Posts Tagged ‘poverty rate’

Why the Euro is doomed – the German households net wealth is not EVEN HALF of that compared to Italians

9 mars, 2013

So the German people/taxpayers who so far have paid most of the bailouts of the bankrupt euro states (Greece, Spain. Portugal, Ireland etc), and were the bankrupt states insists on Germany paying EVEN more to “save the euro” (together with Sweden, Finland etc), don’t even have HALF THE NET WEALTH of the peoples they are bailing out!

No wonder that the German Bundesbank is keeping this report secret. Because I don’t think the people in Germany is going to be “very happy” when they discover the truth.

They have keep their economy in reasonably good shape and paid their taxes. Now they have to pay for the ones who didn’t.

And there is a new Germany Anti-Euro Party with some very prominent figures behind it. Its founders are a collection of some of the country’s top economists and academics, business people, journalist etc.

And by then way, this would never ever happen in Sweden. Because here, these same people, are the ones that have relentlessly driven (together with our “dear” politicians), the integration with EU and moving most of the power to Brussels. What a contrast.

See a few of my many previous EU posts here:

The economic mess and structural problems in EU and US – Part 1

Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

This is why the Euro is doomed

EU a stupid empire on purpose

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy)

               (If you click on the graphs they become bigger)

20130301_EU2

Here are some of these articles about the growing poverty in Germany and the cover up of these facts. You have to brush up on your German to read most of these.

(My bold and underline)

Household Finance and Consumption Network (HFCN)

http://www.ecb.int/home/html/researcher_hfcn.en.html

Notenbanker zögern Bericht über Ungleichheit hinaus

http://www.faz.net/aktuell/wirtschaft/wirtschaftspolitik/armut-und-reichtum/verteilung-von-vermoegen-notenbanker-zoegern-bericht-ueber-ungleichheit-hinaus-12105481.html

A “Politically Explosive” Secret: Italians Are Over Twice As Wealthy As Germans

http://www.testosteronepit.com/home/2013/3/8/a-politically-explosive-secret-italians-are-over-twice-as-we.html

In December 2006, the ECB established the HFSC network of survey specialists, statisticians, and economists from its own ranks, national central banks of the Eurozone, and statistical institutes. The acronym stood for Household Finance and Consumption Survey. It would collect “micro-level structural information” on household wealth. A massive bureaucratic undertaking. Surveys went out in 2010. Results are now ready. No one in Europe had ever done a survey on that scale before. And no one might ever do it again. Because, in the era of bailouts and wealth-transfers, the results are so explosive that the Bundesbank is keeping its report secret—and word has leaked out why.

The surveys were conducted on a national basis, with each central bank publishing its own report. They would then be combined and summarized by the ECB into a cohesive picture of how wealthy—or how poor—people in various parts of the Eurozone were. A number of countries already published their reports, including Italy and Austria.

What the Austrian National Bank found was not pretty (20-page PDF). The considerable wealth in Austria was very unevenly distributed. The wealthiest 5% owned nearly half of the country’s wealth. Their median wealth was €1.7 million in diversified assets. The lower 50% owned only 4% of the country’s wealth. Of them, 83% rented their homes. Their median wealth was a measly €11,000 consisting usually of a car and a savings account. That’s half of the people! And 10% had a net wealth of less than €1,000.

This unequal distribution of wealth created a huge gap between median income (half the people earned more, the other half less) of €76,000 and average income of €265,000 (pushed up by a small number of extremely wealthy households). And that’s why some countries don’t even publish average income values. Too much truth would hurt.

Germany’s data is likely to be similar—but the Bundesbank is treating its report like a secret. Because the results are, let’s say, awkward for two reasons. The highly unequal distribution of wealth is one of them. The German government already went through wild gyrations late last year, and now again, over its Poverty Report that exposed some inconvenient facts that were then edited out—something that was leaked immediately, and it caused a ruckus [read…. Censored: Poverty Report in Germany].

Italy is the other issue. But it may be too hot for the Bundesbank to touch. Italy’s report (142-page PDF) finds that median household net wealth has increased 56% since 1991. And from 2008 to 2010, it increased by about 5% annually, despite the crisis!

But the wealth of German households stagnated during much of that time while they paid taxes out of their noses. And now they might learn that Italy’s median household wealth is €163,875—while Germany’s is closer to Austria’s, around €76,000. Less than half!

“Politically explosive,” sources at the Bundesbank whispered to the FAZ.

These reports show that in some countries, like Italy, where government finances have been in crisis, median household wealth is actually greater than in some financially healthy countries where governments have kept deficits and debts down.

Germany’s federal government only had a minuscule deficit in 2012. But high taxes and the citizens’ greater willingness to pay them—though cheating is a national sport—have over the years extracted a lot of wealth from the people and transferred it to the government. In Italy, people have been more adept at hanging on to their wealth. To the detriment of government finances. Other studies have shown similar trends, but never on such a scale with such detail, and in this “harmonized” and easily comparable manner.

