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CrashConnoisseur

Gpc: Goodbye Benefits… Hello “Interesting” Times.

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'Goodbye Benefits… Hello “Interesting” Times':

http://www.gainspainscapital.com/

Don’t they get it?

It’s truly bizarre to me that the powers that be cannot figure out WHY the average American is growing increasingly disenfranchised with how things are going.

Let’s do a quick review of the facts:

1) Food stamp usage at record highs

2) Real unemployment around 17%

3) Food and energy inflation on the rise

4) Incomes and housing prices falling

5) Wall Street bonuses at record highs

6) The Fed continuing to pumping hundreds of billions of dollars into the banks while proclaiming a “recovery”

Seriously, a second grader could connect the dots here and see how this will work out (hint: BADLY).

What’s truly strange is to see allegedly educated, intelligent people like Ben Bernanke talk as though the stock market is somehow an economic indicator. I’m sure it’s a great indicator of prosperity if you work at Goldman Sachs or are a corporate insider at a publicly traded company.

However, for those Americans who DON’T have flawless trading records (or stock option grants) stocks have NOTHING to do with your day-to-day activities.

After all, your typical American DOESN’T buy food or pay their mortgage with the profits from their day-trading; they pay with the money they earn from their JOB.

On that note, get ready for some “interesting” times.

I’ve been warning for months that things are going to get “interesting” in the US.

After all, with over 42 million folks on food stamps and millions of others one paycheck away from being homeless, it was only a matter of time before something broke.

In fact it just did.

As of yesterday, people who have been unemployed for more than six months began losing their unemployment benefits. Whether or not you agree with the concept of unemployment they’ve been the one thing keeping millions from homelessness and desperation.

Desperate people do desperate things. And with two million Americans about to lose their benefits this month, desperation is going to be on the rise BIG TIME going forward.

On that note, NOW is the time to be preparing. I’ve been urging my subscribers to stockpile some food, water, cash, and bullion for well over a year now. I do not believe we’re heading into some Mad Max/ Armageddon times, but I DO think that there will be periods of shortages in the US in the future. And those shortages will not be handled well by most folks.

As a personal anecdote, earlier this year the area I live in suffered a severe snow storm that made it difficult for shipping trucks to get in to town. The grocery stores were virtually picked clean within 24 hours. I shudder to think what would have happened if this has lasted more than a day or two.

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This was posted on here....the 99ers.

That was really depressing but is completely consistent with what I observe in my 3 to 4 months a year in California.

Where their crash and ours are similar is that the "rich" have time to deal with their problems while they draw down savings. The lower end of our market has been protected by the SMI which has created this phony war that didn't really happen in the US. We are getting close to the point here where the "rich" are running out of options.

The lag between housing market events in the US and the UK is partially attributable to the fact that more people here have floating rate mortgages than in the US but the increased funding spreads faced by banks here are slowly being fed through to SVR mortgages which is squeezing the "rich".

To loosely quote Pink Floyd : "Hanging on in quiet desperation is the English way".

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That was really depressing but is completely consistent with what I observe in my 3 to 4 months a year in California.

I didn't realise there was a time limit to unemployment benefits....and no help with mortgage interest payments...we in the UK should think ourselves lucky that we have not only the net but also the hammock. ;)

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I didn't realise there was a time limit to unemployment benefits....and no help with mortgage interest payments...we in the UK should think ourselves lucky that we have not only the net but also the hammock. ;)

Just arrived back in the UK (from the US) and the difference really is staggering. The unemployed here have money (not so in the US). Someone asked me about benefits in the US and they were like you Winkie. They didn't realise that they have a quick end. "What happens then?" they said. "They have no money and have to live with relatives or live on the streets" said I. At that point don't even think about getting sick (or most times for that matter). How long can it go on in the UK? Not long, not long at all Land of the Free? Yea right.

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yeah, the UK at least it does not run out after two year, although i though it was a percentage of previous salary? Although I can't believe some them can't get a job doing something like a kitchen porter, or just some very basic that pays the bills or labouring, a survival job - got to be better spending savings.

for those who were on large wages before, I have no sympathy for, if there so good then they should be back in a job easy.

Edited by goldilocksporridge

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The 19th century mindset of "deserving" and "undeserving" poor, plus the notion of hard work needed for reward, is gravely incompatible with the ongoing rampage of Neo-Liberal Globalization that goes out of its way to destroy jobs and higher pay for maximum efficiency.

I think this cartoon is rather apt:

greedycapitalists.jpg

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I didn't realise there was a time limit to unemployment benefits....and no help with mortgage interest payments...we in the UK should think ourselves lucky that we have not only the net but also the hammock. ;)

...yes ...for how long ..?...'the money has all gone' to coin the sentiment in Liam Byrne's Treasury hand over note ...when will people 'get it'....?.... :rolleyes:

Edited by South Lorne

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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