There Will Be No Economic Recovery. Prepare Yourself Accordingly. [Remastered]

Stefan Molyneux

Everything you need to know that the media is not telling you...   Stefan Molyneux, host of Freedomain - and winner of the 2012 Liberty Inspiration Award - breaks down the unspoken facts about the end of freedom, opportunity and trade in the modern United States. There will be no economic recovery, prepare yourself accordingly.   Sources: https://fdrurl.com/endus   Thanks to Brady Lacko for his amazing research.   Originally released January 7, 2013, so of course it's not updated to the present day, but the warning stands...   Chapters:  0:00:00 America’s Economic Decline  0:01:55 Debt and Stagnant Wages  0:06:27 Why Government Fails  0:08:39 Welfare and Inequality  0:14:29 Jobless Recovery Myths  0:24:35 Public Sector Expansion  0:31:05 Paycheck-to-Paycheck America  0:35:23 Debt, Poverty, and Collapse  0:43:16 The Coming Fiscal Disaster  0:50:55 Debt Beyond Recovery  0:54:41 Facing Reality at Last   My 10v1 debate in Vegas is coming up on November 16! Check out Digital Social Hour on YouTube for the livestream links: https://youtube.com/@DigitalSocialHour.   Support philosophy! https://freedomain.com/donate/   GET FREEDOMAIN MERCH! https://shop.freedomain.com/   SUBSCRIBE TO ME ON X! https://x.com/StefanMolyneux   Follow me on Youtube! https://www.youtube.com/@freedomain1   GET MY NEW BOOK 'PEACEFUL PARENTING', THE INTERACTIVE PEACEFUL PARENTING AI, AND THE FULL AUDIOBOOK!  https://peacefulparenting.com/   Join the PREMIUM philosophy community on the web for free!   Subscribers get 12 HOURS on the "Truth About the French Revolution," multiple interactive multi-lingual philosophy AIs trained on thousands of hours of my material - as well as AIs for Real-Time Relationships, Bitcoin, Peaceful Parenting, and Call-In Shows!   You also receive private livestreams, HUNDREDS of exclusive premium shows, early release podcasts, the 22 Part History of Philosophers series and much more!   See you soon!  https://freedomain.locals.com/support/promo/FREEDOMAIN2026

Transcript

00:08Hi, everybody. It's Devan Molyneux from Freedomain Radio. So please buckle yourselves in if you'd be so very kind, and

00:14I hope that you will make it through this presentation. This is very, very important stuff to know. This is

00:19the world that you're living in, the world that you're going to grow older in, and the world that your

00:23children are going to grow up in. This is the end of America.

00:29So, let's have a look at some basic facts about where we are. And now this pertains mostly to America

00:36at the moment, but Europe is a little further ahead. Some other countries are a little further behind. We're all

00:40on the same path in the West. It's the end of the West as we know it, which has challenges,

00:45but also great opportunities as well.

00:47So we're generally told that there was a terrible recession. It was the greatest recession since the Great Depression of

00:53the 1930s, but boy, now recovery is underway and everything's looking better. This, unfortunately, is not true. This is not

01:00the same as it was before. Kind of fundamentally, we know that, right?

01:06So, this is Congress's approval rating since 1974, and it's now down at around 5%, 5% approval rating for

01:20Congress. This is not a country with great faith in its leadership and with good reason.

01:25So, these are things that Americans in general like better than their law-making body. They like the TSA better

01:31than Congress. They like people who hate the Olympics better than Congress.

01:35They like the most disliked company in America more than they like Congress. They like abortion more than Congress. Nixon

01:41more than Congress. Banks and financial institutions more than Congress.

01:45Paris Hilton more than Congress. And if that's not a sign of the apocalypse, I don't know what is. And

01:50they like socialism more than Congress. Well, that's a two-for-one because Congress is basically socialist.

01:56So, what is going on with the American economy as a whole? Let's look at some information to give you

02:01the big picture, and we'll start looking at more specific details.

02:03And again, I really do thank you for your patience, but this is very important stuff.

02:07So, this is civilian employment to population ratio. This is the percentage of working-age people who are employed.

02:14You can see in the 1950s, it was 56%, 57%, 58%. Why? Well, because the majority of women were not

02:21in the workforce. This is prior to the feminist revolution, getting women into the workforce and so on.

02:24And then that labor force participation begins to really rise.

02:27And now, despite the fact that most women are in the workforce, it's crashed down to 58%.

02:3658%. I mean, this is astonishing. It means less than 60% of working-age Americans actually have a job.

02:41And this counts people who are in the public sector versus just the private sector.

02:45The public sector requires the private sector to generate income, to have an income.

02:50So, it's kind of parasitical. At least, you know, ideology aside, economically, it is parasitical.

02:56And so, this is really pretty terrible. And as you can see, it's not getting better after the recession.

03:04Wages as a percent of the economy, as you can see from 1950, 50, 52, 54%, and so on.

03:11Now, they're down to 44%. They've really crashed, and they're not recovering.

03:16This is significant, because this means that a significant amount of economic activity is not wage-based,

03:21which means that there's less consumer demand, less consumer confidence, and so on.

03:25And we'll get into that as we go forward.

03:27So, what has basically happened? Well, really, since the 1980s, there has been a massive explosion in borrowing.

03:34This is true for corporations and households and governments and so on.

03:37There's lots of different reasons for this.

03:39Certainly, computers have greatly enhanced our capacity to make up magic monopoly fiat currency

03:45and pretend all of this future stuff is going on.

03:49But also, because wages have stagnated or declined, particularly for the poorest,

03:53they've turned to credit to maintain their lifestyle.

03:56So, household debt, as you can see here from 1987, and these are all in constant dollars unless otherwise notified,

04:01and the sources for all of this will be in the notes to the video of the podcast.

04:06So, you can see here household debt just going up and up and up from 1977 onwards from, you know,

04:11$750 billion to $2.3 trillion.

04:18Corporations, corporate debt.

04:20So, you can see here, starting in the 1980s, it has just spiked like crazy, and it went down a

04:27little bit during the recession.

04:28Now, it's climbing back up.

04:30And, of course, governments.

04:32This is federal government debt, total public debt, as you can see, again, starting in 1980, 1990, and so on,

04:39particularly after Y2K, it's just gone through the roof.

04:45And this is not the result of savings, right?

04:47So, if you have a whole bunch of savings, then you can lend out more money.

04:50You can use that as collateral to borrow even more.

04:52But, of course, savings rates have declined.

04:53The U.S. government is purposefully crushing and controlling interest rates down to the lowest conceivable level,

04:58because otherwise they have to pay more than a trillion dollars a year just to service their debt.

05:02As the saving rates decline, savings, sorry, as interest rates decline, savings rates decline as well,

05:07because you're just not getting money, money back by putting it in the bank and so on.

05:11And so, this is all coming from the magic land of type whatever you want into your own computer

05:16to tell you how wealthy you are, which never lasts.

05:20So, here's some examples of what happened in the early 1980s.

05:26So, income growth and gains between 1917 and 2008.

05:33So, as you can see, the richest people are gaining enormously,

05:35but the poorest, bottom 90%, it's really stagnant.

05:40And this is, when you create fiat currency, when you create money,

05:44which the government does perpetually and horrendously,

05:48the money that you create doesn't get dropped in helicopter bags over poor neighborhoods.

05:54The money that you create goes to those closest connected to the government first.

