colorado River running dry from its headwaters to the sea. It is polluted and compromised by industry and agriculture. It is overallocated, drought stricken, and soon to suffer greatly from population growth. If other leaders in our administration continue the whitewash, the scarcity of knowledge and lack of conservation measures will cripple a western civilization built upon water. “You can either do it in crisis mode,” Pat Mulroy said at this conference, “or you can start educating now.”

People need to wake up because we have some very serious water issues in this country.

In the heartland of America, farmers pump water from a massive underground lake known as the Ogallala Aquifer to irrigate their fields.

The problem is that the Ogallala Aquifer is rapidly being pumped dry.

According to the U.S. Geological Survey, "a volume equivalent to two-thirds of the water in Lake Erie" has been permanently drained from the Ogallala Aquifer since 1940.

Once upon a time, the Ogallala Aquifer had an average depth of about 240 feet.

Today, the average depth of the Ogallala Aquifer is just 80 feet, and in some parts of Texas the water is totally gone.

Right now, the Ogallala Aquifer is being drained at a rate of approximately 800 gallons per minute.

Once that water is gone it will not be replaced.

So what will the "breadbasket of America" do then?

Most Americans do not realize this, but we are facing some major, major water problems.

Let us pray that this current drought ends and let us pray that everyone around the world will have enough to eat.

But even if we get through this year okay by some miracle, that doesn't mean that our problems are over.


12 Signs That The Next Recession In The United States Has Already Begun

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Is the U.S. economy in a recession right now? Has the next recession in the United States already begun? Unfortunately, there are a lot of economic numbers that are pointing in that direction. U.S. retail sales have fallen for three months in a row, U.S. manufacturing activity is contracting and there are numerous indications that the labor market is getting weaker. Of course there are some economists that will argue that we never even left the last recession. For example, the percentage of working age Americans with jobs fell from above 63 percent in 2007 to under 59 percent during the last recession. Since the end of the last recession, that number has not gotten back above 59 percent. In fact, it has been below 59 percent for 34 months in a row. In addition, we have continued to see poverty and government dependence steadily rise during this "economic recovery". Since Barack Obama became president, the number of Americans living in poverty has risen by 6 million and the number of Americans on food stamps has risen by 14 million. So it would be really hard to argue with anyone that wants to say that the last recession never really ended. However, the latest economic numbers indicate that things are about to get even worse for the U.S. economy, and that is not good news at all.

The following are 12 signs that the next recession in the United States has already begun....

#1 U.S. retail sales have declined for three months in a row, and that is a very bad sign. Retail sales in America have fallen three months in a row only 27 times since 1947. In 25 of those instances, the U.S. economy was either "in a recession or within three months of a recession."

#2 Manufacturing activity in the mid-Atlantic region has declined for three months in a row.

#3 Overall, the U.S. manufacturing sector contracted last month for the first time in almost three years. The following is from a recent article in the Los Angeles Times....

A factory index calculated by the Institute for Supply Management slid to 49.7 in June from 53.5 in May to the lowest reading since July 2009. Any level below 50 denotes tightening in the sector; anything above signifies growth.

#4 Sales of previously occupied homes dropped by 5.4 percent during June.

#5 Initial claims for unemployment benefits rose to 386,000 last week - another sign that the labor market is weakening again.

#6 According to one survey, only 23 percent of all U.S. businesses plan to hire more workers over the next 6 months.

#7 The Philadelphia Fed's employment index indicates that there is bad news ahead for the labor market....

Labor market conditions at the reporting firms deteriorated this month. The current employment index decreased 10 points, to ‐8.4, its second negative reading in three months. The percent of firms reporting decreases in employment (18 percent) exceeded the percent reporting increases (10 percent).

#8 Unless Congress acts, the U.S. Postal Service is going to financially default for the first time ever on August 1st.

#9 The Conference Board's index of leading economic indicators fell by 0.3 percent in June.

#10 A Washington Post survey that was conducted back in April discovered that 76 percent of all Americans believe that the U.S. economy is still in a recession.

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

#12 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.

So where do we go from here?

Are poverty and government dependence going to reach even higher levels during the next recession than they did during the last recession?

