Sounds of Silence and Hopium

By Gary Christenson of Miles Franklin – Re-Blogged From Deviant Investor

What Silence?

Have you heard loud warnings from Mainstream Media or from official government sources about the following huge problems? No! Official sources and the media are largely silent. They can’t/won’t discuss our serious problems and prefer the hopium strategy.

Gold and Debt: Asia has accumulated thousands of tons of gold. The U.S. has created over $22 trillion in federal government debt and $72 trillion in total debt per the St. Louis Federal Reserve. What happens when they devalue the dollar further, and gold prices go sky high?

Answer: Consumer prices for Americans will climb much higher. Gold will protect purchasing power, but few will own it. Asian economies will flourish, and the west will drown in debt.

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Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis

By Stefan Gleason – Re-Blogged From Silver Phoenix

Presidential candidates Bernie Sanders and Elizabeth Warren are promising as much as $1.6 trillion in student debt forgiveness for millions of borrowers. Critics smell a cynical campaign ploy to try to buy the youth vote.

How is it either realistic or fair to declare an entire category of debt to be assumed by taxpayers?

Regardless, pie-in-the-sky proposals to cancel student debt shed light on a very down-to-earth problem for not only college students and recent graduates – but also for the economy and financial markets.

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James Kunstler: The Coming Collapse of Universities

Summary: James Howard Kunstler looks at the coming collapse of the university system in America. It’s good news. I know of nobody who better describes the decay of American society, aided by his powerful writing. See my note afterwards which provides details supporting his vision.

Lesson One: Revolution - dreamstime_50435521

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Coercion Meets Its Match

By James Howard Kunstler at his website. Posted with his generous permission.

Like the fabled spring zephyr came news that the Golden Golem of Greatness, (a.k.a. President Trump) signed an executive order that would withhold federal funding from colleges and universities that do not demonstrate support for free speech. It has been an amazement to behold the appalling, hypocritical suppression of the first amendment on campuses across the nation, with their ignoble speech codes, asinine safe spaces, sinister kangaroo courts, and racist anti-whiteness crusades.

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America’s Student Loan Debt Bubble

By Michael Snyder – Re-Blogged From Freedom Outpost

Higher education has become one of the biggest money-making scams in America.  We tell all of our young people that if they want to have a bright future, they must go to college.  This message is relentlessly pounded into their heads for their first 18 years, and so by the time high school graduation rolls around for many of them, it would be unthinkable to do anything else.  And instead of doing a cost/benefit analysis on various schools, we tell our young people to go to the best college that they can possibly get into and to not worry about what it will cost.  We assure them that a great job will be there after they graduate and that great job will allow them to easily pay off any student loans that they have accumulated.  Of course, most college graduates don’t end up getting great jobs, but many of them do end up being financially crippled for decades by student loan debt.

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Global Debt Crisis II Cometh

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Global debt ‘area of weakness’ and could ‘induce financial panic’ – King warns

– Global debt to GDP now 40 per cent higher than it was a decade ago – BIS warn – Global non-financial corporate debt grew by 15% to 96% of GDP in the past six years – US mortgage rates hit highest level since May 2014

– US student loans near $1.4 trillion, 40% expected to default in next 5 years

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Missing Paperwork May Erase $5 Billion in Student Loan Debt

By F McGuire – Re-Blogged From Newsmax

Missing paperwork reportedly may ultimately erase $5 billion dollars of debt for loans that tens of thousands of former students took out over a decade ago.

National Collegiate Student Loan Trusts — a 15-trust company that purchases private student loan debt — reportedly lost the paperwork documenting these loans’ chains of ownership, according to cases brought forward in Pennsylvania and Delaware, the New York Times reported.

The shoddy record-keeping means that if the trust tries to come after students who default on them, they may see the entire debt written off. Judges have dismissed dozens of lawsuits against borrowers who defaulted on student loans from private creditors, the Times reported.

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Counting on Student Loan Forgiveness? Don’t Bet on It

By Bloomberg – Re-Blogged From Newsmax

Nearly half of college students surveyed earlier this year said they expected to be helped by the federal government’s various student loan forgiveness programs. But new government figures suggest that their hoped-for windfall won’t be that generous.