05:58And they get to spend it at the real, so they get to spend it at the existing rate of

06:02dollar value

06:03as the money that they spend spreads throughout the economy.

06:06Then what happens is inflation hits, because there's too many dollars chasing too few goods and services.

06:11And so, the poorest get the hardest hit from inflation,

06:13and the richest get the most benefit by getting their grubby hands first on the monopoly money that's created by

06:20the state.

06:20So, this is one reason.

06:22There's many other reasons.

06:23But as you can see, this hasn't achieved the goal.

06:27The whole welfare state that started in the 60s, Lyndon Johnson's Great Society and so on,

06:30and Social Security, which started in the 30s,

06:32all of this was designed to close income disparities.

06:38But fundamentally, we have to recognize that whatever the government does is coercive in nature.

06:42You know, at a personal level, at a private level, we all understand that violence will get you the opposite

06:47of what you want.

06:49Right?

06:49If you stalk someone when she ain't going to love you,

06:51if you kidnap some guy's kids to get a job, you're not going to be a model employee.

06:56You're certainly not going to get employee of the month.

06:57Whatever you use violence to achieve, you will end up achieving the opposite.

07:00And we've used the power of the state, the violence of the state, the violence of monopoly counterfeiting powers that

07:06the Federal Reserve has.

07:08We've used the violence of the state to attempt to address complex social issues.

07:12And since violence always produces the opposite of what we claim we want, right?

07:16How's the war on drugs gone, right?

07:18How's the war on illiteracy?

07:19How's the war on poverty?

07:20Poverty was being solved in the 1950s.

07:22About a percentage point a year was being reduced.

07:25Government intervened and decided to help people.

07:28So, violence will always achieve the opposite of what we want.

07:30And that's the fundamental issue that we're facing now, is, you know, you plant a demon seed, you raise a

07:35flower of fire, as the song goes.

07:36And that's really what we've done.

07:39So, average hourly earnings.

07:41Do you ever get that feeling that you're just not getting any richer?

07:44So, look at this.

07:45This is from 1964 to 2008.

07:48In 1964, the average hourly income in 2008 was $17.54.

07:55In 2008, it was $18.52.

07:59So, it's really been pretty stagnant for, what, 45, 46 years.

08:06And that's pretty tragic.

08:08That is pretty tragic.

08:09This, of course, is all propped up by debt.

08:12Everything that we're looking up here is propped up by debt.

08:15So, if this was your income, but you were also now $200,000 in debt with no assets to show

08:22for it, right?

08:23You were in debt to a loan shark, to some mafia boss, to a casino, to Visa, then you'd say,

08:28well, your average hourly earnings are way down because these are all propped up by debt.

08:32This is really, really important to understand.

08:33If you put debt into the equation, this stuff looks ridiculously worse.

08:39So, remember, in the 1960s, 1970s, all these government programs went in designed to close the income gap, to make

08:45a more egalitarian society.

08:48And, of course, look what's happened.

08:49In 2011, the richest 5% share of income in the U.S. has increased almost 30% since 1967.

08:58The bottom 20% share of income has declined 20% since 1967.

09:05So, you see, whatever you try to achieve with violence, you will achieve the opposite of.

09:09This was supposed to close the gap.

09:10Violence was used.

09:11It's made it wider.

09:15So, what's happened, of course, since the 1960s is social programs, so Medicare, Medicaid, and so on, basically transfers.

09:23You steal from one section of the population at gunpoint through taxation, or you steal from the unborn through debt,

09:28or you steal from the poor through inflation, through printing of money, the creation of money.

09:32And you take from one section of the population, you keep a massive overhead for yourself in welfare programs at

09:3860%, 70%, 80% of the money is kept by the government.

09:41So, you steal from one person, you keep 60 cents of every dollar, and then you give 40 cents or

09:4630 cents or 20 cents to the poor.

09:48Of course, the people who are bureaucrats love this kind of stuff.

09:50But here you can see this incredible rise in social programs, and this is fundamentally what's driving the deficit and

09:57the debt.

09:58Social programs as a percent of the economy, 1960, you know, 4% or 5%, now they are 16%

10:05of the GDP, are social programs.

10:08You understand this is not wealth.

10:09This is just wealth transfer.

10:11You know, I mean, the thief gets wealthier if he lifts your wallet, but he's not exactly adding to the

10:15wealth of society as a whole.

10:19So, social programs now are consuming the most federal tax revenues.

10:22It's the single biggest item.

10:24So, as you can see here, this graph, the blue, is the receipts, tax revenues, and they've remained relatively constant

10:33since the 1950s.

10:34It seems like government has grown a lot, but as a percentage of the economy, they have not.

10:38Although, the percentage of the economy, it's really tricky to measure because there's been such an expansion in government and

10:44government programs, a lot of which are counted as a measure of the economy, that this graph would look a

10:48little bit different if we merely looked at the private sector, which we'll get to.

10:51But as you can see, the social programs are just eating everything up, eating everything up.

10:55And what's the result of this?

10:56Well, this cuts into everything else, things like infrastructure, roads, bridges, maintenance.

11:02I mean, the backlog of decreptitude in the public sector is just crippling.

11:07So, here you can see, you increase your social program spending, and everything else turns to crap.

11:14Transfer payments, as mentioned, have now risen, and you can see here, them rising.

11:17Transfer payments are rising.

11:18Now consume 16% of GDP.

11:21Monstrous, monstrous item.

11:24And what does this turn into?

11:26Well, so the total welfare spending that the government is lavishing upon the poor is $168 per day for every

11:32household in poverty, right?

11:34Now, this is 20% more than the median income for the entire United States.

11:41In other words, we are spending more per household, 20% more than they would earn if they were middle

11:47-class income owners.

11:48You understand, this is completely unsustainable.

11:50It traps the poor into a near-permanent underclass, and social mobility has vastly declined since the introduction of the

11:57welfare state.

11:58It really traps them because they have to have this huge chasm to leap over.

12:03They've got to leap over what the work and education and experience it takes to get to more than 20

12:10% of the income.

12:11Now, of course, the poor aren't actually getting all of this money.

12:13They get all this trickle-down, it comes in food stamps, it comes in, quote, free medical services and subsidized

12:19housing and so on.

12:20And this doesn't even count public schools, which is another form of welfare, because it's services for the poor, which

12:29have more children than the rich, which are paid for by the rich or the middle class.

12:33So, this is not sustainable at all, and it's been completely catastrophic for the poor.

12:39Federal net outlays are 18 times, 18 times what they were in 1970.

12:46And again, you can see here just this massive, massive rise.

12:48A lot of this, right, I mean, women go into the workforce, women need government-subsidized daycare.

12:53Women go into the workforce and they pay more in taxes, which allows the government to use that as collateral

12:58to borrow more and print more.

13:00And a welfare program traps people in a permanent underclass, and, of course, when the government starts paying bills, the

13:07price cap of consumer resistance goes off completely.

13:09And so, you can have all of this ridiculous overhead that goes into the healthcare system and there's less pressure,

13:15because the government is now paying more than 50 cents on the dollar for healthcare.

13:19So, in the 1950s, 85% of all working-age men had a job, and it's now below 65%.

13:30The other thing, of course, with the collapse of the family and the catastrophic rise in divorce in the 1970s

13:35and 1980s, one of the things that made men grow up and get jobs was being a father and head

13:41of a household.

