"Imminent Danger" Pastor David Lankford

Violence in Spain as country unveils cuts

Spanish PM Mariano Rajoy has announced a sales tax rise as part of austerity measures aimed at cutting the public budget by 65bn euros (£51bn; $80bn).

VAT will go up almost immediately from 18% to 21% and there will be a 3.5bn euro cut in local authority budgets.

EU officials welcomed the changes, made in return for a eurozone bank bailout.

Thousands of people are protesting in Madrid against government measures, and police have fired rubber bullets to quell the demonstrations.

The people have joined a march by miners campaigning against major cuts to industry subsidies.'Circumstances change'

The prime minister, interrupted several times by opposition MPs, told parliament that the changes he was announcing had to be adopted without delay.

Eurozone finance ministers have agreed to provide 30bn euros (£24bn) for Spain's troubled banks by the end of the month and to give Madrid an extra year - until 2014 - to hit its budget targets.

Mr Rajoy acknowledged that the VAT rise contradicted a campaign pledge made before his Popular Party came to power. As recently as January he said there was no plan to raise the tax.

"I said I would lower taxes and I am actually raising them. Circumstances change and I have to adapt to them."

The package of measures would cut the budget by 65bn euros over two-and-a-half years, he said.

"The excesses of the past are being paid for right now," he said, adding that Spaniards had never before experienced such a recession.

Without a cut in Spain's budget deficit, public services would be put at risk, he said. Savings of 3.5bn euros will be made to government administration budgets, with local authorities banned from offering services they cannot afford and the number of councillors reduced by 30% in some areas.

BBC

Pentagon drops $9.2 billion in a week

Scenes Of Despair in North America

Sometimes it can be easy to forget that behind all of the horrible economic numbers that we hear about are millions of real people that have had their lives absolutely devastated by this economy.  Elderly couples are being brutally evicted from their homes, young families are living in their cars, terminally ill people are dying because they cannot afford medication that they need and millions of parents can't sleep at night as they wrestle with anxiety over not being able to provide for their children.  Often those that lose their jobs or their homes discover that people start looking at them very differently and that there is very little compassion out there these days.  As you will read about below, one major U.S. bank is even kicking an elderly woman with stage 4 breast cancer out of her home because she cannot make her full mortgage payment each month.  When the next major global financial catastrophe happens, we are going to see a whole lot more economic despair.  Will society respond to that crisis by becoming warmer and more compassionate, or will the world around us become even more cold and even more cruel?  As bad as things are right now, it truly is frightening to think about what the world is going to look like after the next major economic downturn.

Many of the stories that you are about to read are truly heartbreaking.  Unfortunately, they represent thousands upon thousands of other stories that never make it into the news....

Foreclosing On An Elderly Woman With Stage 4 Breast Cancer

Wells Fargo is threatening to evict an elderly woman with stage 4 breast cancer named Cindi Davis from her family home in North Carolina....

“They want us to make a house payment of almost $900 a month,” Cindi told the station of their lender, Wells Fargo bank. “We can afford maybe half that. I pay $1,100 a month in prescription medications.”

The couple says they have tried to work with Wells Fargo, even sending notes from Cindi’s doctors explaining her condition, but haven’t been able to come to a workable solution.

“They’re just going to put us out and it’s like, we are willing to pay what we can pay, but it’s not enough,” Cindi said.

Her cancer is in her lungs, lymph nodes and on her liver and she’s gone through a double mastectomy and multiple chemotherapy treatments, but Cindi has handled her disease like a fighter.

Cindi and her husband say that if they are evicted they may have to move in to their pickup truck.

Can you imagine living your last days in a truck as you try desperately to battle stage 4 breast cancer?

Crushing Poverty In Greece

As I have written about before, Greece is essentially experiencing a full-blown economic depression at this point.

There is a severe shortage of medicine in Greece right now, and many doctors are essentially volunteers at this point because so few people can actually afford to pay their bills.  The following description of the chaos in the Greek healthcare system comes from a recent Natural News article....

The economic situation in Greece is only continuing to worsen, as reports indicate that hospitals and care centers throughout the nation are running completely out of medicines, and many healthcare workers are now voluntarily providing care services without pay.

Strapped with spiraling debt, the Greek healthcare, which is government-run, has had to receive gobs of international financial aid just to keep operating with some semblance of normalcy. There has also been plenty of IOUs issued, and desperate patients quietly forking over cash "gifts" to doctors to receive treatments. All in all, the healthcare situation is in utter chaos, save for those that have sacrificed their own time, often free of charge, just to help those in need.

But it is not just the healthcare system that is deeply troubled.

Economic conditions have gotten so bad in Greece that some parents are actually abandoning their children in the streets according to the Daily Mail....

