Thursday, April 25, 2013

Guest Post: 24 Signs That Our Once Proud Cities Are Turning Into Poverty-Stricken Hellholes

What is happening to you America?  Once upon a time, the United States was a place where free enterprise thrived and the greatest cities that the world had ever seen sprouted up from coast to coast.  Good jobs were plentiful and a manufacturing boom helped fuel the rise of the largest and most vibrant middle class in the history of the planet.  Cities such as Detroit, Chicago, Milwaukee, Cleveland, Philadelphia and Baltimore were all teeming with economic activity and the rest of the globe looked on our economic miracle with a mixture of wonder and envy.  But now look at us.  Our once proud cities are being transformed into poverty-stricken hellholes.  Did you know that the city of Detroit once actually had the highest per-capita incomein the United States?  Looking at Detroit today, it is hard to imagine that it was once one of the most prosperous cities in the world.  In fact, as you will read about later in this article, tourists now travel to Detroit from all over the globe just to see the ruins of Detroit.  Sadly, the exact same thing that is happening to Detroit is happening to cities all over America.  Detroit is just ahead of the curve.  We are in the midst of a long-term economic collapse that is eating away at us like cancer, and things are going to get a lot worse than this.  So if you still live in a prosperous area of the country, don't laugh at what is happening to others.  What is happening to them will be coming to your area soon enough.
The following are 24 signs that our once proud cities are turning into poverty-stricken hellholes...
#1 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.
#2 At this point, approximately one-third of Detroit's 140 square miles is either vacant or derelict.
#3 Back during the housing bubble, an acre of land in downtown Phoenix, Arizona sold for about $90 a square foot.  Today, an acre in downtown Phoenix sells for about $9 a square foot.
#4 The city of Chicago is so strapped for cash that it is planning to close 54 public schools.  It is being estimated that Chicago schools will run a budget deficit of about a billion dollars in 2013.
#5 The city of Baltimore is already facing unfunded liabilities of more than 3.2 billion dollars, but the city government continues to pile up more debt as if it was going out of style.
#6 Today, the murder rate in East St. Louis is 17 times higher than the national average.
#7 According to USA Today, the "share of jobs located in or near a downtown declined in 91 of the nation's 100 largest metropolitan areas" between 2000 and 2010.
#8 Between December 2000 and December 2010, 48 percent of the manufacturing jobs in the state of Michigan were lost.
#9 There are more than 85,000 streetlights in Detroit, but thieves have stripped so much copper wiring out of the lights that more than half of them are not working.
#10 The unemployment rate in El Centro, California is 24.2 percent, and the unemployment rate in Yuma, Arizona is an astounding 25.6 percent.
#11 It has been estimated that there are more than 1,000 homeless people living in the massive network of flood tunnels under the city of Las Vegas.
#12 Violent crime in the city of Oakland increased by 23 percent during 2012.
#13 If you can believe it, more than 11,000 homes, cars and businesses were burglarized in Oakland during 2012.  That breaks down to approximately 33 burglaries a day.
#14 As I have written about previously, there are only about 200 police officers assigned to Chicago's Gang Enforcement Unit to handle the estimated 100,000 gang members living in the city.
#15 The number of murders in Chicago last year was roughly equivalent to the number of murders in the entire country of Japan during 2012.
#16 The murder rate in Flint, Michigan is higher than the murder rate in Baghdad.
#17 If New Orleans was considered to be a separate nation, it would have the 2nd highest murder rate on the entire planet.
#18 According to the Justice Department’s National Drug Intelligence Center,  Mexican drug cartels were actively operating in 50 different U.S. cities in 2006.  By 2010, that number had skyrocketed to 1,286.
#19 Back in 2007, the number of New York City residents on food stamps was about 1 million.  It is now being projected that the number of New York City residents on food stamps will pass the 2 million mark this summer.
#20 The number of homeless people sleeping in the homeless shelters of New York City has increased by a whopping 19 percent over the past year.
#21 As I noted yesterday, approximately one out of every three children in the United States currently lives in a home without a father.
#22 In Miami, 45 percent of the children are living in poverty.
#23 In Cleveland, more than 50 percent of the children are living in poverty.
#24 According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.
As I mentioned at the top of this article, the decline of the city of Detroit has become so famous that it has actually become a tourist attraction.  The following is a short excerpt from an article in the New York Times...
But in Detroit, the tours go on, in an unofficial capacity. One afternoon at the ruins of the 3.5-million-square-foot Packard Plant, I ran into a family from Paris. The daughter said she read about the building in Lonely Planet; her father had a camcorder hanging around his neck. Another time, while conducting my own tour for a guest, a group of German college students drove up. When queried as to the appeal of Detroit, one of them gleefully exclaimed, “I came to see the end of the world!”
For much more on the shocking decline of one of America's greatest cities, please see my previous article entitled "Bankrupt, Decaying And Nearly Dead: 24 Facts About The City Of Detroit That Will Shock You".
So are there any areas of the country that are still thriving?
Well, yes, there are a few.  In particular, those areas that are sitting on top of energy resources tend to be doing quite well for now.
One example is Texas.  In recent years people have been absolutely flocking to the state.  There are lots of energy jobs, the cost of living is low and there is no state income tax.
But overall, things are really tough out there.  Over the past decade America has lost millions of good jobs to offshoring, advancements in technology and a declining economy.
Last year, the United States had a trade deficit with the rest of the world of more than half a trillion dollars.  Overall, the U.S. has run a trade deficit with the rest of the world of more than 8 trillion dollars since 1975.
All of that money could have gone to U.S. businesses and U.S. workers.  In turn, taxes would have been paid on all of that income which could have helped keep our cities great.
But instead, our politicians have stood idly by as we have lost tens of thousands of businesses and millions of jobs.  If you can believe it, more than 56,000 manufacturing facilities have closed down permanently in the United States since 2001.
We have allowed our economic infrastructure to be absolutely gutted, and so we should not be surprised that our once proud cities are turning into poverty-stricken hellholes.
And this is just the beginning.  The next wave of the economic collapse is rapidly approaching, and when it strikes unemployment in this country will eventually rise to a level that is more than double what it is now.
When that happens, I wouldn't want to be anywhere near our rotting, decaying cities.
Railroad In Milwaukee