13:42That's not the case anymore, and so, since the government has stepped in to take the place of fathers and

13:47providers, male ambition has been blunted somewhat.

13:50And this is just one of six million different reasons, but this is off the top of my head.

13:54So, in the 1950s, 85% of all working-age men had a job.

13:56This is now below 65%, and, as you can see, it dropped enormously in the last recession, and it's not

14:05really climbing back up.

14:06And this is with the public sector, the massive growth in the public sector swallowing up all of these people.

14:10Again, if you only look at the private sector, and if you excluded the areas of the private sector which

14:14service the public sector, these numbers would look enormously different.

14:20So, this is employment population ratio again.

14:23As you can see, it rises up, it goes down, and it's now pretty low.

14:30So, that's just some graphs.

14:32Hopefully, to get your attention, let's look at some faxes.

14:36So, we're told that we're in a recovery because the numbers, of course, are being manipulated.

14:41This is, you know, standard statism 101 is just lie and manipulate the numbers.

14:45So, they reclassify unemployed people as no longer unemployed, right?

14:49So, if you give up trying to get a job and you just leave the workplace, you're no longer counted

14:53as unemployed because you have to be actively looking for work.

14:58I mean, I guess if you die, you're no longer sick, but it sure as hell doesn't mean that you're

15:01healthy.

15:02There's a failure to distinguish between the public and the private sector.

15:06So, if the public sector goes on a hiring binge, then this is counted as a reduction in unemployment, even

15:13though it adds to the deficit, adds to the debt, and removes people from the workforce who might otherwise be

15:18actually producing things of value in the private sector.

15:21So, if you think that the public sector is the same as the private sector, then basically, well, I won't

15:29give you the metaphor, but it's not a good way to look at it.

15:33And, of course, if you ignore debt, then the numbers look a whole lot better than they actually are.

15:38So, let's have a look at some of the ways in which the unemployed are reclassified.

15:42So, according to the U.S. Department of Labor, 163,000 new jobs were created in July 2012.

15:47Just pick a month.

15:50The reality is that the U.S. lost over 1.2 million jobs that month.

15:55Now, in the five months since June, 847,000 jobs were created, but 73% of those jobs were government

16:02jobs.

16:03And remember, there are 150,000 people in the U.S. entering the workforce in any given month and just

16:09graduating and whatever it is, turning that age.

16:13And so, if you take that out of the equation, the government jobs, right?

16:16I mean, the government was working fine.

16:18It's not like they need all these new people.

16:19Lord knows they have enough people already.

16:22So, if you don't count the government jobs, there's been a half million deficit of jobs.

16:29So, since January 2009, the labor force in the United States has increased by 827,000, but those not in

16:36the labor force has increased by 8.2 million.

16:38Understand?

16:39People who are of working age, who used to be in the labor force, who are no longer in the

16:43labor force.

16:44They've gone gone.

16:45They've vanished.

16:468.2 million.

16:47If you were to put those numbers back in, well, so Barack Obama's been president for, I guess, a little

16:53over four years now.

16:55The number of Americans not in the workforce has increased by nearly 8.5 million.

16:59They've just vanished.

17:00And they're no longer counted as unemployed.

17:03But they were employed, and they still have legal age to work, or age to work.

17:07And so, the jobs gap is not closing.

17:10It's all smoke and mirrors.

17:11The U.S. lost 9 million private sector jobs during the Great Recession.

17:14Since job growth has resumed, 5 million private sector jobs have been created.

17:20Now, some of those, of course, are there to service the increase in the public sector.

17:23But the level of private sector jobs remains 13 million below the pre-crisis trend, right?

17:28So, 150,000 jobs need to be created a month to keep up with the population growth.

17:37And so, since the recession began, 30 million jobs have been lost, let alone the ones that needed to be

17:43created just to keep pace with population growth.

17:45So, here's how it looks.

17:48So, this is a graph which has the trend going on in sort of private sector payrolls.

17:53And you can see here in the black line that it's really gone down.

17:57And, of course, it's starting to go back up.

17:59When the government hires a whole bunch of people, this stimulates private sector activity, right?

18:05So, if the government opens up, you know, the new department of, you know, Bob's, let's get everyone under 12,

18:09a Mohawk department of whatever, then they need buildings, they need computers, they need training, they need office equipment, they

18:17need furniture, they need all of this stuff stimulated.

18:19But it's all nonsense.

18:20It's all smoke and mirrors.

18:21And it also drives up the price for everyone else.

18:23All the stuff that's being supplied to the new made-up government workers is driving up the price for everyone

18:28else because it raises demand in an artificial way.

18:30So, it harms the private sector in a huge way.

18:35So, unemployment since the recession has only tended to drop because people are leaving the workforce.

18:40It's not exactly what we want.

18:42Almost 550,000 Americans leave the labor force in any given month.

18:47So, here's some more numbers, of course, since Jan 2009, 194,000 new jobs have been created.

18:52In that time, almost 15 million people have been added to the food stamp rolls.

18:57When Barack Obama first took office, long-term unemployed workers in the U.S., 2.6 million.

19:02They were long-term unemployed, 2.6 million.

19:05Now, that number is sitting at 5.6 million.

19:09There are, it depends the numbers, you go 88, I've seen 102, 88 million working-age Americans that are not

19:14employed and not looking for employment.

19:16Just sit on that number for a second.

19:19I know it's staggering.

19:20I've double-checked it.

19:21There are about 88 million working-age Americans not employed and not looking for employment.

19:28Right, so the percentage of working-age Americans with a job has been under 59% for 39 months in

19:33a row.

19:36Now, since the recession, and certainly since 2000, since 2000, there was a rise of manufacturing capacity and free trade

19:43in two areas, right, China and India.

19:46And this has been massively positive.

19:48China's experienced single, high single, double-digit growth rates.

19:52And in India, tens of thousands of people every month are being raised out of poverty as a result of

19:57free markets and free trade.

19:58But because America and Europe have very restrictive policies on manufacturing, right, lots of pseudo-environmental concerns, lots of legalese,

20:11lots of legislation to control for health and safety stuff, which is really not necessary.

20:16Lots of things, unions and benefits and subsidies and all of that, pensions.

20:23So a lot of manufacturing has fled.

20:25So in 2000, about 20% of all jobs in America were manufacturing jobs.

20:28Now that's down to 5%.

20:29Manufacturing was the route out of the lower class to the middle class, right?

20:33You get here, you're broke, you get a job in a factory, you work there for 40 years, your kids

20:37go to college, bingo, bango, bongo, you're in the middle class.

20:39That avenue has dropped off catastrophically, and it continues to do so.

20:46So 60% of the jobs lost during the last recession were mid-wage jobs, medium-wage jobs.

20:5258% of the jobs created since then are low-wage jobs, right?

20:57Right, so they're taking away your sirloin and giving you a half-frozen vegetable patty, right?

21:04So what's replacing what has been lost is not a one-to-one, right?

21:08What's replacing quality jobs is crap jobs, service sector jobs, and so on.

21:14The U.S. economy lost almost a quarter million small businesses during the recent recession, 220,000.

21:20In 2010, the number of jobs created at new businesses in the U.S. was less than half of what

21:24it was in 2000.

21:26And this is before Obamacare comes in, or I guess has come in.

21:30America is losing half a million jobs to China every single year.