It could stir up a firestorm in Germany. It’s not just jealousy. Strung-out German taxpayers would have to be bamboozled into bailing out the mountain of Italian government debt that the Italians, whose median wealth is twice that of Germans, refused to pay for. It won’t sit well. Not at all. It could become a political nightmare for Chancellor Angela Merkel, who faces an election in a few months and must keep any kind of tumult out of the scenery.

If the report ever sees the light of the day in unvarnished form—not a certainty given the debacle of the Poverty Report—Bundesbank statisticians will be trying to explain away the difference between countries like Italy and Germany. Household wealth is particularly high in countries with high homeownership rates, they will argue. In countries where renting is popular, like Germany, a considerable part of the housing stock is owned by the government and rented out in a subsidized manner. Thus the wealth is public, etc. etc. Because the bailout saga must go on. The messy reality that Germans can’t afford to bail out their richer neighbors must not be allowed to interfere with the grand and glorious saga of the euro.

Every country in the Eurozone has its own collection of big fat lies that politicians and eurocrats have served up in order to make the euro and the subsequent bailouts or austerity measures less unappetizing. Here are some from the German point of view….. Ten Big Fat Lies To Keep The Euro Dream Alive.”

The Italian report here (I BILANCI DELLE FAMIGLIE ITALIANE NELL’ANNO 2010):

http://www.bancaditalia.it/statistiche/indcamp/bilfait/boll_stat/suppl_06_12new.pdf

Part of the Austrian report here:

http://www.hfcs.at/de/img/fakten_zur_vermoegensverteilung_in_oesterreich_tcm14-251411.pdf

20130306_EU_0

The report “on Poverty and Wealth” (Lebenslagen in Deutschland) here:

http://www.bmas.de/SharedDocs/Downloads/DE/PDF-Publikationen-DinA4/a334-4-armuts-reichtumsbericht-2013.pdf?__blob=publicationFile

Immer mehr Münchner sind arm

http://www.sueddeutsche.de/muenchen/armutsbericht-immer-mehr-muenchner-sind-arm-1.1501067

Bundesregierung schönt Armutsbericht

http://www.sueddeutsche.de/politik/einkommensverteilung-in-deutschland-bundesregierung-schoent-armutsbericht-1.1535166

Censored: Poverty Report in Germany

http://www.testosteronepit.com/home/2012/11/28/censored-poverty-report-in-germany.html

“On September 17, the German Labor Ministry sent a draft report “on Poverty and Wealth” to the other ministries to be rubber-stamped. Only the final report, once sanctified by Chancellor Angela Merkel, would be made public. The draft was supposed to remain hidden. But it seeped to the surface almost immediately. And it was hot. Too hot.

The massive data (PDF, 535 pages) described the tough reality that many people faced in Germany—a reality that got tougher every year. For example, in 1998, the lower 50% of the population owned 4% of all private wealth, while the upper 10% owned 45%. By 2008, the lower 50% owned only 1%, but the upper 10% had increased its share to 53% (at the expense also of the in-between 40%). Other reports have painted similar pictures.

The poverty report by Germany’s statistical agency showed that the “poverty rate” in Germany has been creeping up: in 2008, it was 15.5%; in 2009 it was 15.6%, and in 2010 it was 15.8%. Particularly hard-hit were people under 65 who lived alone. Their poverty rate was 36.1%. For single-parent households, it was 37.1%. The city of Munich issued its own poverty report. By taking into account Munich’s high cost of living, it found that nearly a fifth of its residents lived in poverty.”

Germany‘s New Anti-Euro Party

http://www.spiegel.de/international/germany/new-party-in-germany-goes-after-euro-skeptic-voters-a-887744.html

“A new party is forming this spring, intent on abandoning European efforts to prop up the common currency. And its founders are a collection of some of the country’s top economists and academics.”

Named Alternative für Deutschland (Alternative for Germany), the group has a clear goal: ”the dissolution of the euro in favor of national currencies or smaller currency unions.” The party also demands an end to aid payments and the dismantling of the European Stability Mechanism bailout fund.

”Democracy is eroding,” reads a statement on its website (German only). ”The will of the people regarding (decisions relating to the euro) is never queried and is not represented in parliament. The government is depriving voters of a voice through disinformation, is pressuring constitutional organs, like parliament and the Constitutional Court, and is making far-reaching decisions in committees that have no democratic legitimacy.”

Prominent Supporters

Alternative for Germany appears to be different, though it has yet to produce a party manifesto. Its impressive list of prominent supporters includes a large number of conservative and economically liberal university professors. The most notable name on the list is Hans-Olaf Henkel, the former president of the Federation of German Industries, but it also includes such economists as Joachim Starbatty and Wilhelm Hankel, who were part of the group that challenged Greek bailout aid at Germany’s Constitutional Court.