Jim Sinclair: Get Out of the System Now! Significant Deposits & Retirement Accounts Are in Banksters’ Cross-Hairs!

Legendary gold trader Jim Sinclair has turned his sights from warning investors to protect themselves with gold to urgently warning them to exit the financial system immediately, and take possession of physical gold held in your own possession.   Sinclair, who Friday warned investors that the US will be Cyprus’d and gold will reach $50,000/oz sent an email alert to subscribers Monday night warning that merely owning gold and storing is not enough, and that:
How you own and store becomes of critical and possibly terminal importance. Investors with significant deposits at in the system banks and brokers are in the dead center of harm’s way. Retirement accounts are also in the cross hairs of central planners.
Sinclair urges readers not to become a casualty of the central planners via the coming bail-in deposit confiscations, but to protect yourself by owning physical gold held outside of the financial system.
Sinclair’s full alert is below:


Jim,

As you probably already know, the Bail-In has been in preparation officially at least since 2010 with Basel III. It was to become official policy in 2013 and was implemented, according to plan and schedule, in Cyprus.

The rationale for the Bail-In is, of course, that the credit provider, not the taxpayer, is responsible for credit risk.

Why nobody was told of this 180° policy turnaround and why it is being denied even now is very telling, not only as to the character and intention of the policy makers, but also the nature of and risks inherent in the plan.

The Financial Stability Board (FSB) seems to have developed the Bail-In conceptually and has accompanied and monitored its institution and legal implementation around the world.

In case you are not already familiar with FSB publications, please permit me to direct you to the following documents, the final working paper on the Bail-In, “Key Attributes of Effective Resolution Regimes for Financial Institutions” from October 2011:
http://www.financialstabilityboard.org/publications/r_111104cc.pdf,
and the latest progress report from April 15th, 2013:
http://www.financialstabilityboard.org/publications/r_130419b.pdf

I found FSB publications surprisingly concise and easy to understand. They name the Bail-In explicitly and describe it in no uncertain terms. They leave no doubt that central planners consider that they are “managing” crisis.

Thank you for all your help. Reading your blog is a fascinating, if not enlightening experience for me. Should you consider the trouble of holding a Q&A session in Europe, I would most gratefully attend.

Yours sincerely,
CIGA Daniel

Dear Daniel,

I have had two messages to communicate to my extended family. The first was to invest in gold, not as a trader on margin, but rather as insurance against the ecopolitical trends that are moving to infinity.

My concept is that problems/solutions by central planners comes out of the blue usually on a Sunday so if you are not insured by a solvent insurer you life’s work or a great part of it is toast.

Now there is another message which is “Get out of the system.” The central planners know that the potential need for funds if met by QE would collapse the currency of the central bank doing the QE manufacturing. The yen is the present example, but much more so under the bankruptcy scenario. Insolvencies are therefore coming down on the head and in the pocket of the unsecured creditors (depositors) of the institutions which means you at banks and brokerage houses.