21:35Now, of course, normally what would happen is if China was competing with you,

21:38you would, people would get paid less in order to compete with China,

21:42or you'd find some other ways to innovate, but you're just losing jobs

21:46because it's illegal to pay less in many areas in the United States.

21:50And, of course, the regulatory overhead is insane.

21:54So this is truly astounding.

21:56I mean, just mull this stuff over, particularly look at it from the standpoint of the hard-working poor,

22:00or the wannabe hard-working poor.

22:02The U.S. has lost an average of approximately 50,000 manufacturing jobs every single month

22:07since China joined the World Trade Organization in 2001.

22:12Lost 50,000 manufacturing jobs.

22:15I actually went to China in 2000 for a business for about a month,

22:18and I could see all of this activity starting up,

22:20and I was like, ooh, I don't know that manufacturing is going to be a great place to be in

22:24North America anymore.

22:25I made my career adjustments accordingly.

22:29More than 56,000 manufacturing facilities in the U.S. have been shut down since 2001.

22:35So, you know, a 40-year-old or 50-year-old factory worker, what are you going to do?

22:42What are you going to do?

22:43This is catastrophic.

22:44This is all the result.

22:44It's not the result of the free market.

22:46This is the result of status policies,

22:48which have raised a protectionist wall around U.S. manufacturing to the point where it cannot compete.

22:52I mean, we can always compete with lower-waged people.

22:55I mean, you can always compete with lower-waged people.

22:57Because it's not like in India, the workers get 12 years full-time education.

23:04Paid for by the state, you know, I mean, for everyone who's in manufacturing there,

23:08they have massive amounts of under-education in India.

23:10So, why can't you compete?

23:12Well, you can.

23:13It's just the government doesn't allow you to

23:14because there are too many restrictions on opening and running manufacturing facilities.

23:19About 20% of all U.S. adults are currently working jobs that pay poverty-level wages.

23:24I mean, they're functional serfs in the economy, and it's completely tragic.

23:28More than 40% of Americans who actually are employed are now working in service jobs,

23:33which are often very low-paying.

23:35Again, really tragic.

23:36Less than 25% of all jobs in the U.S. are good jobs,

23:39and that number continues to shrink.

23:41And this includes government jobs.

23:43Again, take that out of the equation.

23:45I mean, it's just catastrophic.

23:47More than half of all small business owners in America, quote,

23:50say they would not start a business today,

23:52given what they know now and in the current environment.

23:56Talk to doctors, too.

23:57Oh, my God.

24:00So, we really are facing the involuntary end of employment

24:04for massive sections of the population against their will.

24:07I mean, just look at, you know, you ask for 300 jobs.

24:10You say 300 jobs are opening here, you'll get like 30,000 applications.

24:13People want to work.

24:14They're just not allowed to by force.

24:18In the U.S., more than 41% of all working-age Americans are not working.

24:22How sustainable is this?

24:25If you gather together all of the workers that are officially unemployed in the U.S.

24:29into one nation, they would be the 68th largest country in the entire world.

24:36So, the public sector has grown enormously, and the public sector,

24:39I mean, let's just take the classic state model.

24:42I'm not a statist, but let's take the classic state model

24:43that a certain amount of the public sector is necessary for the economy to function.

24:47Let's say that roads need to be done by the state and other kind of things,

24:50infrastructure and so on.

24:51So, let's say that, because the government is way, way, way beyond where it used to be

24:57in terms of, it's at least 50 to 75 times what it was to provide those services in the past.

25:04So, a growth in the public sector comes at the huge expense of the private sector,

25:09and that expense shows up in many ways.

25:11So, clearly, the private sector has to pay more taxes,

25:13or there's more debt or more inflation to pay for the public sector.

25:17You have transferred people from being productive in the private sector to being parasitical in the public sector.

25:22You've driven up prices in the private sector for all the resources devoted to the public sector.

25:26I mean, the list just goes on and on.

25:29And, of course, you're training people in skills for the public sector,

25:31which if and when they lose their jobs in the public sector,

25:35they have to be retrained, and it's a whole mess.

25:38So, total compensation costs for management, professional, and related occupations.

25:42Half of all state and local governments employed averaged over $50 per hour worked.

25:49And we use the word worked here in the loosest possible sense.

25:54State and local government employees spent an average of $41.56 per hour

25:58worked for employee compensation in September 2012.

26:02Total employer compensation costs for private industry workers,

26:05instead of being $41.56 or $50.43, were $28.95, September 2012.

26:14In the U.S., the average federal worker now earned 60% more than the average worker in the private

26:18sector.

26:19And again, you know, being a libertarian means always being sorry that you're right.

26:22You know, it's like being a doctor telling some guy,

26:24stop smoking, stop smoking, stop smoking.

26:26Oh, shit, you have lung cancer.

26:27I'm sorry that I was right.

26:29I know I was going to be right.

26:30I'm sorry that I'm right.

26:31And this is clear.

26:32I mean, there's no limit fundamentally to rising prices in the public sector.

26:39I mean, there's no competition.

26:40There's no investors who can take their money elsewhere.

26:42There's no going out of business.

26:44So, of course, they're going to earn a whole bunch more.

26:46That's how you buy votes.

26:47This is the foundation of the Democrat Party.

26:50In 2006, only 12% of all federal workers made $100,000 or more per year.

26:54Now, 22% of all federal workers do.

26:57U.S. public pensions are $4.6 trillion short of the amount of assets needed to cover projected liabilities, right?

27:03So they got a whole bunch of money, and they're supposed to invest that money, and they're supposed to pay

27:07their retirees out of that money.

27:09They're way underfunded.

27:11Of course, they lost a lot of money in the recession, and they're allowed to do these crazy calculations where

27:15they're allowed to say,

27:15Ooh, I'm going to get an 8% return on investment, which hasn't been seen for decades, and they are

27:19just vastly underfunded.

27:21This is, of course, back to go and pillage the last kidney out of the last taxpayer to pay for

27:25all this nonsense,

27:27because pensions are a way of buying peace with public sector unions and private sector unions at the expense of

27:33the unborn,

27:33who have no say in the matter, can't vote, and don't even exist yet, right?

27:36Because you're kicking the can down the road when you give people pensions instead of wage increases, as is debt,

27:41right, fundamentally.

27:44So private sector job losses dwarf government gains.

27:47So since the start of the recession, the government has added 590,000 jobs, and the private sector has lost

27:55almost 8 million jobs.

27:59Since the Recovery Act, the government has added 400,000 jobs.

28:04The private sector has lost 2.65 million jobs, right?

28:09So the private sector is where you really need to look for the economic recovery.

28:13You cannot get economic recovery coming from the public sector, right?

28:18That's like replacing your heart with a cancer.

28:22What is the payroll change since January of 2008, right?

28:27Private sector has gone down minus 4%.

28:30Whole government has gone down minus 2%.

28:32Federal government, excluding the post office, has gone up almost 12%.

28:36And, right, so this is just all the manipulation now.

28:39I mean, they're going to hire like crazy so they can bring their numbers down,

28:41and everyone at the Huffington Post can pretend that socialism works.

28:47The U.S. share of global GDP has fallen from 31.8% in 2001 to 21.6% in

28:562011.

28:57Do you understand, this is a complete catastrophe.

29:00It's gone down nearly a third in only 10 years.

29:04This is an utter collapse of the economy.

29:0761% of all Americans were middle income back in 1971.