Main initiator Bernd Lucke, a professor of macro-economics from Hamburg, was a member of Chancellor Angela Merkel’s Christian Democrats for 33 years before leaving the party in 2011 as a result of euro bailout efforts. ”The current, so-called rescue policies are exclusively focused on short-term interests, primarily those of the banks,” Lucke told the Frankfurter Allgemeine Zeitung this week.”

Here is a list of some the supporters:

http://www.alternativefuer.de/

“Die Alternative für Deutschland wird unterstützt von

Dr. Konrad Adam, Journalist (FAZ, Die Welt) und Publizist.

Walther Adler, Oberregierungsrat, Statistisches Bundesamt, Diez.

Prof. Dr. Hans–Günter Appel, Beiratsvorsitzender Nationale Anti–EEG–Bewegung.

Prof. Dr. Ronald Asch, Geschichtswissenschaften, Freiburg.

Dr. Bruno Bandulet, Journalist und Verleger, Bad Kissingen.

Prof. Dr. Charles Blankart, Volkswirtschaftslehre, Berlin.

Prof. Dr. Ulrich Blum, Präsident des Instituts für Wirtschaftsforschung Halle a. D.

Prof. Dr. Ursula Braun–Moser, Mitglied des Europäischen Parlaments (CDU) 1984–1994.

Peter Christ, vormals Leiter der Wirtschaftsredaktion ”Die Zeit” und Chefredakteur von Stuttgarter Zeitung, Manager Magazin, Sächsische Zeitung u. a., Luzern.

Prof. Dr. Ludwig Cromme, Mathematik, Cottbus.

Wolfgang von Eichborn, Richter, vormals Referent der SPD–Bundestagsfraktion, Ebersberg.

Dieter Farwick, Brigadegeneral a. D. und Publizist, Sigmaringen–Laiz.

Prof. Dr.–Ing. Thomas Albert Fechter, Maschinenbau, Wiesbaden.

Prof. Dr. Herbert Frohnhofen, Systematische Theologie, Mainz.

Dr. Alexander Gauland, Staatssekretär a. D., Potsdam.

Ass. Jur. Albrecht Glaser, Stadtkämmerer der Stadt Frankfurt/Main a. D., Bürgermeister a. D., Niedenstein.

Prof. Dr. Andrea Gubitz, Volkswirtschaftslehre, Frankfurt.

Prof. Dr. Gernot Gutmann, Volkswirtschaftslehre, Rektor Universität zu Köln a. D.

Prof. Dr. Wilhelm Hankel, Präsident der Hessischen Landesbank a. D., Königswinter.

Michael Heendorf, Kriminalbeamter a. D., Magdeburg.

Prof. Dr. Ing. E.h. Hans–Olaf Henkel, Praesident der IBM Europa, des Bundesverbandes der Deutschen Industrie (BDI) und der Leibniz–Gemeinschaft a.D.

Prof. Dr. Carsten Herrmann–Pillath, Volkswirtschaftslehre, Frankfurt.

Prof. Dr. Stefan Homburg, Volkswirtschaftslehre, Hannover.

Dr. Wolfgang Hönig, Generalbevollmächtigter a. D. der Commerzbank AG, Frankfurt.

Dr. Johannes Hüdepohl, Sprecher Bündnis Bürgerwille, Ahrweiler.

Markus Keller, Aktiva Consult GmbH, Frankfurt.

Gerhard Koning, Bankvorstand a. D., Kelkheim.

Wolfgang Kräher, Dipl.–Ing. Werkstofftechnik, Bad Dürkheim.

Caroline Kreusler, Klipp+Klar Unternehmenskommunikation, Hamburg.

Prof. Dr. Jörn Kruse, Volkswirtschaftslehre, Hamburg.

Dr. Klaus–Peter Last, freiberuflicher Softwarespezialist, 1991–1998 Landesschatzmeister von Bündnis90/Die Grünen Mecklenburg–Vorpommern.

Prof. Dr. Bernd Lucke, Hochschullehrer, Universität Hamburg.

Prof. Dr. Helga Luckenbach, Volkswirtschaftslehre, Gießen.

Dagmar Metzger, wordstatt GmbH, München.

Prof. Dr. Dirk Meyer, Volkswirtschaftslehre, Hamburg.

Stefan Milkereit, Steuerberater, Biebertal.

Klaus Müller, Horländer GmbH, Speyer.

Dr. Frauke Petry, Geschäftsführerin purinvent GmbH, Leipzig.

Prof. Manfred Philipp, Chemie, The CityUniversity of New York.

