How to Think Clearly

"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

If you want to fully understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analyses, you will need to learn how to think clearly if you already lack this vital skill.

For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.

The best way to begin clearing your mind is to move forward with this series of steps:

1. GET RID OF YOUR TV SET, AND ONLY USE STREAMING SERVICES SPARINGLY.

2. REFUSE TO USE YOUR PHONE TO TEXT.

3. DO NOT USE A "SMART (DUMB) PHONE" (or at least do not use your phone to browse the Internet unless absolutely necessary).

4. STAY AWAY FROM SOCIAL MEDIA (Facebook, Instagram, Whatsapp, Snap, Twitter, Tik Tok unless it is to spread links to this site). 

5. STAY OFF JEWTUBE.

6. AVOID ALL MEDIA (as much as possible).

The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.

You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after two sociologists who described it in a research publication. See here.

Many people today think they are virtual experts on every topic they place importance on. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets and bogus online sources. The more information these individuals obtain on these topics, the more qualified they feel they are to share their views with others without realizing the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth. Furthermore, online sources are even more dangerous for misinformation, especially due to the fact that search algorithms have been designed to create confirmation bias. 

A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are often politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements, and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests to interview based on the agendas they wish to fulfill with their advertisers rather than interviewing unbiased experts who might share different viewpoints than the host.

Once the audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media. 

Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV.  They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong. But they have developed confidence in speaking about these topics due to an inflated sense of expertise in topics for which they continuously demonstrate their incompetence.

One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.

We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.  From there, we recommend other classics from Greek philosophers. After all, ancient Greek philosophers like Plato and Socrates created critical thinking.   

If you can learn how to think like a philosopher, ideally one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick, or multi-level marketing (MLM) crowd.





STOP Being Taken

If you want to do well as an investor, you must first understand how various forces are seeking to deceive you. 

Most people understand that Wall Street is looking to take their money.

But do they really understand the means by which Wall Street achieves these objectives? 

Once you understand the various tricks and scams practiced by Wall Street you will be better able to avoid being taken. 

Perhaps an even greater threat to investors is the financial media.

The single most important thing investors must do if they aim to become successful is to stay clear of all media.

That includes social media and other online platforms with investment content such as YouTube and Facebook, which are one million times worse than the financial media.

The various resources found within this website address these two issues and much more. 

Remember, you can have access to the best investment research in the world. But without adequate judgment, you will not do well as an investor.

You must also understand how the Wall Street and financial media parasites operate in order to do well as an investor. 

It is important to understand how the Jewish mafia operates so that you can beat them at their own game.

The Jewish mafia runs both Wall Street and the media. This cabal also runs many other industries.

We devote a great deal of effort exposing the Jewish mafia in order to position investors with a higher success rate in achieving their investment goals.

Always remember the following quotes as they apply to the various charlatans positioned by the media as experts and business leaders.   

“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.” - King James Bible - Matthew 7:15

"It's easier to fool people than to convince them that they have been fooled." –Mark Twain

It's also very important to remember this FACT.  All Viewpoints Are Not Created Equal.

Just because something is published in print, online, or aired in broadcast media does not make it accurate. 

More often than not, the larger the audience, the more likely the content is either inaccurate or slanted. 

The next time you read something about economics or investments, you should ask the following question in order to determine the credibility of the source.

Is the source biased in any way?  

That is, does the source have any agendas which would provide some kind of benefit accounting for conclusions that were made? 

Most individuals who operate websites or blogs sell ads or merchandise of some kind. In particular, websites that sell precious metals are not credible sources of information because the views published on these sites are biased and cannot be relied upon.

The following question is one of the first things you should ask before trusting anyone who is positioned as an expert. 

Is the person truly credible?  

Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. 

Most individuals who have been provided with media exposure are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; those who buy advertisements. 

In the case of the financial genre, instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible.

It's much more important to carefully examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day.  Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record. 

Don't ever believe the claims made by the source or the host interviewing the source regarding their track record. 

Always verify their track record yourself. 

The above question requires only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.

We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.

There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis.

Mike has been a professional in the financial industry for nearly three decades. 

