Food stamp usage hits a fresh record!....44.199 million people

Food stamp usage hits a fresh record! This chart says it all, 44.199 million people now look to the government to help feed themselves. This is an absolute tragedy. If the Federal Reserve would just allow market forces to work, we might of actually seen prices come down over the last few years, but the Fed is so determined to keep prices high. This food stamp participation chart mimics the Dow Jones Industrial Average instead.

   

44.199 Million, a fresh record!               Dow Jones since quantitative easing 1

 

Notice that food stamp use was already in an upward trend, but didn't begin to spike up until early 2009 when the Fed made deflation its number one enemy. FutureMoneyTrends.com equates food stamps to a modern day breadline, currently just over 14% of the population is in it. Since the recovery began, according to the government, food stamp use has risen 33% since June of 2009. In our opinion, this confirms what economist John Williams from ShadowStats.com has been predicting for years, an inflationary depression in the U.S.
The Housing Collapse Continues!

 
The Case-Shiller index surprised Wall St. this morning coming in at -0.23%, despite the Goldman Sachs expectation of +0.1%. According to the Case-Shiller press release, home prices are back to their mid 2002 levels. Home ownership is down to 1998 levels which is when the bubble began. In our opinion, this is actually good news, homes becoming more affordable is really the only way housing will one day have a chance at a real recovery. For more information about the housing market, please read our recent article 'Why Housing Needs To Crash.'

One very important observation to note is that housing is still going down despite the trillions that have been thrown at it. Low interest rates, bailouts, government loans, guarantees, and tax incentives could not overcome the natural economic science of supply and demand. After reviewing the Case-Shiller index, ZeroHedge.com put it best, "Keynes can now be put to bed."

Floods, Drought, Quantitative Easing, and FOOD!

2011 is shaping up to be a very difficult year for the world, especially everyone who doesn't have a budget tied to 'core inflation.' You know, the inflation rate the government cares about, the one that doesn't include food and energy. Not only do we have monetary inflation to deal with, double and even triple digit food prices. 2011 has seen some natural disasters that are going to put significant pressure on all of our non-core inflation grocery bills. The floods in the U.S. has decimated farmland, tornadoes have almost taken out entire towns, and frost in the west has also damaged crops in Southern California and Mexico. We also recently read in "China Daily" that the drought in China is now the worst they have seen in 50 years. The price of rice, cabbage, and other vegetables have soared in China due to the drought. With oil at $103, corn inventories at a 15 year low, and rising tensions in the middle east, food, as we predicted in our special food inflation report, is going to be one of the biggest issues for the entire world in 2011.
The Natives Are Getting Restless!

This past weekend, with a real unemployment rate closer to 20% and 50% of college grads not being able to find a job, the long Memorial Day weekend showed us a sneak peak into what happens when the 'youth' have nothing to do and nothing to lose.


Long Island Beach Riot - Long Beach police responded to an incident that involved hundreds of people spilling out onto the streets where fights erupted. According to police, it took about 3 hours to get the situation under control.

Charlotte - 70 people were arrested including 15 juveniles. During a fight that broke out, one person pulled out a gun and shot someone in the leg, this is just one of several fights that broke out during a Speed Street celebration. Some stores had their windows broken and robbed before police were able to get things under control. Charlotte police had to call in their Civil Emergency Unit.


Charlotte Beach - Fights involving about 50 youth broke out around 7pm Monday night. Those that were trying to enjoy the Rib Fest were allowed to stay after 20 cops showed up to get things under control. One police officer was treated for a minor injury of scratches to the face.

Nashville - Large crowds of people became so disruptive that 24 police officers were called to respond at a water theme park. Park managers were forced to close the park down after several fights broke out and crowds of people jumping into the park over a fence without paying. Here is the banger, the people jumping over the fence to get in without paying were not just kids. These were adults, some with children and strollers! This is the first time in the park's history that they had to close early.

Carson Beach - 1,000 youth broke out into an uncontrollable crowd, 5 law enforcement agencies had to respond to stop the violence. 

FutureMoneyTrends.com believes much of this tension is coming from economic hard times. We were shocked to read about people breaking into a theme park with strollers. We have to admit, when we first heard about the story we assumed it was probably high school kids, but according to the theme park managers, that wasn't the case. As food stamp use increases, unemployment rises, and measures are taken to reduce state and federal budget deficits, you can expect to hear more stories like this. Hopefully, we are still at least a year off from seeing the public union bosses getting involved in the type of coordinated civil unrest we have seen in Greece, Spain, and other countries dealing with massive deficits and bad economies.


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