Prof. Dr. Hayo Reimers, Wirtschaftswissenschaften, Gießen.

Martin Renner, Cosmed Marketing und Kommunikation GmbH, Wuppertal.

Prof. Dr. Christian Rennert, Betriebswirtschaftslehre, Köln.

Prof. Dr. Gisbert Richard, Direktor der Universitäts–Augenklinik, Hamburg.

Dr. Thomas Rietzschel, Autor und Journalist, Roßbach.

Dr. Oliver Safarowsky, Chemiker und Betriebswirt, Köln.

Prof. Dr. Karl Albrecht Schachtschneider, Öffentliches Recht, Hamburg.

Bodo Schmidt, Kölnische Haus– und Grundstücksverwaltung, Köln.

Prof. Dr. Peter Schneider, Erziehungswissenschaft, Paderborn.

Hansjörg Schrade, ecofit, Stv. Vorsitzender Aktionsbündnis Direkte Demokratie, Reutlingen.

Prof. Dr. Wolfgang Schöhl, Wirtschaftsjournalismus, Darmstadt.

Wolf–Joachim Schünemann, ASS Versicherungsmakler GmbH.

Prof. Dr. Wolfgang Seeger, Neurochirurgie, Freiburg.

Dr. Bernhard Seitz, Aktionsbündnis Direkte Demokratie, Stuttgart.

Dr. Dieter Spethmann, Vorstandsvorsitzender Thyssen AG a. D.

Prof. Dr. Michael Stahl, Geschichtswissenschaften, Darmstadt/Berlin.

Prof. Dr. Joachim Starbatty, Volkswirtschaftslehre, Tübingen.

Dr. Norbert Stenzel, Geschäftsführer Wetterauer Lieferbeton, Bad Nauheim.

Prof. Dr. Roland Vaubel, Volkswirtschaftslehre, Mannheim.

Dr. Katharina Vocke–Schöhl, Geschäftsführerin und Dozentin, Darmstadt.

Prof. Dr. Heiner Willenberg, Didaktik der deutschen Sprache und Literatur, Hamburg”

Some points from the programme (again, you have to brush up on your German):

http://www.alternativefuer.de/programm.html

“Unser Standpunkt

In ernster Sorge vor politischen und wirtschaftlichen Fehlentwicklungen in Deutschland und in der Europäischen Union haben wir die Partei ”Alternative für Deutschland” gegründet. Die europäische Schulden- und Währungskrise hat viele Menschen davon überzeugt, dass die Altparteien zu einer nachhaltigen, transparenten, bürgernahen, rechtsstaatlichen und demokratischen Politik nicht imstande oder nicht willens sind. Wir formulieren Alternativen zu einer angeblich alternativlosen Politik. Dabei bejahen wir uneingeschränkt die freiheitlich-demokratische Grundordnung der Bundesrepublik Deutschland und die im Grundgesetz und in den Römischen Verträgen angelegte friedliche Einigung Europas.“

 Währungspolitik

 •Wir fordern eine geordnete Auflösung des Euro-Währungsgebietes. Deutschland braucht den Euro nicht. Anderen Ländern schadet der Euro.

•Wir fordern die Wiedereinführung nationaler Währungen oder die Schaffung kleinerer und stabilerer Währungsverbünde. Die Wiedereinführung der DM darf kein Tabu sein.

•Wir fordern eine Änderung der Europäischen Verträge, um jedem Staat ein Ausscheiden aus dem Euro zu ermöglichen. Jedes Volk muss demokratisch über seine Währung entscheiden dürfen.

•Wir fordern, dass Deutschland dieses Austrittsrecht aus dem Euro erzwingt, indem es weitere Hilfskredite des ESM mit seinem Veto blockiert.

•Wir fordern, dass die Kosten der sogenannten Rettungspolitik nicht vom Steuerzahler getragen werden. Banken, Hedge-Fonds und private Großanleger sind die Nutznießer dieser Politik. Sie müssen zuerst dafür geradestehen.

•Wir fordern, dass hoffnungslos überschuldete Staaten wie Griechenland durch einen Schuldenschnitt entschuldet werden. Banken müssen ihre Verluste selbst tragen oder zu Lasten ihrer privaten Großgläubiger stabilisiert werden.

•Wir fordern ein sofortiges Verbot des Ankaufs von Schrottpapieren durch die Europäische Zentralbank. Inflation darf nicht die Ersparnisse der Bürger aufzehren

Europapolitik

•Wir fordern ein Europa souveräner Staaten mit einem gemeinsamen Binnenmarkt. Wir wollen in Freundschaft und guter Nachbarschaft zusammenleben.

•Wir fordern, das Budgetrecht den nationalen Parlamenten zu belassen. Eine Transferunion oder gar einen zentralisierten Europastaat lehnen wir entschieden ab.