Alhough he publishes numerous articles and videos addressing the dark side of the industry, the core collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes

Also, the Image Library contains nearly 8,000 images, most of which are annotated.


At AVA Investment Analytics, we don't pump gold, silver, or equities because we are not promoters or marketers.

We actually expose precious metals pumpers, while revealing their motives, means, and methods.

We do not sell advertisements.

We actually go to great lengths to expose the ad-based content scam that's so pervasive in the world today. 

We do not receive any compensation from our content, other than from our investment research, which is not located on this website. 

We provide individual investors, financial advisers, analysts and fund managers with world-class research and unique insight.







Media Lies

If you listen to the media, most likely at minimum it's going to cost you hundreds of thousands of dollars over the course of your life time.

The deceit, lies, and useless guidance from the financial media is certainly a large contributor of these losses.

But a good deal of lost wealth comes in the form of excessive consumerism which the media encourages and even imposes upon its audience.

You aren’t going to know that you’re being brainwashed, or that you have lost $1 million or $2 million over your life time due to the media.

But I can guarantee you that with rare exception this will become the reality for those who are naïve enough to waste time on media.

It gets worse.

By listening to the media you are likely to also suffer ill health effects through excessive consumption of prescription drugs, and/or as a result of watching ridiculous medical shows, all of which are supportive of the medical-industrial complex.

And if you seek out the so-called "alternative media" as a means by which to escape the toxic nature of the "mainstream" media, you might make the mistake of relying on con men like Kevin Trudeau, Alex Jones, Joe Rogan, and many others.

This could be a deadly decision. As bad as the so-called "mainstream" media is, the so-called "alternative media" is even worse.

There are countless con artists spread throughout the media who operate in the same manner. They pretend to be on your side as they "expose" the "evil" government and corporations.

Their aim is to scare you into buying their alternatives.  This addresses the nutritional supplements industry which has become a huge scam.  

 

Why Does the Media Air Liars and Con Men?

The goal of the media is NOT to serve its audience because the audience does NOT pay its bills.

The goal of the media is to please its sponsors, or the companies that spend huge dollars buying advertisements.

And in order for companies to justify these expenses, they need the media to represent their cause.

The media does this by airing idiots and con artists who mislead and confuse the audience.

By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused.

The financial media sets up the audience so that they become needy after having lost large amounts of money listening to their "experts." Desperate for professional help, the audience contacts Wall Street brokerage firms, mutual funds, insurance companies, and precious metals dealers that are aired on financial networks. This is why these firms pay big money for adverting slots in the financial media.

We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the "mainstream media." Do not be fooled. There is no such thing as the "alternative media."  It really all the same. 

In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed.

And the same powers that control the distribution of the so-called "mainstream media" also control distribution of the so-called "alternative media."

The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media."  

The tactic is a very common one used by con men.

The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties.

In reality, both parties are essentially the same when it comes to issues that matter most (e.g. trade policy and healthcare) because all U.S. politicians are controlled by corporate America. Anyone who tells you anything different simply isn't thinking straight.

On this site, we expose the lies and the liars in the media.

We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.  




 

Why Stathis Was Banned

To date, we know of no one who has established a more accurate track record in the investment markets since 2006 than Mike Stathis.  

Yet, the financial media wants nothing to do with Stathis.  

This has been the case from day one when he was black-balled by the publishing industry after having written his landmark 2006 book, America's Financial Apocalypse

From that point on, he was black-balled throughout all so-called mainstream media and then even the so-called alternative media. 

With very rare exception, you aren't even going to hear him on the radio or anywhere else being interviewed.  

Ask yourself why. 

You aren't going to see him mentioned on any websites either, unless its by people whom he has exposed.  

You aren't likely to ever read or hear of his remarkable investment research track record anywhere, unless you read about it on this website.

You should be wondering why this might be.

Some of you already know the answer.

The media banned Mike Stathis because the trick used by the media is to promote cons and clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street, gold dealers, etc. 

Because the media is run by the Jewish mafia and because most Jews practice a severe form of tribalism, the media will only promote Jews and gentiles who represent Jewish businesses.  

And as for radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so ignorant that they assume those who are plastered throughout media are credible.

