Stocks tumble as congressman predicts economic riots in America

 

Louisiana Republican Rep. John Fleming

Source: Press TV

http://www.presstv.ir/usdetail/272079.html

Stocks tumbled again on fears of the rapidly approaching fiscal cliff in the United States and a failure by eurozone finance ministers and the IMF to decide how Greece will resolve its sovereign debt and pay off the banksters at Société Générale, Deutsche Bank, Eurobank, and other loan sharking institutions.

"This morning the reasons du jour started out with Europe and the kerfuffle over Greece and then you have the fiscal cliff," Michael Holland, chairman of New York-based Holland & Co., told Bloomberg News.

"We're not out of the woods yet," said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. He added that a resolution of the financial crisis threatening to extend the recession for the foreseeable future depends on the leadershipof Obama.

According to Rep. John Fleming, we won't be getting out of the woods anytime soon, especially with Obama at the helm. "It looks like we're going to have to go through the same or similar pain [as Greece] to get real reforms," the Louisiana Republican told the Daily Caller on Sunday.

He said that if the current economic trend is not reversed, "what's going to happen is there's going to be a day of reckoning that gets into a serious situation where we have to make tough choices." Prison Planet

HIGHLIGHTS

Fleming told The Daily Caller that, ever since President Barack Obama's re-election last Tuesday, he has been advising Americans to play it safe financially because he believes the economy - and the state of the country - may soon get much worse. The Daily Caller

Fleming said he's telling concerned constituents and business owners to "not extend yourselves in debt, make sure that you pay off things, don't get into debt with credit cards, stay as liquid as possible. Don't take risks, and don't get into debt. You need to stay less vulnerable economically over the next two to four years, in hopes that the economy will sort itself out, and that Washington will get its act together." The Daily Caller

"What I fear is we're going to be too late, and we're going to run into a Greece-like situation, where we have riots and unemployment levels are up around 11 percent. That's what we've been trying to avoid," Fleming said. The Daily Caller

The so-called "cliff" comes on Jan. 1, when several tax cuts expire, and severe cuts to government spending are triggered. It's also been called "taxmageddon," because an average American family will see their tax bill increase $3,700 next year. ABC News

In total, the measures are set to automatically slash the federal budget deficit by $607 billion or approximately 4 percent of GDP between FY 2012 and FY 2013, according to the Congressional Budget Office (CBO). CFR

Any deal, all agree, would have to include revenue increases as well as budget cuts. A key question is whether any new revenue includes changes in tax rates - specifically, an end to the Bush-era tax cuts for those earning more than $250,000, which is what President Obama has been pushing and Rep. Boehner says "no" to. Christian Science Monitor

The IMF says the U.S. economy could fall back into recession if Congress fails to avert the package of tax hikes and spending cuts. Reuters

Thousands take to streets in Argentina to protest economic woes (PHOTOS)

 

Aerial view of people gathering during a "cacerolazo" (a form of civilian protest where pots are used to make noise) against Argentine President Cristina Fernandez de Kirchner's government in Cordoba, Argentina on November 8, 2012 (AFP Photo)

Source: Russia Today

http://rt.com/news/argentina-protest-march-government-304/

Thousands of Argentineans gathered in the streets of capital Buenos Aires to voice anger against the government of Cristina Fernandez de Kirchner. The rally, reportedly the biggest in a decade, was organized on social networks.

­The protesters banged pots and pans as they rallied against soaring inflation and sky-high levels of crime and corruption. Many demonstrators also said that they were driven to protest by the prospect of President Fernandez seeking a third term in office.

The president’s supporters in Congress have lobbied for a constitutional amendment allowing Fernandez to run for a third consecutive term in 2015. President Fernandez was reelected to a second term in 2011, but her popularity has plummeted since she assumed office.

Protesters also spoke out against restrictions on the purchase of dollars that were introduced last year and ramped up this year. The new law has made it harder for Argentineans worried about inflation to trade in their currency.

Official data on inflation in the country puts the current rate at 12%, though some economists predict the actual figure is much higher.

The International Monetary Fund warned Argentina in September that the country could face sanctions if it fails to produce reliable growth and bring down inflation by December.

The Argentinean leadership has claimed that the economic crisis gripping the country is the result of a global recession, not government policy.

 

 

Image from instagram.com @sofidangavs

 

 

Image from twitter.com @AntonellaMarty

 

US economy experiencing second Great Depression: Analyst

Demonstrators from Occupy Chicago, the Chicago Anti-Eviction Campaign, and Communities United Against Foreclosures and Evictions protest outside the regional offices of Fannie Mae in Chicago, Illinois on July 30, 2012

Source: Press TV

http://www.presstv.ir/detail/2012/08/07/254901/us-in-second-great-depression/

A prominent economic analyst says the US is in the grips of a second Great Depression, despite the Western media claims that the country’s economy is on the road to recovery.

“The media continues to compare economic data to that seen during the first Great Depression. And they insist that the United States avoided another depression as a result of the “triumphant” actions taken by the Federal Reserve and President [Barack] Obama,” Mike Stathis wrote in an article published on Press TV’s website.