•Wir fordern, Gesetzgebungskompetenzen zurück zu den nationalen Parlamenten zu verlagern. Über Glühbirnen und Gurkenkrümmungen kann der Bundestag alleine entscheiden.

•Wir fordern eine Reform der EU, um die Brüsseler Bürokratie abzubauen und Transparenz und Bürgernähe zu fördern.

•Wir fordern, die Bezüge der Brüsseler Beamten auf Normalmaß zurückzuführen. Es ist schändlich, dass Tausende Brüsseler Beamte mehr verdienen als die Bundeskanzlerin.

•Das europäische Parlament hat bei der Kontrolle Brüssels versagt. Wir unterstützen nachdrücklich die Positionen David Camerons, die EU durch mehr Wettbewerb und Eigenverantwortung zu verschlanken.

Staatsfinanzen und Steuern

•Wir fordern, die Schuldenbremse zu achten und die Schuldenberge abzubauen. Auch Deutschland hat viel mehr Schulden als zulässig.

•Wir fordern, dass die Haftungsrisiken aus der Euro-Rettungspolitik endlich in der Finanzplanung berücksichtigt werden. Derzeit wird den Bürgern bewusst Sand in die Augen gestreut.

•Wir fordern eine drastische Vereinfachung des Steuerrechts. Der Bürger muss verstehen können, warum er in welcher Höhe besteuert wird. Die Cleveren sollen nicht besser behandelt werden als die Ehrlichen.

•Wir fordern ein Steuersystem, in dem Reiche absolut und prozentual stärker belastet werden als Arme. (Progressive Einkommensbesteuerung).

•Wir fordern, dass die Politik sich dem Einfluss von Lobby-Gruppen entzieht und einen bürgernahen Vorschlag – bspw. den Kirchhof’schen Steuerreformvorschlag – umsetzt

Läs även andra bloggares åsikter om http://bloggar.se/om/milj%F6” rel=”tag”>miljö</a>, <a href=” http://bloggar.se/om/yttrandefrihet” rel=”tag”>yttrandefrihet</a>, <a href=”http://bloggar.se/om/fri-+och+r%E4ttigheter” rel=”tag”>fri- och rättigheter, Läs även andra bloggares åsikter om<a href=” http://bloggar.se/om/USA” rel=”tag”>USA</a>

The economic mess and structural problems in EU and USA – Part 2

23 januari, 2013

This is the second part about USA. Again, It ain’t pretty to say the least!

Where the same absurd Alice in Wonderland economic and political farce is playing out in the USA. And as in Europe it is, as usual, the common people who are paying the price.

And as in Europe, the US crisis is anything but over regardless of what the political elites are trying to tell the people in USA. In USA the role of ECB is played by the FED (the Federal Reserve), which creates money out of “thin air” to support the gigantic and increasing debt. And to keep the stock market going and lower the price of the dollar.

So that the federal US government can spend your tax money like a drunken sailor.

(See my posts:                                      

The US election – Yes we have NO bananas

How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

In three graphs – Obama Economics)

All graphs get bigger when you click on them

USA_jobs2

                                                 USA

In USA, Goldman Sachs and the other investment banks, plus the big Hedge Funds, are pushing leverage to ridiculous and dangerous extremes.

If you read the Comptroller of the Currency, Administrator of National Banks, report for the second quarter 2012 “Quarterly Report on Bank Trading and Derivatives Activities”, you get utterly horrified of the totals of the open derivatives positions in the US market.

Four of the largest U.S. banks are walking an extreme tightrope of risk, leverage and debt when it comes to derivatives.  Below you are going to find just how utterly exposed they are.

But first what is leverage?

Most people do not understand “leverage” and what it actually means. If they did, they would not sleep at night knowing what’s going on right now.

To put it simple: leverage means that these banks etc use a leverage of say 1:50 or 1:100 in their speculations. Which means that they only put up 1 of their own dollars for an investment worth 50 or 100 dollar. Their dollars are “worth” 50 or 100 times more than they actually are.

It ALSO means that IF “things” goes wrong way they LOSE 50 or 100 dollars for every dollar they invested in that trade or position. Or much, much more.

And usually when things goes wrong, it goes very fast when it comes to trading with these kind of leverages. So very quickly, these sums get astronomical. In a couple of days they can literally lose ALL their capital and more.

Nov deficit

 This has happened time and time again. Just to mention a few:

–         Lehman Brothers (was the 4th largest inv. bank in the US).

–          Bear Stearns

–          American International Group

–          Northern Rock (a medium-sized British bank)

–          Washington Mutual

–          American Savings and Loan

–          Landsbanki and Glitnir

–          Barings Bank

–          Société Générale

–          JP Morgan Chase & Co

–          Morgan Stanley

–          Long-Term Capital Management L.P. (LTCM)

As I said before, this is JUST A VERY SHORT LIST

Avalanche

This would not per se be a problem if this were a truly free and capitalist market. Because then these banks would go bankrupt and the owners and investors would lose their money. As they are supposed to do if the do bad business or trades.