And because they haven't heard Stathis anywhere in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.  And they are too lazy to go through his work because they realize they are too stupid to understand the accuracy and relevance of his research. 

Top investment professionals who know about Mike Stathis' track record have a much different view of him. But they cannot say so in public because Stathis is now considered a "controversial" figure due to his stance on the Jewish mafia. 

Most people are in it for themselves. Thus, they only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads.

This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists.

We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies, and fraud.

We have been banned by virtually every media platform in the U.S and every website prior to writing about the Jewish mafia.

Mike Stathis was banned by all media early on because he exposed the realities of the United States.

The Jewish mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street, corporate America, free trade, U.S. healthcare, and much more.

Stathis has also been banned by alternative media because he exposed the truth about gold and silver. 

We have even been banned from use of email marketing providers as a way to cripple our abilities to expand our reach. 

You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it.

BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.

Because Mr. Stathis exposed so much in his 2006 book America's Financial Apocalypse, he was banned.

He was banned for writing about the following topics in detail: political correctness, illegal immigration, affirmative action, as well as the economic realities behind America's disastrous healthcare system, the destructive impact of free trade, and many other topics. He also exposed Wall Street fraud and the mortgage derivatives scam that would end of catalyzing the worst global crisis in history. 

It's critical to note that the widespread ban on Mr. Stathis began well before he mentioned the Jewish mafia or even Jewish control of any kind.

It was in fact his ban that led him to realize precisely what was going on.

We only began discussing the role of the criminality of the Jewish mafia by late-2009, three years AFTER we had been black-listed by the media.

Therefore, no one can say that our criticism of the Jewish mafia led to Mike being black-listed (not that it would even be acceptable).  

If you dare to expose Jewish control or anything under Jewish control, you will be black-balled by all media so the masses will never hear the truth.

Just remember this. Mike does not have to do what he is doing. 

Instead, he could do what everyone else does and focus on making money. 

He has already sacrificed a huge fortune to speak the truth hoping to help people steer clear of fraudsters and to educate people as to the realities in order to prevent the complete enslavement of world citizenry. 

  

Rules to Remember

Rule #1: Those With Significant Exposure Are NOT on Your Side.  

No one who has significant exposure should ever be trusted. Such individuals should be assumed to be gatekeepers until proven otherwise.  I have never found an exception to this rule.

Understand that those responsible for permitting or even facilitating exposure have given exposure to specific individuals for a very good reason. And that reason does not serve your best interests. 

In short, I have significant empirical evidence to conclude that everyone who has a significant amount of exposure has been bought off (in some way) by those seeking to distort reality and control the masses. This is not a difficult concept to grasp. It's propaganda 101.   

Rule #2: Con Artists Like to Form Syndicates.

Before the Internet was created, con artists were largely on their own. Once the Internet was released to the civilian population, con artists realized that digital connectivity could amplify their reach, and thus the effectiveness of their mind control tactics. This meant digital connectivity could amplify the money con artists extract from their victims by forming alliances with other con artists.

Teaming up with con artists leads to a significantly greater volume of content and distraction, such that victims of these con artists are more likely to remain trapped within the web of deceit, as well as being more convinced that their favorite con artist is legit. 

Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps." This is a very important rule to remember because con men almost always belong to the same network.  You will see the same con artists interviewing each other,referencing each other, (e.g. a hat tip) on the same blog rolls, attending the same conferences, mentioning their con artist peers, and so forth.

Rule #3: There's NO Free Lunch.  

Whenever something is marketed as being "free" you can bet the item or service is either useless or else the ultimate price you'll pay will be much greater than if you had paid money for it in the beginning. 

You should always seek to establish a monetary relationship with all vendors because this establishes a financial link between you the customer and the vendor. Therefore, the vendor will tend to serve and protect your best interests because you pay his bills. 

Those who use the goods and services from vendors who offer their products for free will treated not as customers, but as products, because these vendors will exploit users who are obtaining  their products for free in order to generate income.   

Use of free emails, free social media, free content is all complete garbage designed to obtain your data and sell it to digital marketing firms.