This means owning gold and storing is not enough. How you own and store becomes of critical and possibly terminal importance. Investors with significant deposits at in the system banks and brokers are in the dead center of harm’s way. Retirement accounts are also in the cross hairs of central planners.

The entire thesis of protection has become increasingly more difficult. The entire theory of gold insurance now depends on how and where. The concept of the gold ETF is completely wrong.

In theory you may have done everything that appeared correct up to now, and still find out you are a casualty of the central planners.

Respectfully,
Jim

Jim Grant: Fed Doubling Down on QE, Very Bullish For Gold

US Mint Suspends Sales Of Small Gold Coins – Premiums Rising

by GoldCore


Today’s AM fix was USD 1,424.50, EUR 1,095.52 and GBP 932.63 per ounce.
Yesterday’s AM fix was USD 1,417.25, EUR 1,091.70 and GBP 931.05 per ounce.

Cross Currency Table – (Bloomberg)

Gold fell $10.50 or 0.74% yesterday to $1,414.90/oz and silver lost 1.8%.
The U.S. Mint is suspending sales of one-tenth oz American Eagle gold coins. The Mint says that sales are suspended as inventories are depleted and need to be replenished.
Demand for one-tenth ounce gold coins is up 118% from a year earlier.

Gold in USD, 1 Year – (Bloomberg)
The Mint’s American Eagle Gold Bullion Coins are offered in four sizes: one ounce, one-half ounce, one-quarter ounce and one-tenth ounce.  The Mint confirmed that their sales on all sizes of coins have increased two fold compared to the same period in 2012.
The Mint is still offering other gold coins including 1 oz American Eagle coins, 0.5 oz coins and 0.25 oz coins.

Gold in Euros, 1 Year – (Bloomberg)

Premiums are rising on all gold and silver bullion coins and bars and there are delays developing for certain bullion products – especially silver coins and bars.

Gold in Brittish Pounds, 1 Year – (Bloomberg)

The recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.

GoldCore’s April Insight
In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.
In this edition of GoldCore Insight you will find out about:
• The Cyprus rubicon – depositors’ savings are fair game
• How energy will shape our future
• The importance of owning physical bullion

Ethos – Presented by Woody Harrelson

Presented by twice Oscar nominated actor and activist Woody Harrelson, this powerful new documentary blows the lid off our corrupt system. From criminal conflicts of interest in politics, to unregulated corporate power, to a news media in the hands of multi-national conglomerates, to a military industrial complex that effectively owns our government.
We cannot fix our system until we know how it works.
Ethos looks at the systemic issues that work against democracy, the environment, democracy, justice and our own personal liberty.
However, it is not all bad news. Ethos offers a solution. A simple but powerful way that you can have your voices heard as they have never been heard before. Watch the film, spread the word, change the world.

Gold “Being Lifted by Physical Bar Demand” But Silver “Relatively Weak”

London Gold Market Report
from Ben Traynor, BullionVault
Wednesday 24 April 2013, 07:45 EST

Gold “Being Lifted by Physical Bar Demand” But Silver “Relatively Weak”

THE U.S. DOLLAR gold price drifted back down towards $1420 per ounce Wednesday morning in London, around 1.3% up on the week so far, amid ongoing reports of strong demand for physical gold bullion.

“The bounce in price-sensitive physical demand, especially in the emerging world, is impressive and has lifted prices,” says HSBC Securities analyst Howard Wen.

Local reports from India, China and the Middle East said today that gold bar premiums remain at multi-year highs as private demand surges following last week’s price slump.

Several major bullion-bank analysts have cut their 2013 price forecasts since last week’s crash. Many, however, are now targeting prices close to current levels at $1425-1450 per ounce.

The US Mint meantime has suspended sales of its smallest American Eagle bullion gold coin, weighing one tenth of an ounce, Reuters reports Wednesday.

“While the one ounce gold bullion coins remain the most popular, demand for the one-tenth ounce coins has remained strong too, with year-to-date demand for these coins up over 118% compared to the same period last year,” says a statement issued to dealers Monday.

“Accordingly, the United States Mint has temporarily suspended sales of its one-tenth ounce gold bullion coins while inventories can be replenished.”

The Mint produced American Eagle bullion coins specifically for investment purposes, selling them to authorized purchasers such as coin dealers rather than direct to the public.