But as we all know, this is NOT a free and capitalist market.  Our “dear” politicians have “decided” that these banks with all their wild speculations are too important or to big, to be allowed to fail.

 So instead, they have used taxpayer’s money and put whole countries at risk and in extreme debt just to bail out these banks.

And the banks knows that whatever speculations they do, REGARDLESS of how much or bad they speculate, and as you can see below their speculations are horrific, the politicians are going to bail them out with our tax money.

JP Morgan Chase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

 Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

Bank Of America

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

Goldman Sachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

To sum up – TOTAL EXPOSURE TO DERIVATES for ONLY these four banks:

 207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

TOTAL ASSETS for these four banks:  4,720,464,000,000 TRILLION DOLLARS

So they can “cover” 2,27 % of the Total Exposure with ALL their Assets!

So who is going to pay for the “rest”:  202, 654, 622, 000, 000  TRILLION DOLLARS!!!!!!!!!!! if anything goes wrong?

EmployRecNov2012

Well, we know the answer to that doesn’t we. So far, it’s the common people, i.e. the taxpayers, who had to cover for all the banks bad speculations thanks to our dear politicians.

Take another look at those figures for Goldman Sachs.  If you do the math, Goldman Sachs has total exposure to derivatives contracts that is more than 364 times greater than their total assets!

That is utter insanity, but everyone just keeps pretending that the emperor actually has clothes on.

And why are “our” politicians SO EAGER to protect these speculators?

To put these GIGANTIC sums into perspective lets compare with the GDP from USA and all of EU from 2011

There a lot of different way to calculate GDP and the figures for each year. Add to that exchange fluctuations, conversion rates etc. So the figures below comes from the same source (IMF) to make the comparison easier.  And it is their conversion.

GDP USA 2011 – 15,094,025 billion US dollars

GDP EU 2011 –  17,610,826 billion US dollars

Total GDP for EU and USA 2011: 32,704,851 billion US dollars.

Lets compare these 32,704,851 billion US dollars with TOTAL EXPOSURE TO DERIVATES for  these four above mentioned banks:

207, 375, 086, 000, 000 TRILLION DOLLARS!!!!!!!!!!!

VS

32,704,851 billion US dollars in COMBINED GDP of EU and USA

Anyone see any problem???

Problem solved all right. So just move on, nothing to notice here or worry about.

Because according to out “dear” politicians, bankers and political elites from EU and USA there is NO SERIOUS PROBLEM HERE. The problems in USA and EU are more or less solved etc.

So the ones that put as in the mess in the first place, very “reassuringly” tells us: “We take care of it”.

Yeah sure!

mrzSpendaholic2

Let’s move on to another “bright spot” –the federal budget and debt. The figures are based on the 2012/2013 data:

2012 US Tax Revenue: $2,469,000,000,000

2012 Federal budget: $3,796,000,000,000

2012 Budget deficit: $1,327,000,000,000

US Federal Debt as of January 22, 2013: $16,471,084,067,491

Total interest paid on the debt in 2012: $359,796,008,919

Budget INCREASE between 2012 and 2013: $38,500,000,000

mrzWhat is the

To make these gigantic sums understandable here is how these figures would look like for a “normal” family:

Annual family income: $24,690

Annual family expenses: $37,960.  154% of the annual family income.

Annual family shortfall borrowed from friends/neighbors etc: $13,270.  54% of the annual family income.

Total interest the family paid last year: $3,598 (at near 0% interest).  Nearly 15% of the annual family income

Total family debt (mortgage, auto, credit card): $164,471.This is   666% of the annual family income.

Change in family spending this year: an increase of $385

This looks like a very responsible family wouldn’t you say?

And do you think this family would get any loans from the banks?

When you look at it this way, it really seems absurd. Yet it’s true… a slow motion train wreck. That any person with more than one functioning brain cell can see coming miles away.  Except our “dear” politicians. They are in ACTUAL FACT increasing the spending AND the debt.

Foodstamps%20Oct

Here’s another way to look at the debt ceiling I found in a paper. It’s very symptomatic:

Let’s say you come home from work and find there has been a sewer backup in your neighborhood… and your home has sewage all the way up to your ceilings.

What do you think you should do?

Raise the ceilings, or remove the crap?

Well, or “dear” politicians are franticly at an increasing speed trying to raise the ceiling at the same time as the “sewage” is increasing EVEN MORE.

Yeap, there you have politicians in a nutshell.

Why fix the problem that they themselves caused, when the politicians can pretend that they are the giver of all gods and bearer of all gifts to all the people all the time.

