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Three Paychecks from Financial Disaster

Written by Gary North on February 16, 2012

Most Americans are so far in debt that a missed paycheck would produce a family crisis in a one-paycheck family. Three in a row would produce a disaster.

Families in this situation will use credit cards to draw out the inevitable. This digs the hole deeper.

The job market is slowly getting better, but for almost 13 million Americans out of work, this does little good.

Millions of other families are trying to get by on the incomes they pull in from part-time jobs. According to Gallup, the percentage of Americans that are working part-time jobs but that would like full-time jobs is now higher than it has been at any other time in the last two years. The number of the “working poor” just continues to increase, but most Americans don’t have much sympathy for them because they “have jobs”.

Well, when you are making 8 bucks an hour it can be incredibly tough to make it from month to month.

Gasoline is close to $4 a gallon.

Now we stand on the precipice of another major global financial crisis. Economic conditions in America are going to become significantly worse. The politicians in Washington D.C. may make sure that the boys and girls on Wall Street are always taken care of, but there will be no bailouts for the large numbers of Americans that are about to lose their jobs and their homes.

If you want an idea of what is coming, just look at what is happening in Greece. 25 percent of the businesses have shut down, one-third of all money has been pulled out of Greek bank accounts and unemployment and poverty are absolutely rampant.

Could it come to this? Not overnight. But the USA is running trade deficits larger than any in history. The federal debt will increase by $1.3 trillion in 2013, according to the Obama Administration’s latest estimate.

Greece got there first. The USA will follow unless its policies change. But they never do.

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3 thoughts on “Three Paychecks from Financial Disaster

  1. It is said that we get the government we deserve. Over the past thirty years our elected mis-representatives have allowed millions of jobs (which created wealth) to leave our shores without giving a hoot while they were feathering their own nests. Now the chickens (or, rather their sins of omission) have come home to roost. And there are no jobs for millions of Americans…and there won't be in the foreseeable future. We may have sugar-coated it, but we are in a depression, folks regardless of what the spin-meisters in the government want you to believe.
    This was the fuel for WWl and WWll. Draw your own conclusions.

  2. The Watchman says:

    I'm surprised that you state the job market is imoproving.

    Shrink those in the measured pool using U-3 instead of U-6 and play that rosy tune.

    Same issue that I have with the data used to compute the cost of living and everything else the weasels in Government and Media spew. BE DISCERNING! We're OVER THE CLIFF!

  3. Face painting austerity by the numbers in Ireland.

    Shocking injustice of austerity taxes revealed.

    The biggest burden has fallen on those earning €17,542 to €20,000, who have collectively paid three times more tax in 2011 than they did in 2010 — or a shocking 215 per cent increase. http://www.independent.ie/national-news/shocking-