Yes, we always want to help those that are hurting and that cannot take care of themselves. We don't want to see anyone going without food or sleeping in the streets.

But handouts are not going to solve our economic problems. The U.S. government even admits that handouts can be very damaging to those that become accustomed to them. The following is from the website of the U.S. National Park Service....

Feeding bears or allowing them access to human food causes a number of problems:

• It changes the bear's wild behavior and causes them to lose their instinctive fear of humans. This lack of fear causes panhandler or "nuisance" bears to be more unpredictable and dangerous when they encounter humans.

• At their best, panhandler bears perform tricks to obtain food. At their worst, they damage property and injure people. In 2009, 288 bear-related incidents were recorded in the park. One incident involved an injury to a park visitor and others resulted in extensive property damage.

• It transforms wild and healthy bears into habitual beggars. Studies have shown that panhandler bears never live as long as wild bears. Many are hit by cars and become easy targets for poachers. Beggar bears may die from ingesting food packaging or toxins.

But although socialism is bad for bears, apparently it is just right for humans.

According to the Daily Caller, the federal government is actually working with the Mexican government to increase participation in the U.S. food stamp program....

The Mexican government has been working with the United States Department of Agriculture to increase participation in the Supplemental Nutrition Assistance Program (SNAP), or food stamps.

USDA has an agreement with Mexico to promote American food assistance programs, including food stamps, among Mexican Americans, Mexican nationals and migrant communities in America.

“USDA and the government of Mexico have entered into a partnership to help educate eligible Mexican nationals living in the United States about available nutrition assistance,” the USDA explains in a brief paragraph on their “Reaching Low-Income Hispanics With Nutrition Assistance” web page. “Mexico will help disseminate this information through its embassy and network of approximately 50 consular offices.”

This doesn't make any sense at all.

Why is the U.S. government seeking the assistance of a foreign government to help get more people on food stamps?

Sadly, many in our government actually believe that getting people on food stamps is one of the best things we can do for our economy.

For example, House Minority Whip Steny Hoyer recently told reporters that enrolling more Americans in the food stamp program is one of the "most stimulative" things that the government can do for the U.S. economy.

Isn't that frightening?

No wonder why so many people are skeptical of the government these days. One recent survey found that 23 percent of all Americans believe that "government is the solution to the problem" while 64 percent of all Americans believe that "government is the problem".

What we really need is for the government to get off of the backs of our businesses so that they can start thriving again and so that they can start creating more jobs.

But as we have seen in the past, that never seems to happen no matter which political party is in power.

Meanwhile, the next great global financial crisis is rapidly approaching and there seems to be little hope that the U.S. is going to be able to avoid another major economic downturn.

If you expect the government or the Federal Reserve to save you from what is coming, then you are going to be bitterly disappointed. They were not able to prevent the last economic crisis and they are not going to be able to prevent the next one either.

The truth is that our financial system is massively overloaded with debt and our economy is failing.

A great storm is coming and it is going to be exceedingly painful.

You better get ready while you still have time.

20 Signs That All Point To The Exact Same Thing – Can You Guess What That Is?

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The U.S. economy is in a massive amount of trouble. There aren't enough jobs. There isn't enough money to go around. Business activity is slowing down again. Household wealth has been falling. Food prices have been rising. Many state and local governments all over the country are flat broke and are drowning in debt. The federal government has been rolling up unprecedented amounts of debtin an attempt to keep things going, but everyone knows that kind of borrowing is simply unsustainable. So where do we go from here? We consume far more than we produce and we use debt to make up the difference. 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. How in the world did we let the total amount of debt in the United States grow more than 27 times larger over the past 40 years? Our economic system is fundamentally broken, but most Americans don't realize it yet because times are still relatively good.

However, the next great economic crisis is going to wake a whole lot of Americans up.

And when they realize what has happened to our future, they are going to be really, really angry.

Enjoy the good times while they last. The next recession is rapidly approaching, and it will not be pleasant.

The following are 20 signs that all point to the exact same thing....

#1 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. As I wrote about recently, there are never going to be enough jobs in America ever again. As bad as things are right now, they are about to get even worse. So what is our country going to look like once the unemployment rate starts shooting up rapidly once again?