He added that the main reason behind the move is to “undermine the full severity” of the current depression, the US is grappling with, as Washington always strives to “create an atmosphere of optimism” in order to boost the confidence of American consumers.

This is while, according to Stathis, the current economic data demonstrates that the US is experiencing a second depression because the collapse of the real estate in the country is worse than what was seen during the first Great Depression of the 1930s.

Stathis further stated that, in 2009, the US state tax revenues slumped by 11.8 percent, which is the biggest decline ever and, in the same year, manufacturing activity decreased by the largest amount since 1946 when such statistics were first published.

He went on to say that, in 2008, the US consumer confidence fell to a 40-year low, which is another ominous sign of depression.

“Instead of tearing this dictatorship down, Americans naively line up to vote each year, thinking things will change,” Stathis added.

Homelessness on rise in Britain

Report says homelessness is on the rise in Britain

Source: Press TV
http://www.presstv.ir/detail/2012/05/18/241832/homelessness/

A new report shows the number of homeless people in Britain is on the rise while the problem is to be exacerbated by more cuts to the housing benefit in 2013.

The scathing report from the National Housing Federation, Shelter, and the Chartered Institute of Housing says: “The large increase in homeless acceptances and rough sleepers is deeply troubling”.

This comes as Britain’s work and pensions department is planning to save £18bn a year in benefit payments by 2014-15 through cutting housing benefit.

Moreover, it has been proposed that welfare benefits could be cut by another £25bn by stopping young unemployed people from claiming housing benefit and slashing housing benefit for those who live outside London.

“Ministers need to respond urgently to this growing problem, which could be exacerbated by further cuts to housing benefit in 2013”, warned the report.

Meanwhile, the Bank of England has warned of sharp increases in the cost of homeowners’ mortgages saying some of them will be “pushed over the edge”.

“The report paints a bleak picture … house building is down, homelessness is up and rents are increasingly unaffordable,” said Jack Dromey MP, Labor's shadow housing minister

Anti-austerity protests sweep across Europe

Thousands of Czech university students rally in central Prague on February 29, 2012 .

Source: Press TV
http://www.presstv.ir/detail/229280.html

Massive demonstrations across Europe have taken issue with the austerity measures adopted by the European governments against economic adversity.

The protests were held on Wednesday in the Czech Republic, France, Greece, Belgium, and Spain against government economic reforms aimed at dealing with the unprecedented debt crisis plaguing the European Union.

Trade union leaders gathered outside the European Council in Brussels, Belgium to demand an end to austerity measures.

In Spain, protests turned violent as police clashed with anti-austerity protesters in the country’s the second largest city, Barcelona. Police in riot gear beat the protesters with batons and a number of arrests were made.

Students have staged demonstrations and sit-in protests across the country to demand an end to Madrid’s austerity measures, labor market reforms, and police violence.

Thousands of Czech university students rallied in the capital Prague, slamming the country’s Education Ministry for introducing tuition fees and boosting the number of government representatives in academic bodies.

The Czech government says the reforms are necessary to boost educational standards and secure more funding.

In France, main unions gathered forces for a day of protest action against austerity measures being imposed across the European Union.

In Greece, unions staged nationwide walkouts hours after the parliament approved new spending cuts to secure a new EUR 130 billion (USD 170 billion) bailout package promised by international lenders and meant to prevent the country from going bankrupt.

The Greek and French protests are part of a day of action called by European labor organizations to pressure the leaders of the 27-member EU into adopting pro-growth measures when they gather for a summit in Brussels over Thursday and Friday.

The eurozone economy is heading into its second round of recession in just three years. The bloc’s last recession was in 2009, when its economy contracted by 4.3 percent.

The Europe plunged into financial crisis in early 2010.

Amid the debt crisis, the European Commission has predicted that the eurozone currency bloc faces double-dip recession while the wider EU economy stagnates in 2012.

British Chancellor begs private sector for money

Source: Press TV
http://www.presstv.ir/detail/228926.html

Britain’s Chancellor George Osborne acknowledges that the country has run out of the much-needed money and cannot afford debt-fuelled tax cuts or extra spending.

The Chancellor made the stark warning ahead of next month’s budget, noting that “there was little the coalition government could do to stimulate the economy”, British media reported.

“The British government has run out of money because all the money was spent in the good years,” the Chancellor said adding “the money and the investment and the jobs need to come from the private sector.”

Osborne’s bleak assessment echoes that of Liam Byrne, the former chief secretary to the Treasury, who bluntly joked that Labour had left Britain broke when he exited the government in 2010.

Osborne is under severe pressure to boost growth, amid signs the economy is slipping back into a recession.

The Institute of Fiscal Studies has urged him to consider emergency tax cuts in the budget to reduce the risk of a prolonged economic slump.

But, the Chancellor has said he would stand firm on his effort to balance the books by refusing to borrow money.

“Any tax cut would have to be paid for,” Osborne said. “In other words there would have to be a tax rise somewhere else or a spending reduction.

“In other words what we are not going to do in this Budget is borrow more money to either increase spending or cut taxes”, added Osborne.

The Chancellor’s tough words were echoed by Liberal Democrat Jeremy Browne, the foreign minister, who warned that Britain faced “accelerated decline” without measures to tackle its debt and increase competitiveness.