In a first-of-its-kind public analysis, the U.S. Department of the Education projects that borrowers who next year enroll in loan forgiveness programs would, on average, repay every penny they borrowed, and then some. Some debtors in the programs, which cap monthly payments relative to earnings and offer the possibility of debt forgiveness, are projected to pay as much as 76 percent more than they borrowed. The forgiven amount would largely be interest that accrued over what could be as long as 25 years of making payments.  Continue reading

Counting on Student Loan Forgiveness? Don’t Bet on It

By Bloomberg – Re-Blogged From Newsmax

Nearly half of college students surveyed earlier this year said they expected to be helped by the federal government’s various student loan forgiveness programs. But new government figures suggest that their hoped-for windfall won’t be that generous.

In a first-of-its-kind public analysis, the U.S. Department of the Education projects that borrowers who next year enroll in loan forgiveness programs would, on average, repay every penny they borrowed, and then some. Some debtors in the programs, which cap monthly payments relative to earnings and offer the possibility of debt forgiveness, are projected to pay as much as 76 percent more than they borrowed. The forgiven amount would largely be interest that accrued over what could be as long as 25 years of making payments.

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Next Big Shoe To Drop…Student Loans

By Jeffrey Lewis – Re-Blogged From Silver Coin Investor

More than 40 million young Americans carry federal and private student loan debt – amounting to over $1 trillion. Defaults are on the rise and the issue has grown to become a nasty wealth transfer mechanism, as well as sad example of the failure of finance in general.

This week, President Obama announced a new initiative framed as a way of addressing the issue. Sadly, it is far from the mark, and just one more indication that monetary masters are the real puppeteers.

Many have pointed out that the student loan debt bubble could be the next subprime crisis.

Perhaps so, but it is potentially much worse, acting as an anvil when considered in the context of other consumer debt like car loans and credit cards.

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Gold, The Misery Index And Insanity

By Gary Christenson – Re-Blogged From The Deviant Investor

In 1980 Ronald Reagan spoke about the Misery Index.  An economist had added the inflation rate to the unemployment rate, called it the Misery Index, and used it to indicate the social costs and economic difficulty for the middle class.

Today the Misery Index is much smaller than in 1980, thanks to … intelligent fiscal management, economically beneficial monetary policy from the Federal Reserve, and wise political policy from the White House.  If you believe any of those, read no further.

Most people will agree that the Misery Index is much smaller today because the numbers have been gimmicked.  Does anyone believe a few percent for inflation or around 5% unemployment?   Massage (torture) the numbers and the Misery Index declines, incumbent politicians are re-elected, while far too many people remain out of work, earning practically nothing on their savings, and paying too much for food, clothing, drugs, medical care, college, transportation and so on.

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58 Facts About The U.S. Economy From 2015 That Are Almost Too Crazy To Believe

By Michael Snyder – Re-Blogged From http://freedomoutpost.com

The world didn’t completely fall apart in 2015, but it is undeniable that an immense amount of damage was done to the U.S. economy.  This year the middle class continued to deteriorate, more Americans than ever found themselves living in poverty, and the debt bubble that we are living in expanded to absolutely ridiculous proportions.  Toward the end of the year, a new global financial crisis erupted, and it threatens to completely spiral out of control as we enter 2016.  Over the past six months, I have been repeatedly stressing to my readers that so many of the exact same patterns that immediately preceded the financial crisis of 2008 are happening once again, and trillions of dollars of stock market wealth has already been wiped out globally.  Some of the largest economies on the entire planet, such as Brazil, and Canada have already plunged into deep recessions, and just about every leading indicator that you can think of is screaming that the U.S. is heading into one.  So don’t be fooled by all the happy talk coming from Barack Obama and the mainstream media.  When you look at the cold, hard numbers, they tell a completely different story.  The following are 58 facts about the U.S. economy from 2015 that are almost too crazy to believe…

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The Student Loan Bubble: Gambling with America’s Future

By Addison Quale – Re-Blogged From http://www.Silver-Phoenix500.com

The federal government can’t seem to help itself. After overseeing the inflating and bursting of the dot-com bubble in the 1990s and the subprime mortgage bubble in the 2000s, the United States government is at it again – this time in the area of student loans.

Student loan debt now stands at a record $1.2 trillion, which represents the second largest category of consumer debt after home mortgages. It has grown by leaps and bounds since the financial crisis of 2008 and now surpasses even car loans and credit card debt.

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Our Current Illusion of Prosperity

By Frank Hollenbeck – Re-Blogged From http://www.Gold-Eagle.com

President Obama and Fed Chair Janet Yellen have been crowing about improving economic conditions in the US. Unemployment is down to 5.5 percent and growth in 2014 hit 2.2 percent.

Journalists and economists point to this improvement as proof that quantitative easing was effective.

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