Children are being abandoned on Greece's streets by their poverty-stricken families who cannot afford to look after them any more.

Youngsters are being dumped by their parents who are struggling to make ends meet in what is fast becoming the most tragic human consequence of the Euro crisis.

Could you ever do that to your children?

Sadly, it looks like things are going to get even worse in Greece.  It is being projected that the unemployment rate in Greece will reach 30 percent by the end of the year.

Economic Shutdown In Portugal

Greece is not the only European nation that is going through an economic nightmare right now.  The truth is that much of southern Europe is virtually shutting down right now.

Simon Black has described what he witnessed during a recent visit to Porto - the second largest city in Portugal....

Excluding the city’s still-bustling tourist areas, it’s very quiet around the city.

Street-level retail shops and restaurants are either devoid of customers or have been vacated. On many blocks I’ve seen more “for lease” signs than operating businesses.

Officially, the unemployment rate is 15.2% in Portugal, and the economy will contract 3% this year… yet the clear lack of economic activity suggests the real figures are much greater.

Without doubt, reality has set in. Locals have capitulated ‘hope’ that the good times will magically re-appear and have adjusted their habits accordingly.

American Families Living In Their Cars

In some areas of the United States you would never even know that an economic crisis is happening, but in other areas things are clearly falling apart very rapidly.  There is a very serious shortage of decent jobs in most parts of the country, and we are seeing clear signs of societal breakdown in many of our major cities.

During the last recession, millions of Americans lost their jobs.  Because a lot of them did not have much money saved up, many of those unemployed Americans also quickly lost their homes.

In the end, some of them ended up living in their vehicles.

And living in a car can be absolute hell.  The following is from an ABC News report....

Three children -- one suffering second-degree burns -- were taken into protective custody Monday after they were discovered living with their parents in a "filthy" car in a Walmart parking lot.

Police were called to the parking lot Monday morning in Mount Dora, Fla., where they found the family of five living in a 1987 Cadillac Coupe de Ville full of clothes and garbage. Police told the Orlando Sentinel that days-old chicken bones were strewn about the car, along with a spoiled carton of milk and a bottle of tequila.

Other families try to make the best of it that they can.  The following is one touching example from a recent 60 Minutes report....

This is the home of the Metzger family. Arielle, 15. Her brother Austin, 13. Their mother died when they were very young. Their dad, Tom, is a carpenter.  And, he's been looking for work ever since Florida's construction industry collapsed. When foreclosure took their house, he bought the truck on Craigslist with his last thousand dollars. Tom's a little camera shy - thought we ought to talk to the kids - and it didn't take long to see why.

Pelley: How long have you been living in this truck?

Arielle Metzger: About five months.

Pelley: What's that like?

Arielle Metzger: It's an adventure.

Austin Metzger: That's how we see it.

Pelley: When kids at school ask you where you live, what do you tell 'em?

Austin Metzger: When they see the truck they ask me if I live in it, and when I hesitate they kinda realize. And they say they won't tell anybody.

Arielle Metzger: Yeah it's not really that much an embarrassment. I mean, it's only life. You do what you need to do, right?

Could you imagine being 13 years old or 15 years old and living in a truck?

Unfortunately, during the next major economic downturn a whole lot more families are going to end up living like this.

Desperately Hoping For Rain

Yesterday I wrote about how corn crops are dying all over the United States right now.

For most Americans, this will just mean higher prices at the grocery store.

But for corn farmers, a lack of rain can be absolutely devastating.  The following are some recent comments from farmers about this crippling drought on agweb.com....

I am a small farmer, but my crops in Wayne County, Ill., are the worst I have had sine 1952-53. Corn will be lucky to make 10 bu. and beans are going downhill. It’s been over 100 degrees for 11 straight days. Bad crop.

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Dryland corn is done! Some people in denial need to walk in field. Later corn tasseled and pollinating with no silks! No rain in seven days or low humidity 90 degrees and warmer by weekend. Yield range for corn on our farms...0 to 0 bpa. Soybeans...if it rains which is a big if may have some hope, not holding my breath!!

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This is my 50th year of grain farming, so I think that I can say that I've seen it all. This is worse than 1988-Much worse for corn. Beans could still be fair if it starts to rain soon. Sat.-Sun. rains totaled only 1/4 inch.

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This is worse than 1983 and 1988. Corn yield will be 30 to 40% of last year's yield. The jury is still out on the beans. $10 corn is likely, because there will be so little of it relative to demand. Very sad...

You can see some incredible pictures of the drought in the middle part of the country right here.

When the economy falls to pieces, the politicians and the big banks get all the air time, but it is average hard working people that feel the most pain.