“Britain’s market share in the world used to be dominant but was now in freefall compared with the soaring economies of Asia and South America. This situation has been becoming more acute for years.

It is now staring us in the face. So we need to take action”, he wrote in an article published by The Daily Telegraph.

US postal service to cut 35,000 jobs as mail plants close

Source: Press TV
http://www.presstv.ir/usdetail/228318.html

The U.S. Postal Service, which predicts an annual loss of $18.2 billion by 2015, plans to eliminate 5.4 percent of its workforce by closing almost half its mail-processing facilities to decrease costs.

The service plans to shut 223 of its 461 mail-processing plants by February 2013, Postmaster General Patrick Donahoe said in a telephone interview on Thursday. The closings will cut about 35,000 jobs, said David Partenheimer, a spokesman.

The service is shutting post offices and seeking congressional approval to end Saturday mail delivery as more people use the Internet to correspond and pay bills. Mail volume fell 6 percent in the quarter ended Dec. 31 and may drop 14 percent by 2016, led by declines in first-class mail, the most profitable, the Washington-based service said this month. Bloomberg

HIGHLIGHTS

The labor cuts will occur through attrition, said David Partenheimer, a spokesman. The service will eliminate about 30,000 full-time jobs with benefits. It will cut about 5,000 temporary positions, which include contract and part-time work and don't carry full benefits. sfgate.com

The Postal Service is in debt due to declining first-class mail volumes and a congressional mandate to prefund retirement healthcare benefits. moneycnn.com

Nearly every state is impacted and would lose a mail processing plant, according to the Postal Service list, which includes 14 in California, 12 in New York and 9 in Illinois. moneycnn.com

Mail processing plants closures can yield a particularly devastating toll on communities. A plant in Tulsa, Okla., slated to be consolidated, employs nearly 600 employees. moneycnn.com

The consolidations will affect four processing centers in Maryland: Cumberland, Easton, Gaithersburg and Waldorf. The Virginia sites are Lynchburg, Norfolk and Roanoke. washingtonpost.com

The cutbacks also mean the Postal Service would no longer be able to guarantee overnight delivery of some first-class mail. washingtonpost.com

18 statistics that prove that the economy has not improved since Barack Obama became president

Source: Press TV
http://www.presstv.ir/usdetail/227771.html

Has the economy improved since Barack Obama became the president of the United States? Of course not. Despite what you may be hearing in the mainstream media, the truth is that when you compare the U.S. economy on the day that Barack Obama was inaugurated to the U.S. economy today, there is really no comparison. The unemployment crisis is worse than it was then, home values have fallen, the cost of health insurance is up, the cost of gas is way up, the number of Americans living in poverty has soared and the size of our national debt has absolutely exploded. Anyone that believes that things are better than they were when Barack Obama was elected is simply being delusional. Yes, things have stabilized somewhat and our economy is not in free fall mode at this point. But don't be fooled. This bubble of false hope will be short-lived. The problems we are seeing develop in Europe will erupt into another full-fledged global financial crisis and economic conditions in the United States will get even worse. When that happens, what possible "economic solutions" will Barack Obama have for us? We never even came close to recovering from the last great financial crisis, and now something potentially even worse is staring us in the face. This is not a great time to have a total lack of leadership in Washington.

The following are 18 statistics that prove that the economy has not improved since Barack Obama became the president of the United States....

1] Today there are 88 million working age Americans that are not employed and that are not looking for employment. That is an all-time record high.

2] When Barack Obama was elected, the percentage of unemployed Americans that had been out of work for more than 52 weeks was less than 15%. Today, it is above 30%.

3] There are 1.2 million fewer jobs in America today than there were when Barack Obama was inaugurated.

4] When Barack Obama first took office, the number of "long-term unemployed workers" in the United States was approximately 2.6 million. Today, that number is sitting at 5.6 million.

5] The average duration of unemployment in the United States is hovering close to an all-time record high.

6] During the Obama administration, worker health insurance costs have risen by 23 percent.

7] Since Barack Obama has been president, the average price of a gallon of gasoline in the United States has increased by 90 percent.

8] Since Barack Obama has been president, home values in the United States have declined by another 13 percent.

9] Under Barack Obama, new home sales in the U.S. set a brand new all-time record low in 2009, they set a brand new all-time record low again in 2010, and they set a brand new all-time record low once again during 2011.

10] Since Barack Obama took office, the number of Americans living in poverty has risen by more than 6 million.

11] Since Barack Obama entered the White House, the number of Americans on food stamps has increased from 32 million to 46 million.

12] The amount of money that the federal government gives directly to Americans has increased by 32 percent since Barack Obama entered the White House.

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

14] When Barack Obama first took office, an ounce of gold was going for about $850. Today an ounce of gold costs more than $1700 an ounce.

15] Since Barack Obama became president, the size of the U.S. national debt has increased by 44 percent.

16] During Barack Obama's first two years in office, the U.S. government added more to the U.S. national debt than the first 100 U.S. Congresses combined.

17] 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.

18] The U.S. national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.

Oh, but Barack Obama is promising that things will be much better very soon. Barack Obama is pledging that 2 million more jobs will be added to the economy in 2012.

Do you believe him?