29:10Today, only 51% of all Americans are.

29:12Again, this includes the public sector.

29:17As we've mentioned in 1950, 80% of all men in the U.S. had jobs.

29:21Now, less than 65% of them have jobs.

29:23One out of every four American workers makes $10 an hour or less.

29:28$10 an hour or less.

29:29This is after the robot revolution, this is after the computer revolution, this is after

29:33the internet revolution, this is after the most massive potential gains in productivity

29:38that has ever occurred in the history of the world, in the history of any kind of economics

29:42whatsoever.

29:43And all of this has been diverted in a mad, violent plunge to attempt to redress social

29:48problems with the infinite, brutal, unsubtle club of government force.

29:53And this is the result.

29:54This is not what was planned.

29:55But this is what was predicted by anybody who had any sense of ethics, property in the

29:59free market.

30:03Payroll change.

30:04This is from July 2012.

30:05Payroll change since January 2008.

30:08Minus 5 million.

30:10In the private sector, minus 4.61 million.

30:13Right?

30:14So total payroll change has been minus 5 million.

30:17In the private sector, it's been the vast majority of that.

30:194.6 of that 5 million is in the private sector.

30:22Government has gone down 400,000 and change.

30:27The federal government, as we mentioned, has gone up 225,000 people.

30:34Okay, so this is startup jobs created for 1,000 Americans, broken down by a president.

30:39Bush Sr., Clinton, Bush Jr., and Obama.

30:41So let's look at how these numbers break down.

30:43Bush Sr., 11.3.

30:46Clinton, 11.2.

30:48Bush Jr., 10.8.

30:49Obama, 7.8.

30:51And that's not to pick on Obama.

30:53I mean, you know, he's in a sense was promoted captain of the Titanic when it was three inches

30:56above the water.

30:57But you can see that these are really catastrophic numbers.

31:0577% of Americans are living paycheck to paycheck at least some of the time.

31:10This is not how it was supposed to be.

31:12Medium household income in America has fallen for four consecutive years.

31:15Overall, it has declined by almost over $4,000 over the last four years.

31:20Completely catastrophic.

31:21And this is a time of increased debt.

31:2436% of Americans say that they don't contribute anything to retirement savings.

31:29A, they don't have the money.

31:30And B, they still believe in the mirage of Social Security.

31:3324% of American workers say they have postponed their planned retirement age in the past year.

31:39The ancient city is a new world.

31:4343% of Americans have less than $10,000 saved up for retirement.

31:50Which isn't going to do any good to you at all.

31:5328% of all Americans do not have a single penny saved for emergencies.

31:57And this means that they're hanging by a thread above the chasm of falling out of even the lower classes

32:02into the dependent classes.

32:0740, 50 years ago, America, like most of the West, launched a massive program to accelerate the end of poverty.

32:15Poverty was already being solved in the post-war period.

32:17This was to accelerate the end of poverty.

32:21Now, violence achieves the opposite of what you want it to achieve.

32:26And what has been the result of the war on poverty?

32:28Well, in the U.S. today, around 100 million Americans are considered to be either poor or near poor.

32:35Back in 2007, 19.2% of all American families had a net worth of zero or less than zero.

32:40By 2010, that figure had soared to 32.5%.

32:4440% of all Americans have $500 or less in savings.

32:48Right?

32:50You grow the economy primarily through putting money in the bank, which then gets lent to entrepreneurs who start new

32:55businesses,

32:55who provide new services, who invest in capital improvements to become more productive,

32:59who invest in education for their workers, whatever it is.

33:02You ain't saving, you ain't growing.

33:04And you ain't saving.

33:08About 10 million households in the U.S. don't even have a single bank account.

33:12Kind of off the grid.

33:13And not because they're super wealthy.

33:17The U.S. has a higher percentage of workers doing low-wage work than any other major industrialized nation.

33:23In 2010, 2.6 million more Americans fell into poverty.

33:28Largest increase ever seen since the U.S. government began keeping statistics on this back in 1959.

33:34Violence achieves the opposite.

33:36You wage a war on poverty, you will swell poverty.

33:41And this has huge results.

33:43I mean, these kinds of catastrophic wealth losses and losses of opportunity have huge results on things as fundamental as

33:49marriage.

33:51There are now 20.2 million Americans that spend more than half their income on housing.

33:55That's a 46% increase from 2001.

34:00Only 51% of all Americans that are at least 18-year-olds old are currently married.

34:04Back in 1960, this was 72%.

34:08And marriage, of course, is the foundation for the mental, physical, social, emotional health of your children.

34:13And this is really just producing more people who are going to have much higher risks to be criminals, drug

34:19addicts, abusers, and problematic bullies, and you name it.

34:24In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the

34:31median net worth of households led by someone 35 or younger.

34:34So the gap between those who had accumulated resources over the course of their life and those who were kind

34:39of just starting out or in the process of starting out was about 10-fold.

34:43Now the median net worth of households led by someone 65 or older is 47 times larger than the median

34:48net worth of households led by someone 35 or younger.

34:53And this is why I say Social Security is a complete boondoggle because there's no money saved for it.

34:58It's basically just a dusty bunch of IOUs that have to be taken out of the kidneys of the young.

35:03So people who are much poorer relative to the baby boomer retiree population, which is the wealthiest population the world

35:10has ever seen,

35:12the young are being taxed who have much less money to pay for the retirements of the old who have

35:17way more money as a group.

35:19I mean, this is a completely regressive tax.

35:23So debt, we had a look at this earlier.

35:25Let's break this down a little bit more.

35:26Total consumer debt in the U.S. has risen by 1,700% since 1971.

35:31In 1983, the bottom 95% of all income earners had 62 cents of debt for every dollar that they

35:38earned.

35:39Right?

35:40You want something, you pay for it.

35:42Credit is the devil's handshake.

35:44At least that's how it was when I was growing up.

35:47So in 1983, bottom 95% of all income earners had 62 cents of debt for every dollar that they

35:53earned.

35:54By 2007, that figure had soared to $1.48 of debt for every dollar that you earn.

36:01One-third of all Americans are currently not paying their bills on time.

36:0443% of all American families spend more than they earn each year.

36:08This is just household debt, not corporate debt, not government debt.

36:12After adjusting for inflation, U.S. college students are borrowing about twice as much money as they did a decade

36:17ago.

36:18College debt outstanding is at around a trillion dollars.

36:21Again, it's not that they have a failure to launch.

36:24It's there's no place for them to land when they get out of college.

36:27It's 85%, as we'll see, of college students who move back in with their parents.

36:3046% of all Americans carry a credit card balance from month to month.

36:34The infinite payment of compound interest.

36:38Of the U.S. households that do have credit card debt, the average amount of credit card debt is a

36:42truly shocking $15,799 at interest rates ranging from 13 to 18 to higher percentage.

36:52That's astonishing and astounding and incredibly hard to pay off.

36:57Americans are carrying a grand total of $798 billion in credit card debt.

37:02So if you were alive when Jesus was born, you spent a million dollars every single day.

37:05Since then, you still would not have spent $798 billion by now.

37:10It's a lot of money.

37:1245% of all auto loans are made to subprime borrowers.

37:15Ooh, that worked well with the housing market, didn't it?

37:17The ratio of household debt to personal income in the U.S. is now 154%.

37:23If that doesn't make your jaw drop and you'd reach for a bar of gold, read it again.