#2 35 percent of all unemployed workers have had to dip into retirement savings in order to make ends meet over the past year.

#3 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.

#4 A recent survey conducted by the National Association for Business Economics found that only 23 percent of all U.S. companies plan to hire more workers over the next 6 months. When the same question was asked a few months ago that number was at 39 percent.

#5 An important measure of U.S. manufacturing activity has fallen to its lowest level since June 2009.

#6 Hundreds of thousands of federal jobs at civilian agencies will likely be lost if Congress allows the automatic federal budget cuts to go into effect next year. The following is from a recent article posted on federalnewsradio.com....

A report released Tuesday suggests that several hundred thousand federal jobs at civilian agencies would be on the chopping block within the next year if Congress lets the automatic budget cutting process known as sequestration go into effect.

The study, authored by George Mason University professor Stephen Fuller, adds a new dimension to a budget debate that's so far been centered on sequestration's effects on the military.

#7 The teen unemployment rate in Washington D.C. right now is 51.7 percent.

#8 Gallup's U.S. Economic Confidence Index is now the lowest that it has been since January.

#9 The median net worth of U.S. households in 2007 was $126,400. By 2010, it had fallen to just $77,300.

#10 Pensions at S&P 500 companies are more under-funded than they have ever been before.

#11 According to the New York Times, state and local governments across America "shortchanged their pension plans by more than $50 billion" between 2007 and 2011.

#12 The city of Compton, California is evaluating whether or not it should declare bankruptcy. If it did, it would become the fourth California city to declare bankruptcy this year.

#13 The percentage of U.S. households that are spending more than half their incomes on housing is at an all-time high.

#14 For the first time in modern history, Canadian households are wealthier than American households are.

#15 One recent poll found that 42 percent of all Americans believe that China is the leading economic power in the world while only36 percent believe that the U.S. is still the leading economic power in the world.

#16 According to the federal government, the price of food rose much faster than the general rate of inflation did during 2011. Just check out these rates of food inflation for 2011....

  • Beef: +10.2%
  • Pork: +8.5%
  • Fish: +7.1%
  • Eggs: +9.2%
  • Dairy: +6.8%
  • Oils and Fats: +9.3%

If that happened during a somewhat "normal year", what will food prices look like after we are done with the drought of 2012?

#17 The price of a bushel of corn has risen by 54 percent since mid-June.

#18 According to one survey, 42 percent of all American workers are living paycheck to paycheck.

#19 A different survey found that 28 percent of all Americans have absolutely no emergency savings at all right now.

#20 Federal Reserve Chairman Ben Bernanke made the following statement to Congress on Tuesday: "At this point we don't see a double dip recession. We see continued moderate growth."

Do you remember that old Seinfeld episode when George Costanza decided that he would "do the opposite" of everything that his instincts were telling him to do and everything started working out great for him?

Well, when it comes to Federal Reserve Chairman Ben Bernanke, the key is to "believe the opposite" of everything that he says.

And since Bernanke does not believe that a double dip recession is going to happen, that probably means that we are about to hit another recession.

If you doubt this theory about Bernanke, just go back and check out his track record.

Okay, so if our economy is in big trouble shouldn't our leaders be doing something about it?

Well, it is election season now so I wouldn't expect too much from Barack Obama. He is too busy raising money in France and in China.

I wouldn't expect too much from Obama's economic advisers either. In fact, Obama's much-ballyhooed "jobs council" has not even metin six months.

Not that the "jobs council" was ever going to do anything substantive anyway.

The truth is that it was just for show and most of the CEOs on the council have been sending jobs overseas anyway.

Well, what about the SEC?

Shouldn't they be doing something to fix the financial system?

No, they are too busy investigating the Amish.

It looks like we are on our own.

Soon, even more parts of the country will start looking like Detroit or Baltimore or Cleveland.

This country is rapidly falling apart, and the federal government is not going to save us.

That is why we need to focus on preparing to weather the coming storm on a family and community level.

There is hope in being prepared. The coming economic crisis will wipe out many Americans because they will never even see it coming. But that does not have to happen to you.

If you work really hard right now to prepare your family for the storm that is on the horizon, then you will have a much better chance of making it through to the other side.