Congress certainly seems to think that things will be getting better. Congress has reduced the maximum amount of time that the unemployed can receive unemployment benefits to 73 weeks. That change will go into effect later this year.

But there are still millions of very talented Americans that cannot find work after years of looking.

So what are they supposed to do?

A recent Business Insider article featured the story of Helen Hatat, a woman from southern California that has been unemployed since 2009....

She lost her job in public relationships in 2009 after more than 20 years of working in the entertainment industry, the Southern California resident said.

"When you don't have a job, you don't find a job, and when you don't have a job, you don't find a home," she said.

At first she tried moving into a homeless shelter, but left because they treated her "like garbage." Eventually she found a friend she could stay with, but this arrangement won't last forever.

"I've found you lose most of your friends, you know. If you have money people love you. If you don't have any money people hate you. They treat you like you are contagious."

As government finances get tight, things are going to get really tough for women like her.

When evaluating the health of the American economy, the key is not to focus on the short-term economic numbers. Sometimes they go up and sometimes they do down.

Instead, the key is to look at the long-term balance sheet numbers. When you do that, it quickly becomes apparent how appalling our economic decline has been.

The size of federal government debt is exploding, state and local governments all over the country are drowning in debt, our collective national wealth is decreasing and our ability to produce new wealth is also being reduced as our economic infrastructure is systematically gutted.

Of course all of the blame should not go to Obama. The truth is that the Federal Reserve has much more power over the economy than Obama does. But the American people are constantly told that the Federal Reserve is "not political" and that we should not criticize the Fed.

So it is kind of ridiculous that presidents are judged by the performance of the economy. Yes, Bush, Clinton, Bush and Obama have all greatly contributed to the mess that we are in, but they are not solely responsible for it.

In the end, however, the outcome of the next presidential election will probably be very heavily influenced by how the U.S. economy performs during the rest of 2012.

Sadly, as our economy declines it is bringing out the worst in many Americans. For example, "sugar daddy" websites are absolutely exploding in popularity. Young women that are hungry for cash are selling their "services" to sick older men who are willing to finance the lifestyles of these desperate young women in exchange for "companionship".

The following comes from a recent article in The Independent ....

In America's booming online dating market, few sectors are hotter than so-called "sugar daddy" sites, which help rich men to make "arrangements" with attractive and financially needy younger women. Between them, these specialist sites now account for 10 percent of the entire industry. That's no small beans, given that in the US the online dating business now generates profits estimated at $700m ($442m) per year and, according to the polling firm GlobeSpan, has helped just over one in five Americans to find their life partner.

As the economy gets even worse, millions upon millions of Americans are going to become extremely desperate and will do things for money that they never dreamed that they would do.

That is a very frightening thing.

America is changing, and not for the better.

You better get ready for what is ahead, because Barack Obama is not going to save you.

US in state of self-inflicted decline: Chomsky

legendary American academic Noam Chomsky (file photo).

Source: Press TV
http://www.presstv.ir/detail/226828.html

Renowned American academic Noam Chomsky condemns the concentration of wealth in the United States in the hands of the 1 percent, which he refers to as the “self-inflicted” American decline.

“The (US) policies are a failure for the large majority, the 99% in the imagery of the Occupy movements - and for the country, which has declined and will continue to do so under these policies,” Chomsky wrote in his article titled 'Losing' the world: American decline in perspective, part 1.”

From the 1970s, there has been a significant change in the US economy, as planners, whether private or state, shifted production off shores, partly due to the “declining rate of profit in domestic manufacturing,” then82-year-old senior academic noted.

He went on to say, “these decisions initiated a vicious cycle in which wealth became highly concentrated (dramatically so in the top 0.1% of the population), yielding concentration of political power, hence legislation to carry the cycle further: taxation and other fiscal policies, deregulation, changes in the rules of corporate governance allowing huge gains for executives, and so on.”

Whereas Chomsky maintained that “for the majority, real wages largely stagnated, and people were able to get by only by sharply increased workloads (far beyond Europe), unsustainable debt… creating paper wealth that inevitably disappeared when they burst (and the perpetrators were bailed out by the taxpayer).”

Meanwhile, the political system in the US has been increasingly torn up, he said, as “both parties are driven deeper into corporate pockets with the escalating cost of elections.”

This is “a serious problem for working people and the middle classes, and a real disaster for the most oppressed, African Americans, who have never escaped the legacy of slavery and its ugly aftermath,” Chomsky concluded.

Chomsky’s comments come against the backdrop of months of Occupy protests in the United States. The Occupy protests owe their inspiration to the Occupy Wall Street (OWS) movement, which began when a group of demonstrators gathered in New York's financial district on September 17, 2011 to protest against the excessive influence of big corporations on the US policies and the high-level corruption in the country.

EU, Chinese officials meet to discuss eurozone debt crisis

EU President Herman Van Rompuy (C) shakes hands with Chinese Premier Wen Jiabao beside EU Commission President Jose Manuel Barroso at the Great Hall of the People during their summit, Beijing, Tuesday, February 14, 2012.

Source: Press TV
http://www.presstv.ir/detail/226629.html

Senior EU officials and the Chinese Premier Wen Jiabao have held a meeting in the Chinese capital of Beijing to discuss the eurozone’s sovereign debt crisis.