As the economy gets a lot worse (and it will) there is going to be a huge need for more love and compassion.  The government is not going to be able "to save" everyone, and even now way too many people are falling through the cracks in the "safety net".

Instead of looking down on the homeless and the unemployed, don't be afraid to give them a helping hand up.

You never know, you might be the one in need of some assistance someday.

Economic Collapse

German Delay of EU Bailout Scheme Could Roil Markets

German Finance Minister Wolfgang Schaeuble told the country's top court on Tuesday that any significant delay in approving the European Union's permanent bailout fund could fuel financial market turbulence.

The Constitutional Court has begun a hearing into whether the EU bailout scheme and budget rules are compatible with German law.

"A considerable postponement of (the European Stability Mechanism bailout fund) which was foreseen for July this year could cause considerable further uncertainty on markets beyond Germany and a considerable loss of trust in the euro zone's ability to make necessary decisions in an appropriate timeframe," Schaeuble said.

He added: "Doubts in the constitutional possibility or the readiness of Germany to stem dangers for the financial stability of the euro zone could lead to the current crisis symptoms being exacerbated considerably. Some member states of the euro zone would end up having further big problems financing themselves, which could raise questions over the stability of the euro zone as a whole."

Schaeuble was addressing a hearing of the court which is examining complaints lodged by academics, lawmakers and ordinary citizens against the ESM and new budget rules which they say undermine German democracy.

"In politics, unusual situations and crises often require unusual measures," the head of the Constitutional Court, Andreas Vosskuhle, said at the start of the hearing.

German central bank chief Jens Weidmann is also expected to address the hearing as well as plaintiffs including academics, rebels from Angela Merkel's own coalition and the hardline Left, and members of the public.

But despite pressure on Germany to complete its ratification of the ESM, which is already delayed and cannot come into effect without the biggest economy in the euro zone, Vosskuhle said the court would not give a ruling on Tuesday, but would weigh up whether to delay the laws until it has made its decision.

The government argues that these tools for tackling the debt crisis were given legitimacy by parliament's approval in June.




CNBC

Russia Sending Warships on Maneuvers Near Syria

MOSCOW — Russia said on Tuesday that it had dispatched a flotilla of 11 warships to the eastern Mediterranean, some of which would dock in Syria. It would be the largest display of Russian military power in the region since the Syrian conflict began almost 17 months ago. Nearly half of the ships were capable of carrying hundreds of marines.

The announcement appeared intended to punctuate Russia’s effort to position itself as an increasingly decisive broker in resolving the antigovernment uprising in Syria, Russia’s last ally in the Middle East and home to Tartus, its only foreign military base outside the former Soviet Union. The announcement also came a day after Russia said it was halting new shipments of weapons to the Syrian military until the conflict settled down.

Russia has occasionally sent naval vessels on maneuvers in the eastern Mediterranean, and it dispatched an aircraft-carrying battleship, the Admiral Kuznetsov, there for maneuvers with a few other vessels from December 2011 to February 2012. There were rumors in recent weeks that the Russians planned to deploy another naval force near Syria.

But the unusually large size of the force announced on Tuesday was considered a message, not just to the region but also to the United States and other nations supporting the rebels now trying to depose Syria’s president, Bashar al-Assad.

Tartus consists of little more than a floating refueling station and some small barracks. But any strengthened Russian presence there could forestall Western military intervention in Syria.

The Russian announcement got a muted response in Washington. “Russia maintains a naval supply and maintenance base in the Syrian port of Tartus,” said Tommy Vietor, a spokesman for the National Security Council. “We currently have no reason to believe this move is anything out of the ordinary, but we refer you to the Russian government for more details.”

The announcement came as a delegation of Syrian opposition figures was visiting Moscow to gauge if Russia would accept a political transition in Syria that excludes Mr. Assad. It also coincided with a flurry of diplomacy by Kofi Annan, the special Syria envoy from the United Nations and the Arab League, who said Mr. Assad had suggested a new approach for salvaging Mr. Annan’s sidelined peace plan during their meeting on Monday in Damascus.

While the Kremlin has repeatedly opposed foreign military intervention in Syria, Russian military officials have hinted at a possible role in Syria for their naval power. The ships have been presented as a means either to evacuate Russian citizens or to secure the fueling station at Tartus.

A statement by the Defense Ministry said ships had embarked from ports of three fleets: those of the Northern, the Baltic Sea and the Black Sea, and would meet for training exercises in the Mediterranean and Black Seas. Taking part, the statement said, would be two Black Sea Fleet landing craft that can carry marines: the Nikolai Filchenkov and the Tsezar Kunikov.

NY Times

Future Money Trends interviews Chris Duane