And it doesn’t cost anything for anybody. It’s ALL free forever. And they all lived happily ever after.

Sounds like a wonderful fairytale doesn’t it?

On that “cheerful” note, I stop here.

mrzOur children

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The US election – Yes we have NO bananas

8 november, 2012

I could talk at length of the different aspects of this election and the result. But I will not. That would require a long essay. And that is for another time. So it’s just going to be a quick comment (well sort of), and follow up to my post The betrayal of journalism and the first amendment by the mainstream media in USA

It is a very sad day indeed to see a people voluntarily decide to throw themselves and their country over the cliff.

Let’s look at the economy (the figures are from the Congressional Budget Office):

In the Fiscal Year 2011, the federal government collected $2.303 trillion in tax revenue. Interest on the debt that year totaled $454.4 billion, and mandatory spending totaled $2,025 billion. In sum, mandatory spending plus debt interest totaled $2.479 trillion –. exceeding total revenue by $176.4 billion.

(Mandatory spending includes entitlements like Medicare, Social Security etc. which are REQUIRED by law to be paid. Congress in practical terms do not see this money, it is automatically deducted.)

For the Fiscal Year 2012, which just ended 37 days ago, that deficit increased 43% to $251.8 billion.

In other words, they could cut the entire Federal Government’s discretionary budget – No military, SEC, FBI, EPA, DHS, IRS, etc.- and they would still be in deficit by a quarter of a trillion dollars.

(Discretionary spending includes nearly everything we think of related to government- the US military, the Department of  Homeland Security, IRS, EPA etc.)

The only thing showing any growth in the US, besides the debilitating regulatory burdens, is the national debt. It took over 200 years for the US government to accumulate its first trillion dollars in debt. It took just 286 days to accumulate the most recent trillion (to $16 trillion).

Last month alone, the first month of Fiscal Year 2013, the US government accumulated nearly $200 billion in new debt in just 31 days.

And the numbers will only continue to get worse. 10,000 people each day begin receiving mandatory entitlements. Fewer people remain behind to pay into the system. The debt keeps rising, and interest payments will continue to rise even more. In addition, the dollar is going to decline.

The result, the US government is legally bound to spend more money on mandatory entitlements and interest than it can raise in tax revenue. It will not make any difference how high the federal, state or local government raise taxes, or even if they cut everything.

Another effect of Obama economics is that the poor are getting poorer, especially the black.  Under Obama the poorest Americans has suffered the single largest drop in income ever.

And the Black Americans in the same lowest income quintile have suffered almost double as the average American in the same quintile under Obama:

The drop is – 11.58% in one year (2010) and is at the lowest level ever.

That’s what I call “change”! But I would not call it “hope”.

And the number of people classified as poor are getting larger and larger.

See also my posts

How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

In three graphs – Obama Economics

America, You are at a tipping point and you have your last change to stop it – Part 10

America, You are at a tipping point and you have your last change to stop it – Part 9

America, You are at a tipping point and you have your last change to stop it – Part 8

America, You are at a tipping point and you have your last change to stop it – Part 7

America, You are at a tipping point and you have your last change to stop it – Part 6

America, You are at a tipping point and you have your last change to stop it – Part 5

America, You are at a tipping point and you have your last change to stop it – Part 4

America, You are at a tipping point and you have your last change to stop it – Part 3

America, You are at a tipping point and you have your last change to stop it – Part 2

America, You are at a tipping point and you have your last change to stop it – Part 1

Why, Mr President, are you deliberately destroying the American way and committing economic harakiri?

And then of course we have the very disastrous Obama Care.  I wrote 34 posts about it. You can read them here:

Obama Care 34 – Which system do YOU thinks works best?

Obama Care 33 – President Obama is a willful and certified liar

Obama Care 32

Obama Care 31

Obama Care 30

Obama Care 29

Obama Care 28

Obama Care 27

Etc…

Obama Care

Then on top of that, we have the equally disastrous foreign policy. Where the Obama administration systematically have thrown their former allies (Eastern Europe, Britain, Israel, Egypt, Saudi Arabia  etc) under the bus, and helped parties like the Muslim Brotherhood that hate everything that USA and the western world stands for, to power.

See my 19 posts on Syria etc as some examples of that disastrous foreign policy:

How the Assad regime with the help of Russia, Iran, China and Hezbollah transformed peaceful protester to fighters

Here is links to all my posts

Russia’s solution for Syria – More Carpet bombing and Total Destruction

I could go on with many more examples but I think I will stop here.

But as the old saying goes (Joseph de Maistre in a letter from St Petersburg August 1811): a country has the politicians/government that they deserve.  So enjoy!