“China and Europe are all round strategic partners. In the face of difficulties and challenges we ought to have mutual understanding and collaborate towards common goals,” China’s Premier Wen Jiabao said on Tuesday while addressing the conference, adding that this relationship would “bring into harmony the basic interest of both sides.”

EU President Herman Van Rompay, who also attended the meeting as one of Europe’s senior officials, called for an increased market access for European companies in China.

“The times we are living in are challenging … we became so inter-dependent that change in the growth rate in one of the two strategic partners has a direct and palpable impact on the other one. Our economic destinies are interlinked,” Van Rumpuy said.

The meeting was also attended by the president of the European Commission Jose Manuel Barraso, who said that a closer cooperation would benefit both sides.

Since early 2009, Europe has been grappling with a financial crisis which has forced a majority of the continent’s governments to adopt harsh austerity measures and tough economic reforms. The implementation of austerity cuts have often been met with violent street protests, with the latest in Greece on Sunday.

Scores have been injured in the anti-austerity demonstrations, and many people have been arrested.

Meanwhile, the Chinese foreign ministry spokesperson Liu Weimin on Monday called on “the European Union to resolve this (debt crisis) issue” as the continent is China’s largest trade partner.

Rating agency downgrades six EU economies

Source: Press TV
http://www.presstv.ir/detail/226588.html

Moody’s Investors Service has lowered the debt ratings of six European countries over concerns with the eurozone’s ongoing debt crisis and also changed its outlook on Britain and France's ratings to “negative.”

The ratings agency on Monday cut the credit ratings of Italy, Spain, Portugal, Slovenia, Slovakia, and Malta.

Moody's also warned its top ratings on three other countries -- Austria, France and the UK -- could be at risk.

"The uncertainty over the euro area's prospects for institutional reform of its fiscal and economic framework" was one of the factors in the decision, Moody's said.

Spain was downgraded to A3 from A1 with a negative outlook. Italy was also downgraded a notch to A3 with a negative outlook and Portugal was downgraded to Ba3 from Ba2 with a negative outlook, Moody’s said.

The company said Malta, Slovenia and Slovakia also received one-notch downgrades and still have negative outlooks.

Monday's credit downgrades follow similar European rating cuts by Fitch and Standard & Poor's.

S&P lowers rating of 15 Spanish banks

Source: Press TV
http://www.presstv.ir/detail/226558.html

Standard & Poor's (S&P) has downgraded the credit ratings of 15 Spanish banks, one month after reducing the Spanish government’s overall rating.

S&P announced on Monday that it had lowered its credit ratings on 10 Spanish banks by one notch and cut its ratings of another five by two notches.

"We expect the Spanish banking system's profitability to remain below its historical average over the medium term as banks continue to operate in an unfavorable economic and financial environment," the ratings agency said in a statement.

Spain's biggest bank, Santander, was lowered to A+ from AA-, while BBVA, the country’s second-largest bank, was reduced to A from A+.

S&P reduced its rating on Spain’s long-term debt to A from AA- on January 13.

Earlier on Monday, Fitch Ratings also cut the credit rating of Santander and BBVA and two other large Spanish banks, Bankia and Caixabank.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs.

Analysts say Spain's economy is expected to enter into a new recession in the first two quarters of 2012.

The worsening eurozone debt crisis has raised Spain's financing costs and created fears that the European country might have to seek an EU bailout like Greece.

Barack Obama: Let's steal 150m dollars an hour from our children

Source: Press TV (US Desk)
http://www.presstv.ir/usdetail/226583.html

Do you think that someone could steal 150 million dollars and get away with it? Well, the truth is that such a theft is taking place every single hour of every single day. The federal government is stealing 150 million dollars an hour from our children and our grandchildren and Barack Obama thinks that is a good thing. The new Obama budget projects a $1.33 trillion federal budget deficit for the 2012 fiscal year. That is significantly higher than the $1.15 trillion that the Congressional Budget Office was projecting because it includes a whole bunch of stimulus spending that the Obama administration plans to do. So let's do a little math.

When you divide $1.33 trillion by 365 days, you get 3.6438356 billion dollars. So on average, the United States will be adding more than 3.6 billion dollars to the national debt every single day during fiscal 2012. And when you divide $3.6438356 billion by 24 hours, you get 151.8 million dollars. So on average, the U.S. national debt will be going up by more than 151 million dollars every single hour during fiscal 2012 if Obama has his way. This is a theft from our children and our grandchildren that is so vast that it is almost unimaginable.

The 2012 budget deficit that the Obama administration is projecting would be equivalent to approximately 8.5 percent of GDP. We simply cannot afford to be running these kinds of outrageous budget deficits year after year.

At the moment, the U.S. national debt is sitting at a grand total of $15,355,838,921,022.16. That is an amount that is so large that it is hard to even put into words.

At this point our national debt is greater than 100% of our national GDP. We are on the road to national financial disaster and yet our politicians keep piling up debt at a rate that is absolutely mind blowing.

The Obama administration is projecting that budget deficits will go down "in the future", but that is what our politicians always do. They always promise that the budget picture will improve "down the road", but that never actually happens.