37:29Cancer of Inequality is growing enormously.

37:32Obviously, we have become a, you know, a Morlock kind of society.

37:4083% of all U.S. stocks are in the hands of 1% of the people.

37:4466% of the income growth between 2001 and 2007 went to the top 1% of all Americans.

37:52Only the top 5% of U.S. households have earned enough additional income to match the rising housing costs

37:57since 1975.

37:59For the first time in U.S. history, banks own a greater share of residential housing, net worth in the

38:04U.S., than all individual Americans put together.

38:09The bottom 50% of income owners in the U.S. now collectively own less than 1% of the

38:13national wealth.

38:14Cannot build a society on this kind of inequality.

38:18It will fall over and it will fall on the poor, as it always does.

38:22And this is, you know, people who focus on the free market, really the only people who care about the

38:26poor.

38:27Not in appeasing the poor, not in giving the poor stuff, not in drugging the poor with free stuff, but

38:30in actually creating conditions wherein the poor can help themselves.

38:34Stop giving them fish, give them the lake and the capacity to fish, they'll be fine.

38:39But this idea that we're going to use government power to help the poor has just created a situation of

38:44imminent catastrophe for the lower classes.

38:48In the United States today, corporate profits are at an all-time high.

38:50The percentage of Americans that are living in extreme poverty is also at an all-time high.

38:55Corporations are making and sitting on a hell of a lot of money.

38:57And one of the reasons they're not spending that money is something called regime uncertainty,

39:01which is what the hell is going to happen next from the legal system, from the law system, from the

39:04regulatory system, from the tax system, from you name it.

39:07They don't know.

39:08So they're waiting and there's not that much demand because there's so little money sitting out there among the people.

39:17More than 100 million Americans are enrolled in at least one welfare program run by the federal government,

39:22not even counting Social Security or Medicare.

39:25Back in the 1970s, about one out of every 50 Americans was on food stamps.

39:30Today, about one out of every 6.5 Americans is on food stamps.

39:36I mean, this is late Roman Empire.

39:38Bread and circus is crap.

39:39It's just astounding.

39:41One-fourth of all children in the United States are enrolled in the food stamp program.

39:45Hey, didn't get rid of daddies, just do wonderful things for the family.

39:4821% of all children in the U.S. are living below the poverty line in 2010, the highest rate

39:52in 20 years.

39:53This is after a 40-year war on poverty.

39:57Median household income for families with children dropped by $6,300 between 2001 and 2011.

40:06And this counts public sector workers who've had massive increases.

40:09Half of all American children will be on food stamps at least once before they turn 18.

40:17The number of Americans living in poverty has increased by about 6 million over the past four years.

40:22About, as we mentioned, one out of every four workers in the U.S. brings home wages that are at

40:26or below the federal poverty level.

40:29Almost 60% of all children in the U.S. are living in homes that are either considered to be

40:32low-income or impoverished.

40:36The number of children living in poverty in the state of California, for instance, has increased by 30% since

40:412007.

40:43In the city of Detroit today, this smoking crater center of experiments in central planning and endless socialist tinkering.

40:51In the city of Detroit today, more than 50% of all children are living in poverty, and close to

40:5550% of all adults are functionally illiterate.

40:59They can still vote, you see, but they're functionally illiterate, which is why you have to give them phones, I

41:03guess.

41:0549% of all Americans live in a home where at least one person receives financial assistance from the federal

41:09government.

41:10This is why you can't cut these programs.

41:12I mean, the programs will be cut.

41:14Mathematics will do a fine job of cutting the programs, but you can't cut them politically.

41:18Unless you actually have a bald-faced, reality-based conversation with the American voter.

41:24But unfortunately, the American voter has been trained by the government to believe in the government for 12 years.

41:29So you would first have to dismantle the propaganda, and that takes a huge amount of work, certainly longer than

41:33your average election cycle.

41:34But unless you are willing to have an absolutely frank discussion with the neediness, dependence, and ignorance of the American

41:40voter, it's not going to change.

41:42And what politician is going to want to do that?

41:46Right, so in 1983, it was less than 30% of Americans lived in a home with one person receiving

41:52financial assistance.

41:53Now it's almost 50%.

41:54The number of Americans living in poverty rose to a new all-time record of almost 50 million.

42:00During 2011, 53% of all Americans with a bachelor's degree under the age of 25 were either unemployed or

42:06underemployed.

42:07And again, this counts those who got jobs in the public sector.

42:1085% of all college seniors plan on moving back in with their parents after graduation.

42:15Yay.

42:16Life never starts.

42:18Now the real inflation rates have been estimated at 10% per year.

42:22So not only is there a lot less money, but the money is worth a lot less in and of

42:25itself.

42:26So if you have a 10% inflation rate per year, the value of your money gets cut in half

42:30in only seven years.

42:31This is catastrophic.

42:33So on average, you could buy about 10 gallons of gas for an hour of work back in the mid

42:37-90s.

42:38Now the average hour of work will get you less than six gallons of gas.

42:43To get the same purchasing power that you got out of $20 back in 1970, you would have to have

42:47more than $116 today.

42:49Do you see how much the value of money has gone down because of all of this printing and all

42:55of this debt?

42:56And this money, all of this debt and all of this printing accumulates value in the upper classes at the

43:01expense of the lower classes and the unborn.

43:04The two most vulnerable sectors of society.

43:07The state is an illusion and a lion that lies to you and preys on the weakest.

43:13Says it only cares about the weakest, it will end up preying on the weakest.

43:16This, of course, is a central reason, as I mentioned before, why savings are so low.

43:20Government debt, i.e. your children's debt.

43:22But during 2012, the U.S. government had to roll over nearly $3 trillion of old debt.

43:27The U.S. national debt is now more than 22 times larger than it was when Jimmy Carter became president,

43:34where it was relatively peanuts.

43:36During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George

43:41Washington took office to the time that Bill Clinton took office.

43:44And please, let's not hear anything about how Bill Clinton's administration produced a surplus.

43:50That was all nonsense.

43:51Since that surplus was financial scum jiggery.

43:55And also, because there was a huge tech boom, taxes went up, but it was all a bubble.

43:59So I hope I won't get too much nonsense about that.

44:03If the federal government began right now to repay the U.S. national debt, not even counting interest,

44:09at a rate of $1 per second, it would take over 440,000 years to pay off the national debt.

44:15In other words, three showings of The Hobbit.

44:19If Bill Gates gave away every single penny of his fortune to the U.S. government, it would only cover

44:23the U.S. budget deficit, not the debt or the operating expenses, the budget deficit for about 15 days.

44:29It's never going to be repaid, people.

44:33The U.S. national debt is increasing by about $150 million every single hour.

44:38So I'd better hurry up or I'm going to be $160 million worth of podcasting.

44:43During fiscal year 2012, 62% of the federal budget was spent on entitlements.

44:47Entitlements.

44:49Can't cut the government without cutting entitlements.

44:51And this whole Republican plan of, well, if you don't increase taxes, you will cut government spending.

44:57It's all nonsense.

44:59In 1965, only about one of every 50 Americans was on Medicaid.

45:02Today, one out of every six Americans is on Medicaid.

45:05Can you believe it?

45:06A government program grew and went over budget.

45:08First time for everything, I guess.

45:11So this is, as Doug Casey's mentioned, this is the Greatest Depression.

