Weekend Update with Jerry Robinson – August 15, 2010

By Jerry Robinson | Followthemoney.com

It appears that despite the “best” efforts of Washington, the U.S. economy is continuing its miserable collapse. The jobless rates are more than just mere numbers. They represent the agonizing pain of families who are in fear of losing their home to foreclosure and their creditworthiness to bankruptcy. In 2007, I declared that the bloated American empire was “bankrupt.” In 2008, I stood on platforms, in universities, behind pulpits, and in lecture halls and declared that the American empire was “bankrupt.” In 2009, I wrote a book entitled “Bankruptcy of our Nation: 12 Key Strategies for Protecting Your Finances in these Uncertain Times.” In that same year, I was interviewed on dozens of television and radio shows around the world. My message: The American empire is bankrupt.

Today, even in our current financial state, many are still living in an illusion of prosperity… just as they were 5 years ago. Oh sure, the magnitude of this economic crisis has given us a few new “arm-chair” economists. Many of them are filling our airwaves. And all of this newfound desire to study economics on the part of some is good UNLESS… it is rooted in their desire to prove one side of the political aisle wrong. The “blame game” is the ultimate “fool’s” game in a declining empire. Instead of seeking to place blame, those who are concerned about this economy (and especially those already unemployed) should be turning off their political talk radio and focusing instead on their own financial game plan.

The news headlines coming out this weekend are unfortunately no better than the news from last week. The merciless drop in U.S. employment levels has led to the death of the American dream for many families. Adding insult to injury, a new report was released this week that employees of the Federal government work less, have more job stability, get better benefits, and get paid more than employees in the private sector. I think we are long overdue for draconian spending cuts at the Federal level. Don’t you?

Tensions continue at the Federal Reserve as deflation-inflation fears worry many of the banking cartel’s top officials. Kansas City Fed Reserve President Thomas Hoenig publicly warned that the Fed is currently undertaking a “dangerous gamble” by keeping rates at near zero for so long, and must start raising rates or risk damaging the nascent U.S. recovery.

This weekend, President Obama refuses to back down on his ardent support for an Islamic Center at Ground Zero. With the Obama administration’s stunning decline over the last 12 months, I am expecting an “October surprise” to prevent a huge Republican victory in this November’s mid-term elections.Stay tuned to the Follow the Money Weekly Radio Show every Saturday for more of my analysis on this topic.

The New York Times ran an interesting piece on the shadow war yesterday entitled: Secret Assault on Terrorism Widens on Two Continents.

If you are looking to get more out of your dollar on your next international vacation, consider this list of the world’s least expensive cities of 2010.

For those of you who like bizarre news stories (like me) here’s an unusual story from England… a 13-year-old boy was hit by lightning at 13:13 (military time) on Friday the 13th. “It’s all a bit strange” the ambulance team leader told a local newspaper… I would say.

Finally, take a moment to pray for the more than twenty million people left homeless after Pakistan’s worst floods in decades. It all began in late July when unusually heavy monsoon rains swept across the country. Many have been left with no shelter, no food, and no clothes.

And when you think about Pakistan, take a moment to realize how blessed you are if you have a roof over your head, food in your belly, and people who care about you. Yeah, I know, our economy is going south and there is much to be done.  But in all of your doing, try not to forget how billions of people from around the world would love the opportunity to trade places with you.

About Jerry Robinson

Jerry Robinson is an economist, published author, columnist, international conference speaker, and the editor of the financial website, Followthemoney.com. In addition, Robinson hosts a weekly radio program entitled Follow the Money Weekly, a podcast dedicated to simply explaining our complex financial world.

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