According to the Bush administration, we were supposed to be swimming in huge budget surpluses by now.

So how did that work out?

Our politicians always promise to cut spending, but it never actually comes to pass. We are always told that cutting spending would be too damaging to the economy "right now" but that they will definitely start cutting things later on.

For example, just check out this recent quote from White House Chief of Staff Jack Lew....

"The time for austerity is not today," Lew told NBC News "Meet the Press." "If we were to put in austerity measures right now, it would take the economy in the wrong way."

They always put budget cuts off for another day. They never want to do anything that could hurt the economy right now and threaten their chances in the next election.

The Republicans were the same way. Vice President Dick Cheney once famously said "deficits don't matter", and the Bush administration ran up horrific budget deficits.

Both political parties have let us down horribly.

Both political parties have voted over and over to steal gigantic mountains of money from our children and our grandchildren.

But our founders never intended for this to be the case. In fact, Thomas Jefferson once stated that if he could add just one more amendment to the U.S. Constitution it would be a complete ban on all borrowing by the federal government...

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

Thomas Jefferson believed that it was fundamentally immoral for one generation to run up debts which must be paid back by future generations. Basically, he believed that such debts represented theft on a grand scale ....

And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

But that is what we are doing today. We are borrowing gigantic mountains of money which we expect our children and our grandchildren to pay back.

We have come to think of this as "normal", but the truth is that this theft is absolutely disgusting and if future generations get the chance they will curse us for what we have done to them.

Somewhere along the way, we seem to have lost all common sense when it comes to government spending.

The truth is that all of this does not have to be complicated. The following is what Clint Eastwood recently said about our budget problems....

"It's such a basic thing," Eastwood said. "Your parents always tell you when you don't have a dollar in your pocket, you don't spend two dollars. And that's kind of a basic philosophy of life."

Doesn't that make sense?

So why are we being so stupid?

When Ronald Reagan was elected, the U.S. national debt was less than 1 trillion dollars.

We are absolutely drowning in debt, and yet the Obama administration wants even more spending.

Some of his plans for "extra spending" during fiscal 2012 were detailed in an article posted on CNBC ....

For more immediate job programs, the White House will urge $350 billion in short-term job spending, as well as a six-year transportation and infrastructure program that would cost $476 billion. He will ask for $60 billion to refurbish at least 35,000 schools and help state and local governments hire and retain teachers, firefighters and police officers.

This is insanity.

Thanks to all of this debt, a national financial nightmare is an inevitability at this point. As I have written about previously, if the U.S. government stops spending so much money we are doomed, and if the U.S. government continues spending so much money we are doomed.

The problem that we are now facing was once beautifully described by Ludwig Von Mises when he made the following statement ....

There is no means of avoiding the final collapse of a boom brought about by credit expansion.

The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

We are rapidly reaching the "final and total catastrophe" once described by Ludwig Von Mises.

We inherited the greatest economic machine in the history of the world from our forefathers, and we will be known as the generation that totally destroyed it.

Future generations will inherit a collapsed economy and the biggest debt in the history of the world.

But we all prance around like we are the smartest people that have ever existed on the face of the earth.

The rest of the world is laughing at us.

So why don't some honest politicians step forward and tell the American people that we need to stop spending so much money?

Well, first of all there are very few honest politicians on the national level.

Secondly, most of the money that our government spends is money that is taken from the pockets of some Americans and transferred into the pockets of other Americans. Large segments of our population have become absolutely addicted to getting government checks, and it would be political suicide for any politician to propose significant cuts to those checks.

Well over 50 percent of the federal budget is spent on social programs that put dollars directly into the pockets of the American people…

…The American people tend to love politicians that feed their addiction to government money....

If we keep going into so much debt, how long can our system possibly continue functioning?

Well, as we have seen in Greece, a government debt spiral will keep on going until the day that it simply stops working anymore.

A day of reckoning is coming. We don't know if it will be this year or next year or several years from now.

But it is coming.

Our politicians should be doing something about it, but they continue to spend money like tomorrow will never come.

What we are doing to our children and our grandchildren is absolutely immoral.

How in the world can we steal 150 million dollars an hour from them?

We are literally stealing the future from those that will come after us.

Do you think that they will thank us for that?

Dormant social unrest looming for UK

Source: Press TV
http://www.presstv.ir/detail/226563.html

The dizzying unemployment figures in Britain coupled with a recent analysis of the cause of summer unrest that put the country on a state of emergency show the government should brace for more such actions in the coming months.

Youth unemployment is at an all-time high in Britain while the rates of underemployment - that is working in a job capacity considered not good enough by the worker - have hit levels unseen since the Great Depression of the 1930’s.

The record unemployment levels mean a whole generation of young adults have their hopes for their futures dashed, raising fears that the resulting outrage could lead to a repetition of the unrest that put Britain in a state of emergency back in August 2011.

The social clashes have been recently found to be rooted in unemployment and poverty as well as in police brutality against certain groups of citizens.

A Citizens’ UK study from 700 local people in the northern London Tottenham area where the unrest began found that the police fatal shooting of a 29-year-old black man on August 6 was the trigger for the crisis.