45:15The condition of the U.S. economy today mirrors the economic situation prior to the Great Depression.

45:20So there's slow economic growth, massive deficits, high unemployment and foreclosures, and a shaky banking system.

45:27Real unemployment, not the magic monkey numbering that goes from the government's statisticians,

45:33real unemployment is at the same level it was during the Great Depression, which is at about 25%.

45:39But now, the drop in house prices and sales is actually worse than it was during the Great Depression.

45:44And the stock market has been dropping, and stocks are currently overvalued as much as 50%.

45:49And youth unemployment, of course, in the U.S. is now at the highest level that we've seen since World

45:53War II.

45:54Ah, but it's even worse in some ways.

45:58Because the Great Depression in the 1930s didn't have any of the structural, economic, and social problems,

46:03nor the massive unfunded liabilities and obligations.

46:05In 1929, just prior to the Great Depression, manufactured by the Federal Reserve,

46:12America was not $16 trillion in debt.

46:14It was not facing over $100 trillion in unfunded liabilities.

46:17So the amount of money that the government has committed to pay that it can't pay

46:21is $360,000 per citizen.

46:25Not per household, not per co-joined twins, per citizen.

46:30In 1929, most of the states were not bankrupt, insolvent, and dependent on government handouts to survive.

46:35One county, Cook County, which includes Chicago, Illinois, now owes over $108 billion in debt,

46:42the biggest part of it, in unfunded government employee pensions.

46:44That ball is still, right, that's that,

46:48that's that ball still rolling down towards Indiana Jones.

46:52And these unfunded liabilities of the future are far worse than our existing problems.

46:56In 1929, there was no, there were not 21 million government employees with bloated salaries,

47:01obscene pensions, and free health care for life, right?

47:04As I mentioned before, one out of five federal employees earn over $100,000.

47:08In 1929, there was no such thing as Social Security or Medicare or Medicaid.

47:13The federal government did not have these obligations written into law

47:18that threatened to consume the entire federal budget within a few years.

47:21So not only are we in the same place as right before the Great Depression of the 1930s,

47:26but we're in a far worse place because of all of the unfunded liabilities and social programs.

47:34So while Barack Obama has been president,

47:36the U.S. government has spent about $11 for every $7 of revenue that it has actually brought in.

47:43Over the past four years, welfare spending has increased by 32%.

47:48In inflation-adjusted dollars, in real dollars,

47:51spending on welfare programs has arisen by almost 400% over the past 30 years.

47:59How's poverty doing? Well, it's increasing.

48:01It's one of these weird things.

48:02I remember a long time ago, I had a conversation with a friend of mine.

48:05He said, you know, there are far fewer agricultural subsidies in country X rather than here.

48:09And he's like, well, here, of course, because of the agricultural subsidies,

48:12our food is cheaper because that's what seems to make sense.

48:15Well, we're spending more money on the poor.

48:17Therefore, we should be solving the problem of poverty.

48:19I mean, it's how it works when I go to buy bananas.

48:20If I spend more money on bananas, I get more bananas.

48:22But that's the free market.

48:23In the government, everything is reversed.

48:25Whenever you have put violence into the mix, coercion, monopoly, powers,

48:29everything you spend produces the opposite effect.

48:32It's a weird, backwards, upside-down universe, right?

48:36The moment you start punching your friends, they ain't so friendly, right?

48:40The moment you lock someone in the basement, they kind of want to get out.

48:43Whatever you do using violence produces the opposite.

48:46And so this has been predicted for many years by people far smarter than I.

48:50And so as you increase government spending on poverty,

48:53you will expect a concomitant increase in the amount of poverty.

48:57When you spend government money fighting drugs,

48:59you will expect an increase in the amount of drugs being bought and sold.

49:04When you spend government money to reduce the price of health care,

49:07you will expect the price of health care to rise.

49:08Violence produces the opposite.

49:13If the federal government used gap accounting standards,

49:18like publicly traded corporations are forced to do by the government, right?

49:21Remember, the government is all about setting up rules that exclude you.

49:23The real federal budget deficit for 2011 would have been $5 trillion

49:26instead of $1.3 trillion.

49:30Don't believe anything that they're telling you.

49:32Don't believe anything that they're telling you.

49:34It is far worse.

49:35But of course, those who are in the upper classes,

49:37in the media classes, in the political classes,

49:38they need you to pretend that there's a recovery,

49:42that the green shoots are not the fingers of zombies coming up to strangle you, right?

49:46They need you to believe this stuff so that you won't panic,

49:48to prop up the stock prices,

49:50to keep them going for another year or two in office, right?

49:52They're just, you know,

49:53this is the captain of the Titanic telling everyone at a 30-degree angle,

49:56everything's fine, don't worry about it.

49:57It's because he wants to get to the lifeboat.

49:59I don't believe anything that they're telling you.

50:03The United States already has more government debt per capita

50:06than Greece, Portugal, Italy, Ireland, or Spain, right?

50:08The pigs of Europe.

50:10The U.S. government is responsible for more than one-third

50:13of all the government debt in the entire world,

50:15what, with 5% of the population?

50:17The amount of U.S. government debt held by foreigners

50:19is about five times larger than it was a decade ago,

50:22and they're only holding onto that debt.

50:23They're only holding onto these bonds

50:24because the moment they start selling it,

50:26they'll have to record the resulting loss in value in their books,

50:29and they'll go into heavy deficits or even worse deficits.

50:33Between 2007 and 2010, U.S. GDP grew by 4.26%,

50:37but the U.S. national debt soared by 61%.

50:40And again, that GDP includes crap like healthcare.

50:44Healthcare is not, it's a cost, it's not wealth,

50:47and it includes government spending

50:50and government employees and so on,

50:52which is, anyway, I think I've made that point.

50:57So, let's start summing up.

50:58The national debt is now more than 37 times larger

51:00than it was when Richard Nixon took the U.S. off the gold standard.

51:03Ugh.

51:04Funny, you know, when you can print whatever money you want,

51:06you tend to print more money.

51:07The national debt is now more than 5,000 times larger

51:10than it was when the Federal Reserve was first created.

51:13Federal Reserve, I know everyone keeps emailing me,

51:15it says it's a private institution.

51:16It is not a private institution.

51:18It is not a private institution,

51:19because it has monopoly powers granted to it by the state.

51:23The national debt jumped more on the very first day

51:25of fiscal year 2013 than it did from 1776 to 1941 combined.

51:31Let me say that again.

51:32It's really, really important to understand this.

51:33The national debt jumped more on the very first day

51:35of fiscal year 2013, first day,

51:37than it did from 1776 to 1941 combined.

51:40What with a Civil War and World War I

51:43and the Great Depression and World War II.

51:46One day.

51:47These are end times.

51:50My calendar should have had an American flag on it.

51:54Historically, the interest rate on 10-year U.S. Treasuries

51:56has averaged 6.68%.

51:59If the average interest rate on the government debt

52:01rose to that level today,

52:02the government would have to spend more than a trillion dollars

52:04a year just on interest on the national debt.

52:07But they're crushing it.

52:08You don't have a free market

52:11when two fundamental things are controlled by the government.

52:13You have a fascist system.

52:15If the government controls interest rates,

52:17you don't have a free market.

52:19If the government controls money,

52:20you don't have a free market.

52:22Because money and interest are the two foundations,

52:24the two signals,

52:25the two most important elements of stability and predictability

52:27that are needed to have a free market.