Yesterday saw gold exchange traded funds continue to reduce their bullion holdings, with ETFs tracked by Bloomberg seeing total outflows of 22.5 tonnes.

The world’s biggest gold ETF SPDR Gold Trust (ticker: GLD) accounted for 7.5 tonnes of this, taking its total holdings below 1100 tonnes for the first time since October 2009.

Silver meantime dropped back to $23 an ounce by lunchtime in London, a 1.2% drop on the week. Most other commodities were up on the day, as were most European stock markets, while US Treasuries were little-changed.

The gold-silver ratio, which measures the Dollar price of an ounce of gold divided by the price of an ounce of silver, has risen above 60 for the first time since September 2010.

“[Silver] has so far not been able to achieve any significant price recovery following last week’s slump – in contrast to gold,” says this morning’s commodities note from Commerzbank.

“The relative weakness of the silver price…is thus more likely attributable to weaker industrial demand, which accounts for more than 50% of fabrication demand.”

Over in Europe, economic confidence in Germany has fallen in April, according to the monthly IFO indices published Wednesday. Provisional purchasing managers’ index data released a day earlier meantime indicate German manufacturing has continued to contract this month, and at an accelerated rate, while its services sector has now also started to see worsening conditions.

“The fact that even in the most robust core [Eurozone] country, Germany, the surveys are disappointing lately should have implications for ECB policy,” says Gizem Kara, European economist at BNP Paribas in London, referring to the European Central Bank whose policymakers meet next week in Bratislava.

“The Eurozone economy is so weak and deflationary pressure remains such a force that the region has moved beyond the need for lower rates,” argues Steve Barrow, currency analyst at Standard Bank.

“In spite of thinking that [interest] rates will be cut [next week] we also believe that, whatever the ECB does with rates, it won’t be enough… perhaps the most controversial move we might expect is a cut in the Bank’s deposit rate, for this would take it into negative territory; something that most central banks have avoided.”

Barrow also suggests the ECB should consider quantitative easing measures as well as policies aimed at supplying more credit to small businesses.

Here in the UK, the Bank of England today extended its Funding for Lending scheme, which offers favorable borrowing rates to banks conditional on their lending to “small and medium-sized enterprises”, to January 2015.

In Italy meantime Enrico Letta, former deputy leader of the Democratic Party (PD), has been given a mandate to form a government by the country’s president Giorgio Napolitano, who days earlier became the first president to be re-elected by parliament.

The PD’s former leader Pier Luigi Bersani resigned last Friday. Italy has been without a government since the general elections two months ago.

Wednesday, April 24, 2013

America The Fallen: 24 Signs That Our Once Proud Cities Are Turning Into Poverty-Stricken Hellholes – The City of Detroit Was Once Had The Highest Per-Capita Income In The United States!!