From there you will be brainwashed with cleverly designed ads. You will be monitored and your identity wil eventually be stolen. 

Fraudsters often pitch the "free" line in order to lure greedy people who think they can get something for free. 

Perhaps now you understand why the system of globalized trade was named "free trade." 

As you might appreciate, free trade has been a complete disaster and scam designed to enrich the wealthy at the expense of the poor. 

There are too many examples of goods and services positioned as being free, when in reality, the customers get screwed.  

Rule #4: Beware of Manipulation Using Word Games. 

When manipulators want to get the masses to side with their propaganda and ditch more legitimate alternatives they often select psychologically relevant labels to indicate positive or negative impressions.

For instance, the financial parasites running America's medical-industrial complex have designated the term "socialized medicine" to replace the original, more accurate term, "universal healthcare." This play on words has been done to sway the masses from so much as even investigating universal healthcare, because the criminals want to keep defrauding people with their so-called "market-based" healthcare scam, which has accounted for the number one cause of personal bankruptcies in the USA for many years.  

When Wall Street wanted to convince the American people to go along with NAFTA, they used the term "free trade" to describe the current system of trade which has devastated the U.S. labor force.

In reality, free trade is unfair trade and only benefits the wealthy and large corporations.

There are many examples on this play on words such as the "sharing economy" and so on.  

Rule #5: Whenever Someone Promotes Something that Offers to Empower You, It's Usually a Scam.

This applies to the life coaches, self-help nonsense, libertarian pitches, FIRE movement, and so on.

If it sounds too good to be true, it usually is.

Unlike what the corporate fascists claim, we DO need government.

And no, you can NOT become financially independent and retire early unless you sell this con game to suckers.  

Rule #6: "Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain

Following this rule is forcing the small and dewindling group of intelligent people left in the world to cease interacting with people. 

You might need to get accustomed to being alone if you're intelligent and would rather not waste your time arguing with someone who is so ignorant, that they have no chance to realize what's really going in this world. 

It would seem that Dunning-Kruger has engulfed much of the population, especially in the West.     

Start Here

Poverty in America: The Big Picture

In America’s Financial Apocalypse, a book that has been banned by the media, I discussed the many flaws in the calculation of poverty levels within the U.S. First, let’s have a look at some excerpts from the book.

“In August 2004, the U.S. Census Bureau reported a poverty rate of 12.7 percent. This was the rate used by government economists and politicians to determine expenditures for numerous government programs.
 
However, the Census Bureau added that this rate could be as high as 19.4 percent or as low as 8.3 percent depending on how income and basic living expenses were treated.
 
I for one feel that the real poverty rate in America is much closer to the 19.4 percent figure (and most likely even higher) due to the unwillingness of Washington to update its criteria for poverty levels.
 
And over the next two decades, as the majority of America’s estimated 76 million baby boomers are expected to retire in poverty, the real poverty numbers could easily surpass 30 percent (more on this in Chapters Eight and Nine). According to the U.S. Census’ conservative formula for poverty, in 2004 there were:
 
• 37.0 million Americans in poverty (12.7%), up from 35.9 million (12.5%) in 2003
 
• 7.9 million American families in poverty (10.2%), up from 7.6 million in 2003
 
As defined by the Office of Management and Budget and updated for inflation using the Consumer Price Index, the average poverty threshold for a family of four in 2004 was an income of $19,307; for a family of three, $15,067; for a family of two, $12,334; and for unrelated individuals, $9,645.
 
How is it that record oil prices have not allowed for upward adjustments in these levels? Keep in mind that inflation of basic necessities such as food, energy, and healthcare affects the poor by a much larger factor than wealthier Americans because they have less to spend on other items. Thus, inflation of basic necessities becomes a tax on low- and middle-income Americans.”
 
 
Now, let’s examine the current data. The poverty threshold level for 2009 was less than $21,954 for a family of four in 2009 and $10,956 for an individual.
 
According to recent data released by the U.S. Census, the nation's poverty rate jumped to 14.3%, representing 43.6 million Americans in 2009. This is the highest level of poverty seen in the U.S. since 1994.
 
