Look at some of the numbers … Its a scary picture!

  • Massive Option ARM resets in 2010
  • Extremely tight lending norms leads to lesser demand for housing and further home price fall
  • A total of 6,130,000 U.S. workers had been unemployed for 27 weeks or more in December 2009.  In fact, it is more than double the 2,612,000 U.S. workers who were unemployed for a similar length of time in December 2008.
  • In December, there were also 929,000 “discouraged” workers who are not counted as part of the labor force because they have “given up” looking for work.
  • The mayor of Detroit estimates that the real unemployment rate in his city is now close to 50%
  • An estimate of  22% to 29% of all current U.S. jobs will be outsourced in the coming few years
  • During the 2001 recession, the U.S. economy lost 2% of its jobs and it took four years to get them back. This time around the U.S. economy has lost more than 5% of its jobs and there is no sign that the bleeding of jobs is going to stop any time soon.
  • 25 state unemployment insurance funds have gone broke and the Department of Labor estimates that 15 more state unemployment funds will likely go broke within two years and will need massive loans from the federal government just to keep going.
  • 37 million Americans now receive food stamps, and the program is expanding at a pace of about 20,000 people a day.
  • The number of Americans who are going broke is staggering. 1.41 million Americans filed for personal bankruptcy in 2009 - a 32 percent increase over 2008.
  • Dollar power erosion
  • The recent economic downturn has left some localities totally bankrupt. For instance, Jefferson County, Alabama is on the brink of what would be the largest government bankruptcy in the history of the United States - surpassing the 1994 filing by Southern California’s Orange County.
  • The U.S. is facing a pension crisis of unprecedented magnitude
  • Social Security and Medicare expenses are wildly out of control.
  • The U.S. has allowed the total federal debt to balloon by 50% since 2006 to $12.3 trillion. 
  • Senate Democrats last week proposed allowing the federal government to borrow an additional $2 trillion to pay its bills, a record increase that would allow the U.S. national debt to reach approximately $14.3 trillion.
  • It is going to become even harder for the U.S. government to pay the bills now that tax receipts are falling through the floor.  U.S. corporate income tax receipts were down 55% in the year that ended on September 30th, 2009.
  • The Federal Reserve bought approximately 80 percent of all U.S. Treasury securities issued in 2009.  In other words, the U.S. government is now being financed by a massive Ponzi scheme.
  • The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying the U.S. dollar and the value of the remaining collective net worth of all Americans.

Via : EconomicCollapse Blog