However, the survey said the ethnic minorities’ mistrust of officers and public despair at the grave economic situation were responsible for the wave of protests that spread like wildfire to the whole country.

The minority groups told the inquiry that the police use of the controversial stop and search powers has been “excessive and disrespectful.”

The report also said some locals identified the disorder as a rare opportunity to take concerted action at a time when one fifth of all youths were jobless.

“It finally felt like all the people (were) coming together, united to do something, even if that something was ultimately destructive,” a 17-year-old participant in the survey said.

Britain has been an epicenter of social unrest for more than a year, which has featured massive protests every few months, beginning with the hundreds-of-thousands-strong tuition fee rallies in London in 2010.

The latest of such huge public actions were the November 2011 mass strikes by some two million public sector workers over the pension reforms and the closely-linked poverty factor, which triggered the August unrest.

With the factors fueling the public anger still in place, analysts believe the government should act to address the shortcomings or risk further trouble that could shake the foundations of the British society.

London suffers worst child poverty rate

Source: Press TV
http://www.presstv.ir/detail/226285.html

Almost four in ten British children live in London households, where there is just £10 per person per day to cover everything, according to the Campaign to End Child Poverty (ECP).

The charity’s report comes as the Institute of Fiscal Studies estimated the number of British children living below the poverty line will rise by 800,000 by 2020, British media reported.

Despite the rhetoric of politicians, prospects for many of those at the bottom rung of the social ladder in the UK look set to get bleaker rather than brighter as they are hit by a storm of economic challenges, said the report.

In Tower Hamlets, the local authority set to host the 2012 Olympic Games, 52 percent of children live in poverty just a stone’s throw from the riches of the City, while in the borough of Islington, the figure stands at 43 percent, according to the report.

This can be compared to child poverty levels of just seven percent and five percent for the constituencies of Prime Minister David Cameron (Whitney) and his deputy Nick Clegg (Sheffield Hallam) respectively, the report said.

The report paints a good picture of a socially segregated country where children living in the capital are being disproportionately damaged by poverty and inequality.

Meanwhile, in London people also suffer worst from a combination of rising unemployment, increased living costs and welfare cuts.

Childhood poverty in Britain can cause lasting damage, both to individuals and whole communities, the report concluded.

“Living below the poverty line can trap children into a cycle of poor performance at school and reduced job prospects,” explained Sally Copley, UK head of poverty at Save the Children.

“Education is the best route out, but at every stage there is a huge divide between how those from poor backgrounds perform in relation to their peers. Moreover, early years poverty has also been linked with a range of mental and physical health problems, again exacerbating the problem and casting the future of whole generation of Londoners aside”, said Sally Copley.

US remarks on Malvinas disturb Britain

Source: Press TV
http://www.presstv.ir/detail/226163.html

US officials’ remarks on the Malvinas (Falkland) islands have disturbed the British press as Britain is concerned over any damage to its Special Relationship with the US.

US Acting Assistant Secretary for Western Hemisphere Affairs Roberta Jacobson’s remarks about the issue of Las Malvinas have been another setback to the British government as it refuses to engage in negotiations asking Secretary General of the United Nations Ban Ki-moon to rule out the possibility of negotiating over the islands.

Jacobson called for a diplomatic solution to the issue of sovereignty over the Malvinas islands saying Britain and Argentina are equal partners in the eyes of the US.

“Our position remains the same. This is a problem between two of our partners. We do not want to change our position...We prefer that both countries negotiate a diplomatic solution in that matter,” said Jacobson in Lima, Peru, as she is on a tour to Peru and Argentina.

This comes while the British press has not welcomed Jacobson’s call for equality as UK officials are already concerned about any damage to the Special Relationship.

Nile Gardiner, an aide to former British Prime Minister Margaret Thatcher, lashed out at the US stance on the issue saying the US is not aware of “the difference between Great Britain and Argentina.”

Gardiner also raised concerns over why the US “fails to express any support whatsoever for the UK, and remains silent” on the issue.

Furthermore, last month, the US Department of State released a statement on its official website calling for a negotiated solution to the dispute.

The department’s reference to the islands as Malvinas, while Britain insists on calling the archipelago “the Falklands,” came as another slap in the face of the Special Relationship.

This comes against the backdrop of the US president Barak Obama’s describing France as the closest ally of the US.

Moreover, earlier this month, The Daily Telegraph revealed that the US had cast a skeptical eye on Britain’s military capability refusing to let Britain take part in its show of strength when a flotilla of US vessels passed through the Strait of Hormuz. The British newspaper described the move as “humiliating” for the British establishment.

AIPAC to Obama: Attack Iran or let Israel do it

US President Barack Obama makes his way onto the stage May 22, 2011 to address the AIPAC Policy Conference 2011

Source: Press TV
http://www.presstv.ir/detail/226156.html

The most powerful Zionist lobbying group in the US, AIPAC, is increasing pressure on the administration of Barack Obama to launch a military strike against Iran, a political writer says.

"It is clear that Israel and its neoconservative camp followers here in the United States are increasing pressure on President Obama to either attack Iran or let Israel do it," M.J. Rosenberg said.

Rosenberg, who was director of policy at Israel Policy Forum, made the suggestion in an article about a military attack against Iran’s nuclear facilities.