 
 
 
The poverty rate increased for all racial groups except Asians. Only five states had poverty rates of less than 10 percent in 2009 -- Alaska, Connecticut, Maryland, New Hampshire and New Jersey.
 
The poverty rate for children under age 18 grew faster in 2009 than it did for the population as a whole, increasing 1.7 percentage points to 20.7%.
 
 
 
 
The South remained the poorest area of the country, with a poverty rate of 15.7%. The South also experienced the largest increase in poverty, moving up 1.4 percentage points from 14.3% in 2008.
 
According to the data from the Census, the poorest state in the U.S. is Mississippi, with a 21.9% rate of poverty.
 
Notably, Arizona (19.6%) and New Mexico (19.3%) also recorded a much higher poverty rate than the national average.
 
 
 
 
As bleak as this data looks, the fact is that it represents gross understatements of the real picture, as I discussed in America’s Financial Apocalypse.
 
When the media reported the latest poverty data from the Census, an analyst from the Brookings Institution made a key statement.
 
“…the state comparisons may not be very fair. They make no provisions for differences in living costs. I think we need to revise the poverty measure to take into account regional cost differences.”
 
I made this statement myself four years ago in America’s Financial Apocalypse. Let’s have a look.
 
“Consider that it’s almost impossible for a single person to survive today in America with an annual income of $10,000; roughly the national minimum wage. The only exception might be if they live in the Deep South. And if they are surviving, they certainly don’t have funds needed to advance their employment options.
 
In many regions of America such as California, New York, and New Jersey, $10,000 per year won’t even cover your government-assisted housing, food and utilities. And you certainly won’t have anything left over for incidentals, such as laundry, clothes, transportation, etc.
 
It seems odd that the poverty level is not adjusted for the living expenses of each city or state since this would account for regions with higher living expenses. As it stands today, the government’s formula for poverty is only applicable to states with the lowest cost of living such as West Virginia, Mississippi, Arkansas, and Alabama. Yet, even in these states, poverty levels are quite high according to Washington’s conservative criteria. How many Americans living in larger, more costly metropolitan areas are making more than the government’s poverty level, yet are not counted in its official numbers?
 
In most areas of the United States, it takes roughly double the federal poverty level to provide a family with basic necessities such as food and housing, according to the National Center for Children in Poverty. Based on the government’s conservative data, nearly 40 million Americans are literally on the verge of being homeless. But if appropriate adjustments for basic living costs were made, the poverty level could easy be 80 percent higher than reported levels. Even with all the tricks government agencies use to hide the truth, they still can’t dispute that poverty is on the rise.”
 
Source: America’s Financial Apocalypse, 2006.
 
Based on estimates by several groups, the most recently reported poverty rate did not show as large of an increase as expected because of the decrease in poverty seen by elderly Americans who entered into Social Security and Medicare. Moreover, the extension of employment benefits by seven times and the economic stimulus package which saved millions of public jobs also keep poverty numbers from soaring. 
 
However, as warned in AFA, Social Security cost of living adjustments (COLA) have not kept up with inflation for decades. We are now seeing a worsening of this situation, as Obama has halted the COLA for Social Security through 2011. This accounts for one reason why Washington has continued to understate the real inflation data.
 
 
 
 
The income used to calculate poverty status includes earnings, workman's compensation, unemployment insurance, Social Security, veteran's payments, pensions, interest and dividends, and just about every other source of cash. However, as mentioned in America’s Financial Apocalypse, the calculations do not include capital gains. Non-cash benefits, such as food stamps or subsidized rents, also do not count as income.
 
According to the Brookings Institution, poverty is expected to continue to reach a high of about 16% over the next decade, adding another 10 million Americans. If proper variables were factored into poverty calculations, we would surely see in excess of 25% poverty in the U.S. over this period.
 
What does all of this mean?
 
As I warned in AFA, combined with massive losses to retirement plans and pensions, further cuts to Social Security and Medicare promise to send the majority of baby boomers into poverty.
 
Things will be even worse for younger Americans, who will remain jobless or be forced to work in a job that pays poverty wages. Unlike the elderly, they won’t have Social Security income or Medicare. This is going to be a huge problem for many years to come.
 