In addition,  this quote from a reader’s commentary in The Prager Zeitung in March 2010 (translated from Czech) sums it up quite well really:

Multitude of Fools

The danger to America is not Barack Obama but a citizenry capable of entrusting a man like him with the Presidency. It will be far easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to a depraved electorate willing to have such a man for their president.

The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails America. Blaming the prince of the fools should not blind anyone to the vast confederacy of  fools that made him their prince. The Republic can survive a Barack Obama, who is, after all, merely a fool.

It is less likely to survive a multitude of fools such as those who made him their president.“

P.S. If you are wondering about the title, see this video with music by Spike Jones. There is another long story behind the lyrics but that you have to find out yourself. D.S.

Spike Jone – yes we have no bananas

http://www.youtube.com/watch?v=jT6JkceQ9FU

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How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

15 september, 2011

The Census Bureau has just published it latest Income and poverty data for U.S.(2010). The data goes back to 1967.

The report here:

Income, Poverty, and Health Insurance Coverage in the United States: 2010

http://www.census.gov/prod/2011pubs/p60-239.pdf

                         Another hole in one!

It is really a terrifying reading – Under Obama the poorest Americans has suffered the single largest drop in income ever.

Take a look at this chart (done by Justin Hart, http://ihartpolitics.com/?p=308) –

It shows the % change in the lowest quintile median incomes, the poorest Americans, from 1968 (in 2010 dollars)

And the drop is – 6.04% in one year (2010)

And then let’s have a lock at Black Americans in the same lowest income quintile.

They have suffered almost double as the average American in the same quintile under Obama:

The drop is – 11.58% in one year (2010) and is at the lowest level ever.

That’s what I call “change”! But I wouldn’t call it “hope”.

Some other highlights in the name of hope and change:

– Median household money income for the nation was $49,400 in 2010, a decline of 2.3 percent from 2009, in real terms.

– The 2010 official poverty rate for the nation was 15.1 percent, up from 14.3 percent in 2009, with 46.2 million people in poverty, an increase of 2.6 million since 2009. The highest percentage since 1993 (15.1%) and 1982 (15.2%), and the largest number in the 52 years for which poverty estimates have been published.

The 2010 official poverty rate for blacks was 27.4 percent, up from 25.8 percent in 2009, with 10.7 million people in poverty, an increase of 731 000 since 2009. The highest percentage since 1996 (28.4%), and the largest number in 17 years.

– The decline of Real Median Household Income among the15 to 24 years was – 9.3%.

                               Are you extremists?

Obama had three pillars that swept him to power – huge turnout among young (under 30), Hispanics and Blacks. Now the young and Hispanics are gone, down to 43-44% as the rest of the population. So he is toast.

But the blacks are still overwhelmingly behind Obama (around 81%).

The obvious question is why? Since under Obamas “eminent leadership” they have had the biggest drop in income and living standard ever. Not to mention skyrocketing unemployment.

With so much “hope” and “change”, I guess that’s why he is so “popular”.

____________________________________________

A quick update on September 27 to my post:

I wrote:

“Obama had three pillars that swept him to power – huge turnout among young (under 30), Hispanics and Blacks. Now the young and Hispanics are gone, down to 43-44% as the rest of the population. So he is toast.

But the blacks are still overwhelmingly behind Obama (around 81%).

The obvious question is why? Since under Obamas “eminent leadership” they have had the biggest drop in income and living standard ever. Not to mention skyrocketing unemployment.

With so much “hope” and “change”, I guess that’s why he is so “popular”.

Well, it seems that the blacks have started catching on because now Obama is losing the blacks too in a BIG Way

According to a Washington Post/ABC News survey, his favorability rating among blacks has dropped off a cliff, plunging from 83 percent five months ago to a mere 58 percent today a drop of 25 points!

In the election of 2008, he was able to increase black’s participation from 11 percent of the total vote in 2004 to 14 percent. And he carried 98 percent of them.

Way to go Obama!

                Click on the graphs for a larger image

                        Jobb aproval economy

                              State of the country

Some more revealing graphs of Obama economics

This graph shows the job losses from the start of the employment recession, in percentage terms – this time from the start of the recession. This is by far the worst post WWII employment recession.

This graph shows the number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers). A very high level.

This graph shows the number of workers unemployed for 27 weeks or more. The level is extremely high.

 

                                          It was Bush’s fault!              

            

See also some of my previous posts:

Hey Obama – You don’t pay your bills so why should I?

In three graphs – Obama Economics

Why, Mr President, are you deliberately destroying the American way and committing economic harakiri?

America, You are at a tipping point and you have your last change to stop it – Part 1

America, You are at a tipping point and you have your last change to stop it – Part 5

America, You are at a tipping point and you have your last change to stop it – Part 6

America, You are at a tipping point and you have your last change to stop it – Part 8

America, You are at a tipping point and you have your last change to stop it – Part 9

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