The author said the main reason behind his prediction is that "this is an election year and no one will say no to [Israeli Prime Minister] Benjamin Netanyahu in an election year."

He was referring to the 2012 presidential election in the United States that will be held in November.

Rosenberg also pointed out to an upcoming meeting of the American Israel Public Affairs Committee (AIPAC).

"War enthusiasm will rise to a fever pitch by March, when AIPAC holds its annual policy conference," he wrote.

AIPAC, which has an influential and undeniable role in US policies, advocates pro-Israel policies to the Congress and Executive Branch of the United States.

The group urges all members of Congress to support Israel through foreign aid.

The US and Israel have repeatedly threatened Tehran with the "option" of a military strike, based on their allegation that Iran's nuclear program may include a covert military aspect, a claim strongly rejected by Tehran

Congress OKs drone flights in US airspace

Source: Press TV
http://www.presstv.ir/detail/225756.html

US Congress has passed a bill requiring the Federal Aviation Administration (FAA) to open the country’s airspace to thousands of drone aircraft within four years, Press TV reports.

According to the plan, which is part of a $63 billion funding package for the FAA, the unmanned aerial vehicles (UAVs) will fly beyond solely military airspace and begin to flood domestic US airspace by 2015.

The legislation requires the FAA to provide military, commercial and privately-owned drones with expanded access to US airspace by September 30, 2015.

The FAA has predicted that 30,000 drones could be in US skies by 2020. The bill is the result of an enormous lobbying effort from Washington insiders and the defense industry.

Even though the legislation restricts the use of the drones over populated areas, civil liberties groups are concerned the door into a sacred Constitutional tenant will be opened even wider.

“There are serious policy questions on the horizon about privacy and surveillance, by both government agencies and commercial entities,” said Steven Aftergood of the Project on Government Secrecy at the Federation of American Scientists.

However, many members of Congress who signed the bill don’t see expanded drone use as a problem. They believe the growth of the drone industry will create more jobs for their constituents.

US youth jobless rate highest in 6 decades

Job-seekers gather around employers' tents at an outdoor job fair at the Crenshaw Christian Center in South Los Angeles, August 31, 2011.

Source: press TV
http://www.presstv.ir/detail/225765.html

A new study by the Pew Research Center shows American young adults are the hardest hit by the US economic recession as unemployment rate among them has reached a record high.

According to the survey, only 54 percent of Americans aged between 18 and 34 currently have jobs, the lowest employment rate since the US government started keeping track of the data in 1948.

"Young workers are on the bottom of the ladder, and during a recession like we've had, it's often hard for them to hold on," said Kim Parker, the associate director of Pew's Social & Demographic Trends project.

Parker noted that American youth “are clearly less satisfied with their current circumstances than they were before the recession."

"This may be where some of the anger and frustration being expressed in the Occupy movement is rooted," she added.

Pew survey also found that US young adults have suffered bigger income losses than other age groups.

The US Federal Reserve Chief Ben Bernanke has expressed concerns over the status of the country’s economy, saying the unusually high levels of long-term unemployment in the US are worrisome.

More than 40 percent of the US jobless have been out of work for at least ten months.

UK rules out negotiation over Malvinas

Source: Press TV
http://www.presstv.ir/detail/225772.html

Tension between Britain and Argentina over the disputed Malvinas Islands has reached new heights after British government once again ruled out the possibility of getting involved in further negotiations.

Argentina's President Cristina Kirchner, who has repeatedly insisted on negotiations, condemned Britain for militarizing the dispute over the islands and announced that she would make a formal complaint to the United Nations over the issue.

Kirchner stressed that the deployment of an heir to the throne, the Duke of Cambridge, to the islands along with the presence of an advanced warship destroyer HMS Dauntless was considered as “a grave danger to international security.”

Meanwhile, British government defended its right to send a warship to the coasts of the “occupied” Malvinas (Falklands) islands, and claimed it was not militarizing the archipelago.

“We are not militarising the South Atlantic. Our defensive posture in the Falkland Islands remains unchanged,” a Downing Street spokesman said.

“The people of the Falklands choose to be British. Their right to self determination is a principle that's enshrined in the UN charter,” he added.

As the 30th anniversary of the 1982 war approaches, the dispute over the territory is heating up. The British government is attempting to prevent any counter-move taken by Argentina to reclaim “its stolen islands.”

UK government’s constant military threats have also raised tensions among the British politicians. UK shadow defense secretary Jim Murphy repeated government’s colonialism, saying, “It is for the UK and UK only to decide which forces to send overseas, when and where.”

He accused Buenos Aires of misrepresenting Britain’s routine deployments in order to serve its own diplomatic ends. Insisting there was no evidence to justify the Argentine government’s actions, since did not demonstrate the will of the islands’ residents.

"We will support the Government as long as they support the Falkland people's right to self-determination and the defense and security of the islands,” he added.

However, Peter Slowe, former policy adviser to Tony Blair, urged the Tory-led government to make peace with Argentina.

“The solution to the Falklands was always - and still is - to cede Argentina sovereignty while ensuring by treaty the British way of life for the tiny local population in a local democracy and sharing oil or other resources with Argentina,” said Slowe.