The U.S. Census also recently reported income data for various cities and states. As you might have expected, Mississippi also lead the nation in getting hit with the largest declines in median income. Mississippi residents earned the lowest incomes in the U.S., with incomes falling to $36,646 in 2009 from $37,749 in 2008. In 2009, the median income in the U.S. was $50,221.
 
According to the Census, 29 states reported lower median incomes than the U.S. median, while 20 states and the District of Columbia reported higher median incomes than the overall median.
 
Real median household income decreased over the year in 34 states, and was relatively the same in 15 states and the District of Columbia.
 
Maryland had the highest median income in the country in 2009, at $69,272. Take a guess why. BLOATED FEDERAL GOVERNMENT WAGES.
 
The Census also indexed income inequality, looking for how income is distributed within a state.

 

 

 

 

Washington, D.C. had the largest income disparity in 2009, along with the territory of Puerto Rico. New York had the biggest income gap of the states followed by Connecticut.
 
Alaska had the smallest income inequality, followed by Utah.
 
Finally, I continue with additional excerpts from America’s Financial Apocalypse, which puts America’s wealth and income disparity into perspective.
 
“Washington likes to remind critics that Americans enjoy the highest living standard in the world. As evidence of this, government “experts” discuss statistics such as GDP growth, wealth, income and wage growth, and other economic indicators without defining exactly what they are referring to (see Chapter Eleven for a detailed discussion).
 
In fact, when one examines the data, it’s clear that only America’s wealthiest 5 percent have benefited from the credit-driven economic expansion that began over two decades ago.
 
Shortly after 1980, real incomes of the top 5 percent of Americans soared over the next two decades from about 3.5 times to 5.5 times the median income (in 2001 dollars).”
 
 
 
 
“In contrast, real incomes for the bottom 80 percent of Americans barely moved during this period, while inflation for basic necessities (such as healthcare, energy, and higher education) soared. These increased expenses have further reduced the disposable income of the majority of Americans. In contrast, the post-war economic expansion was much more evenly distributed across all wage earners. This balanced expansion continued until the high inflation period of the early ‘80s.
 
 
 
 
Even more disturbing is that America’s wealth disparity is much greater, with the top 5 percent having accounted for a much larger percentage of wealth growth from the decade since 1979 than the bottom 95 percent.
 
Ten years later, the results are even worse, with the wealthiest 5 percent of Americans having on average 23 times the wealth of the remaining 95 percent. The problem is that households with low net worth have very few assets and will therefore be affected more by price increases in basic necessities.
 
In addition, they will be less able to weather unexpected difficulties, such as medical emergencies or a job loss. Accordingly, Edward Wolff has estimated that 40 percent of households headed by individuals aged 25 to 54 could exhaust all of their financial assets (excluding their home) within 1 week if they lost their income.
 
While America’s wealthiest 5 percent have received a much greater percentage of the nation’s wealth for over two decades, the remaining 95 percent have benefited very little. When we compare top and bottom income and wealth levels to other nations, America begins to resemble the land of opportunity for only a select few.
 
 
 
 
America’s poorest 10 percent has less purchasing power than almost every other developed nation. Meanwhile, its wealthiest 20 percent own almost 80 percent of all household wealth (figure 4-5). And compared to other developed nations, America has the largest income gap between the top 10 percent of income earners and the median income, as well as the largest gap between median income and the lowest 10 percent of income earners.”

 

 

 

 

 

“Finally, the U.S. government does much less to help raise the living standards of its impoverished citizens compared to other developed nations.
 
What was once a nation of fairness, opportunity and moderation has become a nation of favoritism and extremes. Some view America’s economic strength to be confirmed by the annual growth of new millionaires. However, this has come at the expense of shifting more Americans into poverty or near poverty.
 
Two decades ago, most Americans began to use credit to purchase goods and services that they couldn’t afford. And during the 1990s, this greed became more intense. Today we see the effects of three decades of economic decline, as many now use their credit cards to pay for basic necessities.
 
To illustrate these consumption trends, consider the American staple; the house. Three decades ago, the average American family consisted of about 4.5 individuals with an average home size of about 2200 square feet.
 