52:29So once the government has those things,

52:31you know,

52:33a guy's heart beats for a second or two

52:34after his head gets cut off,

52:35but it doesn't mean he can win a marathon anytime soon.

52:39Boston University economist,

52:42Lawrence Kotlikoff,

52:42is warning that the U.S. government

52:44is facing a gigantic tsunami

52:46of unfunded liabilities in the coming years,

52:48that we are counting on our children

52:49and our grandchildren to pay.

52:50No, no, no,

52:51they won't be able to

52:51because they can't get jobs

52:52that live with their parents

52:53and they have a trillion dollars

52:55of student debt to pay off.

52:57Kotlikoff speaks of a fiscal gap

52:58which he defines as

52:59the present value difference

53:00between projected future spending and revenue.

53:03His calculations have led him to the conclusion

53:05that the federal government

53:06is facing a fiscal gap.

53:09Drum roll, please.

53:10Drum roll of death.

53:10Of 222 trillion dollars

53:12in the years ahead.

53:16The U.S. tax code

53:18is now more than 3.8 million words long.

53:20William Shakespeare's works

53:21are about 900,000 words long.

53:25The value of the U.S. dollar

53:26has declined by more than 96%

53:28since the Federal Reserve was first created.

53:30The money, of course,

53:31the difference goes into the pockets of the wealthy.

53:33Corporate profits

53:34as a percentage of GDP

53:36are at an all-time high.

53:37Wages as a percentage of GDP

53:39are near an all-time low.

53:41Of course, with government debt,

53:43with government impulation of interest rates,

53:45with government printing of fiat currency,

53:46you get this whole

53:49tumoresque,

53:49government-facing financial sector

53:53which is completely catastrophic

53:55for the economy as a whole.

53:56So you can just go

53:58screw around with the financial sector

54:00to get profits in the short run

54:02rather than investing in labor,

54:04capital, and so on.

54:06So the fact that corporate profits

54:08are going up

54:08and wages are going down

54:09is entirely the result

54:10of this fascistic control of the economy.

54:13You see this all the time

54:13when fascism takes over.

54:16Wealthiest 1% of all Americans

54:17own more wealth

54:18than the bottom 95% combined.

54:20This is aristocracy and serfdom

54:22right back to the Middle Ages

54:23but with an iPad.

54:25The wealthiest 400 families in the U.S.

54:27have about as much wealth

54:28as the bottom 50%

54:29of all Americans combined.

54:32The six heirs of Walmart founder Sam Walton

54:34have a net worth

54:35that is roughly equal

54:36to the bottom 30%

54:37of all Americans combined.

54:42So how are the American people doing?

54:44Well, you know,

54:45despite the gossamer delusion rainbow webs

54:48that the media is consistently

54:50trying to spin over

54:51your rational eyeballs,

54:53people are seeing through

54:54the smoke and mirrors

54:55which is why I say

54:55we know all this.

54:56We know all this deep down

54:57and I did a video years ago

55:00called There Will Be No Economic Recovery

55:01and again,

55:02being a libertarian,

55:03being an anarchist

55:04means always hating to be right

55:06but knowing that you're going to be right.

55:08More people now feel

55:08that the U.S. is in a recession

55:09than they did in October of 2008.

55:12Almost 70% of Americans

55:13think we are in a serious

55:14or moderate recession

55:15while 13% still believe

55:17it's a mild one

55:17but they all have government jobs,

55:19I'm sure.

55:2171% of all small business owners

55:23believe that the U.S. economy

55:25is still in a recession.

55:27Almost half of Americans

55:28believe that another

55:29Great Depression

55:29is likely within the next 12 months.

55:34And the government,

55:35I mean,

55:35a lot of the economic,

55:37quote,

55:37growth that we see

55:38is just being propped up

55:39by wild and massive government

55:41self-financing through the Fed,

55:42buying up a whole bunch of treasuries

55:43and, I mean,

55:44it's crazy.

55:45The government threw trillions

55:46at the giant banks,

55:47including foreign banks.

55:48The big banks

55:49used a lot of that money

55:50to speculate in commodities,

55:52including food and other items,

55:53which is now driving up

55:54the price of consumer necessities.

55:56Right,

55:57so the government

55:58gives all this money to the banks.

55:59The banks then use that money

56:00to speculate.

56:00They're certainly not going to

56:01lend it out to businesses

56:02who don't want to grow

56:02because of regime uncertainty.

56:04The banks will then end up

56:05speculating in commodities,

56:06just driving up those prices.

56:07And so you pay for the money

56:09or your children pay for it

56:10to go to the banks

56:11and then you also pay

56:12for the increased prices

56:13and whatever you buy

56:13because the banks

56:14are using your tax money

56:15to speculate in the market.

56:18Ah, but it is,

56:20there are some indications

56:21that we are hitting bottom.

56:24And that's good, right?

56:25This is such a terrible addiction

56:26to state power and coercion

56:28and lies and propaganda,

56:30manipulation and fantasy.

56:32But eventually all addicts,

56:33if they don't die,

56:34which is not going to happen,

56:36they hit bottom, right?

56:37They wake up with a hooker's panties

56:39next to the body of a wolf

56:41in a ditch in Vegas

56:42and they're like,

56:43whoa, maybe I should

56:43cut back on the blow.

56:46So only 23% of all Americans

56:48believe that the government

56:49is the solution to the problem.

56:51And again,

56:51most of those have government jobs,

56:52I'm sure.

56:5364% of all Americans

56:54believe that the government

56:55is the problem.

56:56So we're in the beginning stages

56:57of actually admitting

56:58that there is a problem

56:59and having some sense

56:59of what the problem is.

57:01Fantastic.

57:02Congress, as we mentioned,

57:03has a 5% approval rating,

57:04so that's good.

57:07So I know this has been a,

57:10hopefully not too tough

57:11presentation to watch,

57:12but this is all very,

57:13very important to know,

57:14to understand and to accept

57:15and to appreciate.

57:16These are the realities.

57:17You need to take care.

57:18You need to take care

57:19to know what the truth is

57:20about the world

57:20that you're living in.

57:21You need to take care

57:22to protect yourself

57:23from what is coming

57:24as best you can.

57:25Get some gold,

57:26get some food,

57:28get friendly with your neighbors,

57:29build up a community.

57:31You know,

57:31I think one of the major reasons

57:33that the Americans,

57:34the government wants

57:34to drive gun control

57:35is because they know

57:36that there's going to be

57:37a lot of problems

57:38when the money runs out

57:39and the money is going

57:40to run out.

57:41There is no way about it.

57:41There is no way

57:42to stop it politically.

57:43It is too close,

57:44too big,

57:45and the population

57:46is still too fantastical

57:48and unreal in their thinking

57:50to be able to reason with.

57:52So this is going to have

57:53to be one of those times

57:54where it is a hard bounce

57:55to a more real

57:57and more virtuous place.

57:58So thank you so much

57:59for watching and listening.

58:00If you would like

58:01to check out more

58:02of this show,

58:03I am the winner

58:04of the 2012

58:06Liberty Inspiration Award

58:07ahead of Ron Paul,

58:08Tom Woods,

58:09and Antonio Beeler.

58:10So thank you everyone

58:11who wrote in for that.

58:12Freedom in Radio

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58:39Of course,

58:39thank you so much

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58:49Thank you so much

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58:50Thank you so much

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