by Michael
Hellholes - Photo by Lyzadanger
What is happening to you America?  Once upon a time, the United States was a place where free enterprise thrived and the greatest cities that the world had ever seen sprouted up from coast to coast.  Good jobs were plentiful and a manufacturing boom helped fuel the rise of the largest and most vibrant middle class in the history of the planet.  Cities such as Detroit, Chicago, Milwaukee, Cleveland, Philadelphia and Baltimore were all teeming with economic activity and the rest of the globe looked on our economic miracle with a mixture of wonder and envy.  But now look at us.  Our once proud cities are being transformed into poverty-stricken hellholes.  Did you know that the city of Detroit once actually had the highest per-capita income in the United States?  Looking at Detroit today, it is hard to imagine that it was once one of the most prosperous cities in the world.  In fact, as you will read about later in this article, tourists now travel to Detroit from all over the globe just to see the ruins of Detroit.  Sadly, the exact same thing that is happening to Detroit is happening to cities all over America.  Detroit is just ahead of the curve.  We are in the midst of a long-term economic collapse that is eating away at us like cancer, and things are going to get a lot worse than this.  So if you still live in a prosperous area of the country, don’t laugh at what is happening to others.  What is happening to them will be coming to your area soon enough.
The following are 24 signs that our once proud cities are turning into poverty-stricken hellholes…
#1 According to the New York Times, there are now approximately 70,000 abandoned buildings in Detroit.
#2 At this point, approximately one-third of Detroit’s 140 square miles is either vacant or derelict.
#3 Back during the housing bubble, an acre of land in downtown Phoenix, Arizona sold for about $90 a square foot.  Today, an acre in downtown Phoenix sells for about $9 a square foot.
#4 The city of Chicago is so strapped for cash that it is planning to close 54 public schools.  It is being estimated that Chicago schools will run a budget deficit of about a billion dollars in 2013.
#5 The city of Baltimore is already facing unfunded liabilities of more than 3.2 billion dollars, but the city government continues to pile up more debt as if it was going out of style.
#6 Today, the murder rate in East St. Louis is 17 times higher than the national average.
#7 According to USA Today, the “share of jobs located in or near a downtown declined in 91 of the nation’s 100 largest metropolitan areas” between 2000 and 2010.
#8 Between December 2000 and December 2010, 48 percent of the manufacturing jobs in the state of Michigan were lost.
#9 There are more than 85,000 streetlights in Detroit, but thieves have stripped so much copper wiring out of the lights that more than half of them are not working.
#10 The unemployment rate in El Centro, California is 24.2 percent, and the unemployment rate in Yuma, Arizona is an astounding 25.6 percent.
#11 It has been estimated that there are more than 1,000 homeless people living in the massive network of flood tunnels under the city of Las Vegas.
#12 Violent crime in the city of Oakland increased by 23 percent during 2012.
#13 If you can believe it, more than 11,000 homes, cars and businesses were burglarized in Oakland during 2012.  That breaks down to approximately 33 burglaries a day.
#14 As I have written about previously, there are only about 200 police officers assigned to Chicago’s Gang Enforcement Unit to handle the estimated 100,000 gang members living in the city.
#15 The number of murders in Chicago last year was roughly equivalent to the number of murders in the entire country of Japan during 2012.
#16 The murder rate in Flint, Michigan is higher than the murder rate in Baghdad.
#17 If New Orleans was considered to be a separate nation, it would have the 2nd highest murder rate on the entire planet.
#18 According to the Justice Department’s National Drug Intelligence Center,  Mexican drug cartels were actively operating in 50 different U.S. cities in 2006.  By 2010, that number had skyrocketed to 1,286.
#19 Back in 2007, the number of New York City residents on food stamps was about 1 million.  It is now being projected that the number of New York City residents on food stamps will pass the 2 million markthis summer.
#20 The number of homeless people sleeping in the homeless shelters of New York City has increased by a whopping 19 percent over the past year.
#21 As I noted yesterday, approximately one out of every three children in the United States currently lives in a home without a father.
#22 In Miami, 45 percent of the children are living in poverty.
#23 In Cleveland, more than 50 percent of the children are living in poverty.
#24 According to a recently released report, 60 percent of all children in the city of Detroit are living in poverty.
As I mentioned at the top of this article, the decline of the city of Detroit has become so famous that it has actually become a tourist attraction.  The following is a short excerpt from an article in the New York Times
But in Detroit, the tours go on, in an unofficial capacity. One afternoon at the ruins of the 3.5-million-square-foot Packard Plant, I ran into a family from Paris. The daughter said she read about the building in Lonely Planet; her father had a camcorder hanging around his neck. Another time, while conducting my own tour for a guest, a group of German college students drove up. When queried as to the appeal of Detroit, one of them gleefully exclaimed, “I came to see the end of the world!”
For much more on the shocking decline of one of America’s greatest cities, please see my previous article entitled “Bankrupt, Decaying And Nearly Dead: 24 Facts About The City Of Detroit That Will Shock You“.
So are there any areas of the country that are still thriving?
Well, yes, there are a few.  In particular, those areas that are sitting on top of energy resources tend to be doing quite well for now.
One example is Texas.  In recent years people have been absolutelyflocking to the state.  There are lots of energy jobs, the cost of living is low and there is no state income tax.
But overall, things are really tough out there.  Over the past decade America has lost millions of good jobs to offshoring, advancements in technology and a declining economy.
Last year, the United States had a trade deficit with the rest of the world of more than half a trillion dollars.  Overall, the U.S. has run a trade deficit with the rest of the world of more than 8 trillion dollars since 1975.
All of that money could have gone to U.S. businesses and U.S. workers.  In turn, taxes would have been paid on all of that income which could have helped keep our cities great.
But instead, our politicians have stood idly by as we have lost tens of thousands of businesses and millions of jobs.  If you can believe it, more than 56,000 manufacturing facilities have closed down permanently in the United States since 2001.
We have allowed our economic infrastructure to be absolutely gutted, and so we should not be surprised that our once proud cities are turning into poverty-stricken hellholes.
And this is just the beginning.  The next wave of the economic collapse is rapidly approaching, and when it strikes unemployment in this country will eventually rise to a level that is more than double what it is now.
When that happens, I wouldn’t want to be anywhere near our rotting, decaying cities.
Railroad In Milwaukee