Today, with about 3.6 family members, the average family now has a home that’s about 3500 square feet. That represents an increase in size (per individual) of 100 percent. Instead of having fewer bedrooms, the average home now has more. As well, today’s average new home has many additional rooms that didn’t exist in the past such as a study, an entertainment room, Jacuzzi room, and others.
 
These consumption trends have extended to the number and size of autos, televisions, and other goods purchased by the average American family.
 
Americans need to ask themselves if they really need to consume so much, and if so, whether they’re producing enough to justify such consumption. Data shows that they are consuming much more than they are producing. And this is gradually causing them to mortgage their nation off to foreigners.”
 

 

 

 

“Similar to many third-world nations that have an inadequate manufacturing infrastructure, America has reverted to a service economy. It’s becoming a nation of the ‘haves and have nots,’ similar to third-world societies. The ‘have-nots’ continue to reach for what they cannot afford through credit spending. In some cases, we already see a change in the way Americans are using credit; from greed to need—paying for necessities with their credit cards.”
 
Source: America’s Financial Apocalypse, 2006.
 
Now let’s have a look at the latest income data from the U.S. Census.
 
In 2009 Americans earning more than $100,000, or 20% of the U.S. population received 50.3% of the nation’s total income. In contrast, the bottom 40% of Americans received a mere 12% of the nation’s income. Americans considered below the government’s official poverty line (14.3%) received only 3.4% of the income.
 
For the nation’s top 20% of income earners, this represents an increase from a decade ago in 1999, when the top 20% received 49.4% of the income. Meanwhile, the nation’s poorest were slightly better off a decade ago, when the bottom 40% received 12.5% of the income.
 
This is remarkable considering the fact that higher-income earners were likely to have lost a significant amount of their wealth (and income due to dividends and capital gains) from stock market losses, whereas the nation’s lowest income earners were much less likely to have suffered losses in the stock market.
 
In 2008, the wealthiest 10% of U.S. households received 48.2% of the nation’s total income, up from 34.6% in 1980. Thus, much of this increase was due to the growth of incomes in the top 10% of income earners. Specifically, the top 1% received a much higher percentage in gains, helping to raise the 20% group. Between 1980 and 2008, the share of the nation’s total income going to the top 1% rose from 10% to 21%. This places the U.S. as one of the most unequal nations in the world.
 
I have discussed the fact that real median wages have not increased since 1999 ever since writing about this trend in AFA. The latest data by the Census confirms this trend is alive and well. According to the Census, the inflation-adjusted income of the median U.S. household fell 4.8% between 2000 and 2009.
 
What does all of this mean? 
 
As I discussed in AFA and have continued to emphasize since that time, America’s middle-class is becoming extinct.
 
Meanwhile, its impoverished are becoming more poor. The main reason for this trend is due to the excessive inflation seen in basic goods and services, such as food, energy, healthcare and education, all while Washington partners with corporate America to send good jobs overseas in order to enrich the wealthy elite.  
 
 

 

 

 

 

Good jobs, millions of them have been exported overseas by corporations only concerned with locating the source of cheapest labor. This has a dual effect on the wealth and income gap seen in the U.S. because the wealthiest Americans tend to have largest investments in U.S. corporations.
 
As Ford Motor, Dell Computers, IBM, and every other U.S. corporation sends jobs to China, India, and other nations, shareholders of these companies make more money because labor costs have been reduced.
 
The simple fact of the matter is every time you see someone driving an expensive car or pulling up to a large house, you should by no means envy this person. Most likely, this individual is either in some way responsible for the job you once had before it was shipped off to India, or else this wealthy individual has profited from your lost job. This is the new never-mentioned reality of America.
 
 
 
 
 
 
 
 
 
 
 
The charts on this page serve to further nail the point into the ground.

 

 

 

 

 

  

I want you to keep in mind the perpetrators of this economic devastation. The list is extensive and includes thousands of individuals; Wall Street executives who committed securities fraud and have still not been indicted, the Federal Reserve under the leadership of Alan Greenspan, which caused the global bubble, and virtually every politician that has held office in Washington for several years. Summers, Rubin, Weill, Emanuel, Gramm, Clinton, Gore, Bush, Cheney, Rumsfeld, Mozilo, Fuld, Dimon, Blankstein, Lewis, Raines, Syron, Greenberg and Cayne; these are just a few of the architects of America’s destruction.
 
If these individuals are not brought to justice, I can guarantee you the exploitation, pain and suffering will continue indefinitely as a repeating cycle until you have been completely enslaved. Some argue that this has already occurred.
 
Already, the evidence is clear that the U.S. is run not by a democracy, but by a fascist government that partners with corporate America and the wealthy elite. Freedom of speech is nothing more than a myth. I know this first hand. Protection of property rights in the U.S. has faded over the years. And the so-called free market system so proudly touted by Washington has been MIA from the U.S. economy for many years.
 
 
 
 
Today in America, instead of real competition, we see an endemic trend of industry collusion.  Sure, as a U.S. consumer you have choice. You can select Wal-Mart or Target, AT&T or Verizon, Home Depot or Lowes, Walgreens or CVS. That’s not indicative of a free market economy.
 
Over the past couple decades, America has regressed into a nation where industry collusion is the law of the land. Industry giants continue to buy out smaller competitors, then raise prices once competition has faded. In other industries, we see a pseudo-free market system whereby the existence of several competitors gives the appearance of competition. In reality, what you have is collusion. This trend is most evident in energy, healthcare and media industries.  
 
This system of collusion really took off during the Reagan years, which initiated a wave or deregulation. Destructive trade policies added to the storm.
 
The next time you see or read of the media’s hand-selected financial experts, you should ask yourself why they refuse to bring up these issues.
 
The answer should be clear by now. 
 
They do not care about the truth and they do not care about your well-being. All they care about is lining their pockets. This is why they have been selected by the media. In the end, they support the agendas of the media which is beholden to the interests of Wall Street.
 
Remember, if you are not getting the full truth, you are being lied to.
 
 
 
 
 
DO YOUR PART AND HELP SPREAD THE TRUTH
 
 
Background reading material:
 
(1)     Payback is a BITCH /article_details-149.html
(2)     It’s Time to Face the Facts /article_details-154.html
(3)     Madoff in Perspective /article_details-68.html
(4)     Stay Clear of Traditional Assets /article_details-74.html
(5)     How Washington Manipulates Economic Data
/article_details-133.html
(6)     The Plain Truth /article_details-73.html
(7)     Bailouts Disguised as Buyouts /article_details-86.html
(8)     America’s Financial Apocalypse: It’s not Going Away Anytime Soon
(9)     The Audacity of Change /article_details-267.html
(10) Death by Media /article_details-338.html
(11) Why No One Won a Pulitzer for Financial Reporting 
/article_details-333.html
(12) American Fools /article_details-365.html
(13) Ford as a Crystal Ball for America /article_details-80.html
(14) WaMu: One Yea Later and Still No Indictments
/article_details-391.html
(15) Another Victim of America’s Ponzi Scheme Economy
/article_details-294.html
(16) The Healthcare Insurance Mafia Strikes Again
/article_details-591.html
(17) Fraud Mastered by the Criminal Banking Industry
/article_details-464.html
(18) The Realities of America’s Free Market Economy
/article_details-438.html
(19) Signs of a Depression /article_details-431.html
(20)  America. What Went Wrong? /article_details-444.html
  
 

 

Print article

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.

These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

This publication (written, audio and video) represents the commentary and/or criticisms from Mike Stathis or other individuals affiliated with Mike Stathis or AVA Investment Analytics (referred to hereafter as the “author”). Therefore, the commentary and/or criticisms only serve as an opinion and therefore should not be taken to be factual representations, regardless of what might be stated in these commentaries/criticisms. There is always a possibility that the author has made one or more unintentional errors, misspoke, misinterpreted information, and/or excluded information which might have altered the commentary and/or criticisms. Hence, you are advised to conduct your own independent investigations so that you can form your own conclusions. We encourage the public to contact us if we have made any errors in statements or assumptions. We also encourage the public to contact us if we have left out relevant information which might alter our conclusions. We cannot promise a response, but we will consider all valid information.


0:00
0:00